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M&G Credit hikes dividend as net asset value ticks up

28th Mar 2024 14:27

(Alliance News) - M&G Credit Income Investment Trust PLC on Thursday said there is still attractive value to be found as it announced a higher net asset value and dividend.

The debt investment firm said net asset value per share edged up 1.3% to 96.21 pence as at December 31 from 94.99p a year prior.

NAV total return was 10.4% for 2023, swung from negative 1.7% in 2022. It also outperformed its benchmark, an annualised dividend yield of sterling overnight index average plus 4%, which had a total return of 9.0%.

The company declared a total dividend of 7.96 pence per share for 2023, up 49% from 5.35p paid for 2022.

Looking ahead, Chair David Simpson said: "The technical backdrop in fixed income markets remains strong: all-in bond yields continue to compare favourably to other asset classes. Sterling investment grade and high yield credit spreads are (at time of writing) the tightest they have been in close to two years which reflects the strength of the technical tailwind and future optimism for the 'soft landing' narrative. Despite this creating a slightly more challenging environment in which to deploy capital, your company's board believes there is still attractive value to be found in credit and that the current backdrop favours an active management approach."

M&G Credit shares were 0.2% higher at 90.58 pence each on Thursday afternoon in London.

By Tom Budszus, Alliance News slot editor

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