The Association of Investment Companies (AIC) has released its next generation of dividend heroes, the investment companies on its way to raising dividends for 20 years but presently have raised its dividends for at least 10 years.

Invesco’s Perpertual Income & Growth Trust managed by Mark Barnett, is getting close to entering the dividend hero category as it has raised dividends for 19 straight years.  It joins 21 other investment companies which have harnessed their ability to retain 15 percent of the income they receive each year to smooth dividends through both good and bad times.

The Aberdeen Standard Equity Income Trust sits just behind Invesco’s trust with 18 years of consecutive raising its dividends.

The Aberdeen Asian Income Fund is a new joiner to the next generation of dividend heroes having achieved its 10^th annual dividend increase in January.

The BlackRock Throgmorton has achieved its 15^th dividend increase this year.

Yoojeong Oh, manager of Aberdeen Asian Income Fund, said: “A dividend paying culture in Asia is certainly developing. More and more companies are recognising the importance of paying an annual dividend to shareholders; Aberdeen Asian Income Fund’s dividend has more than doubled since the fund was launched in 2005. During this time we’ve also been able to build cash reserves for that rainy day. Even during the depths of the global financial crisis in 2008 we were able to maintain the level of income we paid to our shareholders.

“The fund follows a total return strategy focusing on both capital growth and paying a progressive dividend; it currently yields 4.5 percent. We engage frequently with company management to drive shareholder returns. Generally we are seeing governance among Asian businesses moving towards international standards, making balance sheets more efficient and shareholder returns more attractive.”

Annabel Brodie-Smith, communications director AIC, said: “The next generation of dividend heroes is growing, with 22 companies increasing their dividends every year for between 10 and 20 years. It’s great to see a new joiner, Aberdeen Asian Income Fund, making full use of the investment company structure to pay a rising and dependable income. Investment companies have unique advantages when it comes to paying dividends which investors can rely on. They can hold back up to 15 percent of the income they receive each year and put it into their revenue reserves to boost pay-outs when times are tough. This ability to pay reliable income is a very important feature for lots of investors.”

The AIC’s next generation of dividend hero investment companies

The AIC is the trade body for closed-ended investment companies. The association represents a broad range of closed-ended investment companies, incorporating investment trusts, offshore investment companies, REITs and Venture Capital Trusts (VCTs).