The Association of Investment Companies (AIC) has published its updated list of 20 dividend heroes. These investment trusts have consistently increased their annual dividends for at least 20 years in a row.
Half of the 20 dividend heroes have increased their dividends for 50 or more consecutive years.
Topping the list with 58 years of dividend rises are City of London Investment Trust, Bankers Investment Trust and Alliance Witan closely followed by Caledonia Investments with 57 years.
F&C Investment Trust and The Global Smaller Companies Trust have consistently increased their dividends for 54 years followed by Brunner Investment Trust (53), JPMorgan Claverhouse (52), Murray Income Trust (51) and Scottish American (51).
F&C Investment Trust declared its final dividend today, taking annual dividends for the year to 15.6 pence per share, 6.1% higher than the previous year, confirming 54 years of consecutively rising dividends.
The newest joiner to the distinguished dividend hero list is Murray International Trust from the Global Equity Income sector, with 20 consecutive years of dividend increases. This brings the list of dividend heroes back up to 20 investment trusts after last year’s merger of Alliance Trust and Witan, becoming Alliance Witan.
Four dividend heroes have increased their dividends every year for between 30 and 43 years and six investment trusts have raised their dividends for over 20 years and less than 30 years in a row. A full table of all 20 dividend heroes is shown below.
Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Ten dividend hero investment trusts have raised their dividends consecutively every year for more than half a century. In total there are 20 dividend hero investment trusts that have consistently increased their dividends every year for more than 20 years. The newest joiner to the club is Murray International Trust which announced its twentieth year of consecutive dividend rises this month and is currently paying a 4.5% yield.
“Investment trusts are particularly suitable for income investing over the long term. They can retain up to 15% of the income they receive each year, and this reserve of income can be used to boost dividends when markets are tough. This allows investment trusts to smooth their flow of dividends and produce these long records of dividend growth.
“Our dividend heroes have shown remarkable resilience whilst continuing to raise their payouts during recent and historic high inflationary periods in the 1970s, the recession of the 1990s, the global financial crisis in 2008 and the pandemic. Whilst dividends are never guaranteed, investment trusts’ dividend hero track records are exceptional.”
Comments from some of the managers of dividend hero investment trusts can be found below the table.
Investment trust dividend heroes
| Investment trust | AIC sector | Number of consecutive years dividend increased | Dividend yield (%) | 5-year annualised dividend growth rate (%) |
| City of London Investment Trust | UK Equity Income | 58 | 4.72 | 2.06 |
| Bankers Investment Trust | Global | 58 | 2.42 | 5.16 |
| Alliance Witan | Global | 58 | 2.29 | 13.85 |
| Caledonia Investments | Flexible Investment | 57 | 1.88 | 3.49 |
| The Global Smaller Companies Trust | Global Smaller Companies | 54 | 1.85 | 11.24 |
| F&C Investment Trust | Global | 54 | 1.35 | 5.97 |
| Brunner Investment Trust | Global | 53 | 1.87 | 3.52 |
| JPMorgan Claverhouse | UK Equity Income | 52 | 4.87 | 4.07 |
| Murray Income Trust | UK Equity Income | 51 | 4.68 | 2.52 |
| Scottish American | Global Equity Income | 51 | 3.00 | 4.61 |
| Merchants Trust | UK Equity Income | 42 | 5.41 | 1.78 |
| Scottish Mortgage Investment Trust | Global | 42 | 0.45 | 6.26 |
| Value and Indexed Property Income | Property – UK Commercial | 37 | 7.31 | 2.27 |
| CT UK Capital & Income | UK Equity Income | 31 | 4.05 | 1.86 |
| Schroder Income Growth Fund | UK Equity Income | 29 | 4.90 | 2.75 |
| abrdn Equity Income Trust | UK Equity Income | 24 | 7.20 | 2.24 |
| Athelney Trust | UK Smaller Companies | 22 | 5.60 | 1.26 |
| BlackRock Smaller Companies | UK Smaller Companies | 21 | 3.72 | 6.13 |
| Henderson Smaller Companies | UK Smaller Companies | 21 | 3.50 | 3.26 |
| Murray International Trust | Global Equity Income | 20 | 4.47 | 1.98 |
Source: theaic.co.uk / Morningstar. Correct at 13/03/25.
