| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 140.13 | -55 |
| Intrinsic value (DCF) | 115.71 | -62 |
| Graham-Dodd Method | 2.13 | -99 |
| Graham Formula | 8.39 | -97 |
Dunedin Income Growth Investment Trust PLC (DIG.L) is a UK-based closed-ended equity mutual fund managed by Aberdeen Fund Managers Limited, focusing on dividend-paying growth stocks across diversified sectors in the UK market. Established in 1873, the fund employs a bottom-up stock-picking strategy, emphasizing fundamental analysis of management quality, financial health, and business prospects. It benchmarks performance against the FTSE All-Share Index, targeting long-term income and capital growth. With a market cap of approximately £382.6 million, DIG.L appeals to income-seeking investors, offering a dividend yield of 14.2p per share. Its diversified portfolio spans all market capitalizations, providing exposure to UK equities while mitigating sector-specific risks. The fund’s historical longevity and disciplined investment approach position it as a stable option in the income-focused asset management sector.
Dunedin Income Growth Investment Trust PLC presents a compelling option for income-focused investors, given its consistent dividend payouts (14.2p per share) and a low beta (0.669), indicating lower volatility relative to the market. The fund’s focus on UK dividend-paying growth stocks provides a balanced approach to income and capital appreciation. However, its reliance on the UK equity market exposes it to regional economic risks, including Brexit-related uncertainties and domestic fiscal policies. The absence of debt and positive net income (£33.9 million) underscore financial stability, but its performance is closely tied to the FTSE All-Share Index, limiting diversification benefits. Investors should weigh its income-generating potential against the broader macroeconomic challenges facing the UK market.
Dunedin Income Growth Investment Trust PLC competes in the crowded UK income-focused investment trust space, differentiating itself through its long-term track record (founded in 1873) and a disciplined, bottom-up stock selection process. Its competitive advantage lies in its focus on high-quality, dividend-paying UK equities, which appeals to conservative investors seeking steady income. However, its UK-centric portfolio may lag peers with global diversification during periods of domestic underperformance. The fund’s low expense ratio (implied by its structure) and lack of leverage enhance its appeal, but its smaller size (£382.6 million market cap) limits economies of scale compared to larger rivals. Its performance is highly correlated to the FTSE All-Share Index, which may reduce its appeal to investors seeking active management alpha. The trust’s niche is its blend of income and growth, but it faces stiff competition from more flexible or globally diversified income funds.