Alliance Trust resets its dividend after review – Alliance Trust (ATST) has concluded its review of the level and funding of its dividend, as announced in its last interim report. As a result, the board believes that an increased, but still sustainable, level of dividend will benefit existing shareholders and enhance the attractiveness of ATST’s shares.
The third interim dividend for 2021 has been reset at an increased level of 5.825p while the fourth interim dividend for 2021 is expected to be declared at the same level. The total dividend for 2021 is expected to be 19.054p, an increase of 32.5% on the 2020 dividend. From the reset level, the board expects to continue to extend its track record of increasing ordinary dividends year-on-year for 2022 and beyond.
Commenting on the announcement, Gregor Stewart, chairman of Alliance Trust PLC, said: ‘Shareholder feedback has indicated that there is support for a higher dividend, as long as it is sustainable and affordable. The expected recovery in the income from the portfolio and flexibility afforded by our extensive and recently enhanced distributable reserves means that an increased level is affordable and that our track record of annual dividend increases can be sustained. We have therefore decided to reset the dividend to a more attractive level.
‘Combined with strong investment performance, we believe resetting our dividend will reinforce Alliance Trust’s position as an attractive core global equity investment, providing shareholders with a real return through a combination of capital growth and a rising dividend.’
ATST : Alliance Trust resets its dividend after review