Can these next-gen dividend heroes provide a passive income for life?

Dividend heroes, or aristocrats, are stocks that have historically increased their dividends every year for at least 25 consecutive years. I’m on the hunt for a company that can be the next generation of investment trust dividend heroes. Investment trusts appeal to me because these companies make it a priority to ensure income is paid out to investors. I want to live a passive income, so this is music to my ears.

There are some absolute gems waiting in the wings to become big dividend heroes. The up-and-coming list is a specific list. It contains investment trusts that have increased dividends for at least 10 years, but less than 20. There’s no guarantee these trusts will achieve dividend hero status, but they’re all on the way.

Opportunity for high passive income

Evolution usually results in better performance. I think the new crop of newcomers can reward long-term investors like me better than the last generation. I have noticed more options in terms of attractive returns between up-and-comers compared to the old guard. A simple scroll on the website of the Association of Investment Companies (AIC) shows that the new guard is higher. Most of them yield more than 4% more than the current crop of dividend heroes.

Up and come focus dividend heroes

High inflation usually makes the real return of income generating instruments negative. anyway, CQS New City High Yield The fund offers an inflation-busting yield of 8.4%. The company invests expertly in high yield bonds. So it is a trust that can be at the top of the list of results for a long time. In the current results, I will receive £ 300 a year from shares of only £ 1,000 (if I aim to invest for 25 years, and the results remain consistent). At Henderson Far East Income fund is another very high-yielding trust (8.3%). Target companies with high and sustainable dividends in the Asia Pacific region.

There are other high yielding beliefs. But not many have the strong diversification benefits and alpha strategy of these companies. These factors lead me to believe that Henderson and CQS can continue to be consistent long-term dividend payers.

Passive income leader

Just because I see an investment company with higher returns than others doesn’t make it a better long-term investment. For example, I note most trusts on the AIC’s ‘next generation’ list place greater emphasis on income growth.

I observed that there are more companies on the next generation list than actual dividend heroes. So more research is required from me to make sure I find the next dividend hero.

However, the attractive yields offered by newcomers like Henderson Far East Income and CQS are hard for me to ignore. Mainly because the income you get paid will increase over time.

I want to buy some up-and-coming investment trust stocks that can provide me with passive income for life. Henderson and CQS are at the front of the queue, but there is clearly more research to be done on the best long-term options.