Coca-Cola is known as a favourite of legendary US investor Warren Buffett but it is also the biggest holding of Scottish American (SCAM), a global equity income investment trust popularly known as ‘Saints’.
Toby Ross, the investment trust’s deputy manager, says the iconic US company ticks all the right boxes with a cash-generative business that has never cut its dividend, while enjoying growth in both emerging markets and in non-sugary, health’ drinks in developed countries. Nevertheless, he says there is scope for more efficiency in its operations.
Over the three years to the end of May, Scottish American has generated a total return of 50.9% for shareholders, beating its global equity income index which achieved 39.8%. It pays four dividends a year and its shares currently yield 3.1%.