HoneyComb fund reveals latest dividend

The closed-ended fund has had a busy year, raising new cash and seeing its investment manager merge with MW Eaglewood.

The closed-ended fund has had a busy year, raising new cash and seeing its investment manager merge with MW Eaglewood.  

The £320m HoneyComb Investment trust will pay a Q3 dividend of 20p, its fourth dividend of 2017, bringing its yield to 8.8 per cent on its issue price.

This latest dividend of 20p per ordinary share is for the three-month period to 30 September 2017. The dividend will be paid on 29 December 2017 to holders of ordinary shares on the register as of 8 December 2017.  The ex-dividend date is 7 December 2017.

Earlier this year the fund increased its dividend target to 10 per cent per year from 8 per cent.

Its Q1 2017 dividend increased from 23.5p in Q4 2016 to 24.5p in Q1 2017 and continued to provide an above target yield on an annualised dividend of 9.8 per cent compared with 9.4 per cent in Q4 2016.

The fund raised a further £105m from investors back in May, heavily backed by the likes of Invesco Perpetual.

This latest pay out is the same amount as its last dividend but below the previous two. Nonetheless it brings its first full calendar year yield to 8.8 per cent

As at 30 June 2017 the Company had distributable reserves of £102.529 million for the payment of future dividends.

The below table shows the fund’s ten largest holdings at the end of Q2 of this year which include familiar names such as IWOCA alongside unstated consumer loans. 

10 largest holdings at 30 June 2017