The written plan for the SNOWBALL was to buy Investment Trusts that yielded 5% or above.
Mr. Market has been very benevolent and the plan has been increased to a base of 7% or above. This means the Snowball will achieve its ten year plan early.
I’ve therefore increased this year’s fcast to £11,200 and the target to £12,000.
The target includes some special dividends and all though it’s likely there will be more special dividends in the financial year 2027, these are not a given.
Current income for the SNOWBALL
Dividends to date £4,548. Fcast dividends for first the six months £7,681 and the fcast figure for the year £13,400.
The figure of 12k is very important as that means income of 1k a month for re-investment.
The fcast for 2027 has been raised to £12,000 and the target £12,869.
If the fcast and the target is met it will mean the ten year plan has been achieved ahead of the plan.
A question I get asked a lot. Are you sure of the supply ?
Whilst when I predict the future I am often wrong, I expect that there will be a lot of consolidation in the Renewables sector so the next ten year plan could include some pair trading, investing in some higher yielding ETF’s balanced out with some safer lower yielding Investment Trusts, such as CMPI and the Dividend Hero Trusts.
A plan without an end destination, whilst better than no plan is still a bad plan as your retirement income depends on the end destination.
My friend the choice is yours. GL
A history lesson.
Canada Life figures show the 65-year-old with a £100,000 pension pot could buy an annuity linked to the retail price index (RPI) that would generate a starting annual income of £3,896. That’s up from £2,195 in the New Year following a 77% spike in rates this year. Oct 22
Finally another popular question is selecting high income funds and we can use ETFs as an example. I would typically apply my other usual criteria on cost, currency and size but there are some other things to think about in this case. If we filter based on minimum 12 month yield the problem is this selects funds where the price has crashed recently. Dividend yield is income divided by price so a suddenly much smaller price can result in huge yields. This means looking at recent return for the fund over the last 3 months, say, can be helpful. By choosing funds where the 3 month return is above a threshold you can omit these funds. I find volatility helpful here too because a fund that generates more yield (income) for the same amount of risk (volatility) is preferable. In ShareScope this is “Deviation of Returns” and I usually choose a period covering the last year measured with a daily sample frequency. If you filter by latest Close date being recent (last week or so) you can also ensure that this is not a fund that is not priced regularly and that the fund hasn’t been closed down.
AEW UK REIT PLC ex-dividend date BioPharma Credit PLC ex-dividend date CQS Natural Resources Growth & Income PLC ex-dividend date CQS New City High Yield Fund Ltd ex-dividend date Custodian Property Income REIT PLC ex-dividend date Diverse Income Trust PLC ex-dividend date Edinburgh Investment Trust PLC ex-dividend date European Smaller Cos Trust PLC ex-dividend date Global Opportunities Trust PLC ex-dividend date Henderson Far East Income Ltd ex-dividend date M&G Credit Income Investment Trust PLC ex-dividend date Sequoia Economic Infrastructure Income Fund Ltd ex-dividend date
GCP Infra is pleased to announce a dividend of 1.75 pence per ordinary share for the period from 1 January 2026 to 31 March 2026. This is in line with the Company’s annual dividend target of 7.00 pence per ordinary share. The dividend will be paid on 8 June 2026 to holders of ordinary shares recorded on the register as at the close of business on 8 May 2026.
Expected timetable:
Shares quoted ex-dividend
7 May 2026
Record date for dividend
8 May 2026
Dividend payment date
8 June 2026
Market Update
The Company notes the recent UK Government announcements relating to: (i) the removal of carbon price support (“CPS”) from 2028; and (ii) the increase to the tax rate on the electricity generator levy (“EGL”) from 45% to 55%; and (iii) the intention to introduce the option for low carbon generators that do not benefit from an existing contract-for-difference (“CfD”) to bid for a wholesale CfD (“WCfD”) (the “Announcements”).
The Company does not expect any material impact on the valuation of the Company’s investment portfolio as a result of the Announcements. The Company’s independent electricity price forecaster had, in their long-term forecasts, already assumed the phasing out of the CPS alongside the increased alignment of the UK and European Union carbon markets. Further, such electricity price forecasts are below the level at which the EGL applies. The Company and its Investment Adviser will continue to review proposals relating to the WCfD as they are developed to assess the extent to which the WCfD would benefit any projects in its investment portfolio.
Net Asset Value, Dividend and Government Policy Announcements
Net Asset Value
Net Asset Value / Net Asset Value per share
£2,897 million / 134.2 pence
Dividend / Dividend per share
£57.9 million / 2.68 pence
The Company announces that its unaudited Net Asset Value (“NAV”) as of 31 March 2026 is £2,897 million (134.2 pence per share), including a 2.1 pence per share reduction as a result of a post period adjustment for the removal of Carbon Price Support from April 2028.
The performance of the Company’s assets for the quarter was strong, with wind generation 4.2 per cent above budget, and power prices ahead of expectations. Continued delivery of the Company’s structurally robust cashflow will fund its 2026 capital allocation priorities and, in line with its initial priority of reducing gearing, the Company repaid £30 million of its Revolving Credit Facility at the end of March 2026.
The past two months have presented a compelling opportunity to enter into power price hedging arrangements for a portion of the Company’s merchant volume. At the start of 2026, the Company had merchant power exposure of 4.5TWh pa. Over the past quarter, the Company entered into hedges for 1TWh of power sales through to March 2027. As a result, for the next 12 months, 68 per cent of the Company’s cashflows are fixed in nature.
