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Revealed: The investment firms with the best dividends

by LLB Reporter
14th Mar 23 10:28 am

The Association of Investment Companies (AIC) has published its latest list of 18 dividend heroes, investment companies which have consistently increased their annual dividends for at least 20 years in a row.

Eight of the 18 dividend heroes have increased their dividends for 50 or more consecutive years. City of London, Bankers and Alliance Trust lead the pack with 56 years of dividend rises, followed by Caledonia Investments (55 years), The Global Smaller Companies Trust (52), F&C Investment Trust (51) and Brunner (51). The latest addition to the half-century club is JPMorgan Claverhouse, which announced its 50th year of increased dividends on 31 January.

Five dividend heroes have increased their dividends each year for between 40 and 49 years and a further five have increased their dividends consecutively for between 20 and 39 years. A full table of all 18 dividend heroes is below.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Investors are looking for ways to protect their income in a more inflationary environment. Investment companies’ ability to hold back up to 15% of the income they receive each year gives them an edge when it comes to delivering dividends to investors. It means investment companies can reserve income when times are good to pay out in leaner years, providing smoother, more consistent dividends to investors.

“It’s remarkable that there are now eight dividend heroes with at least half a century of consecutive annual dividend increases. These dividend heroes are no strangers to difficult times, having raised their payouts to investors through the high inflation of the 1970s, recession of the 1990s and the global financial crisis in 2008. While dividends are never guaranteed, these are track records to be proud of.”

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