"Four investment trusts have now delivered consecutive dividend rises for at least the past 50 years, according to the Association of Investment Companies (AIC). LSE:CTY:City of London Investment Trust, LSE:BNKR:Bankers Investment Trust and ..."
"Finding a way of using your capital to provide a sustainable income, typically when you reach retirement, is becoming increasingly important. A growing number of retirees are opting for pension freedom, rather than buying an annuity or taking a ..."
I realise the market is falling significantly and this IT is no exception. However, what concerns me is the sluggish performance when the market was rising significantly and the relatively large fall in the SP in the last few days compared to other ITs which I hold which are not impacted as much. It seems to be going through a heightened period of poor performance and not displaying the stability expected of a large IT.
Sadly not intelligent enough to add a chart to the post, but since the 20% dip v USD at Brexit, (c.1.49 down to c.1.21), it has gradually climbed to c.1.28 so has climbed c.6% from there. Maybe part of the reason for the sluggish performance of UK equity funds/ITs? Other than that, perhaps it's just a perception that UK equity is currently over-valued? No where near as bad as USA, but Europe, Japan and EM appear "cheaper". I could of course be taking total rot so happy to be corrected by anyone more experienced in these matters!!
yes I am aware, but what explains recent poor performamce of virtually all UK income funds even if they are yielding 3.5 to 5.0 ? They had a boost when sterling weakened by 20% versus dollar but recently hey have regressed.
I think you'll find that the Dividned has been increased for last 50 years. That covers a fair few market corrections and downturns.
The fund also has reserves which can be dipped into to cover any shortfall in dividend payment. Plus I believe new rules in place mean, if needs be, some capital can be taken to provide a dividend. The latter I think has been used by other funds.
This is one of my long term core holdings. It's not going to knock the lights out in terms of performance, but then a growing dividend soon makes your actual yield very enticing, even if you top up now and then.
I did see this PIE EATER, but whilst this was a helpful indication, it was only a statement of intention.
It did actually say that the dividend would be "declared" in July. Perhaps I am being too picky, but we are now at 19th July, and is due to go ex div in 8(?) business days time; i think this is a bit slow?
I hold shares in 7 other Investment Trusts, and they are much more prompt with their declarations.
"Purposeful Portfolios: Regular Income - investment trust tips for steady dividenJames Brumwell began his career in the 1980s as a gilts and fixed-income broker. Today he is more likely to be found investing his own money in derivatives and ..."
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