Dividend Heroes for your ISA?

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC)

Topping the list with 59 years of dividend rises are City of London Investment Trust, Bankers Investment Trust and Alliance Witan closely followed by Caledonia Investments with 58 years.

The Global Smaller Companies Trust and F&C Investment Trust have consistently increased their dividends for 55 years followed by Brunner Investment Trust (54), JPMorgan Claverhouse (53), Murray Income Trust (52) and Scottish American (52).

Five dividend heroes have increased their dividends every year for 30 to 43 years and five investment trusts have raised their dividends from 21 to 25 years. A full table of all 20 dividend heroes is shown below.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Ten dividend hero investment trusts have raised their dividends every year for more than half a century. In total there are 20 dividend hero investment trusts that have consistently increased their dividends every year for more than 20 years.

“Investment trusts are ideal for income investing over the long term. A trust can retain up to 15% of the income it receives each year, and this reserve can be used to boost dividends when markets are difficult. This allows investment trusts to smooth their flow of dividends and produce long records of dividend growth.

“Our dividend heroes have shown remarkable resilience, continuing to raise their payouts during high inflation in the 1970s, the recession of the 1990s, the global financial crisis in 2008 and the pandemic. Whilst dividends are never guaranteed, investment trusts’ dividend hero track records are highly valued by income seekers.”

Comments from some of the managers of dividend hero investment trusts can be found below the table.

Investment trust dividend heroes

^{Source: theaic.co.uk / Morningstar. Data at 12/03/26. * Dividend rise announced on 16/3/2026}

Richard Clode, Co-Manager of The Bankers Investment Trust, said: “Dividends serve a dual purpose for us. They are an important component of the attractive long-term total returns we aim to deliver to shareholders in combination with capital growth. Dividends also provide capital discipline to the companies we invest in as well as to how we invest as we seek out companies that can generate long-term profit and cashflow growth.”

Mathew Masters, CEO of Caledonia Investments, said: “Our progressive dividend policy aims to increase annual dividends by at least the rate of inflation over the long term, and we are very proud of delivering this growth for 58 consecutive years. We know our investors value this reliable source of income. Being recognised as a dividend hero reflects both the consistency in our approach and commitment to delivering compounding returns through a wide range of investment cycles.”

Paul Niven, Manager of F&C Investment Trust, said: “As our overriding objective is to deliver growth in both capital and income over the long term, the delivery of a growing dividend year after year is a key objective for the trust. Many investors rely on their portfolios not just for long-term capital growth, but also for a dependable and rising income stream.

“A consistent record of dividend increases reflects the resilience of our portfolio and the discipline of our approach. By investing across global markets and a wide range of companies and strategies, we aim to build a diversified portfolio capable of generating strong returns in what can sometimes be testing market environments.

“For shareholders, that track record provides confidence that the trust can continue to deliver income even through periods of volatility. It reinforces the role the trust can play as a long-term holding for investors seeking both income and growth.”

James Ashworth, Co-Lead Portfolio Manager of The Brunner Investment Trust, said: “We see the track record of increasing the dividend for 54 consecutive years as a testament to the resilience of the portfolio, the timelessness of the approach, and the determination of the board to provide a steadily rising dividend for shareholders over the long term.

“The trust has successfully navigated the past half century of change – bull and bear markets, global pandemics, and economic shocks – and through it all has consistently delivered a growing dividend to our shareholders. We identify closely with our shareholders: most are individuals and families who value this record of dividend consistency that spans more than five decades. Over this period the dividend has been increased by an average of 7.6% a year, and we’re proud to have provided those investors who trusted in Brunner with a source of income which has grown in real terms.

“We wear our AIC dividend hero badge with genuine pride – it is even on the front cover of our annual report! It’s one of the first things we mention to prospective investors because it represents a promise that has been kept for over half a century.”

What’s your investment strategy for growing your dividend?

Paul Niven, Manager of F&C Investment Trust, said: “Our strategy is built around investing in a diversified portfolio of high-quality companies and investment strategies in listed equity and private equity from around the world. Rather than relying on a small number of income-generating stocks, we seek to draw income from multiple sources across regions, sectors and investment styles.

“We invest in established businesses with strong cash flows and a consistent record of paying dividends as well as including companies with the potential to deliver above market growth in their earnings. By combining these different sources of income within a broadly diversified portfolio, we aim to grow the trust’s dividend sustainably alongside long-term capital growth.”

Mathew Masters, CEO of Caledonia Investments, said: “Caledonia’s ‘Time Well Invested’ maxim encourages us to think in decades, not quarters. It is a straightforward approach to investing: we invest in a diversified portfolio of high quality, well managed businesses and hold them for the long term. Operating across three main strategies – Public Companies, Private Capital, and Funds – our unique structure, high level of distributable reserves and evergreen balance sheet allow us to look through short-term volatility and stay focused on generating sustainable value for our shareholders.”

Why invest in your trust now?

James Ashworth, Co-Lead Portfolio Manager of The Brunner Investment Trust, said: “Our dividend philosophy is simple: in normal years we pay dividends out of investment income, not by dipping into capital. This distinction is vital for the long-term investors who trust us with their savings. And by maintaining a dividend reserve of over a year’s worth of payouts, we’ve built a fortress that has ensured a rising dividend even during massive disruptions like the global financial crisis or the COVID-19 pandemic. It’s about providing security in an insecure world.”

Mathew Masters, CEO of Caledonia Investments, said: “Over time, our approach to investing has delivered results at the top end of our target to achieve absolute returns of inflation plus 3% to 6%. As long-term stewards of our shareholders’ capital, we are well positioned to navigate changing market conditions while continuing to generate income. We are driven by fundamentals rather than trends, more important than ever in periods of heightened market volatility. This allows us to be flexible in where and when we allocate capital, prioritising investment in businesses with strong fundamentals and long-term growth prospects.”

Paul Niven, Manager of F&C Investment Trust, said: “Our strategy is focused on total return for shareholders, while delivering growth in both capital and income over the long term. The current market environment presents a number of opportunities for long-term income investors. Global equity markets continue to offer access to companies with strong balance sheets, resilient business models and the ability to grow earnings over time.

“For income investors, diversification is particularly valuable. A global approach allows us to access dividend opportunities across a wide range of sectors and regions, rather than relying on the more limited opportunities available in any single market. This is particularly relevant as market leadership begins to broaden beyond a small number of large technology companies.”

Notes to editors

1. The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 275 members and the industry has total assets of approximately £270 billion.
2. For more information about the AIC and investment trusts, visit the AIC’s website.
3. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.