Investment Trusts 

Half of investment trusts pay quarterly dividends

Half of investment trusts pay quarterly dividends

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   
CompanyAIC sectorDividend datesDividend yield (%) at 13/02/18
Aberdeen Asian IncomeAsia Pacific - Excluding JapanFeb, May, Aug, Nov4.29
Aberdeen Diversified Income & GrowthFlexible InvestmentMar, Jun, Sep, Dec4.87
Aberdeen Emerging MarketsGlobal Emerging MarketsFeb, May, Aug, Nov3.22
Aberdeen Latin American IncomeLatin AmericaJan, Apr, Jul, Oct4.86
Aberdeen Smaller Companies IncomeUK Equity & Bond IncomeJan, Apr, Jul, Oct2.64
AEW UK Long Lease REITProperty SpecialistJan, Apr, Jul, Oct5.3
AEW UK REITProperty Direct - UKMar, Jun, Sep, Dec8.83
Alcentra European Floating Rate IncomeSector Specialist: DebtFeb, May, Aug, Nov5.35
Alliance TrustGlobalMar, Jun, Sep, Dec1.91
Amedeo Air Four PlusSector Specialist: LeasingJan, Apr, Jul, Oct7.75
Axiom European Financial DebtSector Specialist: DebtJan, Apr, Jul, Oct5.53
BankersGlobalFeb, May, Aug, Nov2.2
BioPharma CreditSector Specialist: DebtJan, Apr, Jul, Oct3.86
BlackRock Commodities IncomeSector Specialist: Commodities & Natural ResourcesJan, Apr, Jul, Oct5.44
BlackRock North American IncomeNorth AmericaJan, Apr, Jul, Oct5.1
BlackRock World MiningSector Specialist: Commodities & Natural ResourcesFeb, May, Aug, Nov3.1
Blackstone/GSO Loan FinancingSector Specialist: DebtFeb, May, Aug, Nov10.64
Blue Capital Alternative IncomeSector Specialist: Insurance & Reinsurance StrategiesFeb, May, Aug, Nov10.82
Bluefield Solar Income FundSector Specialist: Infrastructure - Renewable EnergyMar, Jun, Sep, Dec6.55
BrunnerGlobalMar, Jun, Sep, Dec2.2
Chenavari Toro IncomeSector Specialist: DebtMar, Jun, Sep, Dec8.41
City Merchants High YieldUK Equity & Bond IncomeFeb, May, Aug, Nov5.35
City Natural Resources High YieldSector Specialist: Commodities & Natural ResourcesFeb, May, Aug, Nov4.8
City of LondonUK Equity IncomeFeb, May, Aug, Nov4.22
Civitas Social HousingProperty SpecialistMar, Jun, Sep, Dec4.65
CQS New City High YieldUK Equity & Bond IncomeFeb, May, Aug, Nov6.66
Custodian REITProperty Direct - UKFeb, May, Aug, Nov5.7
CVC Credit Partners European OppsSector Specialist: DebtJan, Apr, Jul, Oct4.84
CVC Credit Partners European Opps Euro*Sector Specialist: DebtJan, Apr, Jul, Oct4.95
Diverse Income TrustUK Equity IncomeFeb, May, Aug, Nov3.16
Drum Income Plus REITProperty Direct - UKFeb, May, Aug, Nov6.28
Dunedin Income GrowthUK Equity IncomeFeb, May, Aug, Nov4.8
Ecofin Global Utilities and InfrastructureSector Specialist: UtilitiesFeb, May, Aug, Nov5.6
Edinburgh InvestmentUK Equity IncomeFeb, May, Aug, Nov4.09
European AssetsEuropean Smaller CompaniesJan, Apr, Jul, Oct5.65
F&C Capital & IncomeUK Equity IncomeMar, Jun, Sep, Dec3.41
F&C Managed Portfolio IncomeFlexible InvestmentJan, Apr, Jul, Oct4.13
F&C Private EquityPrivate EquityMar, Jun, Sep, Dec3.84
F&C UK High IncomeUK Equity IncomeFeb, May, Aug, Nov4.78
F&C UK High Income B*UK Equity IncomeFeb, May, Aug, Nov4.78
F&C UK Real Estate InvestmentsProperty Direct - UKMar, Jun, Sep, Dec4.93
Foresight Solar FundSector Specialist: Infrastructure - Renewable EnergyMar, Jun, Sep, Dec6.08
Foreign & Colonial Investment TrustGlobalFeb, May, Aug, Nov1.64
Funding Circle SME Income FundSector Specialist: DebtJan, Apr, Jul, Oct6.27
GCP Asset Backed IncomeSector Specialist: DebtFeb, May, Aug, Nov5.89
GCP Infrastructure InvestmentsSector Specialist: InfrastructureFeb, May, Aug, Nov6.38
GCP Student LivingProperty SpecialistMar, Jun, Sep, Dec4.26
Greencoat RenewablesSector Specialist: Infrastructure - Renewable EnergyFeb, May, Aug, Nov5.69
Greencoat UK WindSector Specialist: Infrastructure - Renewable EnergyFeb, May, Aug, Nov5.47
Hadrian's Wall Secured InvestmentsSector Specialist: DebtJan, Apr, Jul, Oct6.02
Henderson Diversified IncomeGlobal High IncomeMar, Jun, Sep, Dec5.19
    

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

Comments