scotia wrote:forrado wrote:Announcement of Fourth Interim DividendThe Directors of Murray Income Trust PLC (the "Company") have declared a fourth interim dividend of 11.25p per Ordinary share in respect of the year ended 30 June 2022 (2021: 9.75p). As a result, the total dividend for the year is 36.00p per Ordinary share, a 4.3% increase on the previous year's total dividend of 34.50p per Ordinary share, and is the 49th year of consecutive increase.
The fourth dividend will be paid to shareholders on 15 September 2022 based on a record date of 19 August 2022 and an ex dividend date of 18 August 2022. This dividend follows the Company's first three quarterly interim dividends which totalled 24.75p per Ordinary share paid in December 2021, March 2022 and June 2022 (total for year ended 30 June 2021: 24.75p).
OK - maybe I'm being over-critical, but the statement that this is "the 49th year of a consecutive increase" (in the dividend) could be a bit misleading to a novice investor. Over the past year the total return has been -2.65%. So the capital share value has declined by 2.65% + 4.2% (the dividend). Hence their really was no dividend to issue from the investments over the past year - it was a return of capital. Maybe they should make that clear. OK - I know that MUT is not the only sinner among the Income ITs in this respect.
It could be argued that the current "dividend" has been extracted from excess un-issued income stored in previous good years - but the share price (which would include such surpluses) has only increased by 8.5% over 5 years - so there doesn't seem much of a surplus buffer there to continue with "dividends" which are not covered by total return.
A little pat on the back - their total return over 5 years is 34% compared to the FTSE all share index of 20%.
But you seem to forget that investment trusts are primarily income vehicles - they are obliged to return to shareholders not less than 85% of their revenue profits each year. The Directors of Murray Income are not referring to total return, merely the dividend return. Glad you added the pat on the back because MUT has gone from something close to a basket case some years back, to a decent investment over the last few years, helped by the reduction in fees after they absorbed the assets of Perpetual Income and Growth.
Dod