These hedges have secured power prices at NAV accretive rates, and together with above budget generation, serve to further underpin full year dividend cover expectations, whilst retaining a balanced exposure to merchant power prices in the near term.
Dividend
The Company also announces a quarterly interim dividend of 2.68 pence per share with respect to the quarter ended 31 March 2026, in line with the annual dividend target of 10.70 pence per share for 2026.
Dividend Timetable
Ex-dividend date 14 May 2026
Record date 15 May 2026
Payment date 29 May 2026
Government Policy Announcements
Last week the Government released a number of UK energy policy statements, including changes to the Electricity Generator Levy (“EGL”), the introduction of Wholesale Contracts for Differences (“Wholesale CFDs”) for operational renewable energy projects and its Reformed National Pricing Delivery Plan.
EGL
The EGL was introduced in January 2023 and applies a 45 per cent tax to exceptional revenues from the sale of power. The electricity price above which the tax applies currently stands at £82.61 / MWh. The rate of tax has now been increased to 55 per cent with effect from 1 July 2026 and the tenor of the EGL, which was due to expire on 1 April 2028, will be extended.
In 2023, the Company (and its group) paid £14 million of EGL in respect of elevated power revenues received in 2023. At today’s forecast power prices, the net power price that the Company expects to receive for all future forecast periods is lower than the threshold.
Wholesale CfDs
The Company, and Schroders Greencoat LLP the (“Manager”), have for some time advocated for the introduction of a Wholesale CfD mechanism. It has the potential to address the long-term challenge of how the wholesale electricity market functions as low marginal cost generators become the majority. It could provide both meaningful savings to consumers and attractive, inflation-linked cashflows conducive to sustained investment in UK renewables.
The Company and the Manager will continue to engage with the Government to ensure a balanced outcome for both consumers and generators. The Manager’s view is that, if implemented carefully, this mechanism could be a constructive option to use in composing the Company’s revenue profile. The Company will judge how it will participate in the mechanism as conversations with the Government progress and further detail is provided.
Reformed National Pricing Delivery Plan
Following the Government’s decision to retain a single wholesale electricity market, the Reformed National Pricing Delivery Plan (the “Plan”) sets out how the Government plans to approach electricity market reform. It includes proposals to reduce constraint costs, improve system operability and solicits views on reforms that could sharpen locational investment signals. In considering forward-looking reforms, the Plan recognises the need to not undermine confidence in the sector. The Company will continue to engage with the Government through the consultations that follow, in particular to preserve existing investments and investor confidence.
Certain items are worth their weight in gold to us, despite not fetching much when sold.
The best investments are the ones you never feel the need to sell.
We discuss our top picks to buy and hold for a lifetime of passive income.
Looking for more investing ideas like this one? Get them exclusively at High Dividend Opportunities.
venusphoto/iStock via Getty Images
Co-authored with Hidden Opportunities
Can you name one of your possessions that you’ve held onto for years, something that has quietly stood the test of time?
For some, it’s a wedding band, serving as a symbol of a lifelong commitment made by two people. Others think of the phrase “diamonds are forever” as a way of saying that the hardest known substance to human beings depicts unmatched hardness and durability (not the James Bond movie starring Sean Connery).
You may have also heard the phrase “worth its weight in gold.” Not all prized possessions are valuable from a monetary standpoint. Some people have a memory box for their children, storing meaningful toys and artifacts that remind them of their kids growing up. Family photographs, heirlooms, and recipes are popular examples of objects that are cherished for decades, often by multiple generations. I’m reminded of a cousin who planted a tree each time one of his children was born. Today, those children are in their teens, and in his backyard stand two strong, deeply rooted trees, growing steadily year after year, requiring little attention, yet impossible to ignore.
Some assets are worth more in your hands than in the market. If you have a 20-year-old car that is well-maintained and runs perfectly, odds are high that selling it will fetch you no more than a few thousand dollars. Yet, the value in that asset comes in its ownership and regular use, rather than the cash it can secure by selling it in the market at pennies.
The most valuable things in life are often not the flashy, valuable ones. They are the ones that last.
Investing can work the same way. While markets swing between euphoria and fear, there are select investments designed not for excitement, but for endurance. These assets quietly generate cash flow quarter after quarter, year after year, and are often structured to reward patience, to incentivize holding, and to compound wealth over time. They are well-positioned to be the prized possessions of your portfolio. Today, we will discuss two forever income plays that are built to keep paying.
Pick #1: EPD – Yield 5.8%
Enterprise Products Partners(EPD) is one of the largest midstream operators in North America, based on infrastructure, pipeline mileage, and market capitalization. EPD owns and operates over 50,000 miles of pipeline, and 300 MMBbls of Liquids Storage, among other infrastructure essential for secure storage, processing, and transportation of NGLs, Crude Oil, Natural Gas, Petrochemicals, and Refined Products, from energy basins to customers and export terminals. ~90% of EPD’s long-term contracts have CPI-linked escalation provisions, providing inflation protection, and ~80%–90% of its gross operating margin is fee-based, providing much-needed insulation from commodity prices.
