First half dip for investment trust dividends

For the first time in the last 10 years, recorded dividends from the UK investment trusts have fallen as the international market has caught up with what has been a sector showing resilience to any drop in shareholder payments.

In 2021’s first half, the amount of cash that shareholders have enjoyed from equity trusts fell by 3.1 per cent in comparison to figures recorded in 2020. This is the first instance of a sector-wide decrease since the drop experienced in 2010, following the global financial crisis.

The relatively slight decline in the aftermath of the coronavirus crisis showcases the advantage of investment trusts for investors who are income-conscious, according to those in support of trusts.

Financial experts have suggested that due to their structure, investment trusts are ideal for investors seeking to survive turbulent markets that are impacted by events like both the global financial crisis and COVID-19.

While data displays a drop in payments for trusts involving investments in equities, further analysis from numerous institutions focused on investment trust trading institutions has revealed that trusts involving alternative assets show an increase in payments amidst the pandemic, demonstrating the importance of building a balanced income portfolio.

Enterprises and individuals in need of sound investment advice in Chester, Birmingham and other major cities around the UK can consult wealth management firms for guidance. Along with providing other services, like estate and retirement planning, wealth managers can offer guidance on different asset classes and can create well-balanced portfolios designed to help clients retain and grow their wealth.


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