Last checked at 26 Jan 2021 16:43
For Immediate Release
26 January 2021
THE MERCHANTS TRUST PLC
Year Ending 31 January 2021
Third Quarterly Dividend
The board has declared a third quarterly dividend of 6.8p per Ordinary Share, payable on 16 March 2021 to holders on the register at the close of business on 5 February 2021.
A key objective of the company is to pay an increasing dividend each year. There have been a large number of dividend cuts in the stock market, including within the investment portfolio, due to the coronavirus pandemic. Taking these into account, the income received by the company will be significantly lower both this year and probably next year compared to the last financial year.
The company had more than one year's total dividend payment in revenue reserves at the last year end, which the board is prepared to use to cover any shortfalls. The great advantage of investment trusts is that they can put away money in good times for use in bad times. The board has prudently built up the company's revenue reserves and considers that these are exactly the kind of times in which reserves should be called upon.
A Dividend Reinvestment Plan (DRIP) is available for this dividend and the relevant Election Date is 19 February 2021.