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29 June: Investment Trust Dividends Soar To £5.5 billion
Dividends paid out by investment trusts hit a record high of £5.5 billion in the year to March 2022, propelled by payouts from privately-owned companies not listed on stock markets.
An investment trust is a public limited company, traded on the stock market, whose aim is to make money by investing in other companies. The investment trust sector has become increasingly popular with retail investors in recent years.
According to fund administration group Link, two-thirds of investment trust dividends paid over the 12 months to March focused on so-called ‘alternatives’. These include investments in venture capital, renewable energy infrastructure and property.
Link says the figures equate to an overall increase in dividends of 15% compared with the previous year.
It adds, however, that shareholder payments from investment trusts investing in company stocks flatlined over the period, accounting for £1.85 billion of the total payout. These equity investment trusts traditionally play a key role in the London-listed investment trust sector.
While dividends from alternative trusts have increased nine-fold over the past decade, Link forecasts…
