But I won’t buy just any dividend shares, no. Here are three I’m thinking of buying to help me through a recession.

Not the biggest

I’m keeping away from the biggest FTSE 100 dividend yields right now, because many of them are not well covered by earnings. Some of the biggest payers have also cut their dividends in recent years too.

BP (LSE: BP) offers a forecast yield of 4.4%. That’s nowhere near the biggest on offer. But what it should provide is strong support from earnings, with analysts estimating cover at around four times.

Oil prices have soared and are sticking above $100, at least for now. That’s led to surging first-quarter profits for BP, strengthening my confidence in this year’s dividend. I don’t think it’s quite a no-brainer buy, mind.

For one thing, the government is increasingly making calls for a windfall tax to cream off some of this year’s profits. And then in the long term, we have that renewable energy thing. There’s long-term risk, but BP is a candidate for me.

Spreading the cash

I am a big fan of investment trusts at any time, but I think they come into their own during economic down spells. There is a risk that a trust will see its share price fall as its holdings drop in value in a recession — in fact, I think it’s almost inevitable.

But trusts can carry over spare cash from good years to keep their dividends going during leaner years, which helps manage that risk.

I’m considering Murray Income Trust (LSE: MUT), which invests in a range of UK shares that I see as safe long-term cash generators. It includes Diageo, AstraZeneca, SSE, and Unilever among its top 10 holdings.

I see that as a nicely diversified selection of dividend shares for a period of recession. Well, actually, I think it’s a solid selection for my long-term portfolio at any time.

Long track record

I’ve often considered adding British American Tobacco (LSE: BATS) to my dividend shares collection. That’s because of sustained profits, strong yields, and decent cover by earnings. But there’s one thing I never realised, until I just recently completed some more research.

Looking back over annual results from BATS, I discovered that the company has lifted its dividend every year for the past 20 years. Actually, the trend might be longer, but that’s as far back as I went.

The company is engaged in a £2bn share buyback programme too. I reckon that means it should have the cash flow to keep the dividend going through any kind of recession.

What’s the downside? Well, it’s the tobacco business. And we could see a big disjoint in performance as smoking gives way to other forms of consumption.

But for my money, these are all dividend shares I’d buy for long-term income.

Here, I’m going to highlight two of my favourite Dividend Heroes. If I was looking to generate passive income from the stock market today, I would definitely consider these two investment trusts for my portfolio.

Scottish American Investment Company

Let’s start with Baillie Gifford’s Scottish American Investment Company (LSE: SAIN). This is a global product that aims to be a ‘core investment’ for private investors seeking income. It predominantly invests in equities but also allocates capital to bonds, property, and other asset classes.

One thing I like about this particular Dividend Hero is that its portfolio is highly diversified. At the end of January, over 45% of the portfolio was allocated to European and Asian stocks. These two areas of the market are often neglected by UK investors.

I also like the kind of stocks this trust holds. At 31 January, the top 10 holdings included Big Tech giant Microsoft, healthcare specialist Novo Nordisk, and consumer goods powerhouse PepsiCo. These are world-class companies.

Now, the dividend yield here isn’t that high. Currently, it’s only about 2.4%. However, I’m not too fussed about this as the trust has a great track record when it comes to delivering high total returns (capital gains plus dividends). For the five years to the end of 2021, for example, its share price rose 93%. This means that total returns over that period were more than 15% per year.

It’s also worth noting that the trust has now registered 47 consecutive dividend increases.

Of course, past returns are not an indicator of future performance. There’s no guarantee this trust will provide good returns going forward. However, I see it as a great pick for passive income as part of a balanced investment portfolio. Ongoing charges are 0.70% per year.

Murray Income Trust

Another of my favourite Dividend Heroes is Murray Income Trust (LSE: MUT). This trust, which is managed by Abrdn and has now posted 48 consecutive dividend increases, aims to provide high and growing income along with some capital growth. It mainly invests in UK shares but has a little bit of exposure to international stocks. Top holdings at the end of January included Diageo, AstraZeneca, and RELX.

This trust also has a pretty good track record when it comes to performance. For the five years to the end of 2021, for example, it generated a share price return of 57%. That’s a solid return for a UK-equity product. By contrast, the FTSE All-Share index delivered a return of just 30% over that period.

