Investment companies – LSE – M cap £336m – Price 133.00p – Review
LOWLAND INVESTMENT COMPANY
Dividends and buybacks rewarding patience
Lowland Investment Company’s (LWI’s ) unconstrained, multi-cap investment policy differentiates it from most peers in the AIC UK Equity Income sector, offering investors broad market exposure outside of the large, traditional ‘income stocks’. While a re-rating of small- and mid-cap companies versus larger peers would be beneficial for LWI, it has nonetheless outperformed its broad market benchmark in each of the past two financial years. This has been driven primarily by stock selection and the positive impact of gearing in a rising market. Meanwhile, on a trailing basis, the dividend yield is ahead of the broad market yield of c 4% and the company is returning capital through share buybacks.