Note: EPD is Master Limited Partnership that issues a Schedule K-1 to investors
EPD maintains a strong balance sheet, rated investment-grade A3, and the partnership ended 2025 with $5.2 billion in liquidity and a 3.3x leverage ratio, one of the lowest levels in the midstream industry. EPD ended 2025 with a 4.7% weighted-average cost of debt and a comfortable maturity schedule.
The partnership has $4.8 billion of major capital projects under construction, with 5 out of 6 estimated to come online in 2026. 55% of EPD’s gross operating margin is from the partnership’s NGL business, followed by Natural Gas at 16%. The United States is a low-cost supplier of NGLs to the world, and we estimate ~15-25% of Adj. EBITDA likely comes from direct export demand. We also note that EPD is the largest individual global LPG supplier, exporting a third of total U.S. LPG exports. The complete disruption of maritime traffic in the Strait of Hormuz has a profound impact on the global supply, and EPD stands to benefit from higher U.S. exports.
However, this large dependence on exports also comes with risks and considerations. When the U.S. Government imposed export controls on ethane to China, EPD management noted that they could redirect product to other countries to mitigate the effects, but it would take time. The worst possible outcome for EPD is the Government imposing an outright cap on energy exports. While we don’t anticipate this scenario materializing at this time, it cannot be ruled out entirely because the U.S. trading policy and global energy dynamics are rapidly evolving. A cap on energy exports would result in volume backup domestically, terminal utilization drops, and a sharp decline in fee-based revenues for EPD.
EPD boasts 27 years of consecutive distribution raises and currently yields 5.8%, with a 1.7x coverage. These payments are typically 100% ROC, making them beneficially tax-deferred for eligible investors. Management expects new assets to come online at high utilization levels, supporting organic growth in Adj. EBITDA, and continued distribution increases.
Pick #2: RLJ-A – Yield 7.9%
RLJ Lodging Trust (RLJ) is a hotel REIT that owns and operates 92 hotels with ~21K rooms in 23 states. Over 50% of the REIT’s Adj. EBITDA comes from the Sunbelt states, and most of its portfolio comprises assets that are part of the network of top global hotel brands like Hilton, Marriott, Hyatt, etc. Source
RLJ 2025 Investor Presentation
RLJ maintains a healthy balance in property classes across urban lifestyle (39% of 2025 Adj. EBITDA), urban gateway (36%), urban metro (11%), and resort properties (14%). America 250 and the 2026 FIFA World Cup are significant events this year, and notably, 62% of FIFA WC matches are scheduled to be played in RLJ markets.
March 2026 Investor Presentation
RLJ cut its quarterly common stock dividends to $0.01/share during the COVID-19 pandemic, a brutal time for the travel industry, but maintained its preferred stock dividends. Since 2022, in light of improving fundamentals and outlook, the company has been focusing on capital returns to shareholders. This includes significant dividend increases and share repurchases.
RLJ’s $0.15/share common stock dividend calculates to a 7.6% annualized yield at an impressive 40% payout ratio. RLJ spends $25.1 million annually on preferred stock dividends. This compares with $209 million in AFFO generated (which RLJ calculates after subtracting preferred stock dividends). The REIT ended 2025 with $1 billion in liquidity (including $410 million in restricted cash) and has no debt maturities until 2029. Source
March 2026 Investor Presentation
For 2026, management projects Adj. EBITDA between $312 and $342 million and AFFO/share between $1.21 and $1.41, which places its current dividend at a comfortable 45% payout ratio.
$1.95 Series A, Cumulative Convertible Perpetual Preferred Shares (RLJ.PR.A) – Yield 7.9%
RLJ-A is a convertible preferred, which has negligible chances of being subject to a forced conversion into common stock due to the need for +1,100% upside ($89.09/share for 20 trading days). We believe this is quite improbable at this time. As such, RLJ-A can be considered as a perpetual source of yields, backed by a well-managed hotel REIT.
Conclusion
At High Dividend Opportunities, we want your portfolio to be worth its weight in gold, not because you plan to sell it, but because of what it pays you to hold it. The best investments aren’t traded; they’re owned, and they quietly deliver income, year after year, proving their value over time.
Markets will move, and there will be varying frequencies of noise surrounding them. Real wealth is built by staying steady and consistent. Because sometimes, the greatest returns come not from what you sell, but from what you never have to. This is the power of income investing.
The simple and safe way to live offinvestment income alone…
Without drawing down your nest egg or worrying about daily market gyrations.
Dear Reader,
Idly flipping through my phone recently, I ran across a news story saying there are roughly 654,000 “401(k) millionaires” out there, a new record.
That’s how many seven-figure accounts are managed by Fidelity Investments — which is apparently happy to share its customers’ financial info anonymously.
A chunk of money like that is great, especially when we can leave it untouched and let it grow.
That was no doubt the “secret” of 99%+ of these retirement millionaires.
They socked away for decades and rode the market higher.
(They certainly didn’t bet the farm on penny stocks or swing for the fences with the latest crypto du jour!)
But there comes a time when we need to convert that pile of cash into cash flow that can pay the bills.
And many of these patient retirees will buy stocks and “hope” they’ll go up in price. There’s just one problem…
Hope is not a retirement strategy.
Especially in years when the market posts double-digit losses.
I know we haven’t seen one of those since 2022, but with three straight years of gains under our belts, it’s unlikely we’ll run that streak to four.
Market history tells us this is a rare occurrence indeed.
