Merchants Trust (LON:MRCH) - Income trust with a 6.2% yield
Oct 29th 2012 - Edison Investment Research today published a report on Merchants Trust (MRCH.L, LSE:MRCH, LON:MRCH) entitled "Income Trust With A 6.2% Yield". In summary, the report says:
During the last 12 months, the Merchants Trust (MRCH) has outperformed its benchmark index, the FTSE 100, by 3.0% in terms of NAV total return. Despite this, the discount has gone from a premium of 5.9% to a discount of 2.0% with debt at fair value. For the half-year ended 31 July 2012, in total return terms the underlying portfolio beat the FTSE 100 by 4.2% (the FTSE 100 rose by 1.4%). Gearing added 0.8% to performance, despite an expensive tranche of debt that expires in 2018. The trust pays quarterly dividends and its recent interims suggest that the trust is well positioned to provide investors with 31 years of uninterrupted dividend growth. MRCH is managed using a value-driven investment...
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