Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
The board of the Scottish Mortgage Investment Trust is recommending to increase its 2021 interim dividend to 1.45p, a modest increase from the 2020 interim dividend of 1.39p, according to its unaudited interim financial report.
The proposed interim dividend is for the year ending 31 March 2021. The report said while the trust's focus is on the generation of long-term increases in capital values, it recognises that a 'small but consistent dividend is of value to many investors'.
Since the end of March the trust's net asset value per share with debt at fair value (NAV) rose by 76% compared to a 24% increase in the index. Over five years its net asset value per share with debt at fair value has increased by 340% versus a 96% increase in the FTSE All-World index (both in total return terms).
The company said that Tesla, which is its largest holding, has made 'significant operational progress', has 'successfully added capacity' and the production ramp of its latest model has progressed far more smoothly than for any of its previous vehicles. The trust sold 40% of its Tesla shares during the period raising £1.18 billion to ensure that the portfolio has an appropriate level of diversification, but Tesla is still its biggest holding.