I don’t know about you, but I certainly wouldn’t sleep well at night knowing my future (and my family’s future) was riding solely on share price trends.
Of course you could opt for what I call…
The Share-Selling Death Spiral
Also known as the 4% Rule, this so-called “proven” theory says you can draw down some arbitrary amount out of your portfolio — typically 4% — every year for decades on end…
Think about this for a moment.
It was dollar-cost averaging that built these Fidelity fortunes in the first place.
These diligent savers bought a set amount of stocks and funds every two weeks, every month, every year.
Most even did it on autopilot, which secured them more shares when prices were low and fewer when they were dear!
And now this traditional retirement “advice” says they can live comfortably doing the exact opposite.
Wait, what?
No. No. No.
This is the same dollar-cost averaging, but in reverse!
Problem is, in reality, every few years you’re faced with a chart that looks like this.
Apple’s Dividend Was Fine – Its Stock Wasn’t
As you can see, the dividend (orange line above) is fine — growing, even — but you’re selling at a 27% loss!
In other words, you’re forced to sell more shares to supplement your income when prices are low.
When shares rebound (assuming they eventually do), you need an even bigger gain just to get back to your original value.
A disaster in the making!
The Only Reliable Retirement Solution
Instead of ever selling your stocks, you should instead make sure you live on dividends alone so that you never have to touch your capital.
This is easier said than done, and obviously the more money you have, the better off you are. But with yields still pretty low, even rich folks are having a tough time living off of interest today.
And you can actually live better than they can off of a (much) more modest nest egg if you know where to look for lesser-known, meaningful and secure yield.
I’m talking about annual income of 8%, 9% or even 10%+ so that you’re banking $50,000 (and potentially more) each year for every $500,000 you invest.
You and I both know an income stream like that is a very nice head start to a well-funded retirement.
And it’s totally scalable: Got more? Great!
We’ll keep building up your income stream, right along with your additional capital.
And you’ll never have to touch your nest egg capital – which means you won’t have to worry about or running out of money in retirement, or even the day-to-day ups and downs of the stock market.
The only thing you need to concern yourself with is the security of your dividends.
As long as your payouts are safe, who cares if your stock prices swing up or down on a given day?
Most investors know this is the right approach to retirement.
Problem is, they don’t know how to find 8%, and 10% yields to fund their lives.
And when they do find high yields, they’re not sure if these payouts are safe. Will the company or fund have enough cash flow to pay the dividends into the future?
And how sensitive are these payouts to the latest headline, Fed policy change or unrest on the other side of the globe?
We’ll talk specific stocks, funds and yields in a moment.
But first, a bit about myself.
I graduated cum laude with an industrial engineering degree — which is actually pretty popular with Wall Street recruiters.
But I couldn’t stand the thought of grinding it out in a cubicle for 80 hours a week. So I moved to San Francisco and got into the tech scene.
A buddy and I started up two software companies that serve more than 26,000 business users.
The result was a nice chunk of change coming in … and I had to decide what to do with my money.
I had seen plenty of young “techies” come into sudden cash and burn through their windfall in a year, ending up right back where they started.
That was NOT going to be me. I already had dreams of living off my wealth one day, decades before I retired.
I got plenty of cold calls from brokers wanting to “help” me. But I knew that nobody would care as much about my money as me.
So I went out on my own and invested my startup profits in dividend-paying stocks.
I’ve been hunting down safe, stable and generous yields ever since, growing my wealth with vehicles paying me 8%, 9%, even 10%+ dividends.
Over the past 10+ years, I’ve been writing about the methods I use to generate these high levels of income.
Today I serve as chief investment strategist for Contrarian Income Report — a publication that uncovers secure, high-yielding investments for thousands of investors.
Since inception, my subscribers have enjoyed dividends 5 times (and much more!) the S&P 500 average, plus big annualized gains!
And that brings me to a crucial piece of advice…
The ONE Thing You Must Remember
If I could leave you with just one nugget of investing wisdom today, it would be to NEVER overlook the incredible wealth-building power of dividends.
Few investors realize how important these unglamorous workhorses actually are.
Here’s a perfect example…
If you put $1,000 in the dividend-paying stocks of the S&P 500 back in 1973, you would have had $96,970 by the end of 2024, or 97x your money.
But the same $1,000 in the non-dividend payers would have grown to just $8,990 — 91% less.
That’s why I’m a dividend fan.
The stock market is a fantastic wealth-building machine, but it doesn’t always go straight up!
There have been plenty of 10-year periods where the only money investors made was in dividends.
And that’s what gives us dividend investors such an edge.
When you lock in an 8%+ yield, you’re booking an income stream that’s bigger than the stock market’s long-term average return right off the bat.
Of course you can’t just buy every ticker symbol out there with a flashy yield, or you’ll get burned pretty fast.
So let’s wipe the false promises of mainstream finance from our minds and start thinking the “No Withdrawal” way…
Step 1: Forget “Buy and Hope” Investing
Most half-million-dollar stashes are piled into “America’s ticker” SPY.
The SPDR S&P 500 ETF (SPY) is the most popular symbol in the land. For many 401(K)’s, this is all there is.
And that’s sad for two reasons.
First, SPY yields just 1.1%. That’s $5,500 per year on $500K invested… poverty level stuff.
