Key Highlights

  • Invesco Bond Income Plus Limited (LSE:BIPS) is listed on the London Stock Exchange Main Market with a Dividend Yield of 7.45%.
  • The annual dividend is 12.25p per share, paid quarterly at 3.0625p.
  • The fourth interim for 2025 was paid on 20 February 2026, and quarterly payments continued through 2026.
  • Shares traded at a small premium to NAV, allowing regular issuance of new shares.
  • Net borrowing was about 5%, using repo financing.
  • The trust is managed by Rhys Davies and Edward Craven.

Overview of Invesco Bond Income Plus

Invesco Bond Income Plus Limited (LSE:BIPS) seeks Capital growth and high income, predominantly from high-yielding fixed-interest securities. Launched in 1991 and domiciled in Jersey, it invests in high yield and investment-grade corporate bonds, bank capital and other credit. It is managed by Invesco's fixed income team.

The 7.45% yield is supported by a steady quarterly dividend and a portfolio of income-producing bonds.

Dividend Record

BIPS paid 12.25p per share in 2025 in four quarterly instalments of 3.0625p. The fourth interim for 2025 was paid on 20 February 2026. The first interim for 2026, declared in March, was paid on 20 May 2026, and the second was scheduled for August 2026. The board has kept the dividend stable.

NAV and Premium

NAV per share was around 168p to 171p in spring 2026, with shares trading near 173p, a small premium. This allowed BIPS to issue new shares regularly through 2026, which is accretive when done above NAV. Market Capitalisation is around £450m to £460m.

Dividend Cover and Income

The portfolio's yield on high yield bonds supports the 12.25p dividend. Revenue is generated from coupons, and the managers seek bonds with attractive income relative to Credit risk. Modest gearing through repo financing adds income.

Gearing

Net borrowing of around 5% is low, limiting the impact of market falls while boosting income modestly.

Performance

The trust's share price total return was 9.3% over one year and 27% over three years to April 2026, showing solid performance through a period of rising and falling rates.

Interest Rate Environment

High yield bonds pay coupons well above government bonds, and BIPS has benefited from higher yields available since 2022. If rates fall, bond prices tend to rise, supporting NAV, though new bonds may offer lower coupons. If rates rise, prices fall but reinvestment yields improve. The managers manage duration to balance these effects, aiming to keep income stable for shareholders.

Diversification

The portfolio holds a large number of issuers across sectors and countries, which reduces the impact of any single default on income. Exposure to subordinated financials, high yield corporates and investment-grade bonds gives the managers flexibility to shift allocation as conditions change.

Shareholder Protections

The annual continuation vote gives shareholders a regular say on the trust's future, an unusual feature that encourages the board and managers to maintain strong performance and a disciplined dividend policy.

Track Record

With a launch date in 1991, BIPS has navigated multiple credit cycles, including the financial crisis and pandemic, while continuing to pay dividends. Its ten-year share price total return of about 77% reflects consistent income generation over time. The trust also offers a Dividend reinvestment plan, allowing shareholders to compound income by buying additional shares.

Risks

Risks include credit defaults, wider credit spreads in a downturn, Interest Rate changes and the use of gearing. The annual continuation vote provides shareholders with regular oversight.

Market Sentiment

Ongoing charges of about 0.88% are competitive for an actively managed bond trust. Commentary highlights BIPS as a reliable bond income trust with a strong record. Its premium rating reflects investor Demand for income.

How BIPS Fits an Income Portfolio

BIPS offers diversified high yield bond exposure with quarterly income, complementing Equity income holdings.

Manager Approach

The managers combine top-down views on the economy with bottom-up credit analysis, selecting bonds across the capital structure, including subordinated bank debt, which offers higher income.

Dividend Sustainability Scorecard

  • Dividend: 12.25p, paid quarterly.
  • Rating: premium to NAV, allowing issuance.
  • Gearing: about 5%.
  • Performance: 27% three-year share price total return.
  • Key risk: credit defaults and spreads.

What Investors Should Watch

Watch quarterly dividend declarations, NAV, credit spreads, the continuation vote and share issuance.

Is the 7.45% Yield Sustainable?

BIPS's 12.25p dividend looks sustainable, supported by portfolio income and a strong track record. LSE:BIPS suits investors seeking steady bond income.