As for the dividend payout, this is very appealing, in my view. Last year, MUT paid out income of 34.5p per share. At the current share price, that equates to a yield of about 4.1%. I’d be happy with that yield if my goal was to generate passive income. Dividends are paid quarterly too, which is handy.

It’s worth pointing out that dividends from investment trusts are never guaranteed. If the stocks owned by MUT reduced their dividends, the trust may have to reduce its payout too.

I’m comfortable with this risk though. Overall, I see MUT as a very solid product for passive income. Ongoing charges are 0.46% per year.

Here, I’m going to highlight five top investment trusts I like for 2022. I’d be comfortable buying all of them for my own portfolio today.

Scottish Mortgage Investment Trust

Starting with investment trusts for growth, one of my top picks here is Scottish Mortgage Investment Trust (LSE: SMT). This is a global equity product that’s managed by Baillie Gifford. It has a phenomenal track record (its share price is up around 333% over the last five years).

There are a number of things I like about Scottish Mortgage. One is that it provides exposure to some of the world’s largest tech companies. Top holdings currently include Tesla, Tencent, and Nvidia. Another is that it provides exposure to unlisted companies, such as payments firm Stripe and tech platform ByteDance. Normally, three kinds of unlisted companies are only accessible to sophisticated investors through venture capital funds.

Now this is a higher-risk investment trust. That’s because it owns a lot of high-growth companies which aren’t yet profitable. If these kinds of companies fall out of favour in 2022, SMT could underperform. So I wouldn’t want to have too much portfolio exposure here. All things considered however, I think it’s a top investment trust for long-term growth. Fees are very low, at 0.34% per year.

Smithson Investment Trust

Another growth-focused investment trust I like is Smithson (LSE: SSON). This is a mid-cap/small-cap product that’s managed by Fundsmith. Since its launch in 2018, it has performed very well, returning 23% per year to the end of November. 

What I like about this trust is that, like its big brother Fundsmith Equity, it aims to invest in high-quality businesses that are dominant in their markets and have established excellent track records. This approach has delivered excellent returns for Fundsmith Equity over the long run and seems to be working for Smithson too.

I also like the fact it provides exposure to growth stocks that are more under the radar. Top holdings at the end of November, for example, included Rightmove, Fevertree Drinks, and Equifax.

One risk here is that the trust is quite concentrated. It only holds between 25 and 40 stocks which means that stock-specific risk could be relatively high compared to other more diversified trusts. I’m comfortable with this risk however, as I have plenty of other trusts, funds, and stocks in my portfolio. Fees here are 0.9% per year.

Allianz Technology Trust

My third pick for growth is the Allianz Technology Trust (LSE: ATT). This trust, which also has a five-star rating from Morningstar, is more niche in nature as it is focused purely on technology stocks.

One reason I like this trust is that it provides exposure to a broad mix of tech stocks. Not only does it hold the mega-cap tech giants such as Microsoft and Alphabet but it also holds smaller, up-and-coming players such as Okta and Snowflake.

I also like the fact that the trust is managed by the highly experienced AllianzGI Global Technology team, which is based in San Francisco. This location is only a stone’s throw from Silicon Valley, where many of the world’s top tech companies are based.

Of course, if technology stocks underperform in 2022, this trust is likely to underperform as well. So, I wouldn’t want to have too much portfolio exposure here. I think it could play a role in my diversified portfolio though. Fees are 0.8% per year.

Scottish American Investment Company

Turning to investment trusts for income, one of my top picks is Scottish American Investment Company (LSE: SAIN). This is a global equity product that’s also managed by Baillie Gifford. Its aim is to be a core investment for private investors seeking income. It has an excellent performance track record.

One reason I like this trust is that it has a very balanced portfolio. Unlike many other global equity trusts, it doesn’t have a huge US bias. At the end of November, around 33% of the portfolio was invested in US stocks, while 32% was invested in European stocks and 15% in Asian stocks. Top holdings at 30 November included Microsoft, Novo Nordisk, and Roche.

Now this trust doesn’t have a huge dividend yield. At present, it’s around 2.4%. However, it is a ‘Dividend Hero’, which means it has increased its dividend every year for at least 20 years.

One risk here is that the trust does hold quite a few growth stocks. This means that during market volatility, it could be more volatile than some other income-focused investment trusts. However, I see it as a good choice as part of a diversified portfolio. Ongoing charges are 0.7% per year.