Second, consider a hypothetical year when, say, SPY fell 20%, not at all out of the question, given the multiyear run stocks have been on. Just from that alone, your $500K would be slashed to $400K.
SPY was down nearly 20% that year. That is no bueno, because that $500K would have been reduced to $400K.
The last thing we want to do is lose the money we’re getting in dividends (or more) to losses in the share price. Which is why we must protect our capital at all costs.
Step 2: Ditch 60/40, Too
The 60/40 portfolio has been exposed as senseless.
Retirees were sold a bill of goods when promised that a 60% slice of stocks and 40% of bonds would somehow be a “safe mix” that would not drop together.
Oops.
Inflation — plus an aggressive Federal Reserve, plus a (thus far) persistently steady economy — drop-kicked equities and fixed income before they went on a serious bull run in 2023, 2024 and into 2025 (with a brief interruption for the April “tariff tantrum.”)
It just goes to show that bonds are not the haven guaranteed by the 60/40 high priests. They could easily plunge just as hard (or harder) than stocks in the next economic crisis.
Just like they did in 2022 (sorry, we’re only going to spend one second on that disaster of a year). US Treasuries plunged, which resulted in the iShares 20+ Year Treasury Bond ETF (TLT) getting tagged.
Sure, it still paid its dividend. But even including payouts, the fund was down 31% — worse than the S&P 500. Ouch!
When stocks and bonds are dicey, where do we turn? To a better bet.
A strategy to retire on dividends alone that leaves that beautiful pile of cash untouched.
Step 3: Create a “No Withdrawal” Portfolio
My colleague Tom Jacobs and I literally wrote the book on a dividend-powered retirement.
In How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact, we outline our “no withdrawal” approach to retirement:
Save a bunch of money. (“Check.”)
Buy safe dividend stocks with big yields
Enjoy the income while keeping the original principal intact.
To make that nest egg last, and our working life worthwhile, we really need yields in the 7% to 10% range. We typically don’t see these stocks touted on Bloomberg or CNBC, but they are around.
Of course, there are plenty of landmines in the high-yield space. Some of these stocks are cheap for a reason. Which is why we need to be contrarian when looking for income.
We must identify why a yield is incorrectly allowed to be so high. (In other words, we need to figure out why the stock is priced so cheaply!)
As I write, the top 10 payers in my Contrarian Income Report portfolio yield about 11.4% on average.
On every million dollars invested, this dividend collection is spinning off an incredible $114,000 every single year!
And you don’t have to be a millionaire to take advantage of this strategy.
A $750k nest egg would generate $85,500 annually…
$500K could hand you $57,000…
You get the idea.
The important thing is that these yields are safe, which creates stability for the stock (and fund) prices attached to them.
We want our income, with our principal intact.
It’s really the only way to retire comfortably, without having to stare at stock tickers all day, every day.
Now, many blue-chip yields are reliable. They just need to hit the gym and bulk up a bit. Here’s how we take perfectly good, yet modest, dividends and make them into braggarts.
Step 4: Supersize Those Yields
Mastercard (MA) is a near-perfect dividend stock. Its payout is always climbing, having nearly doubled over the last five years. (MA shareholders, you can thank every business that accepts Mastercard for your “pennies on every dollar” rake.)
Tap, tap, tap. Remember cash? Me neither. Another 2020 casualty, with Mastercard making a few dimes or dollars on every plastic transaction.
The cashless trend has been in motion for years. But international growth prospects remain huge. Just a few years ago, 80%+ of transactions in Spain, Italy and even tech-savvy Japan were in cash.
We expect more dividend hikes as more cash turns to plastic. Or skips plastic entirely and goes straight to e-transfers. Mastercard and close cousin Visa (V) nab a nice piece of that action, too.
The only chink in MA’s armor? Everyone knows it is a dynamic dividend stock. So it only yields 0.6%. Investors keep bidding it higher, knowing that the next dividend raise is just around the corner.
So, the compounding of those hikes makes MA a great stock for our kids and grandkids. You and I, however, don’t have the time to wait for 0.6% to grow. And $3,000 on a $500K investment simply won’t get it done.
Let’s instead consider top-notch closed-end fund (CEF) Gabelli Dividend & Income Trust (GDV), managed by legendary value investor Mario Gabelli.
Mastercard is one of Gabelli’s largest holdings. But we income investors would prefer GDV because it boasts a healthy dividend right around 6.4%, paid monthly, nearly 13 times what Mastercard pays (and this is low in CEF-land; other funds, like the next one we’ll talk about, pay nearly double that).
And as I write this, thanks to the conservative folks who buy CEFs, we have a rare opportunity to buy Mario’s portfolio for just 88 cents on the dollar.
Yup, GDV trades at a 12% discount to its net asset value, or NAV. It’s a way to boost MA’s payout and snag a discount, too.
Where does this discount come from?
CEFs are like their mutual fund cousins, with one exception: they have fixed pools of shares, so they can (and do) trade higher and lower than their NAVs, or “fair” values (the value of their holdings minus any debt).
As contrarians, we can step in when they are temporarily out of favor, like after a pullback, when liquidity is low, and buy them at generous discounts.
GDV holds more blue-chip dividend payers alongside MA, such as American Express (AXP), Microsoft (MSFT) and JPMorgan Chase & Co. (JPM). And with GDV, we have an opportunity to purchase them at a 12% discount.
