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Henderson Far East Income: Dividend Dream with a Growth Twist
11 Jan
Summary
- Delivers 10.2% annual income with 18 consecutive years of dividend growth.
- Manager Sat Duhra is adding growth stocks for better overall returns.
- Total returns of 18.7% and 22.5% were generated in recent years.
The Henderson Far East Income investment trust is a notable option for dividend-focused investors, having achieved 18 consecutive years of dividend growth. It currently offers an attractive 10.2 per cent annual income. However, the trust's share price performance has lagged behind some rivals, prompting a strategic shift under new manager Sat Duhra.
Duhra, who took the helm in October 2023, is introducing more growth-oriented companies into the £474 million fund's portfolio. This includes adding stakes in major technology firms like Samsung Electronics and Alibaba. This strategy is beginning to yield positive results, with the trust generating total returns of 18.7 per cent and 22.5 per cent over the past two years.
This recalibration aims to balance income generation with capital appreciation. The manager is comfortable using strategies like selling call options to boost income from new growth stocks. Duhra believes the Asian income environment is becoming more shareholder-friendly, with significant potential for future dividend growth across countries like China, South Korea, and Taiwan.
