EP #184 | All about Investment Trusts & why they fit into a Dividend Growth Portfolio | Incl. many UK examples

Dividend Talk

In today's episode of Dividend Talk, where we jump into the world of investment trusts with our special guest, Andrew who is a member of the Limerick FI group in Ireland. We share some notable dividend hikes, including Ahold Delhaize, Coca-Cola, Schneider Electric, Royal Vopak, and Moody's.

In this episode, Andrew shares his journey into the world of investing and simplifies the concept of investment trusts. Learn about the distinctions between closed-end and open-end trusts, as well as key terms like gearing, net asset value, and dividend heroes.

Andrew shares the concept behind two dividend policies prevalent in investment trusts, including the traditional dividend growth model and the enhanced dividend approach exemplified by JP Morgan Global Growth & Income. Andrew shares his thoughts on what to look for when evaluating investment trusts, from compelling narratives and annual reports to metrics like z-scores, gearing, and dividend cover, not forgetting the consideration of fees and managerial expertise.

Additionally, Andrew answers questions from our community, such as the comparison between investment funds and ETFs, and the potential impact of changes in investment strategy resulting from the elimination of deemed disposal.

Books Mentioned

• John Barrons, Financial Times Guide to Investment Trusts: Unlocking the City's Best Kept Secret
• Jonathon Davis, The annual Investment Trust handbook 2024
• Ed Conway, Material World
• Jonathon Davis - Templeton's Way with Money.

Websites Mentioned

The AIC, Trustnet, The Money Makers podcast

Companies Mentioned

CT Private Equity Trust, Allianz Technology Trust, City of London Investment Trust, Renewables Infrastructure Group, Greencoat Renewables, Aquila European Renewables, Finsbury Growth & Income Trust, Bankers Investment Trust, NextEnergy Solar Fund and BlackRock World Mining