These high-quality stocks wouldn’t normally qualify for our “retire on $500K” portfolio because everyone in the world knows they are strong long-term investments.
Even though these companies are constantly raising their dividends, constant demand for their shares keeps their prices high (and current yields low). So they never meet our current-yield requirement.
GDV does. The fund pays a monthly dividend that adds up to a nice 6.4% annual yield.
Let me give you one more idea (and this is where that much larger payout comes in): the Eaton Vance Tax-Managed Global Diversified Equity (EXG) is another CEF with a similar blue-chip dividend portfolio.
But EXG generates even more income than GDV by selling covered calls on the shares it owns.
More cash flow means a bigger dividend — and EXG pays an already terrific 8.6%!
So we buy and hold EXG and GDV forever, collecting their monthly dividends merrily along the way? Not quite.
In bull markets, these funds are great. But in bear markets, they’ll chew you up.
Step 5: Protect That Principal!
My CIR readers will fondly recall the 15 months we held GDV and EXG together, collecting monthly dividends plus price gains that added up to 43% total returns.
What was happening in that period, from October 2020 until February 2022? The Federal Reserve was printing money like crazy. Not only did the Fed stoke inflation, but we also enjoyed an asset-price lift.
Starting in 2022, we had the opposite situation. The stock market was topping, and we didn’t want to fight the Fed. We sold high, and by late 2022, both funds were down sharply:
We Sold EXG and GDV Just Before They Plunged
For whatever reason, “market timing” is a taboo phrase among long-term investors. That’s a shame because it’s quite important.
By aligning our dividends with the market backdrop, we can protect our principal from bear markets.
Step 6: Start Here to Retire on $500K
So if the “tried and true” money advice — like the 60/40 portfolio and the 4% rule — has been properly exposed as broken…
Where do we go from here?
Well, imagine your portfolio in just a few days or weeks from now spinning off 8%, 9% and even double-digit dividends with the reliability of a Swiss watch… with many of my recommendations paying every single month no less!
No more worrying how much is coming in next month.
No more worrying about the Fed’s next move. Or the next inflation or jobs report.
No more worrying about outliving your nest egg.
Let me tell you more about my solution — what I call the “No-Withdrawal Portfolio.”
TwentyFour Select Monthly Income keeps its cool and tops up dividend during Middle East crisis
24 April 2026
QuotedData
TwentyFour Select Monthly Income (SMIF) has bounced back from the fund’s worst month in three years when its portfolio of bank and corporate debt fell 2.7% in March. The declaration of a top-up interim dividend and resumption of share issuance shows the £300m investment company is back on track after being knocked by the fallout from the US-led war on Iran. Confidence is based on the relatively high credit rating of its investments, although its managers remain vigilant over the path of inflation.
Despite the uncertainty gripping the global economy as oil prices bounce around $100 a barrel following Iran’s blockade of the Strait of Hormuz, the 8.6%-yielder last week said it would pay in May a half-year 0.25p per share special dividend on top of its monthly 0.5p distribution for the second time in two years.
The board of the investment company, the only one in the listed loan and bond funds sector to pay a monthly dividend, said after “careful consideration” of income prospects and market risks, it expected dividends would exceed 6.5p per share in the year to 30 September. That’s ahead of the 6p annual target SMIF has either hit or bettered since launch in 2014.
That was reassuring after last month’s decline in net asset value (NAV). The March wobble, while modest compared to steep drops in many equity funds, was the biggest fall since March 2023 when the fund’s financial holdings were caught up in the crisis over US regional banks and the run on Credit Suisse saw it shed 3.3%.
The worst month in recent years was in September 2022 when Liz Truss’ notorious “mini-Budget” prompted a selloff of UK government bonds, rocking European credit markets and knocking 7.8% off the NAV.
While these setbacks proved to be temporary, they are unnerving for an investment company seeking to provide stable capital and income returns from the debt issued by corporate borrowers with less than impeccable credit ratings. At the end of March, nearly a third of the fund was in loans and bonds on the lowest BBB investment grade credit rating with most of the remainder rated below investment grade at BB and B.
No reason to panic
Although some borrowers could struggle to maintain loan repayments in a serious downturn, SMIF’s chair Ashley Paxton had already indicated he wanted to keep a steady hand on the tiller. Earlier this month he told QuotedData that “we’re not aware of any reason” to change the positive outlook the board stated at the annual results in December when the then solid economic picture and high yields on bonds made them confident about the year ahead.
For the year to September 2025, the company declared a 1.3p final dividend which with the half-year top-up took the total to 7.3p. It paid 7.4p per share in the previous two years.
As the shock of a 44% surge in oil prices hit global assets, including the debts in which SMIF invests, shares in the £298m closed-end fund briefly traded slightly below the value of its assets last month. A quarterly facility letting shareholders sell shares at close to their real worth saw an increase in investors tendering their stock.
Sentiment towards listed debt funds has cooled amid problems in US private credit funds exposed to software companies facing intense competition from rivals using artificial intelligence. However, SMIF only invests in publicly-traded debt.
The board’s calm posture was vindicated as the US, Israel and Iran began a fragile ceasefire after a month of attacks, and SMIF returned to stand at a 2% premium over NAV, enabling the company to issue more shares. Like several of its peers, the company has been a consistent issuer of paper, adding around £140m to market value in three years as it catered to demand from income investors.
