Edinburgh Investment Trust

Edinburgh Investment Trust Dividend Analysis and Summary

• Dividend declared: Final dividend of 8.40p per share
• Ex-dividend date: 04/06/2026
• Record date: 05/06/2026
• Payment date: 24/07/2026
• Total FY26 dividend: 32.0p per share (First: 7.60p; Second: 7.60p; Third: 8.40p; Final: 8.40p), up 11.1% y/y and ahead of UK inflation (3.3%)
• Dividend yield (at 31 Mar 2026): 4.1% on a 773p share price
• Dividend cover: Revenue EPS 26.60p vs dividend 32.0p ? c.0.83x covered; c.5.4p per share funded from capital

• Earnings momentum: Revenue return per share rose 6.3% to 26.60p; portfolio cash income yield 3.2%, with investee share buybacks estimated to add a further ~2.3% “buyback yield” (supportive of total cash returns to shareholders over time).
• Reserves: Revenue reserve at year-end £37.3m (˜ 28p per share). Board also utilises distributable capital reserves; FY26 dividend shortfall of 5.4p funded from capital and described as “content that this level is sustainable.”
• Capital allocation support: Significant buybacks (repurchased 8.8% of shares outstanding in FY26) both narrowed the discount and reduce the ongoing cash cost of dividends, aiding sustainability.
• Costs and gearing: Ongoing charges 0.52%. Net gearing modest at 5.8%; long-dated fixed-rate debt (£120m, blended coupon 2.4%) provides low-cost structural funding.
• Risk-adjusted return hurdle: Debt’s fair value implies a c.6.3% redemption yield hurdle; portfolio returns exceeded this in the year, but continued outperformance is needed to underpin capital-funded top-ups.