10th Oct 2014 08:24
LONDON (Alliance News) - New City High Yield Fund Ltd Friday reported a 10.3% rise in its net asset value total return, a 13.7% rise in its share price total return, and a dividend yield of 6.5% for its last financial year, although earnings per share declined.
"During another good year your company's net asset value rose by 3.1% to 62.4 pence during the year ended 30 June 2014; when this capital measure is adjusted for the payment of dividends totalling 4.21 pence per share for the year, the net asset value total return was 10.3%," Chairman James West said in a statement.
The fund paid three interim dividends of 0.92 pence per share during the year, each a 2.2% increase on the previous year's corresponding dividends. The fourth interim dividend was increased by 3.6% to 1.45 pence per share, from 1.40 pence.
Still, earnings per share declined to 4.76 pence, from 5.42 pence in the previous year, mainly due to the interaction between a slight decline in portfolio yield and the pattern of share issues.
"The company's earnings have been, and are expected to continue to be, sufficient to more than cover the dividend," it said. "The level of dividends paid by the company has increased every year."
"Global economic recovery appears to be solidly entrenched, except perhaps in the Eurozone, with the US and the UK amongst those showing good progress. Quantitative easing may be giving way to the prospect of interest rate rises in the latter, but it seems that the Eurozone can be relied
upon to keep monetary policy slack. This is a backdrop that, your company, and its shareholders, are well positioned to benefit from," it added.
New City High Yield Fund shares were down 0.5% at 65.69 pence Friday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Cqs New C.h.y.f