Dividends rise in the VCT sector

Total dividends paid from VCTs during first six months this year are up 36 per cent compared to the first six months of last year, according to a survey by the Association of Investment Companies.

The total amount of ordinary dividends paid during the first six months of the tax year to September 30, 2011 is higher at £73,889, compared to £54,300 during the six months of the tax year to 30 September 2010 last year.  

The generalist VCT sector is currently yielding an average of 6.4 per cent, while the VCT AIM quoted sector is yielding an average of 9 per cent and the VCT specialist: technology sector is yielding an average of 4.6 per cent.

The strongest performer over the last ten years is British Smaller Companies VCT, which is up 231 per cent in share price total return terms.  It has paid out a total dividend of 43.75p per share since launch, all of which have been over the last six years.