“Orderly” selloff
George Curtis one of seven portfolio managers at TwentyFour Asset Management overseeing SMIF, said investors had over-reacted to the inflationary threat posed by soaring energy prices, but said the selloff had at least remained “orderly”.
At one point, markets forecast the Bank of England and European Central Bank would hike interest rates three times this year, instead of the cuts in the cost of borrowing they had expected before the US and Israel began air strikes against Iran.
Rising interest rates depress loan and bond prices as their mostly fixed levels of income become less attractive, although there are “floating rate” bonds that SMIF also holds whose prices can be more resilient.
Curtis said TwentyFour’s view was that US President Donald Trump was politically incentivised to do a deal with Iran and avoid high fuel prices damaging his prospects in the US mid-term elections in November.
However, he was wary that the longer oil supplies were disrupted, the bigger the impact on energy prices would be. This could make it difficult for central banks to look through what should be a transitory spike in inflation and avoid hurting an already slowing economy with interest rate rises.
He said the next few weeks would be critical. “The key for central banks is whether inflation expectations for the next three to five years move up in response.” Any evidence of rising wage demands, for example, could force rate setters to act.
Underlining the precariousness of the situation, data this week showed UK annual inflation jumped to 3.3% in March from 3% in February. Rises in petrol, heating oil and airfares – all linked to the squeeze on oil – were largely to blame.
Protection trades
With markets on tenterhooks as to the direction of interest rates, Curtis said the TwentyFour team had refrained from making big changes to the diversified pool of mostly short and medium-term loans of one to ten years.
However, during last month’s turmoil they had added “crossover protection”, using a credit default swap index. This shielded the loan portfolio from price falls caused by the yield gap, or “spreads”, to benchmark government bonds widening. As prices and yields move in opposite directions, higher yields could damage a fund’s capital.
At the same, however, rising yields offer the chance to lock in higher levels of income for shareholders. This is exactly what Curtis did with “extension trades” enabling him to sell a short-term debt and buy a long-term one on the same yield.
Curtis said the normalisation of interest rates that saw the Bank of England base rate accelerate from 0.25% in January 2022 to 5.25% 18 months later had hugely benefited SMIF investors even if the cost of borrowing had come back down to 3.75% in January.
He said this had resulted the average yield from SMIF’s investments over their purchase price had risen 1.5% to 8.5% in the past three years, underpinning a 55% total shareholder return ahead of its peer group’s 43% average.
Meanwhile, Curtis said the portfolio’s average BB credit rating was the highest it had ever been meaning investors were getting a good return for the risk they were taking.
UK monthly dividend stocks are relatively niche compared to the more common dividend frequency of quarterly payouts. However, there are a few options available – primarily via UK investment trusts with monthly dividends, UK-domiciled funds and ETFs that are accessible to UK investors, and global alternatives like US-listed REITS (Real Estate Investment Trusts).
In this article, we will highlight a few monthly dividend vehicles available to most UK investors, compare them with more traditional quarterly payers, and examine the risks and opportunities heading and 2026.
It’s important to note that dividend payouts can change over time and a company could stop paying them abruptly. This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions.
🔍 Key Statistics Estimated around ~10-20 UK-listed monthly dividend stocks 1 Around ~5 UK funds/trusts with monthly dividend payouts 2 Over > 4,000 global monthly dividend stocks and funds 3 *As of October 2025
How do Monthly Dividend Stocks Work?
To understand how monthly dividend stocks work, we first need to understand what a dividend is. A dividend is a share of company earnings that is paid to the company’s stockholders. Not all companies will pay dividends and the ones that do will pay biannually, quarterly or monthly.
Monthly dividend stocks represent companies that pay dividends every month instead of the more common quarterly schedule. This higher dividend frequency may provide some investors with potential cash flow from their investments.
Dividends are approved by the company’s board of directors who also announce when the dividend will be paid and the amount. Each dividend payment follows a set timeline which includes a declaration date, ex-dividend date, record date, and payment date. The ex-dividend date is for investors as this is the date the investor must own shares before, in order to receive that month’s dividend.
Compared with the more typical dividend frequency of a quarterly payment, monthly dividends may help in compounding as these dividends can be reinvested sooner. Income investors may choose to receive the dividend as a form of income, whereas capital growth investors may choose to reinvest the dividend to buy more shares.
As most dividends are considered to be ‘qualified dividends’ there is likely to be a tax liability depending on your individual circumstances and geographical region. Do your own due diligence and speak to a tax advisor.
Monthly Dividend Stocks and ETFs Available to UK Investors
Below is a list of the top 9 monthly dividend stocks and ETFs (exchange-traded funds). How did we choose this list? First, we checked to ensure each company pays a monthly dividend. We also checked that each company’s share price is available to purchase from the Admiral Markets Invest.MT5 account which collects dividend payments for you.
ARMOUR Residential REIT is a real estate investment trust. It is a US-based dividend income option that can also act as a UK monthly dividend stock for a portfolio. It pays dividends monthly, unlike typical quarterly dividend frequency schedules.
TwentyFourSelect Monthly Income Fund
Industry: Fixed Income, Credit Securities
Ticker: SMIF
Country: UK
Dividend Yield: 7.92%
The TwentyFour Select Monthly Income Fund is one of the few UK investment trusts with monthly dividends. It focuses on diversified fixed-income securities such as corporate and asset-backed bonds.
