Global dividends are surging. In the third quarter of 2024, they registered a record rise, with the Janus Henderson Global Dividend index finding nine companies in 10 increased their dividends or held them flat. In the UK, however, dividends bucked the trend in the same period, declining year on year after steep cuts in the mining sector.
Such a variable picture means many income-seeking investors may turn to professional fund managers to manage the risks. In this case it is hard to ignore the Association of Investment Companies’ dividend heroes. These are the 20 investment trusts listed on the London Stock Exchange that have consistently increased their dividends for 20 or more years in a row. They have managed to deliver this in both good and bad years for stock markets, with City of London Investment Trust, Bankers Investment Trust, Alliance Witan and Caledonia Investments having the lengthiest records.