MAM trust to cut unsustainable dividend level

MAM has unveiled plans to revamp its Midas Income & Growth trust, headed up by the group's chief investment officer Alan Borrows, which will see the trust cut its dividends.

The trust's board said this morning it will re-base its dividend payments, reducing the payout to 5.2p per share after taking the view the level of income is unsustainable. The board added the trust has been paying out an uncovered dividend in the last three years which has hurt capital growth. "The board believes that maintaining the current relatively high level of dividends is inhibiting the Investment Manager from conviction investing and that this is detrimental to achieving capital growth and total return," said the board. The move to reduce the company's dividend will see th...