Global XSuperDividend UCITS ETF
Industry: Equity Securities
Ticker: SDIP
Country: UK
Dividend Yield: 11.75%
The Global X SuperDividend UCITS ETF aims to provide high-yield monthly income through a globally diversified basket of dividend-paying equities. Structured as a UCITS ETF, it’s accessible to UK investors as it’s listed on the London Stock Exchange.
Apple Hospitality REIT is a real estate investment trust that owns one of the largest portfolios of upscale hotels in the United States, including 96 Marriott-branded hotels, 199 Hilton-branded hotels and 4 Hyatt-branded hotels.
The iShares J.P. Morgan USD Emerging Market Bond fund aims to provide diversified exposure to emerging market bonds issued in US dollars and consists of a mixture of government and corporate bonds.
Realty Income
Industry: Retail REITs
Ticker: O
Country: US
Dividend Yield: 5.51%
Realty Income is a real estate investment trust that primarily invests in and owns 11,288 commercial properties in the United Kingdom, United States and Spain, such as Walgreens, 7-Eleven, Dollar General, Sainsbury’s, LA Fitness and many others.
JPMorgan USD Ultra-Short Income UCITS ETF
Industry: Fixed Income
Ticker: JPTS
Country: UK
Dividend Yield: 4.76%
The JPMorgan USD Ultra-Short Income UCITS ETF is a monthly income fund which aims to invest in short-term, high-quality bonds to reduce volatility while maintaining liquidity.
Agree Realty Corp is a real estate investment trust that focuses on the development and acquisition of net lease retail properties throughout the United States and includes tenants such as Best Buy, Autozone, Dollar General, Home Depot and many others.
Gladstone Land Corp is an agriculture real estate investment trust, owning and leasing farmland across the United States.
Evaluating Monthly Dividend Stock Sustainability
Assessing the sustainability of monthly dividend payments is essential for managing a long-term portfolio but can be difficult to do. One helpful tool is the dividend payout ratio analysis. A high ratio may indicate that a company is distributing too much of its earnings which increases the chance of future dividend cuts. The dividend coverage ratio may also help gauge whether earnings or cash flow can support ongoing payments.
Investors should keep an eye on potential dividend yield traps. This is where unusually high yields may signal financial issues rather than growth opportunities. As dividend yields tend to rise when a stock price falls, it can result investing into troubled companies.
Reviewing dividend consistency metrics, such as the company’s dividend payment history is key, although past performance does not guarantee future performance. It’s also important to keep track of cash flow strength to support dividend payments, and sector-specific risks. Ultimately, while a company may pay monthly dividends now, it could stop paying them altogether in the future.
Are Monthly Dividend Stocks UK a Good Investment?
Monthly dividend stocks may provide additional revenue opportunities for UK investors, compared to quarterly dividend paying stocks. When embarking upon a monthly dividend portfolio construction it’s important to exercise proper risk and portfolio management as a company may change its dividend payout in the future.
Some stocks and funds may also offer inflation-protected monthly income. For example, real estate investment trusts may receive steady rents regardless of increasing or decreasing inflation. While some investors may focus on stocks and funds that offer dividend growth investing in the UK, it’s also important to take into consideration that a monthly dividend stock price may not grow over time but may still continue to payout a monthly dividend.
✅ Pros
May provide consistent, inflation-protected monthly income potential.
May enhance compounding through more frequent reinvestment.
❌ Cons
Fewer UK-listed monthly dividend options compared to quarterly payers.
Some funds trade off growth for yield, reducing total return potential.
Higher yields may mask underlying risks in niche sectors.
How to Invest in Monthly Dividend Stocks & ETFs
With Admiral Markets, UK investors can invest in over 4,000 stocks and ETFs from around the world. UK stock and ETF commissions start at 0.1% of the trade value and have a 1 GBP minimum commissions per transaction. Learn more on the Admiral Markets Contract Specification page.
To start investing:
Open an account with Admiral Markets by completing the onboarding process.
Deposit real funds in your account unless you are using virtual funds from a demo account.
Open the stock trading software provided by Admiral Markets which is a web version or desktop version of MetaTrader 5.
Choose your instruments. Select from thousands of dividend stocks and ETFs from all over the world.
Invest and start collecting dividend payments.
An example screenshot of the Admiral Markets MT5 Web Trader platform showing a chart, watchlist and trading ticket. Illustrative purposes only. Past performance is not a reliable indicator of future results. 15 October 2025.
FAQs on Monthly Dividend Stocks
Which UK company pays the highest dividend?
As of October 2025, Legal & General leads the FTSE 100 list of stocks with the highest dividend yield of approximately 9.0%, however this will change over time.
What are the monthly dividend options for UK investors?
UK investors have access to a limited but growing range of monthly dividend options, mainly through London-listed international ETFs and UK investment trusts. Some examples include the TwentyFour Select Monthly Income Fund (SMIF), Global X SuperDividend UCITS ETF, and JPMorgan USD Ultra-Short Income UCITS ETF.
How do I evaluate dividend sustainability?
To assess dividend reliability, check the dividend payout ratio analysis and the dividend coverage ratio. These metrics reveal whether earnings or cash flow can support dividend payouts. However, there are no guarantees, and a company may decide to stop paying dividends abruptly.
