THE HIGHEST YIELDING EQUITY INVESTMENT TRUSTS
As markets hope for interest rate reductions in 2024, some investors may well be considering how to invest for income and capital growth over the long term. The Association of Investment Companies (AIC) has published a list of the 48 investment trusts that invest in equities and yield at least 4%.
For those readers keen to get straight to the detail, the table below shows 48 investment trusts with a current yield of 4% or more.
The list also includes trusts in the Flexible Investment sector, which is home to trusts that can invest in a range of asset classes including equities.
Of the 48 investment trusts, the highest yielding is Henderson Far East Income which invests in Asia Pacific equities and yields 11.5%.
A total of 28 investment trusts yield 5% or more and a further 20 trusts yield between 4% and 5%.
Eight of the highest yielding investment trusts are AIC dividend heroes, which means they have consistently increased their dividend for at least 20 years in a row. The highest yielding of the dividend heroes is abrdn Equity Income Trust, which has increased its dividend for 23 years and offers a 7.7% yield.
A further 13 trusts have increased their dividend for ten years in a row, but less than 20.
Fourteen of the 48 investment trusts are from the UK Equity Income sector, accounting for nearly a third of the highest yielding investment trusts. The UK Smaller Companies, Asia Pacific Equity Income and Flexible Investment sectors all have five trusts in the list and three trusts are from the Global Equity Income sector.
Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “For investors seeking income, this list of high yielding equity investment trusts is a good place to start your research. These investment trusts offer access to equities in a wide range of regions and sectors from the UK and across the globe including commodities, infrastructure and biotechnology.
“More than a third of these 48 investment trusts have raised their dividends every year for the past ten years, and eight have raised their dividends for 20 years or more. Investment trusts have structural benefits which help them maintain and grow their dividends year after year. However, dividends are never guaranteed and investors need to do their own research. If investors are in any doubt about the suitability of investment trusts, they should consult a financial adviser.”
The highest-yielding equity and flexible investment trusts
| Investment trust | AIC sector | Yield % | Discount/ premium | Share price total return | ||||
| 1yr | 3yr | 5yr | 10yr | |||||
| Henderson Far East Income | Asia Pacific Equity Income | 11.5 | -4.5 | -18.8 | -19.9 | -8.9 | 35.7 | |
| Marwyn Value Investors | UK Smaller Companies | 10.8 | -49.9 | -2.2 | 2.9 | -11.3 | -34.4 | |
| British & American | Global Equity Income | 9.2 | 19.0 | -27.1 | -25.8 | -33.8 | -50.3 | |
| Chelverton UK Dividend Trust | UK Equity Income | 8.3 | 4.3 | -9.1 | 12.0 | 17.9 | 46.1 | |
| abrdn Equity Income Trust | UK Equity Income | 7.7 | -4.5 | -12.3 | 9.9 | 0.3 | 15.6 | |
| BlackRock World Mining | Commodities & Natural Resources | 7.3 | -4.6 | -21.1 | 15.2 | 106.3 | 116.3 | |
| European Assets Trust | European Smaller Companies | 7.0 | -9.5 | -4.9 | -12.0 | 22.4 | 66.9 | |
| Aberforth Split Level Income | UK Smaller Companies | 6.9 | -7.0 | 4.0 | 21.4 | 23.7 | – | |
| Henderson High Income | UK Equity & Bond Income | 6.6 | -7.0 | -3.2 | 22.9 | 28.1 | 58.2 | |
| CT Global Managed Portfolio Income | Flexible Investment | 6.5 | -0.4 | -4.6 | -3.0 | 15.6 | 48.8 | |
| JPMorgan China Growth & Income | China / Greater China | 6.5 | -9.2 | -43.8 | -67.5 | 8.5 | 61.6 | |
| CT UK High Income | UK Equity Income | 6.4 | -2.7 | 9.8 | 13.3 | 32.9 | 56.5 | |
