Chelverton trust eyes change to quarterly income payouts

Chelverton’s Small Companies Dividend investment trust is planning to adjust its dividend payments to provide investors with a standard quarterly income, in line with the company’s comparable open-ended fund.

The trust, run by small cap specialists David Horner and David Taylor, paid two dividends of 1.475p per share during its current financial year, ending April 30. In the previous year three interim dividends were paid with a fourth, and larger, dividend paid at the end of the year.

The managers’ £240.8m PFS Chelverton UK Equity Income fund already pays out quarterly income to investors.

Article continues after advert

In a notice to the stock exchange the trust’s board said it intended “over time to move the dividend profile gradually to a position where the four interim dividends paid are equal”.

The Small Companies Dividend trust’s share price has risen 177.7 per cent in the 10 years to March 18, while the value of its portfolio has risen 69.7 per cent. The shares are currently trading at a discount of 6.7 per cent to the portfolio’s value.