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Scottish American outperformance driven by resilient operational performance

Scottish American maintains inflation busting dividend increases

Scottish American (SAIN)has announced its annual results for the year to 31 December 2020, during which it has outperformed global equities, driven by resilient operational performance of its investee companies. Some key take-aways from the report are as follows:

  • Dividend – the full year dividend, including a recommended final dividend of 3.00p, is 12.00p per share. This is 1.1% higher than the 2019 dividend, extending the Company’s record of dividend increases to forty one consecutive years. The increase is above the rate of UK CPI inflation over the same period, which was 0.6%.
  • Revenues – Income was £23.6m (2019 – £23.0m) and earnings per share were 11.41p (2019 – 11.87p).
  • Total return* – Net Asset Value total return (capital and income) for the year was 14.5% (debenture at fair value), ahead of the total return from global equities of 13.0%. The share price total return was 12.0%. In a challenging year returns were assisted by the resilient operational performance of many of the companies in which SAINTS invests, and also by a positive return from the Company’s property investments.
  • Peer Group performance – SAIN remains the best performing fund in its Global Equity Income peer group, in terms of  NAV total return, over the past five years.
  • Outlook – The Board remain of the view that a long-term approach based on investing globally for sustainable growth is the best route to achieving SAINTS’ aim of growing the dividend ahead of inflation over time.  It has great confidence in SAINTS’ managers, and this confidence has been strengthened by the experiences of the past year.

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