UK equity income trusts continue to do well, reflected by the good returns reported by Edinburgh Investment Trust for the year, with a large dividend and share price increase.
The £1.6bn fund saw its net asset value increase 1.1 per cent from 30 September 2014 to 30 September 2015, while the share price rose 6.6 per cent compared to a 7.2 per cent fall by its benchmark, the FTSE All-Share.
The balance of dividends between interim and final has widened over the years so that the final dividend had become significantly larger.
Dividend income remains strong and Invesco Perpetual’s revenue reserve remains healthy.
Analysts View
Alan Brierley, investment companies team director at Canaccord Genuity, said: “The UK equity income closed-end sector has performed strongly with attractive, growing and sustainable dividends a key feature.
“Indeed, many companies can demonstrate an unparalleled record of progressive dividend growth. With interest rates low, and with little visibility of any meaningful increase, these characteristics have obvious attractions.”
