Across the investment trust sector, 48 trusts are producing a yield of 4% or more with the Henderson Far East Income trust topping the chart at 11.5%, according to data released by the Association of Investment Companies.
The UK Equity Income sector represents 14 of the 48 trusts to make the list, followed by UK Smaller Companies, Asia Pacific Equity Income, and Flexible Investment with five trusts each, and the Global Equity Income sector with three trusts.
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Out of the trusts, 28 hit a yield of 5% or more, while eight are marked as ‘dividend heroes’, or trusts that have had a positive return for 20 years in a row. The Abrdn Equity Income Trust was the highest-yielding dividend hero, with positive dividends for 23 years and a 7.7% yield.
Annabel Brodie-Smith, communications director of the AIC, said: “These investment trusts offer access to equities in a wide range of regions and sectors from the UK and across the globe including commodities, infrastructure and biotechnology.
“Trusts have structural benefits which help them maintain and grow their dividends year after year. However, dividends are never guaranteed and investors need to do their own research.”
The top-performing Henderson Far East Income trust is trading at a 4.5% discount. While the share price total return is -8.9 on a five-year basis, at 10 years, it becomes 35.7. Henderson is followed in the list by Marwyn Value Investors at a 10.8% yield, British & American at 9.2%, Chelverton UK Dividend trust at 8.3%, and Abrdn Equity Income trust at 7.7%.
