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RNS Number : 6156G Montanaro UK Smlr Cos Inv Tst PLC 29 April 2025
Montanaro UK Smaller Companies - Update from QuotedData
29(th) April 2025
High growth, bigger yield
Montanaro UK Smaller Companies (MTU) has adopted a new enhanced dividend
(https://quoteddata.com/glossary/dividend/) policy, paying out 1.5% of net
asset value (NAV)
(https://quoteddata.com/glossary/net-asset-value-per-share-nav-per-share/)
every quarter. This will make it one of the highest-yielding
(https://quoteddata.com/glossary/yield/) UK equity strategies on the market.
For traditional equity income investors, whose portfolios tend to be tilted
towards more value-focused (https://quoteddata.com/glossary/investing/)
cash-generative stocks, MTU's combination of a high dividend yield and a
strong focus on quality growth stocks differentiates it from peers.
UK equities were cheap relative to their history and to developed market peers
prior to the tariff-related sell off; now they are even cheaper. In addition,
the quality-growth small-cap stocks in which MTU invests have been out of
vogue recently, with the market favouring large-cap value stocks instead.
As MTU's manager Charles Montanaro points out, the historic valuation gap
provides investors with an attractive entry point. History has shown that
buying stocks on these sorts of valuations can produce attractive long-term
returns, and the magnitude of the discount of the UK's equity market relative
to other developed global equity markets could in itself be a catalyst for the
UK market to rerate.
Full Research:
https://quoteddata.com/research/montanaro-uk-smaller-companies-high-growth-bigger-yield-qd/
(https://quoteddata.com/research/montanaro-uk-smaller-companies-high-growth-bigger-yield-qd/)
This research is also available free on our website www.quoteddata.com
(http://www.quoteddata.com) where you will also find news, performance data
and factsheets on every London listed Investment Company. QuotedData writes
and distributes research on a number of quoted companies, facilitates meetings
between those companies and existing and potential investors and assists in
raising additional capital where required.
NB: Marten & Co was paid to produce this note Montanaro UK Smaller
Companies Investment 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 Financial Conduct Authority. Marten & Co
is not permitted to provide investment advice to individual investors
categorised as Retail Clients under the rules of the Financial Conduct
Authority.
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