Alliance Trust PLC Alliance Trust Plc - Dividend Reset And Declaration
November 01 2021 - 2:00AM
UK Regulatory
TIDMATST
Dividend Reset and Declaration
Highlights
-- Review of level and funding of the Company's dividend has been concluded;
Board believes that an increased, but still sustainable, level of
dividend will benefit existing shareholders and enhance the
attractiveness of the Company's shares.
-- Third interim dividend for 2021 reset at an increased level of 5.825p;
fourth interim dividend for 2021 expected to be declared at the same
level.
-- Total dividend for 2021 expected to be 19.054p, an increase of 32.5% on
the 2020 dividend.
-- From the reset level, the Board expects to continue to extend the
Company's track record of increasing ordinary dividends year-on-year for
2022 and beyond.
-- Investment objective1 and strategy and Dividend Policy remain unchanged;
well supported by significant distributable reserves which stood at over
GBP3.3 billion as at 30 June 20212.
Commenting on the announcement, Gregor Stewart, Chairman of
Alliance Trust PLC, said:
"Shareholder feedback has indicated that there is support for a
higher dividend, as long as it is sustainable and affordable. The
expected recovery in the income from the portfolio and flexibility
afforded by our extensive and recently enhanced distributable
reserves means that an increased level is affordable and that our
track record of annual dividend increases can be sustained. We have
therefore decided to reset the dividend to a more attractive
level.
Combined with strong investment performance, we believe
resetting our dividend will reinforce Alliance Trust's position as
an attractive core global equity investment, providing shareholders
with a real return through a combination of capital growth and a
rising dividend."
In its most recent Interim Results published in July of this
year, the Board of Alliance Trust PLC (the "Company") announced
that it was reviewing the level and funding of the Company's
dividend payments. In particular, the Board examined whether and on
what basis a more attractive and sustainable level of dividend
could be provided to shareholders in the future, without a change
to the Company's investment objective(1) or strategy. The Board
sought the feedback of shareholders, and would like to thank those
who shared their views. After having completed its review, the
Board has concluded that the Company's dividend should be reset at
a higher level and that it shall continue to declare year-on-year
dividend increases in accordance with the Company's Dividend
Policy. The Board believes that delivering an increased, but still
sustainable, level of dividend will benefit existing shareholders
and enhance the attractiveness of the Company's shares.
Accordingly, the Company is today announcing a third interim
dividend for 2021 of 5.825p, a 62% increase on the corresponding
interim dividend of 3.595p last year. Subject to there being no
material change in current circumstances before it declares its
fourth interim dividend for 2021, the Board expects to declare a
fourth interim dividend for 2021 of the same amount. This one-off
reset is therefore expected to result in a total dividend for 2021
of 19.054p, an increase of 32.5% on the Company's 2020 dividend(3)
.
The new level of dividend is well supported by the Company's
investment strategy and significant distributable reserves which
stood at over GBP3.3 billion as at 30 June 2021(2) . The increase
will not result in any change to the Company's Dividend Policy, nor
to its investment objective(1) or its global equity, multi-stock
picker investment strategy. The Board will continue to take
advantage of the Company's structure as an investment trust and
will use both its investment income and its distributable reserves
to fund dividend payments.
Dividend Declaration
Alliance Trust PLC announces the declaration of a third interim
dividend for the year ending 31 December 2021 of 5.825 pence per
share payable on 31 December 2021 to shareholders on the register
on 3 December 2021. The ex-dividend date is 2 December 2021.
Notes:
(1) The Company aims to be a core investment for investors,
delivering a real return over the long term through a combination
of capital growth and a rising dividend.
(2) The Company's unaudited distributable reserves at 30 June
2021, adjusting for the subsequent reclassification of the
Company's merger reserve into a distributable reserve, were
GBP3,326m. Of these, the Company's revenue reserve was GBP98m,
realised capital reserves were GBP2,659m and unrealised capital
reserves were GBP569m. Both elements of the capital reserves are
readily convertible to cash. In the event that the Company were to
distribute any reserve funds in the future, it may require
realisation of some of the Company's assets to the value of the
funds being distributed less any cash resources available to the
Company at the time.
(3) If all the Company's interim dividends in 2021 were paid at
the same level as the first and second interim dividends for 2021,
the Company's expected total dividend for 2021 would have been
14.808p. If all were paid at the same level as the third and fourth
interim dividends, the Company's expected total dividend for 2021
would have been 23.300p.
-ENDS-
About Alliance Trust PLC
Alliance Trust aims to deliver long-term capital growth and
rising income from investing in global equities at a competitive
cost. We blend the top stock selections of some of the world's best
active managers, as rated by Willis Towers Watson, into a single
diversified portfolio designed to outperform the market while
carefully managing risk and volatility. Alliance Trust PLC is an
AIC Dividend Hero with 54 consecutive years of rising
dividends.
https://www.globenewswire.com/Tracker?data=vj3QdZ0HNsJ-eZqw8HfaNzEq4rAS78Ky833Fak_GwG1GRw6-aF8_soJXliyjRV9ZLKzs7iVcWz0LP33xJh2qxCH5_YyYw22P2kjdYnRjA5AAJGb_wdpb-gohhZWzPcE-
https://www.alliancetrust.co.uk
For more information, please contact:
Mark Atkinson Head of Marketing and Sarah Gibbons-Cook
Investor Relations
Alliance Trust PLC Quill PR
Tel: 07918 724303 Tel: 020 7466 5050 /
sarah@quillpr.com
(END) Dow Jones Newswires
November 01, 2021 03:00 ET (07:00 GMT)
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