| Shires Income | UK Equity Income | 6.4 | -8.9 | -10.5 | 5.2 | 22.2 | 56.2 | |
| UIL | Flexible Investment | 6.2 | -34.5 | -13.0 | -32.2 | -7.8 | 81.2 | |
| Lindsell Train | Global | 6.0 | -17.2 | -13.9 | -34.7 | -16.2 | 215.1 | |
| JPMorgan Global Core Real Assets | Flexible Investment | 5.8 | -23.8 | -14.4 | -13.7 | – | – | |
| Premier Miton Global Renewables Trust | Infrastructure Securities | 5.8 | -9.7 | -14.1 | -17.4 | 57.0 | 60.8 | |
| abrdn Asian Income Fund | Asia Pacific Equity Income | 5.3 | -12.7 | -5.5 | -2.8 | 27.1 | 63.9 | |
| Lowland Investment Company | UK Equity Income | 5.2 | -8.6 | 2.6 | 15.5 | 13.7 | 23.8 | |
| BlackRock Latin American | Latin America | 5.2 | -8.2 | 19.6 | 31.6 | 26.0 | 75.4 | |
| Middlefield Canadian Income Trust | North America | 5.2 | -12.9 | -7.9 | 24.6 | 43.6 | 60.5 | |
| Athelney Trust | UK Smaller Companies | 5.2 | -13.4 | -5.2 | -1.1 | -4.9 | 37.2 | |
| JPMorgan Claverhouse | UK Equity Income | 5.2 | -5.7 | -2.5 | 18.4 | 22.5 | 65.3 | |
| Schroder Income Growth Fund | UK Equity Income | 5.1 | -8.6 | -9.8 | 8.6 | 27.2 | 54.5 | |
| Merchants Trust | UK Equity Income | 5.1 | 0.7 | -1.9 | 37.8 | 53.5 | 81.2 | |
| City of London Investment Trust | UK Equity Income | 5.0 | 0.1 | -0.4 | 24.1 | 31.7 | 66.2 | |
| Invesco Asia | Asia Pacific Equity Income | 5.0 | -11.4 | -14.5 | -10.4 | 37.2 | 150.7 | |
| Ecofin Global Utilities and Infrastructure | Infrastructure Securities | 5.0 | -14.2 | -22.7 | -7.5 | 57.5 | – | |
| Diverse Income Trust | UK Equity Income | 4.9 | -6.7 | -7.2 | -7.1 | 10.1 | 43.6 | |
| JPMorgan Multi-Asset Growth & Income | Flexible Investment | 4.9 | -1.5 | 8.5 | 24.4 | 31.1 | – | |
| Schroder Oriental Income | Asia Pacific Equity Income | 4.9 | -6.6 | -6.0 | 0.5 | 25.4 | 113.0 | |
| JPMorgan Asia Growth & Income | Asia Pacific Equity Income | 4.8 | -9.2 | -12.2 | -27.5 | 19.9 | 130.0 | |
| TR Property Investment Trust | Property Securities | 4.7 | -6.8 | 5.2 | -5.9 | 2.3 | 93.7 | |
| Dunedin Income Growth | UK Equity Income | 4.7 | -9.9 | -3.7 | 7.4 | 42.0 | 62.6 | |
| Henderson International Income | Global Equity Income | 4.6 | -11.2 | -7.6 | 17.4 | 25.6 | 100.0 | |
| Murray International Trust | Global Equity Income | 4.6 | -7.4 | -1.2 | 22.5 | 30.2 | 93.0 | |
| JPMorgan Japan Small Cap Growth & Income | Japanese Smaller Companies | 4.5 | -13.1 | 1.3 | -39.6 | 7.0 | 91.4 | |
| Murray Income Trust | UK Equity Income | 4.5 | -7.9 | 2.2 | 13.8 | 39.7 | 65.2 | |
| Tetragon Financial Group | Flexible Investment | 4.5 | -67.2 | 0.5 | 25.2 | 8.2 | 109.4 | |
| Montanaro UK Smaller Companies | UK Smaller Companies | 4.5 | -11.9 | -12.0 | -16.8 | 16.3 | 37.6 | |
| JPMorgan European Growth & Income | Europe | 4.3 | -10.5 | 12.4 | 37.5 | 72.9 | 129.0 | |
| International Biotechnology | Biotechnology & Healthcare | 4.3 | -7.4 | -3.2 | -10.4 | 30.5 | 191.2 | |
| Invesco Perpetual UK Smaller Companies | UK Smaller Companies | 4.3 | -9.3 | 0.2 | -4.9 | 12.0 | 92.1 | |
| JPMorgan Global Emerging Markets Income | Global Emerging Markets | 4.3 | -11.9 | -4.9 | -9.0 | 20.4 | 67.6 | |
| BlackRock Sustainable American Income | North America | 4.2 | -8.4 | -1.8 | 27.3 | 38.5 | 150.1 | |
| BlackRock Energy and Resources Income | Commodities & Natural Resources | 4.1 | -12.2 | -19.9 | 41.0 | 90.4 | 80.1 | |
| CT UK Capital & Income | UK Equity Income | 4.1 | -5.3 | -0.3 | 11.7 | 21.4 | 61.1 | |
| Temple Bar Investment Trust | UK Equity Income | 4.0 | -5.1 | 4.7 | 35.1 | 18.1 | 36.4 | |
Source: theaic.co.uk / Morningstar (to 12/01/2024). Includes investment trusts in equity sectors and in the Flexible Investment sector. Excludes VCTs and alternatives. Excludes investment trusts where wind-up or restructuring plans have been proposed. A hyphen (-) denotes no performance data.
