Three Elite Rated Investment Trusts named AIC Dividend Heroes
Three Elite Rated Investment Trusts have been named ‘Dividend Heroes*’ by the Association of Investment Companies (AIC).
The City of London Investment Trust is one of just three investment trusts to have increased its dividend for 50 consecutive years. A further 17 trusts make up the full list of dividend heroes, having increased theirs for 20 years or more.
Elite Rated F&C Global Smaller Companies and Elite Rated Scottish Mortgage Investment Trust were also named Dividend Heroes, having increased their dividends for the past 46 years and 33 years respectively.
In a separate list of ‘next generation dividend heros’ made up of investment trusts with between 10 and 19 years of consecutive dividend rises, Elite Rated Murray International and Schroder Oriental Income made an appearance.
Job Curtis, manager, City of London Investment Trust, said: “City of London’s record of growing its dividend every year for 50 years has been achieved both by investing in good companies and also through the investment trust structure. In the good years for dividends, we add to our revenue reserves which we are then able to use in more difficult periods. Indeed, in 7 of the 25 years during my period as fund manager, we have dipped into revenue reserves to help grow the dividend.
“In our view, the dividend yield from UK equities remains attractive compared with the main alternatives and dividend growth has been augmented by the fall in the value of sterling over the last nine months.”
*The Dividend Heroes list is correct as at 13th March 2017
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions.Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice.Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.
