The latest data released by the Association of Investment Companies (AIC) revealed that 50 per cent of investment trusts now pay quarterly dividends.
The data showed an increase in trusts paying dividends every three months, as opposed to annual dividends, with 47 per cent having distributed cash quarterly in 2017, and 43 per cent in 2016.
There are eight investment trusts that pay monthly dividends, while 26 per cent pay dividends bi-annually.
Annabel Brodie-Smith, communications director of the Association of Investment Companies, said there are a number of income advantages for investment companies.
She said: "The closed-ended structure of investment companies makes them particularly suitable for higher yielding illiquid assets such as property and infrastructure.
"Last year saw a number of new property investment company launches which are paying quarterly dividends, again highlighting the demand for yield from investors."
| Quarterly dividends | |||
| Company | AIC sector | Dividend dates | Dividend yield (%) at 13/02/18 |
| Aberdeen Asian Income | Asia Pacific - Excluding Japan | Feb, May, Aug, Nov | 4.29 |
| Aberdeen Diversified Income & Growth | Flexible Investment | Mar, Jun, Sep, Dec | 4.87 |
| Aberdeen Emerging Markets | Global Emerging Markets | Feb, May, Aug, Nov | 3.22 |
| Aberdeen Latin American Income | Latin America | Jan, Apr, Jul, Oct | 4.86 |
| Aberdeen Smaller Companies Income | UK Equity & Bond Income | Jan, Apr, Jul, Oct | 2.64 |
| AEW UK Long Lease REIT | Property Specialist | Jan, Apr, Jul, Oct | 5.3 |
| AEW UK REIT | Property Direct - UK | Mar, Jun, Sep, Dec | 8.83 |
| Alcentra European Floating Rate Income | Sector Specialist: Debt | Feb, May, Aug, Nov | 5.35 |
| Alliance Trust | Global | Mar, Jun, Sep, Dec | 1.91 |
| Amedeo Air Four Plus | Sector Specialist: Leasing | Jan, Apr, Jul, Oct | 7.75 |
| Axiom European Financial Debt | Sector Specialist: Debt | Jan, Apr, Jul, Oct | 5.53 |
| Bankers | Global | Feb, May, Aug, Nov | 2.2 |
| BioPharma Credit | Sector Specialist: Debt | Jan, Apr, Jul, Oct | 3.86 |
| BlackRock Commodities Income | Sector Specialist: Commodities & Natural Resources | Jan, Apr, Jul, Oct | 5.44 |
| BlackRock North American Income | North America | Jan, Apr, Jul, Oct | 5.1 |
| BlackRock World Mining | Sector Specialist: Commodities & Natural Resources | Feb, May, Aug, Nov | 3.1 |
| Blackstone/GSO Loan Financing | Sector Specialist: Debt | Feb, May, Aug, Nov | 10.64 |
| Blue Capital Alternative Income | Sector Specialist: Insurance & Reinsurance Strategies | Feb, May, Aug, Nov | 10.82 |
| Bluefield Solar Income Fund | Sector Specialist: Infrastructure - Renewable Energy | Mar, Jun, Sep, Dec | 6.55 |
| Brunner | Global | Mar, Jun, Sep, Dec | 2.2 |
| Chenavari Toro Income | Sector Specialist: Debt | Mar, Jun, Sep, Dec | 8.41 |
| City Merchants High Yield | UK Equity & Bond Income | Feb, May, Aug, Nov | 5.35 |
| City Natural Resources High Yield | Sector Specialist: Commodities & Natural Resources | Feb, May, Aug, Nov | 4.8 |
| City of London | UK Equity Income | Feb, May, Aug, Nov | 4.22 |
| Civitas Social Housing | Property Specialist | Mar, Jun, Sep, Dec | 4.65 |
| CQS New City High Yield | UK Equity & Bond Income | Feb, May, Aug, Nov | 6.66 |
| Custodian REIT | Property Direct - UK | Feb, May, Aug, Nov | 5.7 |
| CVC Credit Partners European Opps | Sector Specialist: Debt | Jan, Apr, Jul, Oct | 4.84 |
| CVC Credit Partners European Opps Euro* | Sector Specialist: Debt | Jan, Apr, Jul, Oct | 4.95 |
| Diverse Income Trust | UK Equity Income | Feb, May, Aug, Nov | 3.16 |
| Drum Income Plus REIT | Property Direct - UK | Feb, May, Aug, Nov | 6.28 |
| Dunedin Income Growth | UK Equity Income | Feb, May, Aug, Nov | 4.8 |
| Ecofin Global Utilities and Infrastructure | Sector Specialist: Utilities | Feb, May, Aug, Nov | 5.6 |
| Edinburgh Investment | UK Equity Income | Feb, May, Aug, Nov | 4.09 |
| European Assets | European Smaller Companies | Jan, Apr, Jul, Oct | 5.65 |
| F&C Capital & Income | UK Equity Income | Mar, Jun, Sep, Dec | 3.41 |
| F&C Managed Portfolio Income | Flexible Investment | Jan, Apr, Jul, Oct | 4.13 |
| F&C Private Equity | Private Equity | Mar, Jun, Sep, Dec | 3.84 |
| F&C UK High Income | UK Equity Income | Feb, May, Aug, Nov | 4.78 |
| F&C UK High Income B* | UK Equity Income | Feb, May, Aug, Nov | 4.78 |
| F&C UK Real Estate Investments | Property Direct - UK | Mar, Jun, Sep, Dec | 4.93 |
| Foresight Solar Fund | Sector Specialist: Infrastructure - Renewable Energy | Mar, Jun, Sep, Dec | 6.08 |
| Foreign & Colonial Investment Trust | Global | Feb, May, Aug, Nov | 1.64 |
| Funding Circle SME Income Fund | Sector Specialist: Debt | Jan, Apr, Jul, Oct | 6.27 |
| GCP Asset Backed Income | Sector Specialist: Debt | Feb, May, Aug, Nov | 5.89 |
| GCP Infrastructure Investments | Sector Specialist: Infrastructure | Feb, May, Aug, Nov | 6.38 |
| GCP Student Living | Property Specialist | Mar, Jun, Sep, Dec | 4.26 |
| Greencoat Renewables | Sector Specialist: Infrastructure - Renewable Energy | Feb, May, Aug, Nov | 5.69 |
| Greencoat UK Wind | Sector Specialist: Infrastructure - Renewable Energy | Feb, May, Aug, Nov | 5.47 |
| Hadrian's Wall Secured Investments | Sector Specialist: Debt | Jan, Apr, Jul, Oct | 6.02 |
| Henderson Diversified Income | Global High Income | Mar, Jun, Sep, Dec | 5.19 |
James Piggott, who runs Pigotts Investments, an intermediary firm in Dorking said "Investment trusts are great for income, because they can smooth any bumps when companies cut dividends."
He said he tends only to invest in investment trusts for his clients.
Investment trusts are permitted to retain some of their income, rather than having to pay all of it out as dividends in the year it is earned, as unit trusts are required to do.
This allows investment trusts to pay dividends from a previous years reserves, and is the "smoothing out" to which Mr Pigott refers.
david.thorpe@ft.com
