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Two investment trusts join the AIC dividend heroes

12 March 2024

BlackRock Smaller Companies and Henderson Smaller Companies have increased their dividends for 20 consecutive years.

By Jean-Baptiste Andrieux,

Reporter, Trustnet

The Association of Investment Companies (AIC) has added BlackRock Smaller Companies and Henderson Smaller Companies to its dividend heroes list.

This label rewards investment trusts that have increased their annual dividends for at least 20 years in a row.

With the additions of the two IT UK Smaller Companies constituents, there are now 20 dividend heroes.

Annabel Brodie-Smith, communications director of the AIC, said: “There are an impressive 20 dividend hero investment trusts in total that have increased their dividends every year for more than 20 years.

“Investment trusts have strong track records of dividend growth because they can hold back up to 15% of the income they receive each year. This allows them to hold more income in reserve when times are good to pay out in leaner years, providing a smoother flow of dividends to investors.

“Whilst dividends are never guaranteed, investment trusts’ dividend track records demonstrate their durability.”

Half of the dividend heroes have a track record of raising their payouts for 50 or more consecutive years.

Murray Income and Scottish American are joining the half-century club this year, after 50 uninterrupted annual increases in dividend payments.

However, City of London Investment Trust, Bankers Investment Trust and Alliance Trust remain at the top of the table, as they have all grown their payouts for 57 consecutive years.

Source: AIC

Brodie-Smith concluded: “Despite a tricky few years for the dividend heroes, 10 investment trusts now have at least half a century of consecutive annual dividend increases.

“They have continued to raise their payouts through the high inflation of the 1970s, recession of the 1990s, the global financial crisis in 2008 and the pandemic – showing their remarkable resilience.”

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