Which UK equity income investment trusts have the best dividend cover?

'Reliable source of income'

Two-thirds of income-focused UK equity investment companies have enough cash in reserve to pay one year’s dividend to shareholders, data from the Association of Investment Companies (AIC) for Investment Week shows.

Income seekers investing in listed shares of UK companies are currently at risk of losing out on billions of pounds in dividends, as a cessation of economic activity due to an enforced lockdown to stem the spread of coronavirus forces firms to cancel, cut or delay their payouts. Companies cut more than £1bn worth of dividends between 17 March and 26 March, according to estimates from platform interactive investor. UK futures, meanwhile, are currently pricing in a fall in dividends of around 30% for 2020. 'Exercise in survival' for companies as Artemis Income preps for heavy dividend c...