This year marks 60 consecutive years of dividend growth for CTY. What has been the key to maintaining that record through so many different market environments?
David Smith: If I had to narrow it down, I’d point to three things. The first is the type of companies we own. We’ve always had a core of the portfolio invested in businesses with resilient earnings and the ability to grow their dividends over time. Often these are companies with dependable cash flows and products or services that remain in demand through different economic environments.
The second is diversification. No portfolio is immune from dividend cuts. Over a 60-year period there have always been companies that reduced or suspended their payouts. The important thing is not being overly reliant on any one stock, sector or source of income. A diversified portfolio means one setback doesn’t determine the outcome for the entire trust.
The third factor is the investment trust structure itself. Unlike many other investment vehicles, we can retain some income in stronger years and build up revenue reserves. Those reserves are there to provide support when conditions become more difficult. A good example was the pandemic. During 2020, around 40% of companies in the FTSE All-Share cut or suspended their dividends. We drew on revenue reserves during that period, which allowed us to continue increasing the trust’s dividend despite the pressure on corporate payouts more broadly.
Job Curtis: I agree with David. I’d say those factors have worked because they’ve been supported by a consistent investment philosophy. For us, that means thinking long term, remaining diversified and being disciplined about where we invest. We’ve always favoured companies that can provide a healthy dividend while continuing to grow. At the same time, we’ve been careful not to overpay for that growth. No investment approach works in every market, but maintaining that balance between income, growth and valuation has helped us to navigate a wide range of market environments over the years.
The portfolio has evolved significantly over the years. How has your approach to finding companies capable of growing their dividends changed?
Job Curtis: The fundamental principles have remained similar, but the world around them has changed. We still look for businesses that can grow profits and dividends over time, while avoiding companies where a very high yield may be masking underlying problems.
Over the years we’ve seen major changes in technology, consumer behaviour and the wider economy. Entire business models have been disrupted. Newspaper groups, for example, faced significant challenges as the internet transformed the way people consumed information. Today, artificial intelligence presents a new set of opportunities and risks.
That means investors need to think not only about where a company is today, but whether it can adapt and remain relevant in the future. Our portfolio company RELX* is a good example. It evolved from a predominantly print-based publishing business into a largely digital information and analytics company and has continued to grow and create value for shareholders as a result. The challenge is identifying which businesses can adapt as the world changes, and which cannot.
David Smith: Ultimately, we are assessing whether a company can stand the test of time. That means understanding not only its growth opportunities, but also the risks it faces. We look closely at balance sheets, cash generation, capital allocation and management decisions. And like Job mentioned earlier, we also place a great deal of emphasis on valuation. A good company is not always a good investment if expectations have already become too optimistic. The aim is to build a portfolio of businesses that can continue creating value for shareholders for many years, not just perform well over the next quarter or two.
CTY is often seen as an income-focused trust. Why can a growing dividend be just as important as a high dividend yield?
Job Curtis: Investors often focus on the income they receive today, which is understandable. But over the long term, a growing dividend can be equally important. Historically, a significant proportion of equity returns has come from the combination of dividend income and dividend growth. When those dividends are reinvested, the compounding effect can become very powerful over time.
David Smith: And that’s really the key point. It’s not just about the income you receive today, but what that income could become in the future. A higher yield can be attractive, but if it never grows, inflation can gradually reduce its spending power. A growing dividend has the potential to increase investors’ income over time while also supporting long-term capital growth.
Markets, industries and technologies have changed dramatically over the years. What investment principles have remained consistently important when selecting investments for the portfolio?
Job Curtis: If I had to choose one principle, it would be valuation discipline. However attractive a company’s prospects may be, the price you pay matters. Markets change, technologies change, but that principle hasn’t.
David Smith: I’d add conservatism. We spend a lot of time thinking about what could go wrong, not just what could go right. Focusing on preserving capital and generating sustainable returns has always been central to the way we’ve been managing the trust.
If investors are reading this in another 10 or 20 years’ time, what do you hope will still be true of CTY?
Job Curtis: I’d hope investors still see CTY doing what it has sought to do throughout its history: delivering a growing income stream and attractive long-term returns, while adapting to the new challenges and opportunities the future brings.
David Smith: Above all, I’d hope investors still recognise the same consistent investment approach that has helped define CTY over the years. The companies in the portfolio will change, industries will evolve and new technologies will emerge. But the principles of diversification, valuation discipline, long-term thinking and growing shareholder value should remain the same.
| Discrete year performance (%) |
Share price (total return) |
NAV (total return) |
| 30/06/2025 to 30/06/2026 |
21.0 |
21.9 |
| 30/06/2024 to 30/06/2025 |
21.8 |
16.8 |
| 30/06/2023 to 30/06/2024 |
11.4 |
15.6 |
| 30/06/2022 to 30/06/2023 |
4.1 |
4.5 |
| 30/06/2021 to 30/06/2022 |
7.7 |
7.5 |
All performance, cumulative growth and annual growth data is sourced from Morningstar.
Source: at 30/06/26. © 2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.
Important information
Allocations and holdings are subject to change without notice. The above are the Portfolio Managers’/team’s views and should not be construed as advice and may not reflect other opinions in the organisation. The views are subject to change without notice.
