This trust just brought up its half-century of successive dividend increases

Caledonia Investments has become the fourth investment trust 'dividend hero' to achieve 50 years of consecutive dividend increases, according to the Association of Investment Companies' (AIC).

The trust, which is categorised in the AIC global sector, became the fourth investment company to reach this milestone Wednesday after announcing a dividend increase of 4.2% in its final results for the year ending 31 March 2017.

The exclusive 'half-century club' also includes UK equity income trust City of London, plus Caledonia's global sector peers Bankers and Alliance Trust, all of whom have announced 50 years of dividend increases during the past 16 months.

William Wyatt, chief executive of Caledonia investments, said: "We are delighted to announce an increase of 4.2% in our total dividends for the year.

"This will be the 50th consecutive year of annual increases and forms a vital part of our return to shareholders. Caledonia's strategy is focused on its maintenance and gradual increase over the long run."

It's important to note that, despite its impressive record of year-on-year dividend increases for the past 50 years, the trust is not a particularly large payer, yielding a modest 1.9%.

But the company is proposing a special dividend of 100p per share, to be paid alongside the final dividend.

"We believe it appropriate to augment the long-term yield offered to shareholders by our ordinary dividend through payment of occasional special dividends when the company's long-term business model delivers cash in excess of our immediate strategic plans," Wyatt commented.

Caledonia has struggled to outperform its peers over one or three years; in terms of share price returns it was bottom of its sector over one year to 25 May, returning 15.5%, less than half the sector average of 36.2%, and fourth-quartile over three years, though it outperformed the sector over five.

To coincide with Caledonia's announcement, the AIC has issued an updated dividend heroes table, which you can see below:

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.