Scottish Mortgage Trust (SMT) - Annual Results

[Peltiq]

http://www.investegate.co.uk/scot-mort- ... 620F/?fe=1

We are recommending an increased final dividend, providing a total distribution for the year of 3.00 pence per share (2015/16: 2.96p), an increase of just over 1%.

and later

If approved the final dividend will be paid on 3 July 2017 to all shareholders on the register at the close of business on 9 June 2017. The ex-dividend date is 8 June 2017.

Peltiq

[Dod1010]

Thanks for the info on Scottish Mortgage but of course no one buys this trust if they are looking for income (at least I would not think so) Better I would have thought to highlight the growth in NAV at 38% for the year to 31 March 2017 and the share price buy a little more. This trust has had a remarkable run and shows the benefits of investing in the right sort of technology.

The Chairman in his comments makes the point that the dividend is very modest because the companies they are investing in have mostly found better uses for their profits than returning them to shareholders. James Anderson's comments are always worth reading.

Dod

[nmdhqbc]

Maybe it's not allowed but I feel like they may as well just not pay a dividend. We're not bothered when you get capital gains like we have recently.

[Alaric]

Maybe it's not allowed but I feel like they may as well just not pay a dividend. .

If they receive dividend income from the Companies they invest in, the UK taxation laws governing Investment Trust status are that they have to distribute at least 85% of it, presumably after expenses and fees.

What they were saying in the Report was that for next year they would likely face the choice of either cutting the dividend or paying some of it out of capital gains. They've elected for the latter.