Investment Trust Dividends
FGEN having declared their next dividend the figure for the half year income will be
£7,978
Do not scale to reach a year end figure as it contains a special dividend.
The SNOWBALL will meet the 2031 fcast
If you can compound your Snowball’s income at 7%, it will double every ten years.
If you can compound your Snowball’s income at plus 7%, it will double in less than ten years.
FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED
(“FGEN” or the “Company”)
Net Asset Value and Dividend Announcement
The Board of FGEN, a leading investor in private environmental infrastructure assets across the UK and mainland Europe, announces that its unaudited Net Asset Value (“NAV”) at 31 March 2026 was £655.5 million (105.2 pence per share). After paying the quarterly dividend of 1.99 pence per share, the Company delivered a positive NAV Total Return of 2.5% for the quarter and 6.2% for the full financial year.
FY27 Dividend Target
The Board is pleased to announce the Company’s 12th consecutive dividend increase since IPO, with a dividend target of 8.04 pence per share for the year to 31 March 2027, representing a 1.0% uplift from the year to 31 March 2026.
Highlights in the period
· Delivering resilient NAV growth: NAV of £655.5 million as at 31 March 2026 (31 December 2025: £651.7 million), with NAV per share of 105.2 pence, representing an increase of 0.6 pence over the quarter.
· Dividend in line with target: Quarterly dividend of 1.99 pence declared, in line with the Company’s full-year target of 7.96 pence per share.
· Diversification underpinning resilience: Portfolio diversification supports stable NAV and robust cash generation, with dividend cover of 1.25x for the year, post project debt amortisation.
· Prudent balance sheet maintained: Gearing remains conservative at 29.8% as at 31 March 2026 (30.9% at 31 December 2025), supporting financial flexibility and disciplined capital allocation.
· Well positioned for organic NAV growth: the Board remains focused on delivering the Company’s progressive dividend strategy, alongside NAV growth through consistent operational performance, value enhancements and selective capital recycling.
Ed Warner, Chair of FGEN said:
“The Company has delivered another quarter of stable NAV performance, reflecting the resilience of our diversified environmental infrastructure portfolio and its ability to generate robust cashflows. This underpins our confidence in maintaining a progressive dividend, which has consistently increased since IPO, with cover expected to remain within our target range of between 1.2x – 1.3x in the coming years.
We remain focused on maintaining a prudent balance sheet and disciplined capital allocation, positioning the Company to deliver sustainable and organic NAV growth.”
Summary of changes in NAV:
| NAV per share | |
| NAV at 31 December 2025 | 104.6p |
| Dividends paid in the period | -2.0p |
| Power price forecasts | +1.6p |
| Inflation | +0.3p |
| Anaerobic Digestion life extensions – phase one | +1.4p |
| Other movements (including discount rate unwind less fund overheads) | -0.7p |
| NAV at 31 March 2026 | 105.2p |
Valuation factors
Power price forecasts
Short-term power price forecasts provided by independent third-party consultants have increased since the prior valuation date, primarily driven by higher observable gas and power pricing following the escalation of conflict in the Middle East. In addition, updated forecasts now reflect the expected impact of the UK Government’s proposed abolition of the Carbon Price Support mechanism from April 2028, alongside updated GWA assumptions across the UK wind and solar portfolio.
Overall, the net effect of updated power price forecasts was an increase in NAV per share of 1.6 pence.
Inflation
Inflation assumptions for 2026 have been increased by 50bps to reflect updated independent forecasts, with RPI and CPI now modelled at 4.0% and 3.5% respectively.
Inflation assumptions beyond 2026 remain unchanged.
Anaerobic Digestion (“AD”) life extension – phase one
As outlined in prior reporting periods, the Company has long held the view that AD infrastructure will continue to play an important role in the UK energy mix beyond the 20-year Renewable Heat Incentive (“RHI”) support period.
As such, the Investment Manager has worked with a specialist independent consultant to assess the potential value of biomethane from 2035 onwards, informed by current and expected evolution of biomethane policy in the UK and Europe. The consultant has applied this assessment across the FGEN AD portfolio, including revenue stack analysis and cost requirements, taking into account the technical specifications of each facility.
As a result, the Company has recognised a 1.4 pence per share NAV uplift from extending the lives of the six ADs with the most compelling extension potential, with work ongoing to further assess the remaining ADs in the portfolio.
More details will be provided along with the full Annual Report.
