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Shires Income: 5% Yield Plus Growth
30 Nov, 2025
Summary
- Shires Income offers a 5% dividend yield with capital growth potential.
- The fund achieved 28.5% total return, outperforming its peers last year.
- Its portfolio is diversified with 80% equities and 20% bonds.
Investment trust Shires Income is positioning itself as a prime choice for investors seeking reliable income. Chairman Robin Archibald highlighted the fund's attractiveness in the current economic climate, emphasizing its 5% dividend yield coupled with the prospect of capital appreciation. This performance is bolstered by its strategic use of company bonds and preference shares, alongside equities.
Despite its unique approach, Shires Income has demonstrated strong financial performance. Over the last year, it achieved a total return of 28.5%, outperforming the FTSE All-Share Index and its peer group. Investment manager Iain Pyle noted the focus on providing an inflation-busting income that competes favorably against cash and bonds, with a fifth consecutive year of dividend growth anticipated.
The fund's portfolio is balanced, consisting of 80% equities and 20% bonds. Pyle strategically invests in companies with robust balance sheets and a commitment to increasing dividends, including significant exposure to construction firms expected to benefit from infrastructure projects. The fund's manager also demonstrates flexibility, having recently re-entered Greggs after a successful share price recovery.
