Merchants Trust sees annual return on investment portfolio

Merchants Trust raised its annual dividend for the 30th year in a row as net revenue return per share rose 4.1 per cent to 22.9p from its portfolio of investments.

Merchants Trust raised its annual dividend for the 30th year in a row as net revenue return per share rose 4.1 per cent to 22.9p from its portfolio of investments.

The British investment trust said it was rewarding shareholders with a total dividend of 23.2p for the year, up 0.9% on the previous year, as it delivered its results for the year to January 31st, 2013.

"We now have a thirty year history of increasing the dividend and a further modest increase is proposed for this year," said Chairman, Simon Fraser.

The company's investment portfolio produced a capital return of 14.8% ahead of the 10.5% return on the FTSE 100 index.

The firm's top 10 investments include Royal Dutch Shell 'B', GlaxoSmithKline, BP, HSBC, Vodafone, British American Tobacco, BAE Systems, SSE, National Grid and Resolution.

The net asset value total per share rose by 16.0% to 466.5p. The stock market had a strong year, particularly in the second half in response to the European Central Bank's commitment to defend the euro and US actions to defer the so-called 'fiscal cliff' of spending cuts and tax hikes.

While the economic outlook remains uncertain, Merchants expects to benefit from strong UK-listed businesses in the year ahead.

"Our fund managers are still able to identify attractive, dividend paying companies trading on sensible valuations," Fraser said.

"Merchants remains focused on delivering long term dividend and capital growth."

RD

Recommended

Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
How to stop recurring subscriptions becoming a drain on your money
Personal finance

How to stop recurring subscriptions becoming a drain on your money

Tracking and pruning subscriptions isn’t as easy as it sounds. Here's how to take charge.
14 Sep 2021