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Rise in investment companies paying quarterly dividends

› Rise in investment companies paying quarterly dividends

46% of investment companies are now paying dividends on a quarterly basis, according to the Association of Investment Companies (AIC).

Some 104 conventional member companies are paying their dividend quarterly due to low interest rates in comparison to 92 companies a year ago.

In 2010, only 17% of companies paid their dividend on a quarterly basis.

Bi-annual dividend payments have decreased from 30% in 2016 to 28% in 2017.

23% continue to pay their dividend on an annual basis while those paying monthly and tri-annual remained the same as 2016.

Annabel Brodie-Smith, communications director at the AIC, said:

“Investment companies have a number of income advantages, including the unique ability to hold back some of the income they receive to boost their dividends in tougher times. 

“With investors still hungry for income from their investments, it’s not surprising that the number of investment companies paying quarterly dividends has increased since last year, to meet this demand.”

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