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LONDON - Manchester & London Investment Trust plc (LSE:MNL) announced Thursday it plans to pay an annual ordinary dividend of at least 40p per share for the next five years, representing a 5.01% yield based on the October 22 closing price of 798p.
The enhanced dividend policy comes after the investment trust paused share buybacks on September 24 due to approaching the minimum 35% public ownership threshold required under the Corporation Tax Act 2010.
The company said the new dividend commitment addresses shareholder concerns that total capital returns would decrease following the buyback suspension. For the previous financial year, Manchester & London paid total dividends of 28p per share through a combination of ordinary and special dividends.
"In essence, this makes Manchester & London a unique fund on the London Market that is both exposed to global growth and the opportunities of the Era of Artificial Intelligence, whilst also paying an attractive dividend income," said Dan Wright, Chairman of the Company, according to the press release.
The investment trust indicated it would maintain this dividend policy even if mechanisms allowing share buybacks to resume are implemented in the future.
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