The Lemon Fool

The Board is conscious that, although the quarterly dividend has increased by 25% from 1.00p per share to 1.25p per share since the Company’s launch in 2012, the strong capital growth of the portfolio during this period (74.8%) has also resulted in a lower dividend yield for new investors. In line with the commitment to a progressive dividend policy, the Board has resolved to pay a quarterly dividend of 2.00p per share in the current financial year, a full year distribution of 8.00p per share, which would represent a dividend yield of approximately 5% at the current share price, paying out a small amount of the Company’s capital profits to achieve this. The investment approach of the Portfolio Managers will not alter as a consequence of this policy, and the Board do not envisage that the proportion of the portfolio over which options are written will increase. The Board believes that this dividend policy will benefit existing shareholders, whilst also making the Company’s shares attractive to new buyers, appealing to retail investors in particular. It is also consistent with the underlying investment objective of the Company and utilises an attractive and distinctive option now open to investment companies, but not available to many open-ended funds]