Scottish Mortgage dips into capital reserves to maintain dividend record

Full-year results

The board of the £7.1bn Scottish Mortgage investment trust has decided to pay this year's dividend from a combination of earnings, capital reserves and the remainder of its revenue reserves, in order to maintain its track record of increasing its dividend annually for the last 35 years.

The trust reported another strong set of results for the year to 31 March, in which it saw its net asset value (NAV) increase by 25% and its share price up by 21.6% compared to the 2.9% rise in its FTSE All World index benchmark. However, it highlighted that "the portfolio's earnings would be insufficient to pay a dividend equivalent to last year's 3 pence per share, even taken together with remaining revenue reserves (0.47 pence per share)." AIC to publish enhanced dividend information as more trusts make payments out of capital As a result, the board has decided a "modestly incre...