The company posted its annual results today, revealing annualised dividend growth over the last 10 year has been 5.7% per annum, delivering dividend growth ahead of inflation over that time.

The trust also reported that £1.4 million of retained income will replenish revenue reserves.

However, Net Asset Value (NAV) total return was -7.6% and the share price total return was -7.8%.

The company has said that the board maintains focus on progressive dividend policy and expects to pay four interim dividends amounting to a total of, at least, 22.80 pence per share in the coming year from current year earnings.

Mark White, chairman, said: “The Board is delighted with the performance of the income account as this has been a key area of focus for the Company.

“The dividend for the year has been more than covered by the revenue earnings generated in the year allowing us to deliver a significant increase in the dividend and, simultaneously, rebuild our revenue reserves, which had been drawn upon over the last couple of years.

“The Board is confident that the income in the coming year is underpinned by companies that can be expected to continue to grow the dividend they pay to us, allowing us to commit to the 23rd consecutive year of dividend increases in 2023.”

Thomas Moore, portfolio manager, added: “Amongst all the political ‘fear and loathing’, it is worth keeping in mind that the UK has many enduring strengths that make it a highly attractive destination for international capital.

“As has been demonstrated by all the recent M&A activity in our own portfolio, some international investors are coming to the view that UK companies are now attractively priced. It would not take much for broader attitudes to the UK to improve dramatically.

“This would be helpful for our portfolio given that we have a heavy position in UK domestic companies relative to the broader index and peer group.

“Through turbulent times, we will remain focused on achieving our objective to provide shareholders with an above average income, while also providing real growth in capital and income. With inflation at its highest level in 40 years, the resonance of this investment objective is greater than usual”