Merchants Trust Marks its 135th Anniversary with Strong Performance

Edison Investment Research Limited has released an update on The Merchants Trust (MRCH), highlighting its 135th anniversary. Managed by Simon Gergel from Allianz Global Investors, MRCH is noted for its continued strong performance in the UK market. With a longstanding 42-year record of consecutive dividend increases, MRCH offers an attractive 5.1% dividend yield, standing out in the AIC UK Equity Income sector.

Despite challenges in the macroeconomic environment, MRCH's share demand has stayed robust, with shares regularly trading at a premium. Over FY24, this allowed the board to issue shares from treasury, increasing the share base by about 5.8% and raising approximately £46.0 million. Attracted by improving sentiment towards UK companies and a stable political climate, MRCH remains a solid income investment option in the current market.