Newest dividend hero
Virginia Holmes, Chair of Murray International Trust, said: “We are pleased to have delivered 20 consecutive years of dividend growth to our shareholders, proving our ability to generate rising income through a series of market cycles. Our investment manager, aberdeen, leverages their expertise and global networks to find the most attractive quality companies that support our objective of growing income and capital ahead of inflation for our shareholders over the long term, and it is very rewarding to see these results highlighted by this accolade.
“Our diversified and unconstrained approach to sector and geographical allocation allows us to invest in our best ideas for equity income from across the globe including a blend of both developed and emerging markets.”
Dividend hero comments
Job Curtis, Manager of City of London Investment Trust, said: “Delivering long-term income growth is part of our investment objective. We know it matters to our shareholders, many of whom are investing with retirement in mind or seeking sustainable income growth that can persist through market cycles. Being a dividend hero is great recognition of our track record in delivering consistent income growth, which we have done for 58 consecutive years.”
Dean Buckley, Chair of Alliance Witan, said: “Being a dividend hero is a significant achievement, and in the case of Alliance Witan reflects 58 consecutive years of annual dividend increases. The trust’s objective is set out as being a core investment that delivers a real return over the long term through a combination of capital growth and a rising dividend. So, this is an important part of what shareholders are expecting, and the Board continue to deliver on that year-on-year. The 2024 increase in particular delivers on a promise the Board made at the time of the combination of Alliance Trust and Witan to increase dividends for the legacy shareholders of both companies. This consistent approach to the dividend policy helps build trust and confidence among shareholders and demonstrates the ability to navigate various market conditions due to the trust’s strong financial position.”
Nish Patel, Fund Manager for The Global Smaller Companies Trust, said: “A lot of our shareholders value the stability and consistency that dividends provide, especially in a higher-growth asset class like global smaller companies. Sustained dividend growth is therefore an important feature of the trust and key to the long-term total return we aim to provide to our shareholders.”
Investment strategy for growing dividends
Dean Buckley, Chair of Alliance Witan, said: “As Alliance Witan aims to deliver growth in both capital and income, it is important for it to have a balanced portfolio which can deliver on both parts of the objective. The multi-manager approach, the investment company structure and the significant reserves built up over the years all make this possible. The trust’s stock pickers focus on their best ideas at any point in time regardless of the current income on their part of the portfolio while the reserves built up by Alliance Witan over many years can be used to smooth dividend payments if needed. This is especially helpful when our stock pickers identify compelling investment opportunities in companies which pay lower dividends, such as high growth technology companies. Put simply, they look to generate the best possible total returns, irrespective of income requirements, safe in the knowledge that Alliance Witan’s Board has a range of levers it can pull to ensure a steadily growing income is paid to shareholders.”
Nish Patel, Fund Manager for The Global Smaller Companies Trust, said: “We focus on high-quality, growing businesses that share several characteristics: distinctive competitive advantages, strong free cashflow conversion, pricing power, scale, and financial strength. This category of businesses has historically generated profits and made distributions that have grown reliably over time. As a consequence, the trust has been able to steadily increase its own dividend. This rising dividend combined with the capital growth opportunity inherent in smaller companies should lead to a compelling total return for our shareholders.”
Job Curtis, Manager of City of London Investment Trust, said: “Our aim is to be in companies that are generating enough cash to cover both their dividends and their expenditure on improving their products and services and growing sales. In addition, we are diversified across sectors, which we think reduces risk.”
Appeal of global and UK equity markets for income investors
Job Curtis, Manager of City of London Investment Trust, said: “The dividend yield of the UK equity market is significantly higher than the world average.”
Dean Buckley, Chair of Alliance Witan, said: “Equities are attractive because of expected long-term income growth, and being globally diversified ensures that this should continue in multiple market regimes. Global equities may pay lower yields than traditional income assets, such as bonds, but their dividend growth rate can be higher. Reinvesting dividends can further compound the investment’s value. Not all investors want to receive their dividends when they are paid. In this case, they can reinvest them into Alliance Witan shares, allowing the value of their investment to compound over time.”
Appeal of global smaller companies for income seekers
Nish Patel, Fund Manager for The Global Smaller Companies Trust, said: “Investors in smaller companies tend to focus on prospects for capital growth, but there is a wealth of opportunity in the more mature end of the small cap spectrum for investors looking for a balance of capital growth and long-term income growth.”
