Temple bar ups dividend as 'stock selection' drives benchmark beat
Temple Bar Investment Trust PLC on Friday raised its full-year dividend and said it aims for another hike this year, as the trust reported that it beat its benchmark in 2025.
The London-based trust which mainly invests in UK equities said net asset value total return, with debt at fair value, was 34% in 2025, improving from 20% the year prior.
Its benchmark, the FTSE All-Share Index, returned 24% in 2025, after 19% in 2024.
Chair Charles Cade said: ‘2025 was another strong year for the company’s performance, both in absolute terms and relative to the FTSE All-Share Index, the company’s benchmark.’
Net asset value per share surged 28% to 373.4 pence at the end of 2025, from 291.1p the year prior.
Temple Bar shares were down 0.6% to 363.50 pence each on Friday morning in London.
The company said its outperformance relative to the benchmark was driven by stock selection rather than market movements.
It raised its dividend by 33% to 15 pence per share, from 11.25 pence per share in 2024.
‘It would be easy for investors to take fright given the uncertain macro-economic and geopolitical outlook. It is worth recognising, though, that the company’s performance is not closely correlated to the health of the UK economy,’ Chair Cade said.
‘Indeed, the portfolio manager estimates that only approximately 35% of the underlying revenue of the portfolio companies comes from the UK. On a global level, the outlook is equally uncertain. However...Temple Bar is well-placed to continue delivering attractive long-term returns for shareholders.’
Co-managers Ian Lance and Nick Purves noted how six stocks in the trust’s portfolio rose by more than 50% in the year, adding ‘at least 2% in the company’s absolute return’, while another eight added another 1%.
Temple Bar Investments said it is seeking to increase the dividend again in 2026 to 15.60 pence per share, in four quarterly dividends of 3.90 pence each.
‘Periods of volatility in markets can provide opportunities for their disciplined value-driven approach. As a result, the board believes that Temple Bar is well-placed to continue delivering attractive long-term returns for shareholders through a combination of capital growth and income,’ Cade said.
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