Edinburgh IT flags 'unsustainable' dividend as it resets 2022 payout

Uncertain recovery

Edinburgh Investment Trust will "reset" its 2022 full-year dividend to 24p, after concluding its current level of dividends "is unlikely to be sustainable" amid an uncertain recovery for UK payouts.

The £754m Edinburgh IT said it would dip into its "significant revenue reserves" to supplement its ordinary dividends for the 12 months ending 31 March 2021, paying out 28.65p for the current financial year, equal to the previous year's payment. That was the "appropriate approach", the board said, adding it "recognise[d] the importance of dividends to shareholders, especially in an uncertain environment and at a time when other sources of income are under pressure". It will end 15 consecutive years of dividend increases for the trust. Murray Income Trust's Luke adds to quality ahead o...