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The Markets
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The Markets
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The Markets
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Renewables & cleantech

Abrdn Equity Income tops yield list of ‘dividend heroes’

Of the 42 investment companies, the highest-yielding is CQS New City High Yield

Eight trusts have been classified as dividend heroes by the Association of Investment Companies in its latest update of the most consistent payers in the investment company sector.

To qualify as a 'hero' a trust must have consistently increased its dividend for at least 20 years in a row.

The highest-yielding of the dividend heroes is abrdn Equity Income, which has increased its dividend for 21 years in a row and offers a 6.94% yield.

City of London has the longest unbroken track record at 56 years, closely followed by JP Morgan Claverhouse at 49 years, Murray Income (48) and Merchants (40).

The AIC has also compiled a list of 42 investment companies with a yield above 3% and a five-year track record of increasing dividends.

Of these, the highest-yielding is CQS New City High Yield, which invests in high-yield bonds and yields 8.68%.

A total of 14 of the 42 investment companies, or a third, are from the UK Equity Income sector, making this by far the most heavily featured sector.

Also included on the list Greencoat UK Wind, Schroder Income Growth and JPMorgan Global Growth & Income.

“With inflation rising and savings rates still low, these 42 investment companies might offer a way for savers to increase their income,” said Annabel Brodie-Smith, communications director at the AIC.

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