The first six-decade dividend hero

When the City of London Investment Trust announced its dividend for the last quarter of the 2025-26 financial year, it set an enviable record: it became the first investment trust to increase its annual dividend for 60 consecutive years.

The 5.7p-a-share quarterly payment took the full-year divi to 22.15p – a 4% increase relative to the previous year. The trust said in its annual report, published last week, that it was ‘determined’ to keep raising the dividend every year.

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The chairman, Sir Laurie Magnus, said: ‘The dividend was increased, for the 60th consecutive year, by 4% and was fully covered by earnings per share. This continues City of London’s unique leadership in delivering the longest record of consecutive annual dividend increases in the investment trust sector. The board is determined to maintain this leadership position over the years ahead.’

Investment trust analysts, not normally given to hyperbole, also celebrated the dividend milestone. Callum Stokeld of Panmure Liberum said: ‘Benjamin Franklin once commented that “in this world nothing can be said to be certain, except death and taxes”. However, it is hard not to suspect that we’re probably at the point where, were he still alive, he would reformulate to include “City of London raising its financial year dividend”.’

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Mr Stokeld added: ‘With the board having declared its determination to maintain the track record of growing dividends, we think it is a pretty conservative comment to say that we would anticipate that City of London will continue to raise its dividend in the current financial year. Income investors should remain well served, with a premium-level yield to the wider index which has continued to rise quicker than inflation, and the managerial track record in this regard (with Job Curtis having managed the strategy since 1991) invites confidence that this will be maintained.’

Ash Nandi of Deutsche Numis wrote: ‘The company has an impressive record of now 60 years of dividend growth, with a yield [at the time of writing] of 3.9% … We believe City of London is an attractive core holding for investors seeking income from UK equities, given the large-cap bias and outperformance of markets over multiple time periods, and a low ongoing charges ratio (0.36%).’ Yields are variable and not guaranteed.

Investment trusts that can boast at least a 20-year record of consecutive increases in the full-year dividend have been given the name ‘dividend heroes’ by the trusts’ trade body, the Association of Investment Companies (AIC). While no rival trust has equalled City of London’s 60-year record, several are not far behind.

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They include Bankers, Alliance Witan and Caledonia Investments on 59 years and the Global Smaller Companies Trust and F&C on 56 and 55 years respectively (although yields of 1.8%, 2.2%, 2%, 1.7% and 1.2% respectively reduce their appeal to income investors). The following table lists all the dividend heroes.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. This investment trust invests in overseas markets and so the value of investments can be affected by changes in currency exchange rates. The shares in City of London investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. Before investing, please read the relevant key information document which contains important information about the fund. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.