CHELVERTON UK DIVIDEND TRUST PLC

Dividend Policy Clarification

A key objective of the Company is to pay an annual dividend that is increased in real terms each year. 

It remains the Board's intention, which has been stated several times over the past few years, to move the dividend payment profile to a position where the fund pays four equal interim dividends on a quarterly basis through the year.  This will be achieved in the year ending 30th April 2020 with four payments of 2.40p being a total for the year of 9.60p of core dividend.  In that same year there may or may not be a special dividend, the payment of which will be dependent on the level of total dividend revenue received by the Company including any Special Dividends.     

Since 2013 the Company has also had to pay an annual special dividend, in addition to the core interim dividends.  This has been done to ensure the Company does not retain more than the permissible maximum of 14.99% of current period revenue. 

After careful consideration, the Board has decided that as retained revenue reserves build each year a point will be reached where there are adequate revenue reserves to ensure that in the normal course of events future dividends can be paid.  

It is therefore proposed that once the Company's retained revenue reserves are equal to double the historic core dividend, the Company will distribute to shareholders all additional current period revenue as a special dividend.  If the current period revenue is insufficient to meet the proposed core dividend target, the Company will use some of the retained revenue reserves with the aim of reinstating its policy as soon as is practical.

The Company as at year end of 30th April 2018 had retained revenue reserves of £2,577,284 or 12.36p per share, which represents some 146% of the current historic core annual dividend of 8.46p per Ordinary share.  

For further information please contact:

George Bayer

Maitland Administration Services Limited, Corporate Secretary

+44 1245 398984