Recent market falls have left Henderson High Income Trust (HHI) trading on a 7.3% dividend yield. This is a significant premium to the yield on the UK market, which has been hit by a swathe of dividend cuts. The board are well aware of the reliance that many investors have on the income paid by the trust. Fortunately, HHI’s sources of revenue are diversified (as we explain on page 4) and it had revenue reserves of 8.3p per share at the beginning of the year. Given this, the board felt confident enough to announce their intention to maintain the quarterly dividend at 2.475p for the remainder of the trust’s financial year ended 31 December 2020… Read more
High income from a diverse UK equity income portfolio
HHI invests in a prudently diversified selection of both well-known and smaller companies to provide investors with a high income stream while also maintaining the prospect of capital growth. Gearing (borrowing) is used to enhance income returns, and also to achieve capital growth over time. A portion of gearing is usually invested in fixed interest securities, which helps dampen the overall volatility of the trust’s returns.
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