2017 has been a golden year for dividend heroes, with the Association of Investment Companies (AIC) announcing that three investment companies had reached 50 years of consecutive increases earlier this year.
Today, the half century club has gained another member as Caledonia has announced its final results for the year ending 31 March 2017; making it the fourth investment company to have increased its dividends every year for 50 years.
Commenting on reaching this milestone, William Wyatt, Chief Executive of Caledonia Investments plc said: “We are delighted to announce an increase of 4.2% in our total dividends for the year. This will be the 50th consecutive year of annual increases and forms a vital part of our return to shareholders. Caledonia’s strategy is focused on its maintenance and gradual increase over the long run.
In addition, we are proposing a special dividend of 100p per share, payable alongside the final dividend. We believe it appropriate to augment the long term yield offered to shareholders by our ordinary dividend through payment of occasional special dividends when the company’s long term business model delivers cash in excess of our immediate strategic plans.”
Annabel Brodie-Smith, Communications Director, Association of Investment Companies said: “It’s an achievement to now have four investment companies that have consecutively increased their dividends for 50 years. With interest rates at an all-time low, investors remain hungry for income and investment companies have the unique ability to ‘smooth’ dividends, meaning they can boost dividends from their reserves when times get tough.”
To coincide with Caledonia’s announcement, the AIC has issued an updated table of its dividend heroes.