FTSE yield ‘topped by many investments’

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MORE than a third of dividend-paying members of the Association of Investment Companies (AIC) are currently yielding more than the FTSE 100 average, according to new figures.

The AIC said 38 per cent of its dividend-paying members were topping the FTSE 100 average yield of 3.76 per cent.

Communications director Annabel Brodie-Smith said: “It’s interesting to see what a diverse range of companies are now offering above average yields.

“The growth of more specialist higher yielding sectors in recent years such as property, infrastructure, and debt, reflects both the growing appetite for income and the strength of the investment company structure when it comes to investing in illiquid assets.

“It’s also been interesting to see new income-focussed launches over the last few years focussing on the Far East and Latin America.”

She said investment companies were fully aware of the importance of dividends for shareholders, as well as the value of being able to keep some of their annual income for the future, enabling them to raise dividends even in more difficult times. However, the AIC warned that investors should not make decisions based purely on yield.