Scottish Mortgage Investment Trust

Scottish Mortgage Investment Trust Dividend Analysis and Summary

• Interim dividend: 1.60p per share (unchanged year-on-year)
• Ex-dividend date: 20/11/2025
• Record date: 21/11/2025
• Payment date: 12/12/2025
• DRIP election deadline: 25/11/2025
• Cash cost of interim: ~£18.0m (on 1,125,821,279 shares), aligning with the £18.013m proposed
• Revenue EPS (H1): 1.55p; interim dividend cover ~0.97x
• Recent final dividend (paid 10/07/2025): 2.78p
• Policy/track record: “AIC Dividend Hero” with 43 consecutive annual increases; the Board “expects to declare an increased final dividend” to maintain the record
• Indicative yield: At least 4.38p (last final 2.78p + interim 1.60p) implies c. 0.4% on the 30 Sept 2025 share price of 1,137.5p (before any final increase)

• Cover and reserves: H1 revenue (1.55p) almost covers the interim (1.60p). The revenue reserve at period end was £18.0m, essentially matching the interim outlay, so H2 income will largely need to fund the final. Notably, the trust has flexibility to fund dividends from distributable capital reserves (the H1 statement shows the July final was partly charged to the capital reserve), which supports sustainability despite low portfolio income.
• Income profile: The portfolio “generates limited income” as holdings reinvest for growth, so dividend growth is likely to remain modest and reliant on smoothing via reserves rather than organic income expansion.
• Growth trajectory: The Board intends to increase the final dividend to extend the 43-year record; expect another small uplift, consistent with recent practice.