TRUST WATCH: City of London Investment Trust

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CITY OF LONDON INVESTMENT TRUST: Current record holder for the longest number of continuous dividend rises

By Daily Mail City & Finance Reporter

Published: | Updated:

WHAT IS IT?

The City of London Investment Trust is renowned for its dividend increases year after year, and holds the record for the longest number of continuous rises. 

It is managed by veteran investor Job Curtis at Janus Henderson.

WHAT DOES IT INVEST IN?

The trust specialises in investing in companies which pay out a strong dividend. Its biggest holdings include Shell, HSBC, British American Tobacco and Diageo.

WHAT DO THE EXPERTS LIKE?

Tom Stevenson, investment director of personal investing at Fidelity International, says: ‘City of London has built up a formidable dividend reserve to enable it to keep making payouts to shareholders even if its underlying investments cut their own dividends.’ 

At a time when a slew of companies have cut their dividends, this could be useful for investors seeking an income.

ANY DOWNSIDES?

However, it comes at a price. 

The trust currently trades at a 5 per cent premium to the value of its underlying assets, which Stevenson says is ‘a reflection of its high and sustainable dividend at a time when payouts are being cut’.

 

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