ADVERTORIAL FEATURE
Firstly , during periods of low or below-average share price returns , dividends can act as a buffer and offset the fall in share prices . In essence , investors are being paid to wait until the market normalises . Just think of it as collecting rent payments from your property . Secondly , for investors that do not need to take the income , the reinvestment of dividends when capital returns are dull and valuations low can be very powerful . Compounding interest was anecdotally described by Albert Einstein as “ the eighth wonder of the world . He who understands it , earns it … he who doesn ’ t … pays it .” The same principle can be said of dividend reinvestment . And the proof is in the pudding : HINT has a strong dividend record . It has grown its dividend every year since inception , and for its latest financial year , it increased its dividend from 6.30p to 7.25p per ordinary share . This is an increase of 15 % year-on-year . For those
HINT dividend growth compared with the consumer price index
HINT DPS CPI Level
190 180 170 160
CPI Level
150 140 130
120 |
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110 |
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100 |
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2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
Source : JHenderson International Income Trust , Annual Report 2022 Note : CPI – Consumer price index . Data for the 10 years to 31st August 2022
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