Murray Income Trust 

Finally, I also like the Murray Income Trust (LSE: MUT). This is another investment trust that’s focused on income. Its goal is to provide high and growing income with some capital growth by investing predominantly in UK shares. It’s managed by Aberdeen Standard Investments.

Like Scottish American, this trust is also a dividend hero, with a great long-term dividend growth track record. In 2021, total dividends amounted to 34.50p per share, which equates to a yield of nearly 4% at the current share price. 

It’s not just the dividend track record that is impressive here however. Overall, recent returns have been very good as well. Over the five years to the end of November, MUT’s net asset value (NAV) rose 49%. By contrast, the FTSE All-Share Index returned 31% over the same period. Performance has been boosted by stocks such as Diageo, AstraZeneca, and Safestore, which are among the top holdings.

It’s worth pointing out that while this trust has an excellent long-term dividend track record, dividends are never guaranteed. It’s also worth noting that at times in the past, this trust has underperformed the market, due its focus on dividend payers. Overall however, there’s a lot to like about Murray Income Trust, in my view. Ongoing charges are 0.46% per year.

Here, I’m going to highlight two investment trusts I’d buy for income. Both pay investors regular dividends and have delivered strong total returns (capital gains and income) over the long run.

A top UK investment trust for income

One of my top picks for income is the Murray Income Trust (LSE:MUT). Its aim is to provide high and growing income with some capital growth by investing mainly in UK shares. The trust, which is managed by Aberdeen Standard Investments, has a 5-star rating from research group Morningstar.

Murray Income Trust is classified as a ‘Dividend Hero’. This means it’s increased its dividend payout every year for at least 20 years. Last year, it paid out 34.25p per share to investors. At the current share price, that payout equates to a yield of about 3.9%.

It’s not just the yield that’s impressive here. Overall returns have also been very good. Over the five years to the end of May, MUT’s net asset value (NAV) rose 60.1%. By contrast, the FTSE All-Share index returned 40.5% over the same period.

One thing I like about this trust is that it has a balanced portfolio. It’s not just stuffed full of high-yielding stocks. There’s also a nice mix of dividend growth shares, such as Diageo and Unilever, some higher-yield plays, such as BHP and National Grid, as well as some international dividend stocks such, as Coca-Cola.

However, It’s worth pointing out that while MUT has a great dividend track record, dividends aren’t guaranteed. Past performance isn’t an indicator of future returns. At times, this trust has underperformed the market.

Overall though, there’s a lot to like about MUT, in my view. I see it as a great investment trust for income. Ongoing charges are 0.64% per year.

A global focus

Another investment trust I’d buy for income is Baillie Gifford’s Scottish American Investment Company (LSE: SAIN). This trust, which also has a Morningstar 5-star rating, invests globally. It aims to be core for private investors seeking income.

Like MUT, Scottish American is a Dividend Hero. Last year, it paid out 12p per share in dividends. At the current share price, that equates to a yield of 2.4%.

While the yield here may seem a little underwhelming, the total performance of the trust has been very strong in recent years. Over the five years to 31 May, its NAV rose 113.9%, beating the FTSE All-World Index (which returned 103.4%) comfortably.

This trust also has a balanced portfolio. Unlike many other global equity products, it doesn’t have a huge US bias. At end-May, around 30% of the trust was invested in US stocks, while 32% was in European stocks and 15% was in Asian stocks. Some names in the portfolio include Microsoft, Roche, and Procter & Gamble.

It’s worth noting that some of the stocks in this portfolio are more growth-focused. This means that during market turbulence, this trust could be more volatile than some other income-focused investment trusts.

As part of a balanced investment portfolio however, I see it as a good pick for income. Ongoing charges are 0.70% per year.

Professional buying Next shares 

I’ll look first at the high-yielding investment trust Merchants Trust (LSE: MRCH). Its top holdings are GlaxoSmithKline and British American Tobacco, which each account for over 5% of the trust’s value. 

But I’m more interested in what the manager has been actively doing to navigate this current tricky market. It’s clear they’ve been active. A new position in retailer Next was added. The manager commented:

Whilst current trading is under huge pressure from the lockdown and social distancing, Next has reacted in its characteristically decisive way to protect its financial position and reposition for the future. Although the business cancelled its recent dividend, we would expect Next’s historically strong cash flow to recover, in the medium term, and for ordinary and possibly special dividends to resume.

The trust also added to its positions in National Grid and SSE. The manager cited commitments to dividend policies as well as long-term growth in renewables as reasons to add more. 

