For the year ended 31 May 2018, DIVI posted total shareholder returns of 5.2% compared to FTSE All-Share Index returns of 6.5%. Revenue return per ordinary share for the period was 3.84p compared to 4.02p last year.
The company’s revenue reserves increased to £16.6m over the year. NAV per ordinary share increased 1.6% from 103.43p to 105.09p.
DIVI declared three interim dividends and proposed a final dividend for the year totalling up to 3.40p. This compares with total dividend of 3.00p for the previous year, an increase of 13.3%. The company has also recommended a special dividend of 0.23p per share for the year.
According to chairman Michael Wrobel, a decade of ultra-low interest rates and quantitative easing has driven excellent asset returns. However, the enthusiasm for quantitative easing has ebbed over recent quarters and now the opposite policy, quantitative tightening, is being introduced in the US.
The company feels that going forward, the underlying prospects for dividend growth appear more constrained. DIVI also feels that its strategy has the advantage of selecting the best from the full universe of listed companies and industry sectors. The company believes that it will remain well positioned, in spite of the changing economic and market dynamics.