PCFT to maintain dividend despite mounting pressure on financials

Uses £9m reserves

The board of the Polar Capital Global Financials trust (PCFT) has opted to maintain dividends due to its shareholders this August and in February 2021 despite widespread dividend cuts across its investable universe.

In a statement this morning, the board confirmed that despite "exceptional market conditions arising from the Covid-19 pandemic", which has forced severe dividend cuts across financial services firms, PCFT has built up sufficient distributable reserves to maintain its next scheduled pay outs. Terry Smith: 'The really bad news for equity income investors is yet to surface' The £155m trust has 1.7 years of dividend cover with reserves of around £9m according to AIC data. It has posted five year dividend growth of 7.3% per annum for a dividend yield of 4.5% PCFT's board said: "The com...