Chelverton UK Dividend Trust Announces New Dividend Policy
Why we think this is good
The RNS announcement from Chelverton UK Dividend Trust plc (SDV) provides a positive update on the company's financial position and future dividend plans. Key highlights include: - The company has repaid its 2025 ZDPs in full and is now ungeared, with net assets of £30.85 million. - The manager believes there are compelling opportunities in the mid- and smaller UK companies universe, and the changing macroeconomic environment provides an accommodating backdrop. - The company will pay a dividend of 2.5p per share on a quarterly basis, totaling 10p per share per annum for the next three years, providing an attractive yield of 7.6%. - The company has significant revenue reserves that can be used to supplement the underlying income. Overall, the announcement demonstrates the company's strong financial position and its commitment to providing an attractive dividend yield to shareholders. While the RNS does not contain any explicit profit upgrades or statements about trading significantly ahead of expectations, the new dividend policy and the manager's positive outlook on the investment opportunities are viewed positively.
Key Points
- Company has repaid 2025 ZDPs and is now ungeared
- Net assets of £30.85 million
- Manager sees compelling opportunities in mid- and smaller UK companies
- New dividend policy of 2.5p per share quarterly, totaling 10p per annum
- Attractive dividend yield of 7.6%
- Company has significant revenue reserves to supplement income
Summary
Chelverton UK Dividend Trust plc (SDV) has provided a positive update on its financial position and future dividend plans. The company has repaid its 2025 ZDPs in full and is now ungeared, with net assets of £30.85 million. The manager believes there are compelling opportunities in the mid- and smaller UK companies universe, and the changing macroeconomic environment provides an accommodating backdrop. The company will pay a dividend of 2.5p per share on a quarterly basis, totaling 10p per share per annum for the next three years, providing an attractive yield of 7.6%. The company has significant revenue reserves that can be used to supplement the underlying income.