The Association of Investment Companies (AIC) has published its updated ‘dividend hero’ list, with the addition of Murray International Trust bringing the number of trusts in the list back up to 20.

The association defines a dividend hero as an investment trust that has consistently increased its annual dividends for at least 20 consecutive years.

There were 19 trusts on the list after the merger of Alliance Trust and Witan last year, but Murray International Trust, which is from the Global Equity Income sector, has brought the number back to 20.

Half of the 20 dividend heroes have increased their dividends for 50 consecutive years or more.

The trusts with the longest unbroken period of dividend increases were City of London Investment Trust, Bankers Investment Trust, and Alliance Witan with 58 years, followed by Caledonia Investments with 57.

F&C Investment Trust and The Global Smaller Companies Trust have consistently increased their dividends for 54 years, followed by Brunner Investment Trust (53), JPMorgan Claverhouse (52), Murray Income Trust (51) and Scottish American (51).

Four dividend heroes have increased their dividends every year for between 30 and 43 years, while six investment trusts have raised their dividends for over 20 years and less than 30 years in a row.

“Ten dividend hero investment trusts have raised their dividends consecutively every year for more than half a century,” stated AIC communications director, Annabel Brodie-Smith.

“In total there are 20 dividend hero investment trusts that have consistently increased their dividends every year for more than 20 years.

“The newest joiner to the club is Murray International Trust which announced its 20th year of consecutive dividend rises this month and is currently paying a 4.5 per cent yield.

“Investment trusts are particularly suitable for income investing over the long term. They can retain up to 15 per cent 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.”

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