Other NAV movements
Other NAV movements include the usual positive discount rate unwind net of fund operating costs of +1.3 pence, alongside a number of other offsetting lower value movements. These include an allowance for additional boiler maintenance at Cramlington Biomass totalling -0.7 pence, refinement of cost assumptions across the wind and solar portfolio of -0.9 pence and an allowance of -0.5 pence at Project Rjukan related to slower than planned ramp up progress during the period.
Gearing
In line with the Company’s stated approach to capital allocation, FGEN continues to maintain one of the lowest levels of gearing in the sector. As at 31 March 2026, total gearing was 29.8% (31 December 2025: 30.9%), with the Company’s Revolving Credit Facility (“RCF”) £123.1 million drawn.
Portfolio performance
The quarter ending 31 March 2026 has seen positive performance, with generation 2.6% ahead of budget. This was supported by particularly strong performance from the anaerobic digestion portfolio. Whilst wind, solar and biomass underperformed during the period, March saw excellent performance across those sectors.
As communicated at the Company’s Capital Markets Day on 12 May 2026, ramp up continues across the growth assets:
– CNG: gas volumes dispensed grew again during the period, and the RTFC business continues to be highly cash generative.
– The Glasshouse: continuing the trend of increasing sales, management also made further progress against its longer-term objective of export opportunities into European markets.
– Rjukan: production volume growth has been slower than expected in the period, reflective of the early operational stage, with works ongoing to continue optimising performance.
Dividend
The Company declares a quarterly interim dividend of 1.99 pence per share for the quarter ended 31 March 2026, consistent with the full-year target of 7.96 pence per share for the year to 31 March 2026, as set out in the 2025 Annual Report. This equates to a yield of 10.5% on the closing share price on 26 May 2026.
As mentioned, the Board has also set a dividend target of 8.04 pence per share for the year to 31 March 2027, the 12th consecutive dividend increase since IPO.
Dividend Timetable
Ex-dividend date 4 June 2026
Record date 5 June 2026
Payment date 26 June 2026.
About FGEN
FGEN invests into environmental infrastructure to deliver stable returns, long term predictable income and opportunities for growth, whilst driving decarbonisation and sustainability.
Investing across renewable generation, other energy infrastructure and sustainable resource management, it targets projects and businesses with an emphasis on long term stable cash flows, secured revenues, inflation linkage and the delivery of essential services. FGEN’s aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly, alongside the potential for capital growth.
The target dividend for the year to 31 March 2027 is 8.04 pence per share¹.
FGEN is not formally subject to the EU Sustainable Finance Disclosure Regulation, but voluntarily discloses against the requirements of an Article 9 SFDR fund. It further discloses voluntarily against the UK’s Sustainability Disclosure Requirements regime as a ‘Sustainability Focus’ fund. Beyond its alignment with evolving regulation, FGEN prides itself on its transparent and award-winning approach to ESG.
(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.
North American Income Trust NAIT with dividends re-invested.
Without the market outperformance since 2025, hardly a compelling argument to buy and hold.
North American Income Trust PLC on Friday said it is well placed to identify winners amid ongoing market disruption, as it posted full-year gains in net asset value.
The Edinburgh-based investor in US equities reported a NAV per share with debt at fair value of 402.8 pence at January 31, up 5.3% from 382.5p a year earlier.
North American Income reported a NAV per share total return of 8.8% for the financial year, while its reference indices, the Russell 1000 Value Index and S&P High Yield Dividend Aristocrats Index, returned 4.9% and 3.1% respectively over the same period.
The investment trust declared a fourth interim dividend for the financial year of 4.4p per share, up 7.3% from 4.1p a year prior. This brought its total dividend per share to 12.80p, up 4.9% from 12.20p.
Co-Fund Managers Fran Radano and Jeremiah Buckley said the financial year reflected “another positive period for US share prices”, as they noted the 5.4% gain in the S&P 500.
The fund managers explained that outperformance was primarily owed to stock selection over sector positioning, with the financials sector a “significant contributor to performance”.
They noted strong returns from Citigroup Inc, Morgan Stanley and Goldman Sachs Group Inc supported the positive outcome.
The biggest detractors, noted the fund managers, were in industrials and communications services, also owing to stock selection.
Radano and Buckley said that in industrials, a weaker performance from Booz Allen Hamilton Holding Corp outweighed gains elsewhere.
