Last week the Association of Investment Companies (AIC) published its list of dividend heroes [1], the investment companies that have consecutively increased their dividends for 20 years or more. But which investment companies are following in their footsteps?

With inflation rising to 2.3%, it's timely that the AIC has today published an updated list of the next generation of dividend heroes, namely the investment companies which have increased their dividends every year for 10 years or more but less than 20 years.

There are two new additions to this year's list, namely Henderson European Focus Trust from the Europe sector and Schroder Oriental Income from the Asia Pacific – Excluding Japan sector, which have both consecutively increased their dividends for 10 years.

Annabel Brodie-Smith, Communications Director at the AIC said: "It's encouraging in this time of rising inflation that 12% of the investment company sector have increased their dividend every year for ten years or longer. There are a healthy number of next generation dividend heroes waiting in the wings, which have increased their dividends each year for between ten and twenty years. Investment companies' ability to smooth dividends allows them to hold back some income for tough times ahead and is a key advantage of the structure."

AIC Dividend Heroes March 2017Source: AIC using Morningstar

[1] http://www.theaic.co.uk/aic/news/press-releases/aic-dividend-heroes-three-investment-companies-increase-dividends-for-50

Comment Here!

comments