INVESTMENT TRUSTS
23 May 2019 | SHARES | 27ƚŚĞŝƌρϮŶĚLJĞĂƌŝŶĂƌŽǁŽĨ
increasing dividend payments to
shareholders.
This means these three trusts
started paying their shareholders
higher dividends in the same
year that England won the
World Cup, and they’ve not
stopped since.
Caledonia Investments made
ŝƚĂρϭͲLJĞĂƌƌƵŶŝŶϮϬϭΘ͕ǁŚŝůĞ
ƚŚĞƌĞĂƌĞŚĂůĨĂĚŽnjĞŶŽƚŚĞƌƐ
closing in on their big 50.
RECENT DIVIDEND GROWTH
Last year BMO Global Smaller
Companies (BGSC) hiked its
ĂŶŶƵĂůƉĂLJŽƵƚďLJŶĞĂƌůLJϭΘй͕
ĨƌŽŵϭϮ͘ϮρƉƚŽϭκ͘κƉƉĞƌƐŚĂƌĞ͕
ƚŚĞďŝŐŐĞƐƚŝŶĐƌĞĂƐĞŝŶϮϬϭΘŽĨĂůů
the dividend heroes.
Investment trusts Witan,
Brunner (BUT) and Temple Bar
(TMPL)ƉŽƐƚĞĚĚŽƵďůĞͲĚŝŐŝƚ
increases to their dividends,
ƚŽϮϯ͘ρƉ͕ϭΘ͘ϭρƉĂŶĚκς͘ϳϮƉ
ƌĞƐƉĞĐƟǀĞůLJ͘
ƵƚŶŽƚĂůůŝŶĐƌĞĂƐĞƐǁĞƌĞƐŽ
ŝŵƉƌĞƐƐŝǀĞ͘dŚŽƐĞĨƌŽŵƌŝƟƐŚ
& American Investment Trust
(BAF) and Murray Income
Trust (MUT)ǁĞƌĞƉĂƌƟĐƵůĂƌůLJ
ĚŝƐŵĂů͕ĨĂŝůŝŶŐƚŽďĞĂƚϮϬϭΘ͛Ɛ
ďĞŶŝŐŶϮйŝŶŇĂƟŽŶƌĂƚĞĂƚϭ͘ϭςй
ĂŶĚϭ͘ρϯй͕ƌĞƐƉĞĐƟǀĞůLJ͘
/ŶĨĂĐƚ͕DƵƌƌĂLJ/ŶĐŽŵĞŚĂƐ
ŶŽǁĨĂŝůĞĚƚŽďĞĂƚŝŶŇĂƟŽŶǁŝƚŚ
ŝƚƐĚŝǀŝĚĞŶĚŝŶĐƌĞĂƐĞŝŶĞĂĐŚŽĨ
the past three years, unique on
the dividend heroes list.
zŽƵŚĂǀĞƚŽŐŽďĂĐŬƚŽϮϬϭϯ
ƚŽĮŶĚŝƚƐůĂƐƚƟŵĞƚŚĞƚƌƵƐƚ
raised its income payout by
ŵŽƌĞƚŚĂŶϯй͘zĞƐ͕DƵƌƌĂLJŚĂƐ
ďĞĞŶŝŶĐƌĞĂƐŝŶŐƉĂLJŽƵƚƐĨŽƌκρ
years, yet evidently, not always
ŵĞĂŶŝŶŐĨƵůůLJƐŽ͘There are caveats, such as
income yield. Murray Income
yields 4% based on the latest
share price and historical payout.
ǀĞŶŚŝŐŚĞƌŝƐĂρ͘ϭйLJŝĞůĚŽŶ
ŽīĞƌĨƌŽŵƚŚĞ^ŝŵŽŶ'ĞƌŐĞůͲƌƵŶ
Merchants Trust. Its dividend
grew by 2.5% last year.
'ĂŝŶŝŶŐĚŝǀŝĚĞŶĚŚĞƌŽ
ƐƚĂƚƵƐƵŶĚŽƵďƚĞĚůLJďƵLJƐŚĂƌĚͲ
ĞĂƌŶĞĚĐƌĞĚŝďŝůŝƚLJǁŝƚŚŝŶĐŽŵĞͲ
seeking investors – kudos that
investment trust managers
ǁŝůůŶŽƚŐŝǀĞƵƉůŝŐŚƚůLJ͘Ƶƚ
investors need to be aware
that retaining that status could
ŝŶŇƵĞŶĐĞĚŝǀŝĚĞŶĚƉŽůŝĐLJŝŶƚŚĞ
ĨƵƚƵƌĞŝŶǁĂLJƐƚŚĂƚLJŽƵŵĂLJ
not want.
dŚŝƐĐŽƵůĚŵĞĂŶƚŚĂƚŝŶǀĞƐƟŶŐ10 year average
dividend growth Yield
Alliance Trust 5.7% ϭ͘Θй
Bankers 6.0% 2.2%
BMO Capital & Income ϯ͘Ϯй ϯ͘κй
BMO Global Smaller Companies ϭϭ͘Θй ϭ͘ϭй
ƌŝƟƐŚΘŵĞƌŝĐĂŶ 2.8% ϭϳ͘εй
Brunner 4.5% Ϯ͘ϯй
Caledonia 5.8% ϭ͘εй
City of London κ͘ϯй κ͘ϯй
F&C Investment Trust 5.6% ϭ͘ςй
Invesco Income Growth ϯ͘Ϭй κ͘ϭй
JPMorgan Claverhouse 5.4% ϯ͘εй
Merchants ϭ͘κй 5.2%
Murray Income Ϯ͘ϭй 4.0%
Schroder Income Growth ϯ͘ϭй κ͘ϭй
^ĐŽƫƐŚŵĞƌŝĐĂŶ 2.7% ϯ͘Ϭй
^ĐŽƫƐŚ/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ ε͘Ϭй 2.7%
^ĐŽƫƐŚDŽƌƚŐĂŐĞ κ͘ϭй 0.6%
Temple Bar ϯ͘ςй ϯ͘ςй
Value and Income 4.5% κ͘ϯй
Witan 8.8% 2.2%INVESTMENT TRUST DIVIDEND HEROES
Source: AIC *Yield based on 2018 dividends