⌘K
t
On 03 March 2023, Edison issued an update on The Diverse Income Trust PLC (DIVI). The update noted DIVI's 5.2% discount to cum-income NAV, compared to average discounts of 4.6% (one year), 4.0% (three years), 3.2% (five years), and 1.1% (ten years). In FY22, 1.7% of the share base exercised its annual voluntary redemption option, and the trust's income is now higher than pre-COVID-19 levels.
| Date | 3 Mar 2023 |
| Time | 07:15:01 |
| Category | Miscellaneous |
| ID | 7255R |
London, UK, 3 March 2023
Edison issues update on The Diverse Income Trust (DIVI)
The Diverse Income Trust (DIVI) is managed by Gervais Williams and Martin Turner at Premier Miton. They are very optimistic about the prospects for UK stocks, with Williams recently stating: 'I am more bullish than I have been in the last 30 years'. UK equity valuations are looking very attractive versus other markets and their own history, while there is a historically wide discount between the valuation of DIVI's portfolio and that of the UK market. The trust's income is now higher than pre-COVID-19 levels, with the improvement exceeding that of UK stocks in aggregate, which Williams attributes to the success of its portfolio companies. He believes that DIVI's shareholders will be rewarded with a higher level of income, while successful stock selection, which has been demonstrated in the past, could lead to outperformance versus the UK and global markets.
DIVI's 5.2% discount to cum-income NAV compares with average discounts of 4.6%, 4.0%, 3.2% and 1.1% over the last one, three, five and 10 years, respectively. The trust has an annual voluntary redemption option and in FY22, 1.7% of the share base opted to redeem. As shown in the chart above, there has been steady growth in DIVI's annual dividend and, based on its current share price, the trust offers an attractive above-market yield of 4.2%.
Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Mel Jenner +44(0)20 3077 5700 investmenttrusts@edisongroup.com
Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn www.linkedin.com/company/edison-group-/
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv