The Bankers Investment Trust (BNKR) focuses on cash-generating companies and FY23 (ended 31 October 2023) was its 57th consecutive year of dividend growth. Dividends rose by 10%, maintaining the trust’s track record of above inflation dividend growth over the long term. The board expects dividends to rise by at least 5% in FY24. While this is commendable, BNKR’s recent relative total return performance has been adversely affected by its lack of exposure to most of the so-called Magnificent Seven US tech stocks, which the manager, Alex Crooke, has avoided as they do not pay dividends. However, BNKR’s board has recently indicated that it will adopt a more flexible approach to using revenue reserves. This will enable the manager to invest in a broader pool of investments. This greater flexibility has the potential to deliver better capital returns, while ensuring the trust keeps delivering progressive dividend growth.