Rates are starting to come down on cash savings accounts driving income-hungry individuals back into equities and bonds in search of better yields at a time when tariffs and volatile geopolitics are expected to keep inflation high..
Shares has consistently championed the unique advantage investment trusts have when it comes to paying regular and progressive dividends..
WHY DIVIDEND HEROES DESERVE YOUR ATTENTION
Annabel Brodie-Smith, communications director of the AIC, says: ‘The dividend hero investment trusts offer income seekers a consistently-rising income, with 10 dividend hero investment trusts increasing their dividends for more than half a century. Of course, dividends are never guaranteed but these track records demonstrate their durability.’ ..
At the time of writing, 20 trusts qualify for dividend hero status, with City of London (CTY), Bankers (BNKR), Alliance Witan (ALW) and the Cayzer family-controlled Caledonia Investments (CLDN) sporting 58 consecutive years of dividend hikes apiece..
CALEDONIA JOINS THE CLUB
In contrast, the newest entrant to the 58-year club, Caledonia, trades on a wide 30%-plus NAV discount which likely reflects the self-managed trust’s significant exposure to private capital besides public companies and funds..
The biggest of the four by total assets is Alliance Witan, which boasts the second-longest dividend growth track record among investment trusts. ‘With a distributable reserve of £3.7 billion, including a £55.6 million revenue reserve (as at 31 December 2024), there appears little reason to doubt the board’s ability to maintain this progressive dividend policy,’ notes QuotedData.
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