Merchants Trust turns defensive to protect dividend yield record

Rotating towards telecoms and housing-related stocks

Mike Sheen
clock
Simon Gergel of Merchants Trust
Image:

Simon Gergel of Merchants Trust

The Merchants Trust shifted its exposure away from cyclical stocks towards more defensive sectors in 2020 in an effort to help sustain its 38-year dividend growth record, amid growing retail investor interest for the investment company.

Merchants, which currently offers a dividend yield of 6.1%, has been adding to telecoms, tobacco and housing-related stocks at the expense of holdings in sectors where "it will take some time for dividends...

To continue reading this article...

Join Investment week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space

  • Get ahead of regulatory and technological changes affecting fund management

  • Important and breaking news stories selected by the editors delivered straight to your inbox each day

  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts

  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment Trusts

The Aegon Global Sustainable Sovereign Bond fund will be managed by government bond specialists within Aegon AM’s global fixed income platform
ESG

Aegon launches Global Sustainable Sovereign Bond fund at COP26

Strategy will be seeded with £100m from Aegon UK workplace pension fund

Pedro Gonçalves
clock 22 October 2021 • 2 min read
Thomas Coughlin of Kinesis Money

Fool me twice: The lessons we are yet to learn in the 100 years since Weimar hyperinflation

Need to recognise inherent flaws in current system

Thomas Coughlin
clock 22 October 2021 • 3 min read
TPI “hopes this will put an end to AVI’s continued attempts to commandeer the apparatus of the company in pursuit of its own agenda, at the expense of all shareholders”.

Third Point Investors rejects 'disappointing' second call for EGM

Accuses AVI of attention-seeking

James Baxter-Derrington
clock 22 October 2021 • 2 min read