City of London Investment Trust (CTY)

NedS

NedS said:

Bravepants said:

Do you still feel the same about the RDSB shares you bought back in March, when the yield was 8%?

Haha, yes, I got nailed on those and took a loss on that trade. Overall Shell has done me well over the years so I can't complain too much.

To be fair, came good in the end

tebbins

I prefer the relative safety of diversifying across the entire UK market and relying on the combination of its resilient dividend history and total return, than paying someone to pick stocks for me. I either pick them myself, or any money I want to invest but am not confident enough to add to my individual holdings goes to index funds.

Prism

NedS said:

CTY just declared their latest dividend today, increasing 2.6% year on year, and predicted to be fully covered by earnings with a surplus to start replenishing the reserves:

7 April 2022

 

THE CITY OF LONDON INVESTMENT TRUST PLC

Dividend on Ordinary Shares

The Board of The City of London Investment Trust plc announces that:

A third interim dividend of 5.00p per ordinary share of 25p, in respect of the year ending 30 June 2022, will be paid on 31 May 2022 to holders registered at the close of business on 29 April 2022. The Company's shares will go ex-dividend on 28 April 2022.

The Board intends to declare a fourth interim dividend of 5.00p per share for the year to 30 June 2022. The fourth interim dividend will be declared in July 2022. This would make a total dividend for the year to 30 June 2022 of 19.60p per share, an increase of 2.6% on the previous year and the Company's 56th consecutive annual increase. The 19.60p dividend for the year to 30 June 2022 is expected, based on our current projections for the revenue account, to be fully covered by earnings with a surplus carried to the revenue reserve.

CTY is still a core holding in my income portfolio. I am confident, having weathered covid, that CTY is about as reliable source of income as exists and should have me well covered in the stormy times ahead.

Pretty much in line with last years inflation figures for CPIH but it will be interesting to see if they manage to keep up with this years inflation going forwards. Otherwise the stable income just gets eroded away.

NedS

Prism said:

Pretty much in line with last years inflation figures for CPIH but it will be interesting to see if they manage to keep up with this years inflation going forwards. Otherwise the stable income just gets eroded away.

Yes, that will be the challenge. To be fair, over the longer term dividend increases have outpaced inflation so it would be reasonable to expect there may be periods of higher inflation where increases may not keep up. It is the longer term performance we should be concerned with over any short term variance - the smoothing effect, as with retained earnings and dividend payments which we saw to full effect during Covid.
It's also ahead of the maximum 2% guidance the Government just issued for Civil Servants pay award this year, so CTY has given me a better pay increase than my employer!

jimjames

Prism said:

NedS said:

CTY just declared their latest dividend today, increasing 2.6% year on year, and predicted to be fully covered by earnings with a surplus to start replenishing the reserves:

7 April 2022

 

THE CITY OF LONDON INVESTMENT TRUST PLC

Dividend on Ordinary Shares

The Board of The City of London Investment Trust plc announces that:

A third interim dividend of 5.00p per ordinary share of 25p, in respect of the year ending 30 June 2022, will be paid on 31 May 2022 to holders registered at the close of business on 29 April 2022. The Company's shares will go ex-dividend on 28 April 2022.

The Board intends to declare a fourth interim dividend of 5.00p per share for the year to 30 June 2022. The fourth interim dividend will be declared in July 2022. This would make a total dividend for the year to 30 June 2022 of 19.60p per share, an increase of 2.6% on the previous year and the Company's 56th consecutive annual increase. The 19.60p dividend for the year to 30 June 2022 is expected, based on our current projections for the revenue account, to be fully covered by earnings with a surplus carried to the revenue reserve.

CTY is still a core holding in my income portfolio. I am confident, having weathered covid, that CTY is about as reliable source of income as exists and should have me well covered in the stormy times ahead.

Pretty much in line with last years inflation figures for CPIH but it will be interesting to see if they manage to keep up with this years inflation going forwards. Otherwise the stable income just gets eroded away.

That's very true. A track record of 56 years of dividend increases isn't so great if the increase is 1% pa and inflation is 10%!

Thrugelmir

Prism said:

NedS said:

CTY just declared their latest dividend today, increasing 2.6% year on year, and predicted to be fully covered by earnings with a surplus to start replenishing the reserves:

7 April 2022

 

THE CITY OF LONDON INVESTMENT TRUST PLC

Dividend on Ordinary Shares

The Board of The City of London Investment Trust plc announces that:

A third interim dividend of 5.00p per ordinary share of 25p, in respect of the year ending 30 June 2022, will be paid on 31 May 2022 to holders registered at the close of business on 29 April 2022. The Company's shares will go ex-dividend on 28 April 2022.

