Which Stock Dividends are Safe?

Investors should question the sustainability of dividend income from pharmaceutical stocks, banks and mining companies says Gold Rated Henderson investor Job Curtis

Emma Wall 28 September, 2016 | 3:00PM
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When Job Curtis took over the management of The City of London Investment Trust (CTY) 25 years ago, the annual dividend was 4p per share. Now the closed-end pays out that amount in a quarterly dividend every three months.

Curtis and his predecessor have managed to grow the dividend for City of London for a total of 50 years – so when the manager says he believes a certain stock or sector is good for income, or struggling to meet shareholder needs, you should listen.

The trust is rated Gold by Morningstar analysts, who call it a “highly compelling option for investors”.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
AstraZeneca PLC8,739.00 GBX0.46Rating
BP PLC361.95 GBX0.14Rating
British Land Co PLC501.80 GBX1.03
City of London Ord387.00 GBX0.13Rating
Deutsche Bank AG11.40 EUR-0.35Rating
GlaxoSmithKline PLC1,407.20 GBX0.83Rating
Hammerson PLC33.38 GBX0.91
Ibstock PLC190.10 GBX2.20
Inchcape PLC807.50 GBX-0.31
Land Securities Group PLC698.60 GBX0.32
NatWest Group PLC233.60 GBX0.17Rating
Royal Dutch Shell PLC B1,798.80 GBX0.49Rating
Standard Chartered PLC494.30 GBX0.22Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar