With the global stock market teetering on the brink of a recession, and a tumultuous year in 2022 to say the least, it’s no surprise that investor confidence is a bit shaken. The average Investment Trust is down about 15% in the year to date - falling foul of chaotic bond price movements and economies grappling with the trade-off between runaway inflation and stringent interest rate measures – so you’d be forgiven for being apprehensive about where to put your money next.

However, if you know where to look, Investment Trusts can be the ultimate low-effort, income-earning addition to your portfolio. Thanks to their unique ability to set aside dividends, Investment Trusts can use this stash to supplement shareholders’ income in years where they might otherwise have struggled to do so. In fact, trusts can save up to 15% of their income every year for this very purpose, meaning they can cushion the blow if there’s a downturn by consistently paying – and sometimes even increasing – their dividend payouts during market turmoil.

Some Investment Trusts have a reputation for maintaining and increasing their dividends year-on-year. These catchily-named ‘Dividend Heroes’ have been recognised by the Association of Investment Companies (AIC) for their commitment to generating income, no matter the weather, with trusts such as City of London and Scottish American maintaining dividends of 4.74% and 2.63% respectively.

But income-earning Investment Trusts don’t start and end with the Dividend Heroes, and in fact, there are a number of trusts on the market that are well-positioned to generate income. With global markets likely to remain volatile - if not well and truly weathered by recession - for much of 2023, an income-earning Investment Trust should be a key consideration for aresilient portfolio. 

So we asked the experts to tell us their top picks for income in 2023. Scroll down to find out!