The Board intends to declare a fourth interim dividend of 5.00p per share for the year to 30 June 2022. The fourth interim dividend will be declared in July 2022. This would make a total dividend for the year to 30 June 2022 of 19.60p per share, an increase of 2.6% on the previous year and the Company's 56th consecutive annual increase. The 19.60p dividend for the year to 30 June 2022 is expected, based on our current projections for the revenue account, to be fully covered by earnings with a surplus carried to the revenue reserve.

CTY is still a core holding in my income portfolio. I am confident, having weathered covid, that CTY is about as reliable source of income as exists and should have me well covered in the stormy times ahead.

Pretty much in line with last years inflation figures for CPIH but it will be interesting to see if they manage to keep up with this years inflation going forwards. Otherwise the stable income just gets eroded away.

Company dividends aren't going to be rising at a rate in excess of 5%. 

Prism

Thrugelmir said:

Prism said:

NedS said:

CTY just declared their latest dividend today, increasing 2.6% year on year, and predicted to be fully covered by earnings with a surplus to start replenishing the reserves:

7 April 2022

 

THE CITY OF LONDON INVESTMENT TRUST PLC

Dividend on Ordinary Shares

The Board of The City of London Investment Trust plc announces that:

A third interim dividend of 5.00p per ordinary share of 25p, in respect of the year ending 30 June 2022, will be paid on 31 May 2022 to holders registered at the close of business on 29 April 2022. The Company's shares will go ex-dividend on 28 April 2022.

The Board intends to declare a fourth interim dividend of 5.00p per share for the year to 30 June 2022. The fourth interim dividend will be declared in July 2022. This would make a total dividend for the year to 30 June 2022 of 19.60p per share, an increase of 2.6% on the previous year and the Company's 56th consecutive annual increase. The 19.60p dividend for the year to 30 June 2022 is expected, based on our current projections for the revenue account, to be fully covered by earnings with a surplus carried to the revenue reserve.

CTY is still a core holding in my income portfolio. I am confident, having weathered covid, that CTY is about as reliable source of income as exists and should have me well covered in the stormy times ahead.

Pretty much in line with last years inflation figures for CPIH but it will be interesting to see if they manage to keep up with this years inflation going forwards. Otherwise the stable income just gets eroded away.

Company dividends aren't going to be rising at a rate in excess of 5%. 

Agreed, but trusts are not limited to what their holdings pay in dividends. They sell capital to pay the dividend anyway. I'm not sure if CTY have a remit to pay higher dividends than they received. A decent trust should be able to pay out inflation matching increases for years if they wanted to based on the last 10 years of gains.

NedS

Prism said:

Thrugelmir said:

Prism said:

NedS said:

CTY just declared their latest dividend today, increasing 2.6% year on year, and predicted to be fully covered by earnings with a surplus to start replenishing the reserves:

7 April 2022

 

THE CITY OF LONDON INVESTMENT TRUST PLC

Dividend on Ordinary Shares

The Board of The City of London Investment Trust plc announces that:

A third interim dividend of 5.00p per ordinary share of 25p, in respect of the year ending 30 June 2022, will be paid on 31 May 2022 to holders registered at the close of business on 29 April 2022. The Company's shares will go ex-dividend on 28 April 2022.

The Board intends to declare a fourth interim dividend of 5.00p per share for the year to 30 June 2022. The fourth interim dividend will be declared in July 2022. This would make a total dividend for the year to 30 June 2022 of 19.60p per share, an increase of 2.6% on the previous year and the Company's 56th consecutive annual increase. The 19.60p dividend for the year to 30 June 2022 is expected, based on our current projections for the revenue account, to be fully covered by earnings with a surplus carried to the revenue reserve.

CTY is still a core holding in my income portfolio. I am confident, having weathered covid, that CTY is about as reliable source of income as exists and should have me well covered in the stormy times ahead.

Pretty much in line with last years inflation figures for CPIH but it will be interesting to see if they manage to keep up with this years inflation going forwards. Otherwise the stable income just gets eroded away.

Company dividends aren't going to be rising at a rate in excess of 5%. 

Agreed, but trusts are not limited to what their holdings pay in dividends. They sell capital to pay the dividend anyway. I'm not sure if CTY have a remit to pay higher dividends than they received. A decent trust should be able to pay out inflation matching increases for years if they wanted to based on the last 10 years of gains.

And like I said earlier, dividends have increased far faster than inflation over the last 10-20 years, so it would not be surprising if we had a few years where that is not the case due to abnormally high inflation. If inflation remains high (above 5%) for a prolonged period, then all bets are off but I pretty sure that is going to apply to more that just equity income investments.