By Tom Aylott, Reporter, Trustnet, 8 June 2023:
Dividend growth is an appealing attribute that those investing in trusts for income often look out for, but Trustnet found that seeking dividend growth alone can be littered with irregularities.
However, the AIC’s 19 Dividend Heroes have increased their pay-outs for a minimum of 20 years, providing investors with the consistent growth they desire.
Using research from QuotedData, we look at the Dividend Heroes that have increased their pay-outs to shareholders the most over the past decade.
All of them upped their dividend annually, but only four – Caledonia, Global Smaller Companies, BlackRock Smaller Companies and Alliance Trust – increased pay-outs by more than 100% over the past decade.
Of those, Caledonia was “the true standout”, according to David Johnson, analyst at QuotedData. It grew its dividend by 404% over the period at an average annual growth rate of 48%, which is “far in excess” of its peers.
Johnson credited this strong growth to the trust’s high allocation to private equity, with two-thirds (66%) of the portfolio held in unlisted companies and private equity funds.
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