Highlights

• M&G Credit Income Investment Trust paid four quarterly dividends totalling 7.10p per share in the twelve-month window.

• The latest quarterly payment of 1.77p went ex-dividend on 29 October 2026 and is payable on 20 November.

• Shares closed at 89.80p on 5 November 2026, a small premium to net asset value of 89.41p.

• Quarterly amounts moved between 1.73p and 1.85p across the year, so the payout rate is not fixed.

Four payments, four different amounts. M&G Credit Income Investment Trust (LSE:MGCI) distributed 1.85p, 1.73p, 1.75p and 1.77p across the past twelve months, a total of 7.10p that equals a paid Yield of 7.91% on the 89.80p close of 5 November 2026. No FTSE UK index membership was found.

Quarter by quarter

The trust went ex-dividend on 29 January 2026 for 1.85p, which was paid on 20 February. It followed with 1.73p ex on 30 April, paid on 22 May, then 1.75p ex on 30 July, paid on 21 August. The latest, 1.77p, went ex on 29 October 2026 and is due on 20 November 2026. None is labelled special. The amounts track the trust's income, which is why they differ. For holders of LSE:MGCI, the payments follow a regular quarterly calendar.

Yield and premium

At 89.80p, the paid yield is 7.91%. Annualising the latest 1.77p payment gives 7.08p, an indicated yield of 7.88%. A published yield of 7.82% is close to these figures. Net asset value is 89.41p, so the shares trade at a premium of about 0.44%, which means buyers pay slightly more than the stated value of the holdings.

How a credit income trust works

The trust holds a range of credit assets, including loans and bonds issued by companies, and collects the interest. After costs, it distributes the income to shareholders. The amount depends on the interest rates earned, the mix of Assets and the level of defaults. A diverse portfolio spreads risk, but credit assets can lose value when borrowers struggle.

Sustainability and the credit cycle

No Dividend cover figure is published in the summary reviewed. Because the trust holds credit assets, its income depends on interest received and on borrowers meeting their obligations. A rise in defaults or a drop in interest rates could reduce the income available, and the variation seen in the last four payments suggests the rate is not fixed.

Putting 7.10p in context

A holder at 89.80p collected 1.85p in February, 1.73p in May, 1.75p in August and, once paid, 1.77p in November. The slight rise across the last three payments, from 1.73p to 1.77p, is the first hint of direction. A published annual payout of 7.62p and a yield of 8.43% were higher than the amounts actually paid, so the figure of 7.91% is the more reliable guide.

Premiums and discounts

A premium is less common among investment trusts than a discount, and it suggests that investors value the income stream. It also carries a risk: if Demand fades, the premium can vanish, and the share price can fall to net asset value even if the assets perform as expected. Investors should compare the price with the latest net asset value before buying.

Interest rates and income

If interest rates fall, floating-rate loans pay less and the trust's income may decline. If rates rise, income can increase, but borrowers may find it harder to pay. This is why the amounts paid by credit trusts move over time. The board can use Revenue reserves to smooth payments, but reserves are finite.

Ex-dividend dates explained

The ex-dividend date is the first day on which a buyer of the shares no longer qualifies for the next dividend. Anyone who holds the shares before that date receives the payment, normally a few weeks later. Share prices often fall by about the amount of the dividend on the ex-date, which is why a dividend on its own does not create value. The payment date is when the cash reaches the account.

Dividends are a board decision

A dividend is not a fixed obligation like interest on a loan. The board decides each payment after looking at profit, cash, Debt and future plans, and it can raise, hold, reduce or suspend the amount. A long record of payments is encouraging, but it describes the past. Investors who rely on dividends for income should look at the cash the Business generates as well as the amount it has paid.

Total return and yield

Yield shows only part of what a Shareholder earns. Total return combines dividends with changes in the share price, so a high yield can still produce a loss if the price falls by more than the income received. The reverse is also true: a modest yield with a rising price can deliver a good overall return. Both parts should be reviewed over a period of several years. Investors following LSE:MGCI should apply these checks to each new announcement.

What to watch next

Three markers matter: whether the next payment sits near 1.77p, whether the small premium of about 0.44% to net asset value persists, and whether the trust's reported net asset value of 89.41p holds. Credit conditions can shift quickly, and income can fall with them.