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abrdn Asian Income Fund Ltd on Wednesday reported a rise in its net asset value last year and it outlined an ‘enhanced dividend policy’. The Asia-focused fund said its net asset value at the end of last year amounted to 251.42 pence per share, rising 5.4% from 238.59p. abrdn Asian Income shares were up 0.5% to 215.15 pence each in London on Wednesday afternoon. Its net asset value total return was just under 11%, shy of the currency-adjusted MSCI AC Asia Pacific ex Japan Index, which expanded by just below 13%. Chair Ian Cadby said: ‘Throughout the year, our investment manager’s focus on quality high-yielding stocks in Asia provided a good buffer against the impact of the various macroeconomic and political headwinds.’ abrdn Asian Income paid three quarterly dividends of 2.55p each, up 2.0% from 2.50p a year prior, and a fourth quarterly dividend of 6.78p, up 60% from 4.25p. It meant its total dividend for 2024 amounted to 14.43p, up 23% from 11.75p. It also meant a dividend yield of 6.6% for 2024, up from 5.6% in 2023. In addition, it set out a new dividend policy for 2025 onwards. Its dividend will be set at 1.5625% per quarter of the NAV, so 6.25% of NAV per year. ‘Based on the company’s NAV as at 31 December 2024 and closing year end share price, this enhanced dividend policy would equate to a notional annual dividend yield of 7.1% based on share price. This approach ensures a consistent and attractive income stream for shareholders while broadening the appeal of the company’s shares and, over time, aiming to narrow the discount,’ abrdn Asian Income Fund said. ‘The enhanced dividend policy reflects the board’s confidence in the long term robust opportunities in Asian markets, where dividend yields and growth have outpaced those of Europe and the US. With over 50% of total returns in Asian equities now driven by dividends, and with companies in the region demonstrating stronger balance sheets and increasing free cash flow coverage for dividends, the potential for rising payout ratios is compelling,’ Cadby added. Copyright 2025 Alliance News Ltd. All Rights reserved.
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