The North American Income Trust (NAIT) has been generating an attractive and increasing dividend (up 9% for the year ended 31 January 2019). It is also generating reasonable capital growth, despite an environment that has been favouring low-yielding, high-growth companies. The manager, Fran Radano, is not unduly concerned about the health of the US economy. He continues to recycle the portfolio into stocks that he believes are good quality that offer the prospect of reasonable dividend growth and should prove resilient in the event of a slowdown in the US economy… Read more
Since we last published, the discount has narrowed considerably and, if this is sustained, it might be possible for the trust to issue stock and expand.
Shareholders should note that, at the Annual General Meeting planned for 4 June 2019, they will be asked to approve the subdivision of the shares. Shareholders will receive five shares in exchange for every one share held, all things being equal the share price will be a fifth of what it was. This is designed to make things easier for investors who want to invest relatively small sums of money.
Above average income and long-term growth
NAIT’s objective is to invest for above-average dividend income and long-term capital growth, mainly from a concentrated portfolio of S&P 500 US equities.
NB: Marten & Co was paid to produce this note on The North American Income Trust Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the FCA. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority