Schroder Income Growth Fund plc: Fourth interim dividend for the year ending 31 August 2021

The Board of Schroder Income Growth Fund plc (the “Company”) has declared a fourth interim dividend of 5.30 pence per share for the year ending 31 August 2021. Dividends paid and declared for the period total 12.80 pence per share, which represents a 1.6% increase on FY2020 (12.60 pence per share).

The 1.6% year-on-year increase represents the 26th consecutive year of dividend growth for shareholders and maintains the Company’s inclusion on the AIC “Dividend Hero” list, which recognises investment companies with long-term track records of annual dividend increases.

In deciding upon the level of the dividend the Board has carefully considered the Company’s short-term investment objective of increases in excess of inflation and the long-term sustainability of the dividend, in the context of the recent spike in UK inflation. The Board believe the level of increase to be attractive yet also prudent. The Company’s average annual dividend growth remains in excess of UK inflation over 3, 5 and 10 year periods.

The Board is pleased to report that 94% of the year’s dividend was covered by income received during the period despite the challenging environment for UK dividends. A modest transfer was therefore made from the Company’s dividend reserves of £0.51 million, which remain healthy at £7.4 million, and equates to approximately 84% of this year’s dividend.

Timetable for fourth interim dividend:

Ex-dividend date:              7 October 2021

Record date:                       8 October 2021

Payment date:                   29 October 2021

Dividend per share:         5.30 pence