Investment trusts can maintain or increase dividends even when their holdings have hold cut their payments
Higher yielding trusts include those which invest in infrastructure
However these tend to trade at high premiums to NAV
There are a number of drawbacks to income maximiser funds meaning that for many investors they should not be the first port of call for a higher income.
David Liddell, chief executive of online investment service IpsoFacto Investor, says that alternative options include investment trusts because these can retain up to up to 15 per cent of the income they get from their holdings each year and put it into a reserve. They can then draw on that reserve, if necessary, to maintain or increase dividends even when their holdings have cut their dividend payments.