I have thought about it as well. I am slowly warming to a theory...

I have thought about it as well. I am slowly warming to a theory that LIC investors , particularly the retired, are prepared to pay more for certainty. Even ARG has dropped its dividends since 2019 from 33c to 28c this year. In fact there is a worry in thst EPS was only 24c this year. In contrast SOL paid 58c in 2019 and is now annualised at 61c. Their earnings are higher so will try to keep dividends in place I suspect.
The big thing a great mentor of mine taught me was that you only life on capital via liquidation of assets but essentially all of us live off income cashflow. That you get used to the monthly cashflow and as such even minimal inflation starts eating into your lifestyle. So compare ARG and SOL. Sol on a cashflow per share basis can go up to around $1.40 per annum and ARG can go up (rather down) to 24c. Essentially you are probably more likely to get your dividend from SOL snd their yrack record suggests it. Plus they have paid a distribution even during the depression as I understand it.
Really what I am saying is that for a retiree who is looking to invest and live off the income even at 2.5% the yield is far better than a bank. In addition there are many who are saying that after all the money printing at some point inflation has to kick in. SOL provides that protection as it is invested in assets. There are times ehen I thjnk it us designed as the Milner extended family retirement fund - I am extremely hsppy yo be part of it. So that is my take on it.