ITs: Going back to basics to understand investor needs

ITs: Going back to basics to understand investor needs

Alan Porter, portfolio manager at the Securities Trust of Scotland, explains how dividend growth shows investment trusts at their best.

At a time when returns on cash and higher-quality bonds are deteriorating, long-term dividend growth is a key priority for many investors. Globally, equities remain attractively valued, and the healthy dividend yields on offer continue to look appealing given the low interest rates available. How though, with stockmarket volatility remaining high, can investors best achieve ambitions of long-term dividend growth through equity investment? Dividend theory Sometimes it is worth going back to basics to understand what motivates investors. According to one strand of dividend theory (put...