F&C Investment Trust (LSE:FCIT) has declared another quarterly Dividend of 0.99p as it works towards what would be its 56th consecutive annual increase. The world's oldest investment trust is a familiar holding for long-term savers, and this year's share split has changed how its payouts look on paper. Behind those numbers is a modest Yield and a very long record.

The latest dividend

A further 0.99p per share was declared on 29 October, with an ex-dividend date of 31 December and payment due on 1 February 2027. That follows a 0.99p payment made on 2 November, and an earlier 0.99p paid in August.

Investors comparing those figures with past years should allow for the four-for-one share split that took effect in May. The 3.80p quarterly payments of 2025 equate to 0.95p on the new basis, so 0.99p represents an increase of about 4.2% in the quarterly rate. The board has said it intends to raise the total dividend for 2026 above last year's level of 16.6p on the old share basis.

What the dividend figures show

As of 7 October 2026, the annual dividend was 4.15p per share, which matches the 16.6p paid for 2025 when adjusted for the split. The trailing 12-month yield was 1.2%, and the indicated yield was also 1.2%, placing the trust firmly among the lower-yielding members of the index.

Dividend growth year on year stood at 6.4%, a healthy rate for a trust with such a long history of raising its payments. The Payout Ratio of 5.6% looks remarkably low. For an investment trust, that figure can be heavily influenced by capital gains being included in earnings, and it should not be read as meaning the dividend is covered nearly 18 times by income. Revenue return per share is a better guide, and the company reported an 8.4% rise for the first half.

The company's own count is 55 consecutive annual increases to the end of 2025, so that an increase in 2026 would be its 56th in a row. Standard dividend histories often show shorter streaks, such as 42 years of payments and 41 of growth, because they cover a limited period and do not capture the full record.

How an investment trust pays its dividend

An investment trust is a listed company that owns a diversified portfolio of shares and other investments on behalf of its holders. Its income comes from the dividends and interest earned on those holdings, and it can also use accumulated revenue reserves to smooth payments from year to year. That ability to hold back some income in good years and draw on it later is a key reason why trusts can sustain a long run of annual increases through periods when the underlying companies cut theirs.

The distinction between revenue and capital also explains the low reported payout ratio. Capital gains boost total return but cannot be paid out as Ordinary Dividends under normal practice, so the revenue account is what funds the distribution. A rise of 8.4% in revenue return per share in the first half is therefore a more useful guide to the payout's sustainability than the headline ratio.

Performance close to the benchmark

Half-year results published on 3 August showed a net asset value total return of 12.4%, narrowly behind the 12.6% from the FTSE All-World Index. The Shareholder total return was 12.8%. Net asset value per share was 375.18p at 30 June, up from a split-adjusted 335.84p at the end of 2025.

Emerging markets provided the firmest regional contribution, while North America lagged its benchmark. Unlisted holdings, which made up about 11% of the portfolio, returned 9.1%, falling short of the performance of listed shares. The discount to net asset value narrowed slightly to 6.6% from 6.8%, and the trust bought back around 0.7% of its shares during the period, a steady form of capital management alongside the dividend.

At 1.2%, the dividend is unlikely to be the main reason to hold F&C Investment Trust (LSE:FCIT). The trust's purpose is global growth, with a rising income stream as a secondary feature that reflects its long-standing approach.

Why the discount and Buybacks matter

Investment trust shares can trade above or below the value of the Assets they hold. A discount of 6.6% means the shares were priced at a little under the net asset value per share, and a narrowing discount adds to shareholder returns on top of portfolio performance. Share buybacks at a discount are accretive to net asset value per share, since the trust retires shares for less than their underlying worth, and that is why the board's repurchase activity is worth following alongside the dividend.

The four-for-one split in May, meanwhile, changed the number of shares and the per-share figures without altering anyone's overall holding or the total cash paid out. After a split, per-share amounts such as net asset value, dividends and share price are all divided by the same factor, which is why historical numbers need adjusting to compare them with current ones. Readers comparing dividend history across the split should always use the adjusted figures to avoid mistaking a technical change for a cut.

What to watch

The 31 December ex-dividend date is the next milestone for holders, followed by the full-year results and final dividend early next year, which should confirm whether the 56th increase is delivered. Investors will also be looking at the level of the discount and the pace of buybacks, as well as how the portfolio absorbs recent Volatility in technology shares.

Revenue growth remains the key variable for holders of the trust (LSE:FCIT). As long as income per share keeps rising ahead of the dividend, the board has room to continue its annual increases without drawing on reserves, and the record can lengthen steadily.