BMO Capital and Income trust dividend rises for 28th year

BMO Capital and Income trust dividend rises for 28th year

Shareholders in the BMO Capital and Income Investment Trust have seen their dividend increase for the 28th consecutive year.

According to the company’s full year results for the year ending September 30, it will pay a fourth interim dividend of 3.75 pence per share to bring the total for the year to 11.60 pence per share, an increase of 0.9 per cent.

BMO Capital and Income also saw net asset value total return for the year at 37.8 per cent, outperforming the FTSE All-Share index benchmark which returned 27.9 per cent for the same period.

Jonathan Cartwright, the trust's chairman, said: “This year we experienced the recovery of equity markets following the Covid-19 related collapse the previous year and I am pleased to report that the performance of your company was strong. 

“Whilst the future is always uncertain, it certainly feels at present as though there are more issues of potential concern than usual.

"Globally, supply chains are under enormous pressure, energy prices are soaring and more general inflationary pressure is building. Central banks are talking about reducing quantitative easing and increasing interest rates.”

He added: “On the other hand, there are clearly opportunities to grasp.  Your investment manager sees opportunities to invest in companies generating good returns despite the circumstances and this combined with UK stock market valuations that do not appear too demanding give confidence that we should again be able to secure our objective of long-term capital and income growth for shareholders.”

The company also said net asset value total return is ahead of the benchmark over one, three, five, 10, 20 years and since launch in 1992.

In May, BMO Capital and Income trust reported that shareholders saw their dividend increase by 1 per cent in the half year to March compared with the previous year, paid through a mix of earnings and the revenue reserve.

In 2020, investment trust dividends hit a record £1.88bn despite a worldwide drought in payouts elsewhere.

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