Adding to an in-favour pharma share

The management of the Murray Income Investment Trust (LSE: MUT) added to their AstraZeneca holding. Although it has a high price-to-earnings ratio, the pharma company has been growing. It has been involved in finding a vaccine for Covid-19, which has lifted the share price even further. Also for a number of years it has built up an impressive drug pipeline. Its focus on oncology has helped boost the shares.

AstraZeneca has a modest dividend yield because of the share price rise. It is a company with growth potential and potential dividend growth as earnings rise. I’m pleased to have held onto it over recent years. This seems like a very sensible investment, although many investors will be put off by how expensive the shares now appear to be. 

Looking for dividend growth 

Lastly, I’ll turn my attention to Troy Income & Growth Trust (LSE: TIGT). It added to its relatively new holding in FTSE 100 testing company Intertek. The manager made no particular mention of why that position was increased, but based on an interview, it appears the reason for investing originally was to find lower-yielding companies with potential for dividend growth. The manager was also specifically looking for high-quality engineering or industrial companies.

So the key lesson that could be gleaned from these examples is that the professionals are increasingly less concerned about the headline dividend yield. As the manager of Troy points out, the big dividends are too concentrated in a handful of companies – often in commodities. Instead, they will accept a lower yield that can be sustained by earnings growth and as a result are less likely to be cut. I’m inclined to follow their example in the hunt for income.

Income-focused investment trusts could offer investors some protection from the widespread dividend cuts. One big advantage of income investment trusts is they provide exposure to a wide range of dividend-paying companies, limiting stock-specific risk.

In addition, investment trusts can retain up to 15% of the income they collect every year and use these ‘reserves’ to top up payments to investors during lean income years. This is a very handy feature if your objective is to generate regular income.

Below, I highlight two high-quality income-focused investment trusts I hold in high regard.

Investment trusts for income

The first I want to highlight is the City of London (LSE: CTY). This is a conservatively-managed investment trust that has a strong focus on large, blue-chip FTSE 100 companies. It has a phenomenal dividend track record, having increased its payout to investors every year for over 50 years now. 

Source: City of London Investment Trust

There are a few reasons I like the look of CTY right now. Firstly, its top holdings are reliable dividend payers. At 31 May, its top four holdings were British American Tobacco, Diageo, GlaxoSmithKline, and Unilever. None of these companies have cut their dividends in 2020.

Secondly, at 31 December 2019, the trust had £55m in reserves. This means it should have the firepower to continue paying dividends to investors in the current environment.

Last year, City of London trust paid out 18.6p per share in dividends, which equates to a trailing yield of 5.8% at the current share price. There’s no guarantee it’ll pay out the same level of dividends this year, however, I think the total payout will be attractive in the current environment.

If you’re looking for a reliable investment trust for income, I think CTY has a lot of appeal.

Dividend hero

Another investment trust I like for income is the Murray Income Trust (LSE: MUT). This one has a 5-star rating from Morningstar. It also has AIC ‘dividend hero’ status (as does CTY), meaning it has increased its dividend every year for over 20 years.

Like City of London, Murray Income Trust is invested in some very reliable dividend payers. At 31 May, its top four holdings were AstraZeneca, GlaxoSmithKline, RELX, and Diageo. None of these companies have reduced or cancelled their payouts in 2020.

And just like CTY, it has a solid level of reserves. According to a recent research report from Edison, MUT has sufficient revenue reserves to maintain its quarterly dividend payments for several quarters, if need be. The trust also expects to be able to maintain its long-term record of increased annual dividends, according to Edison.

Murray Income Trust has delivered a strong overall performance recently. For the year to 31 May, its NAV fell just 3.3%. By contrast, its benchmark, the FTSE All-Share index, fell 11.2%.

Meanwhile, the trust paid out dividends of 34p per share for 2019, which equates to a trailing yield of 4.5% at the current share price. Again, there’s no guarantee investors will see that level of payout this year. I’m confident the payout will be attractive though.

Investing in income-focused investment trusts is a good way to achieve this balance, in my view. With these kinds of investment trusts, you can potentially generate a nice mix of income and capital gains over time, while keeping overall portfolio risk relatively low.

With that in mind, here’s a look at two lower-risk investment trusts I like for income and growth.

