London again has 20 "dividend heroes", investment trusts that have increased their annual dividends for at least 20 years in a row.
The Association of Investment Companies (AIC) on Monday published its updated list after FTSE 100-listed F&C Investment Trust PLC (LSE:FCIT) declared a 6.1% hike in its dividend in its results today to take its unbroken record to 54 years.
The newest addition to the list is Murray International Trust plc (LSE:MYI), with 20 consecutive years of dividend increases, which brings the list back up to 20 trusts after last year’s merger of Alliance Trust and Witan.
The merged Alliance Witan PLC (LSE:ALW) shares the equal longest record, 58 years, with the City of London Investment Trust (LSE:CTY), Bankers Investment Trust PLC (LSE:BNKR), followed not far behind by Caledonia Investments (LSE:CLDN) with 57 years.
Next is the F&C trust and The Global Smaller Companies Trust (LSE:GSCT), both which have consistently increased their dividends for 54 years, followed by Brunner Investment Trust (LSE:BUT), JPMorgan Claverhouse, Murray Income Trust plc (LSE:MUT) and Scottish American, all over 50 years.
Two thirds of the trusts have increased their dividends for 30 or more consecutive years, including 10 that have done so for at least half a century.
Annabel Brodie-Smith, AIC director, said: "Investment trusts are particularly suitable for income investing over the long term. They can retain up to 15% of the income they receive each year, and this reserve of income can be used to boost dividends when markets are tough.
"This allows investment trusts to smooth their flow of dividends and produce these long records of dividend growth."
“Our dividend heroes have shown remarkable resilience whilst continuing to raise their payouts during recent and historic high inflationary periods in the 1970s, the recession of the 1990s, the global financial crisis in 2008 and the pandemic.
"Whilst dividends are never guaranteed, investment trusts’ dividend hero track records are exceptional."