Dividends from equity focused investment trusts dropped 3.1% for the first six months of 2021 marking the first fall since 2010, however, thanks to a boost in dividends from alternative trusts the companies ended up paying out more than the same period the previous year.
The Investment Trust Dividend Snapshot showed that, while pay-outs for equity trusts fell in the first half of this year, the wider UK stockmarket returned to growth and rose by 8%. Only three equity trusts in ten made a cut in the first half of 2021, with an average reduction of 23%. Unsurprisingly, the largest income paying sector, the UK Equity Income sector, caused the biggest impact to the fall in H1. The sector saw a 9% year-on-year fall, equivalent to a drop of £20.3m. A 10% decline in dividends from the Global sector also made a significant impact. The Association of Inv...
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