Murray Income Trust

The first investment trust I’d like to highlight is the Murray Income Trust (LSE: MUT). Its aim is to achieve a high-and-growing income combined with capital growth, and comes with a 5-star rating from research group Morningstar.

The reason I believe this trust is well suited to those nearing retirement is that it predominantly invests in large, well-known FTSE dividend-paying companies, such as GlaxoSmithKline and Diageo.

This provides an element of stability. However, what sets it apart from many other UK income investment trusts is that it has the flexibility to invest a little bit of capital internationally, which is an advantage when it comes to generating growth. For example, the trust has benefitted from having US-listed Microsoft in its portfolio recently – the technology stock is up over 100% in the last two years.

I also like the fact the trust has a solid performance track record (it has comfortably outperformed the FTSE All-share index over one, three and five years) and that it’s an AIC (Association of Investment Companies) ‘dividend hero’. This means it’s notched up at least 20 consecutive dividend increases.

Overall, I see MUT as a top choice for those looking for income and growth in the lead up to retirement. Ongoing charges are a reasonable too, at 0.65% per year.

City of London Investment Trust

Another lower-risk investment trust that I believe is well suited to those approaching retirement is City of London (LSE: CTY). Its objective is to provide long-term growth in income and capital, principally by investment in UK equities. It has a 4-star rating from Morningstar.

If you’re looking for a ‘sleep-well-at-night’ investment, CTY is a good choice, in my opinion. That’s because portfolio manager Job Curtis – who has managed the trust for nearly three decades – is a very conservative investor. You can rest assure that he won’t be taking big risks with your money. Top holdings in the trust currently include FTSE 100 names such as Royal Dutch Shell, Diageo, and Unilever.

CTY has a solid long-term performance track record. Over the 10 years to 31 December 2019, it outperformed its benchmark, the FTSE All-Share index, by a wide margin. It also has a brilliant long-term dividend growth track record and is another AIC dividend hero.

All things considered, I see City of London as a good investment trust for those seeking income and growth with a lower level of risk. Ongoing charges are low, at 0.39%.

With that in mind, here’s a look at two dividend-paying investments trust that I believe are well suited to those looking for retirement income.

Murray Income Trust

The Murray Income Trust (LSE: MUT) is one that, as its name tells us, focuses on providing income for its investors. Its objective is to generate a high and growing income stream along with a little bit of capital growth. Rated four-star by research specialist Morningstar, it currently offers a yield of around 4% and pays out dividends quarterly.

There are a number of reasons I think the Murray Income Trust is a great retirement income pick. Firstly, it predominantly invests in large, dependable blue-chip companies. For example, its top holdings currently include the likes of Diageo, Unilever, BHP, and GlaxoSmithKline. So, it offers an element of stability. 

Secondly, I like the trust’s focus on income growth. This is an advantage from a retirement income perspective as income growth can provide protection against inflation. The trust has increased its dividend for 45 consecutive years now, which is an excellent achievement.

Finally, MUT has a solid performance track record, having outperformed the FTSE All-Share index over one, three, and five years (performance to 31 August). So, not only has it churned out fantastic dividends, it has also beaten the market. Overall, I see this trust as an excellent retirement income pick. Ongoing charges are 0.69% per year.

City of London Investment Trust

Another income-generating trust that I believe is well suited to retirees is the City of London Investment Trust (LSE: CTY). Like Murray, it has a four-star rating from Morningstar. Currently, it offers a yield of around 4.5% and it pays out dividends on a quarterly basis.

What I like about this particular trust is that the fund manager, Job Curtis, has a very conservative investment management style. This means it has sleep-well-at-night qualities. In my view, this makes the trust ideal for those who are looking for peace of mind from their investments in retirement. Top holdings currently include Royal Dutch Shell, Diageo, and HSBC.

This one also has a fantastic long-term dividend growth track record having now registered 53 consecutive dividend increases. One reason it has been able to do this is that it tucks excess income away as reserves so that if the dividend income from the companies it owns falls, the trust can still increase its payouts to investors. Over the last 10 years, it has also beaten its benchmark, the FTSE All-Share index, by a wide margin. 

Overall, given its solid yield and conservative approach to stock picking, I think CTY is a great choice for those seeking retirement income. Ongoing charges are low at just 0.39% per year.

With that in mind, here’s a look at two investment trusts that I feel could be well suited to retirees. Both offer a nice mix of income, capital growth, and security.

