Nigel Moore, a senior wealth manager at Pilling & Co, highlights the trust’s significant revenue reserves, which stand at approximately 13.5 pence per share. He says this equates to 85% of the full-year dividend – if the reserves were needed. “This will be advantageous to investors if corporate earnings decline and dividend income comes under pressure. Open-ended fund do not have this benefit. The trust can also utilise gearing and levies a low ongoing charges figure of 0.52%, which is significantly lower than many open-ended equivalent funds,” Moore explained.
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