They added that their underweight position in Alphabet Inc also served as a detractor.
Looking ahead, Chair Charles Park said stocks globally have been impacted by the war in the Middle East, adding that technological developments, namely in the form of agentic AI are also disrupting markets.
“There are strong debates as to the degree of disruption and how long this might take, but we are already witnessing some of the effects. The board remains confident that the experienced team at Janus Henderson Investors, with all its resources, is equipped to distinguish between the winners and losers in this new dispensation,” the chair stated.
24/04/26
Friday, May 22, 2026
Funds and Investment Trust Writer
The US is the second most popular equity market to track, bested only by global options, with the most popular passive options housing billions in investors’ money.
Having previously gone under the bonnet of the global passive funds AJ Bell customers favour most, we’re turning our attention to the US.
As our research shows, the top 10 most popular products all have their own set of characteristics which feed into better or worse performance and higher or lower fees depending on which one you choose.
Passive investing overall has become increasingly popular and the US in particular has become a favourite destination for this style of investing simply because it’s delivered consistently high returns for the best part of 20 years.
This has been underpinned by tech firms delivering significant growth and by low levels of inflation and interest rates making the growth stocks which populated the US market more attractive.
Since 2006 the S&P 500 has made almost double the total return from the MSCI All-Country World Index – of which the US market is now 63%.
This made it tough for active managers to outperform, as AJ Bell’s ‘Manager versus Machine’ report found last year, and as a result, many investors have opted to take cheaper exposure via trackers instead.
Recent data found that UK retail investors put £28 billion into trackers in 2024, smashing the previous record set four years prior by almost £10 billion. This was a “stark contrast” to the £29 billion outflows from active funds, flagged by the Investment Association.
US funds took in a healthy chunk of these flows and monthly data shows that the trend hasn’t stopped since, bar events like Liberation Day and the US-Israel-Iran war stirring bouts of negative US sentiment.
A scan of the top holdings among AJ Bell customers and US passive funds are among some of the most widely held options.
But as we discovered in our global fund analysis, the most commonly owned funds may all appear to be the same on the surface, but can vary widely in terms of what they’re actually made up of and/or how much they cost.
‘Passive’ investing involves using a tracker fund or exchange-traded fund (ETF for short) to replicate the underlying index. This is unlike an active fund which has a manager picking just a few names they think will do better than the whole index combined.
This makes passive investment products cheaper because you just buy and hold a bit of everything in that index and aren’t paying the higher active management fees to get a more bespoke portfolio.
Because the US has been so popular the market is highly saturated and experts often say it’s a ‘race to the bottom’ with regards to fees. From our review of the most popular funds, fees ranged from 0.07% to 0.3%.
ETF and tracker funds are structurally different as well. An ETF is listed on the stock exchange (S&P, Nasdaq, FTSE for example) which means you buy and sell it just like you would shares in a company. You can buy them at any time, but the price will change depending on the intra-day moves.
Index funds are different as the price is based on the total value of all securities held within the fund, also known as the net asset value, and you’re only able to trade them once a day.
When discussing the US equity market, most investors focus on two indices: the aforementioned S&P 500 or the Nasdaq 100. Most of the popular ETFs and tracker funds tend to follow one of these indices.
And while often conflated, each have their own set of characteristics, which matters when it comes to picking the benchmark you’re tracking.
Straight off the bat you can see a big disparity in the amount of stocks they include, 500 versus just 100 (although there is also a Nasdaq Composite index which includes more than 3,000 stocks).
This makes the S&P the more diverse of the two and it’s why it is used as an overall gauge on the state of the US market. Meanwhile, the narrower Nasdaq is more volatile, because the fortunes of an individual company or handful of companies can have a greater impact on the basket’s average returns.
This has created some disparity in the indices’ respective performance, and therefore the portfolios tracking them.
Over 10 years, the Nasdaq has bested the S&P’s total returns over most time frames, delivering almost double the level of returns over 10 years.
This plays out in the performance data of the trackers as well, although not all of them track these two indices.
Comparing all 10 of them over five years, the total return ranged from 105.4% from the iShares NASDAQ 100 UCITS ETF to 75.92% in the Vanguard US Equity Index.
Digging a bit deeper, the S&P 500 and Nasdaq 100 indices themselves have very distinct characteristics.
The S&P 500 only allows US domiciled stocks in its universe, meanwhile the Nasdaq 100 allows some international names.
