Here are five world-class investment trusts with strong dividend records ideal for a retirement portfolio: City of London (CTY), Bankers (BNKR), F&C (FCIT), Scottish Mortgage (SMT), and Henderson Smaller Companies (HSL). These trusts have consistently raised dividends and offer diversified exposure across sectors and geographies.

🏆 Top 5 Investment Trust Dividend Shares for Retirement
These trusts are recognized as “Dividend Heroes” by the Association of Investment Companies (AIC), having increased their dividends for at least 20 consecutive years:

  1. City of London Investment Trust (CTY)
  • Dividend streak: Over 57 consecutive years of increases
  • Focus: UK equities with a tilt toward income-generating blue chips
  • Yield: Around 4%
  • Why it’s great: CTY is a stalwart for income investors, offering stability and a long-term track record.
  1. Bankers Investment Trust (BNKR)
  • Dividend streak: Over 55 years
  • Focus: Global equities with a balanced approach
  • Yield: ~2.2%
  • Why it’s great: BNKR provides global diversification and consistent income growth.
  1. F&C Investment Trust (FCIT)
  • Dividend streak: Over 50 years
  • Focus: Global equities with a large-cap bias
  • Yield: ~1.5%
  • Why it’s great: FCIT is one of the oldest trusts, offering broad exposure and steady income.
  1. Scottish Mortgage Investment Trust (SMT)
  • Dividend streak: 40+ years
  • Focus: High-growth global companies, especially in tech and innovation
  • Yield: ~0.9%
  • Why it’s great: While the yield is low, SMT offers capital growth potential and a long-term dividend record.
  1. Henderson Smaller Companies (HSL)
  • Dividend streak: 20+ years
  • Focus: UK smaller companies
  • Yield: ~2.5%
  • Why it’s great: Adds exposure to UK small caps with a reliable income stream.

🔍 Why These Trusts Work for Retirement

  • Consistency: All five have long histories of annual dividend increases.
  • Diversification: They span UK and global markets, large and small caps.
  • Resilience: Their ability to smooth dividends using revenue reserves makes them ideal for weathering market downturns.
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