– Investment companies with 20+ years of consecutive dividend increases
– Look out for follow-up AIC research – dividend heroes: the next generation
The Association of Investment Companies (AIC) has published a list of the investment company sector's dividend heroes, who have had a strong start to the year.
In January, Bankers Investment Trust accomplished its 48th year of consecutive dividend increases, whilst two venerable investment companies had similarly strong stories to tell in February: Brunner Investment Trust announced its 43rd consecutive annual dividend increase, whilst Witan investment Trust become the 10th investment company to achieve a 40th consecutive year dividend increase. By coincidence, the company recently celebrated its 10th anniversary of being multi-manager.
This week, more results are to be announced. Today saw Foreign & Colonial Investment Trust announce another dividend increase – its 44th year of consecutive dividend payments, and Friday will see Alliance Trust release its final results. If Alliance Trust is able to announce another dividend increase, this will be its 48th consecutive year of dividend increases, putting it at level pegging with City of London Investment Trust and Bankers Investment Trust.
All of these companies are amongst some of the longest-established in the sector, but it's not just the golden oldies with such enviable track-records: JPMorgan Claverhouse has raised its dividend each year for the last 42 years of its 52 year history. Value & Income Investment Trust has made 27 annual dividend increases in a row, out of a 34 year history. Furthermore, the AIC will shortly be looking at the next generation of dividend heroes – those that have been able to raise their dividends for more than 10 years.
Annabel Brodie-Smith, Communications Director, Association of Investment Companies (AIC) said:
"There's nothing more reassuring to investors than a company with a solid history of dividend increases, and the investment company sector's track record here is second to none. Through the good times and the bad, many investment companies have been able to increase their dividend every year for decades because they have the unique ability to save some of the income they receive each year for tougher times; a facility known as dividend smoothing."
*Alliance Trust final results are out on Friday 6 March 2015. If another dividend increase is announced, Alliance Trust will have a 48 year record of consecutive dividend increases.