City of London: a landmark 60 years of dividend rises

The Association of Investment Companies (AIC) is celebrating The City of London Investment Trust's record of 60 consecutive years of dividend rises. There are now 21 dividend hero investment trusts which have increased their dividends for at least 20 years in a row. The newest joiner is BlackRock Greater Europe Investment Trust which became a dividend hero in May.

Annabel Brodie-Smith, Director of the Association of Investment Companies (AIC)

Annabel Brodie-Smith, Director of the Association of Investment Companies (AIC), said: "Congratulations to The City of London Investment Trust on achieving a record 60 years of dividend rises. This investment trust's inspiring diamond jubilee highlights the remarkable resilience of the dividend hero investment trusts. They have continued to raise dividends during high inflationary periods in the 1970s, the recession of the 1990s, the global financial crisis in 2008 and the pandemic.

"Investment trusts can achieve these impressive long records of dividend growth because they can smooth their flow of dividends. A trust can retain up to 15% of the income it receives each year, and this reserve of income can be used to boost dividends when markets are difficult. Dividends are never guaranteed, but these long records of resilient dividend growth are much appreciated by income investors.

"It's also encouraging to welcome BlackRock Greater Europe to the dividend hero list. This is the first dividend hero from the Europe sector. Dividend hero investment trusts come from eight different sectors which demonstrates the range of income opportunities in the investment trust industry."

Why 60 years of dividend rises matters

Job Curtis, Fund Manager of The City of London Investment Trust, said: "By reaching this milestone we celebrate not only 60 years of consecutive annual dividend increases, but also the resilience of the UK market and indeed the benefits afforded to us by the investment trust structure. Our investment approach prioritises patience, valuation discipline and long-term thinking, all of which has allowed us to navigate the varied market conditions of the past six decades.

"Most importantly, we focus on creating a portfolio of brilliant, dividend-paying businesses, of which there are many in the UK. Underpinning all of this is our ability, as an investment trust, to draw on revenue reserves when needed in trickier times, which has allowed us to deliver 60 years of uninterrupted dividend growth for our shareholders."

Why becoming a dividend hero is important

BlackRock Greater Europe became a dividend hero in May. Andrew Impey, Chair of BlackRock Greater Europe Investment Trust, said: "We are pleased to have delivered 20 consecutive years of dividend growth to our shareholders, reflecting the resilience of BlackRock Greater Europe's underlying portfolio holdings through different market cycles. This resilience is underpinned by BlackRock's highly regarded and well-resourced European team, which seeks to identify the best investment opportunities across Europe, focusing on companies with durable competitive advantages and quality management teams committed to long-term value creation.

"The board uses the investment trust structure to maintain dividend progression, allowing the portfolio managers to remain unconstrained by income targets and focus instead on quality growth companies capable of delivering attractive total returns."

Investment trust dividend heroes

Source: theaic.co.uk / Morningstar. Correct at 11/09/26.