Dividend Declaration

RNS Number : 0978Q

City Natural Res High Yield Tst PLC

29 July 2010

 



To:                   RNS

From:              City Natural Resources High Yield Trust plc

Date:               29 July 2010

DIVIDEND INCREASED FOR FIFTH SUCESSIVE YEAR

·     Fourth interim dividend of 1.85p (2009: 1.42p) declared

·     Total dividend up 20.8% to 3.71p (2009: 3.07p) for the year

City Natural Resources High Yield Trust plc announces a fourth interim dividend of 1.85 pence per share payable on 27 August 2010 to shareholders on the register on 6 August 2010, with an ex-dividend date of 4 August 2010.  The latest dividend payment is in line with the Company's progressive dividend policy which has paid an increased dividend each year since inception as shown below:

Financial Year             Total dividend              % increase

2004/05                       2.00p                           -

2005/06                       2.15p                           7.5%

2006/07                       2.35p                           9.3%

2007/08                       2.65p                           12.8%

2008/09                       3.07p                           15.8%

2009/10                       3.71p                           20.8%

The dividend is well covered and will allow a further transfer to be made to the Company's revenue reserve, which represents more than one year of dividends at the current rate.

Geoff Burns, Chairman of City Natural Resources, commented "With many funds struggling to maintain dividends in the aftermath of the economic downturn and banking crisis, we are pleased to reward our loyal shareholders with this 20.8% dividend increase. We have increased dividends every year since the Company began by a total of 85% over 5 years.

Will Smith, co-manager of City Natural Resources, added "Our strengths lie in the resource and high yield investment fields, and we are committed to generating both capital and dividend growth for shareholders.  City Natural Resources invests across the resources sector in precious metals, base metals, energy, rare earth and soft commodity securities".

For further information please contact:

New City Investment Managers

Will Smith                                                                    0207 201 5387

F&C Asset Management plc

Martin Cassels (Company Secretary)                        0131 718 1095

Threadneedle Communications

Beth Harris/Laurence Read                                        0207 653 9850

Note to Editors:

City Natural Resources is managed by Will Smith and Richard Lockwood of New City Investment Managers and has a market capitalisation of £131m.

 

END

 

 

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