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Dividends are never guaranteed. Even the most reliable share of dividends can reduce, postpone and even cancel the shareholders’ payments when the crisis raises his head. However, investment funds that carry an action basket may draw a sting from this threat.
By conducting a wide selection of shares, these trust receive income from a mixture of companies, industries and regions, thus reducing the impact of dividend shocks from one or two resources.
With this in mind, here are the three best investment trusts to consider. Today, their dividend has conveniently overcome their forward FTSE 100Average 3.3%.
Asia Focus
Far East Henderson income (LSE: HFEL) tries to capture the huge investment potential of Asian markets. From a dividend perspective, this is a high performance, which has equalized annual payments since 2007.
Dividends are also on the vast side, and this year its performance is huge 10.2%.
Focusing only on Asia means that it has a greater regional risk than global funds. However, this strategy also leaves one of the largest and fastest growing economies in the world focused on lasers, such as China, India and the Philippines.
In total, this Henderson fund has shares in 73 different companies, from cyclical actions such as Production of semiconductors in Taiwan AND HSBC for defense stocks, including Power Grid Corporation of India. This nicely balances the portfolio and provides a more stable return in the economic cycle.
Euro star
. Trust of European resources (LSE: EAT) has a more continental taste than Henderson Far East. About 70% of its funds are wrapped in the nations of the euro area, and European nations from outside the euro constitute almost all the rest.
Again, this narrow regional strategy has a greater risk. But that’s not all – as in the case of other Trust we discussed, over 90% is intended for actions in cyclical and sensitive industries. This may cause that this is sensitive during the economic slowdown, as the latest dividend cuts illustrate.
The good news is, however, that this allocation means that each of the trust can achieve better results when the conditions improve. In this case, the main resources include the supplier of building materials Heidelberg materials AND Bank of Ireland.
The European Assets Trust has a solid capacity of 5.9% dividend for 2025. Despite recent problems, I think it is worth considering it seriously.
Closer to the house
. Chelverton UK Dividend Trust (LSE: SDV) From the beginning of 2010 he collected annual dividends. In 2025 it has 8.4%.
You will see that this is another investment trust focusing on a specific region. In this case, his success is very focused on the economy of Great Britain, which – if many prognostics have correct – can experience prolonged growth problems. About 92% of them are related to the actions listed on the UK list, which can be a problem.
However, Chelverton’s ability to overcome similar problems over the past decade and ensure well regular growth is a good omen. From 2020, annual payments increased at a decent annual rate of 6.3%.
Trust has shares in 66 companies in many sectors. They are as diverse as financial services, consumer goods, energy and telecommunications, providing excellent balance.
