Despite the severe disruption to dividends caused by coronavirus, investment trust Alliance is on course to deliver its 54th consecutive year of dividend uplift to shareholders.
Next month, the £2.8billion global trust will reveal its final quarterly dividend for the financial year ending December 31 – and it would be a shock if it isn't the same payment (3.595p a share) that has been made in the previous three quarters.
If all goes to plan, it would mean a three per cent year-on-year increase in income.
Although the payments are the equivalent of a modest annual income of 1.6 per cent, they will be enthusiastically welcomed by the trust's army of small investors who love its income friendliness, combined with the prospect of long-term capital gain.
The trust is certainly income rich. It has the equivalent of two years of income (just over £100million) tucked away in reserves that can be drawn upon to supplement the dividends from its existing portfolio.
Jeff Prestridge is a personal finance editor of the Mail on Sunday.
This article was originally published on thisismoney.co.uk
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