Henderson International Income Trust - A HINT of better returns ahead

Henderson International Income Trust (HINT) has consistently met its income objective since inception, delivering dividend growth every year since 2011. However, a lag in relative performance in recent years due to the outperformance of low and zero dividend-paying growth stocks prompted a recent investment review by HINT's board, including extensive consultations with shareholders. These discussions reinforced shareholders' desire for both income and capital returns and as a result the board reconfirmed its commitment, first made in 2021, to use of the company's ample reserves to support its progressive dividend policy, and stated its intention to be more flexible in the application of this policy. This significantly broadens HINT's investable universe to include lower or zero dividend-paying stocks with the potential for capital growth, and the board expects the greater freedom this bestows on the manager, Ben Lofthouse, to improve capital returns. Lofthouse has used this additional flexibility to shift the portfolio towards some lower-yielding investment opportunities, although he insists he will not 'chase growth for growth's sake'; instead, he is striving to strike a balance between income and growth to ensure the trust continues to meet its twin objectives of rising dividends and capital appreciation.

Den vollständigen Artikel lesen ...