Advertisement

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.

Advertisement - Article continues below

"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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020