Dividend heroes received the most attention from investors during 2022, according to data published by the Association of Investment Companies (AIC), as City of London Investment Trust pipped Scottish Mortgage as the most-viewed company on its website.
City posted a share price total return of 9.4% in 2022, and has the longest track record for consistently increasing its dividend, having done so for the last 56 years.
To reach ‘hero’ status, trusts must hit the 50-year payout mark.
Scottish Mortgage had to settle for second having topped the viewing charts for the last five years, capping a 2022 to forget for the trust. Despite its strong long-term record, the £10.3bn trust suffered a loss of more than 45% in 2022, making it comfortably the worst-performing company in the AIC’s list.
Merchants, another dividend hero, took third place, while global equity trust Murray International and F&C Investment Trust rounded the top five.
In all, 11 of the 20 most-viewed investment companies were dividend heroes.
Blackrock World Mining was the most-viewed of the new entries, placing 11th. The trust has a market capitalisation of £1.4bn, and its 26% return in 2022 was the highest of any company in the top 20.
Another new entrant, Abrdn Equity Income, followed close behind in 12th, while Aberdeen Diversified Income & Growth (18th), TR Property (19th), and CQS New City High Yield (20th) also entered the list.
Annabel Brodie-Smith, communications director of the AIC, said: “With the cost of living crisis continuing to bite, it’s understandable that investment companies with long track records of dividend growth were most popular with investors last year.
“Investment companies have strong income benefits which can help them continue to pay dividends to investors even during tough times. However, it’s important to remember that dividends are never guaranteed.”
AIC: Top 20 most-viewed investment companies
| 2022 rank | 2021 rank | Company name | AIC sector | Share price total return % | Yield | ||
|---|---|---|---|---|---|---|---|
| 1 yr | 5 yrs | 10 yrs | % | ||||
| 1 ↑ | 2 | City of London | UK Equity Income | 9.4 | 19.3 | 98.1 | 4.87 |
| 2 ↓ | 1 | Scottish Mortgage | Global | -45.7 | 65 | 410.5 | 0.5 |
| 3 ↑ | 5 | Merchants | UK Equity Income | 5.5 | 49.2 | 144.1 | 4.88 |
| 4 = | 4 | Murray International | Global Equity Income | 20.7 | 32.2 | 96.8 | 4.12 |
| 5 ↑ | 6 | F&C Investment Trust | Global | -0.9 | 52.2 | 233 | 1.48 |
| 6 ↑ | 13 | JPMorgan Global Growth & Income | Global Equity Income | -5 | 57.2 | 266.6 | 3.99 |
| 7 ↓ | 3 | Bankers | Global | -17.8 | 25.6 | 165.2 | 2.2 |
| 8 ↑ | 9 | Henderson Far East Income | Asia Pacific Equity Income | 0.8 | 1.4 | 57.8 | 8.71 |
| 9 ↑ | 14 | Caledonia | Flexible Investment | -5.2 | 49.3 | 201.1 | 1.8 |
| 10 ↑ | 16 | Scottish American | Global Equity Income | -3.5 | 59.9 | 205.8 | 2.62 |
| 11 ↑ | – | BlackRock World Mining | Commodities & Natural Resources | 26 | 131 | 101.9 | 6.24 |
| 12 ↑ | – | abrdn Equity Income | UK Equity Income | 6.2 | 0.4 | 74.6 | 6.41 |
| 13 ↓ | 12 | Law Debenture Corporation | UK Equity Income | 0.4 | 51.4 | 155.6 | 3.76 |
| 14 ↓ | 7 | Alliance Trust | Global | -5.8 | 40.1 | 204.7 | 2.53 |
| 15 ↑ | – | Murray Income | UK Equity Income | -4.1 | 31.6 | 87.6 | 4.32 |
| 16 ↑ | 19 | European Assets | European Smaller Companies | -28.5 | -1.2 | 146 | 9.61 |
| 17 ↓ | 10 | Brunner | Global | -6.1 | 47.5 | 211.6 | 2.11 |
| 18 ↑ | – | Aberdeen Diversified Income & Growth | Flexible Investment | -2 | -1.1 | 24.3 | 6.02 |
| 19 ↑ | – | TR Property | Property Securities | -35.6 | -8.1 | 139.7 | 4.75 |
| 20 ↑ | – | CQS New City High Yield | Debt – Loans & Bonds | 3.2 | 27.7 | 68.2 | 8.47 |