Murray Income Trust

The first pick I want to highlight is the Murray Income Trust (LSE: MUT), which was founded all the way back in 1923. Its objective is to generate a high and growing income stream for its investors combined with a little bit of capital growth. This trust has a four-star rating from financial services group Morningstar.

I like this trust for several reasons. For starters, it’s mainly focused on blue-chip FTSE 100 dividend stocks. For example, top holdings in the portfolio currently include the likes of Diageo, Prudential, GlaxoSmithKline, and Unilever. This gives the portfolio a nice ‘defensive’ tilt.

Second, the trust is allowed to invest 20% of its capital internationally, which is a handy feature as there are many fantastic companies listed outside the UK. Currently, the trust has exposure to international companies such as Microsoft and healthcare giant Roche.

Third, not only does the trust have a high dividend yield (3.9%) but it also has a fantastic dividend growth track record having increased its dividend for 45 consecutive years now. That makes it an Association of Investment Companies (AIC) ‘dividend hero’ – the prestigious classification for trusts that have registered 20 or more consecutive dividend hikes.

With fees of just 0.69% per year, I think this could make an excellent addition to a retiree portfolio.

Merchants Trust

Another one that I believe could be well suited to retirees is the Merchants Trust (LSE: MRCH). Founded in 1889, this has a specific focus on generating high income for its investors as well as some capital growth, and it’s also an AIC dividend hero, having registered 37 years of consecutive dividend growth now.

An analysis of the MRCH portfolio reveals that it also has a strong focus on FTSE 100 dividend stocks. For example, the top three holdings at the end of May were Royal Dutch Shell, GlaxoSmithKline, and HSBC Holdings. It’s these kinds of high-yielding income stocks that have helped the trust to pay extremely generous dividends to its investors in recent years – the current yield is a fantastic 5.3%. Dividends are paid quarterly too, which is an added benefit.

With its high dividend yield and ongoing charges of just 0.59% per year, I think the Merchants Trust could be an attractive proposition for investors who are looking to supplement their income in retirement while not taking big risks with their money. 

If you’d like to do a little bit better but still don’t fancy picking your own individual shares, investment trusts can be a great way to go. They’re actively managed, but as you invest in them by buying their shares (rather than just handing over cash), you’re part-owner and there’s no conflict of interest or high charges.

Index-beater

Caledonia Investments (LSE: CLDN) aims for a long-term shareholder return in excess of the FTSE All-Share total return, while maintaining a progressive annual dividend. Over the past five years, the Caledonia share price is up 32% while the FTSE All-Share has only managed 7%. And while Caledonia’s dividend yields, at around 2%, are behind the index, the investment trust’s overall performance is living up to its ambitions.

Caledonia has just published its March 2019 full-year results, and has achieved a net asset value total return of 10.9%. Some of that includes currency gains, but we’re still looking at 8.1% excluding those. Net asset value per share (NAV) is up 9% to 3,582p, and the dividend has been lifted by 4% to 59.3p per share. That marks the trust’s 52nd consecutive year of increasing dividends, and is nicely ahead of inflation.

Chief executive Will Wyatt said: “We remain confident that our portfolio construction and underlying investments leave us well positioned to deliver our long term return targets and dividend growth.”

I see no reason to doubt that. And with the shares, at 2,919p, trading on an 18.5% discount to NAV, Caledonia Investments is high on my buy list.

45 years

Murray Income Trust (LSE: MUT) hasn’t raised its dividend for quite as many consecutive years as Caledonia. But having done so for 45 years in a row, it would be quibbling to suggest it’s not reliable.

As the name suggests, the aim is income, and the business has been providing dividend yields of between 4% and 4.8% over the past five years. An investment trust can hold back some of its cash in better years to even out its dividends over leaner times, and while Murray’s earnings have been fluctuating a little over the period, that’s enabled it to keep its dividend steadily growing.

The past few years have seen dividend rises come in a little behind inflation, but I see that as a bit of a short-term anomaly and I expect Murray to keep ahead over the long term.

As my colleague Edward Sheldon has pointed out, the trust puts a lot of its cash into defensive stocks, including Unilever, AstraZeneca, Diageo, BP, and Shell. With the possibility that we’ll be in for some post-Brexit turmoil, I see Murray Income as a safe investment for protecting our retirement nest-eggs.

The shares are currently on a 3% discount to NAV, and while that’s more modest than at Caledonia, it still strengthens Murray Income Trust as a buy, in my book.