Bargains abound as investment trust sector yield spikes to 21st century high

Unweighted yield hit 5.2% at end-October

The unweighted average yield on the investment trust sector spiked to its highest level in the 21st century at the end of October, data from the Association of Investment Companies (AIC) has revealed.

Income has been hard to come by for UK investors in recent years, and this was particularly the case in 2020 as Covid-19 wreaked havoc on dividends from stocks around the world. Global payouts are expected to fall by $224bn in 2020, according to Janus Henderson. However, the investment trust sector has managed to grow yields through the year, from 3.1% at the end of 2019 to a peak of 5.2% by 31 October, a figure the AIC confirmed was the highest month-end yield this century. 2021 - A dividend odyssey: Income funds eye bumper growth after $224bn hit this year The figure is unweighte...