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36 investment companies with inflation-busting income and growth

Annabel Brodie-Smith, Communications Director, Association of Investment Companies

As savers prepare to weather the storm of rising inflation, research from the Association of Investment Companies (AIC) demonstrates that 36 investment companies have grown both their dividends and their share price by more than the Consumer Prices Index (CPI) over the past five years.

The 36 companies have increased their dividends over the last five years by more than CPI, which is 2.5% on an annualised basis over that period, as well as delivering an annualised share price return excluding dividends of more than 2.5%. None of the companies has cut its annual dividends over this time and all pay a yield of at least 2%.

Annabel Brodie-Smith (pictured), Communications Director, Association of Investment Companies (AIC), said: “Investors are understandably concerned about rising inflation and many investment companies are focused on growing shareholders’ income and capital in real terms. It’s encouraging to see that 36 investment companies, from a wide range of sectors, have beaten inflation over the past five years, both in terms of their annual dividend payments and their share price returns. However, the past is not a guide to the future and inflation-busting returns are far from guaranteed. Investors should do their own research, and if in doubt, consult a financial adviser.”

Investment companies with 5-year dividend growth of at least 2.5% p.a., 5-year share price returns excluding dividends of at least 2.5% p.a. and a yield of at least 2%.

Source: AIC using Morningstar (as at 02/02/22). AIC members only.

Investment companyAIC sectorDividend yield
(%)
5-year dividend growth
(% p.a.)
5-year
share price return
(% p.a.)
VPC Specialty Lending InvestmentsDebt – Direct Lending8.4410.804.75
Greencoat UK WindRenewable Energy Infrastructure5.382.524.24
JPMorgan Russian SecuritiesCountry Specialist5.1020.114.50
Apax Global AlphaPrivate Equity4.8122.4310.22
MerchantsUK Equity Income4.692.533.43
JPMorgan Asia Growth & IncomeAsia Pacific Equity Income4.5145.115.97
Invesco AsiaAsia Pacific Equity Income4.3132.847.25
Henderson International IncomeGlobal Equity Income4.146.264.35
Lindsell TrainGlobal4.1442.1815.70
BlackRock Sustainable American IncomeNorth America4.0111.224.96
Invesco Perpetual UK Smaller CompaniesUK Smaller Companies4.006.207.49
Schroder Oriental IncomeAsia Pacific Equity Income3.954.323.13
Montanaro UK Smaller CompaniesUK Smaller Companies3.9122.514.58
JPMorgan Global Growth & IncomeGlobal Equity Income3.6732.688.68
Ecofin Global Utilities and InfrastructureInfrastructure Securities3.6132.779.10
North American IncomeNorth America3.618.673.74
Momentum Multi-Asset ValueFlexible Investment3.582.533.24
Law Debenture CorporationUK Equity Income3.3711.165.73
Diverse Income TrustUK Equity Income3.336.024.47
Templeton Emerging MarketsGlobal Emerging Markets3.3318.166.11
BMO Private EquityPrivate Equity3.317.1710.68
TR PropertyProperty Securities2.9311.207.85
Invesco Select Global Equity IncomeGlobal Equity Income2.923.425.77
MercantileUK All Companies2.689.287.16
Tritax Big Box REITProperty – UK Logistics2.642.528.24
Polar Capital Global FinancialsFinancials2.484.395.24
Standard Life Private EquityPrivate Equity2.4220.2913.82
Aberforth Smaller CompaniesUK Smaller Companies2.415.184.24
JPMorgan MidCapUK All Companies2.407.035.62
Aberdeen Standard Asia FocusAsia Pacific Smaller Companies2.347.396.14
WitanGlobal2.269.905.98
ICG EnterprisePrivate Equity2.2016.8913.51
Fidelity Special ValuesUK All Companies2.1812.515.11
Henderson European FocusEurope2.094.637.20
Henderson Smaller CompaniesUK Smaller Companies2.099.639.34
Fidelity EuropeanEurope2.0114.319.89

 

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