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Dividend heroes: the investment trusts that have increased their dividends for 20+ years
Investment trusts can be a good option for income-focused investors – but which trusts have consistently increased their dividends over the past 20 years?
Twenty investment trusts have increased their dividend payment every year for two decades, according to the Association of Investment Companies (AIC). Ten of these so-called “dividend heroes” have gone a step further, stretching this track record to half a century or more.
Topping the list of these reliable income-paying investment trusts are the City of London investment trust (LON:CTY), the Bankers Investment Trust (LON:BNKR) and Alliance Witan (LON:ALW). All three have increased their dividends for 59 consecutive years.
Last year, Murray International Trust (LON:MYI) became the newest dividend hero, and it has retained its place in the list as it was able to increase its dividend payout in the most recent financial year.
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“Dividends serve a dual purpose for us,” said Richard Clode, co-manager of the Bankers Investment Trust. “They are an important component of the attractive long-term total returns we aim to deliver to shareholders in combination with capital growth.
“Dividends also provide capital discipline to the companies we invest in as well as to how we invest as we seek out companies that can generate long-term profit and cash flow growth,” Clode added.
Investment trusts have a unique structure which allows them to hold back up to 15% of their income each year in a dividend reserve. This can then be used in years when companies pay lower dividends than expected.
This feature can make trusts particularly attractive to income-focused investors. In periods like the coronavirus pandemic, when swathes of companies cut or paused their dividends, trusts were able to fall back on these reserves to deliver a smooth income stream.
Dividend heroes: which investment trusts have increased payouts for 20 years or more?
The full list of the 20 dividend heroes is below:
Swipe to scroll horizontally
Investment trust dividend heroes
Investment trust
Number of consecutive years dividend increased
Dividend yield (%)
5-year annualised dividend growth rate (%)
City of London Investment Trust
59
3.91
2.31
Bankers Investment Trust
59
2.08
4.96
Alliance Witan
59
2.31
14.52
Caledonia Investments
58
2.22
3.79
The Global Smaller Companies Trust
55
1.67
12.03
F&C Investment Trust
55*
1.28
6.10
Brunner Investment Trust
54
1.78
4.50
JPMorgan Claverhouse
53
4.22
4.18
Murray Income Trust
52
4.40
3.15
Scottish American
52
3.15
5.82
Merchants Trust
43
4.85
1.43
Scottish Mortgage Investment Trust
43
0.37
6.15
Value and Indexed Property Income
38
7.08
2.66
CT UK Capital & Income
32
3.80
2.48
Schroder Income Growth Fund
30
4.25
3.13
Aberdeen Equity Income Trust
25
5.69
2.23
Athelney Trust
23
7.41
1.25
BlackRock Smaller Companies
22
3.49
6.25
Henderson Smaller Companies
22
3.26
3.57
Murray International Trust
21
3.63
2.61
Source: theaic.co.uk / Morningstar. Data at 12/03/26. * Dividend rise announced on 16/3/2026
Top dividend heroes in focus: three investment trusts that have increased dividends for nearly 60 years
The three trusts at the top of the list have increased the dividend income they generate for investors for 59 years, consistently raising payouts even through market upheavals like the inflationary 1970s, the dot-com bubble in the late 1990s, the global financial crisis of 2008 and the Covid pandemic.
City of London invests in companies listed on the London stock exchange; top holdings as of 28 February include HSBC (LON:HSBA), Shell (LON:SHEL) and British American Tobacco (LON:BATS). Of the three investment trusts that have increased their dividends for 59 consecutive years, City of London has the highest dividend yield, at 3.91%.
Alliance Witan also invests globally, with a focus on long-term capital growth and, of course, rising dividend payments. Its top holdings, as of the end of February, are Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Amazon.
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Dan is a financial journalist who, prior to joining MoneyWeek, spent five years writing for OPTO, an investment magazine focused on growth and technology stocks, ETFs and thematic investing.
Before becoming a writer, Dan spent six years working in talent acquisition in the tech sector, including for credit scoring start-up ClearScore where he first developed an interest in personal finance.
Dan studied Social Anthropology and Management at Sidney Sussex College and the Judge Business School, Cambridge University. Outside finance, he also enjoys travel writing, and has edited two published travel books.
