European ITs outstrip peers with rising dividend payouts

The European investment trust sector has grown dividends faster than any other over the last five years, even outstripping commodities-focused investment trusts, with payouts increasing by a fifth.

Statistics from the AIC covering the period to the end of August showed European trusts grew dividends by 20.5% since 2006. This left them ahead of peers in the Commodity & Natural Resources sector, which grew payouts by 15.1%, while UK Smaller Companies saw payouts increase by 11.5%. Asia Pacific ex-Japan (10.5%) and the Global Growth & Income sector (8.6%) complete the top five. The AIC said the European closed-ended sector has seen dividends rise thanks to strong balance sheets from European dividend payers, as well as moves by managers who have dipped into the trust’s revenue r...