UK investment trusts enjoy record annual dividends

New statistics have revealed that investment trusts in Britain have recorded their best year yet for dividends.

The record-breaking year was made possible by infrastructure and venture capital, but pay-outs from equity trusts are now anticipated to lag while managers work to rebuild cash reserves after being stripped of their assets by the global pandemic.

UK consumers interested in investments trusts often look to experts in wealth management in Shropshire, Cheshire and other parts of the country for expert guidance. Offering impartial advice, they can help consumers understand the risk and return involved in the different asset classes they are considering.

According to the recent report, investment trusts are dedicated investment vehicles that are specifically structured as listed companies. In the past financial year, trusts here in the UK paid out £5.5 billion worth of dividends, marking an increase of 15% from the recorded figures for the same period between 2020 and 2021. Additionally, the total payments made were the highest seen since those behind the study begun charting investment trust activity back in 2010.

The increase to pay-outs primarily came from trusts investing in “alternatives” like venture capital, property vehicles and infrastructure. Dividends received from alternative trusts have seen a ninefold increase in the last 10 years due to the investment trust structure rising in popularity among asset managers.

Shareholder payments issued from investment trusts that are investing in a portfolios of company stocks have flatlined, however, and are now expected to grow at a slower than average market rate in the coming year.


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