Two UK small-cap trusts have joined the AIC’s Dividend Heroes list, which celebrates investment companies that have increased their dividend for at least 20 consecutive years.
BlackRock Smaller Companies and Henderson Smaller Companies both hit the milestone over the last 12 months.
The BlackRock trust, which manages £638.8m in assets, currently trades at an 11.3% discount and yields 2.95%.
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Meanwhile, the £582.7m Henderson Smaller Companies trust yields 3.29% and its discount to NAV stands at 12.43%.
It takes the overall number of dividend heroes to 20, while ten of those have consistently increased payouts for at least 50 consecutive years.
The latest additions to the ‘half-century club’ were Murray Income trust and Scottish American, both of which increased their dividend for the 50th consecutive year in the last 12 months.
Annabel Brodie-Smith, communications director of the AIC, said: “Despite a tricky few years for the dividend heroes, ten investment trusts now have at least half a century of consecutive annual dividend increases. They have continued to raise their payouts through the high inflation of the 1970s, recession of the 1990s, the global financial crisis in 2008 and the pandemic – showing their remarkable resilience.
“There are an impressive 20 dividend hero investment trusts in total that have increased their dividends every year for more than 20 years. Investment trusts have strong track records of dividend growth because they can hold back up to 15% of the income they receive each year.
“This allows them to hold more income in reserve when times are good to pay out in leaner years, providing a smoother flow of dividends to investors. While dividends are never guaranteed, investment trusts’ dividend track records demonstrate their durability.”
