Diverse Income Trust plc (LON:DIVI) has provided its factsheet and dividend update for the month ended 31 July 2024.
Dividend Declaration
A final dividend of 1.20p per ordinary share has been recommended by the Company’s Board. Subject to shareholder approval at the forthcoming AGM, this dividend will be payable on 29 November 2024 to shareholders on the register on 27 September 2024 and, taken together with the three interim dividends paid, the total dividend for the year will be 4.25p, an increase of 4.9% on the previous year’s total of 4.05p. The ex-dividend date will be 26 September 2024. The Company operates a Dividend Reinvestment Plan (“DRIP”), which is managed by its registrar, Link Group. For shareholders who wish to receive their dividend in the form of shares, the deadline to elect for the DRIP is 11 October 2024.
Manager commentary
During July and August last year, global interest rates reached their peak, normally they dampen down economic activity gradually over time. In general, UK economic growth has slowed subsequently, but as yet it hasn’t fallen back into recession. Meanwhile, inflationary pressures that were excessive last year, have also slowed. Investors now anticipate that UK interest rates will start to be cut soon.
Even as UK interest rates are reduced, UK economic growth may continue to slow a little further, because like interest rate rises, there is a time lag before interest rate cuts start to have an impact. During July, investors remained upbeat about the potential for interest rate cuts, and as a result numerous UK companies listed on a stock exchange continued to report good ongoing growth in profits and dividends.
