UPDATE: A revised version of this article was published in April 2026.

A regulation change in 2012 allowed investment companies to pay dividends out of any capital profits they have made as well as any income received, as long as their shareholders approve the practice. Known as an enhanced dividend policy, it has remained a minority sport with only a few dozen trusts going down this route. Quite a few of them choose to pay out a set percentage of their net asset value each year in order to attract income-seeking investors. Here we look at which trusts are paying out such dividends and what f...