A number of firms have changed to quarterly payments over the past 12 months, including Foreign and Colonial Investment Trust, Standard Life Equity Income Trust and Henderson Global Trust.
Witan Investment Trust became the latest to join the ranks, announcing last week that future dividends would be paid quarterly instead of bi-annually. The trust hopes the provision of regular and predictable dividends will appeal to the broader investor universe made available following the introduction of the RDR.
Data shows that the majority of those paying quarterly dividends are income-focused, operating in the UK Growth and Income, Global Growth and Income sectors, and the property sectors. VCTs are excluded from the count.
Annabel Brodie-Smith, communications director, (AIC), said: “Dividend dates are important for many income hungry investors, and this is particularly the case in the current low interest rate environment. So it’s interesting to see a growing number of companies moving to quarterly dividend payments, suggesting that many investors favour a ‘little and often’ approach to income investing.”