This’ partly because this Nasdaq index doesn’t include any financial companies, such as banks or life insurance firms, prioritising tech and growth sector stocks.
One example is Shopify. A Canadian firm which has a dual listing in the US allowing it to qualify for the index. Cambridge headquartered Arm Holdings is a UK example of this, having floated on the Nasdaq in 2023.
The S&P also has strict thresholds for market value ($14.5 billion minimum), liquidity (or how easy shares are to buy and sell), and profitability.
While they have some differences both indices’ performance is driven by a very narrow set of stocks. Largely the Magnificent 7: Meta, Alphabet, Amazon, Apple, Microsoft, Nvidia and Tesla.
This is because they’re weighted by market value, meaning larger companies have a much higher representation and thereby greater impact on the performance of the index, meanwhile smaller companies have less of an influence.
The Mag 7 boast market values in the hundreds of billions and even trillions and means that they account for 30-40% of these indices alone, even the ‘broader’ S&P.
Looking at the most popular ETFs and it’s typically clear from the names which indices they track it’s harder to discern for the majority of the tracker funds. And it’s a crucial factor given the performance varies by some margin depending on what they tracked.
The most popular one – UBS S&P 500 Index – is obvious but the HSBC UK American Index Fund also tracks it even though it is not referenced in the name of the product.
The Vanguard US Equity follows the S&P Total Market Index (TMI) and the ‘total market’ element means it will also cover mid, small and microcap stocks, as well as large cap.
The Legal & General US Index Trust and Fidelity Index US Fund are outliers, following the FTSE USA Index and S&P 500 (NUK) Index, respectively.
FTSE is the UK’s version of the S&P and this benchmark is designed for use in the creation of index tracking funds, derivatives and as a performance benchmark.
The S&P 500 (NUK) Index prioritises limiting volatility over returns, designed to keep the index’s ups and downs to around 15% per year. It’s specifically designed for use by risk-controlled funds.
While not affiliated with any of the 10 funds here, it’s worth mentioning the Dow Jones Industrial Average index.
It’s often mentioned alongside the S&P 500 and Nasdaq in terms of coverage and attention.
Comprising of just 30 stocks, the Dow Jones is price-weighted rather than equal weighted like the others and covers all industries except transportation and utilities. It tends to have a more modest representation for the tech sector than the Nasdaq or S&P 500.
In a price-weighted index, stocks with a higher share price have more impact on the index movement, regardless of how big the company actually is.
Anyone joining this market train at a late stage in a major bull market are likely to lose money. One course of action would be to have funds ready to invest when the market turns down. The market may continue up for a while but be wary of a black swan event. Until then keep re-investing those dividends in your Snowball in line with the number of years you have to start spending those dividends and therefore your risk tolerance.
Dr James Fox explores whether it would could be possible to generate enough dividend income to live comfortably and stop working.
Posted by Dr. James Fox
Published 30 May, 2023 11:28 am BST
Like many investors, I receive dividend income from the stocks I own. In my case, dividend-paying stocks represent the core part of my portfolio. But just how much would I need to earn from dividends to live off this income alone? And would it be possible?
Let’s take a close look.
Well, I’d want to build a portfolio of dividend stocks that collectively pay me enough money to live from. Let’s say this is £30,000, but I appreciate this might not be possible in London.
And I’d want to be doing this within an ISA wrapper. That’s because any capital gains, dividends, or interest earned within the ISA portfolio is tax-free.
So, if I was earning £30,000 from dividends, I’d actually be taking home more money than someone on a £45,000 salary — including student loan repayments.
Of course, unless I picked specific stocks, I wouldn’t expect this income to be spread evenly across the year. At this moment, the majority of my portfolio’s income comes around April and May, shortly after the end of the financial year. So that’s something to bear in mind.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
Well, to earn £30,000, I’d need to have at least £375,000 invested in stocks. That’s because I believe the best dividend I can achieve is around 8%. This would involve investing in companies, like Legal & General, that don’t offer much in the way of share price gains.
But what if we don’t have £375,000? And let’s face it, the majority of us don’t.
Well, I’d need to build a portfolio over time. And I could do that using a compound returns strategy. This involves reinvesting my dividends and earning interest on my interest. It’s very much like a snowball effect.
Naturally, there are several key variables here. The starting figure, the yield I can achieve, and the amount of money I contribute from my salary every month.
If I started with £10,000 and stocks yielding 8%, in theory I could reach £375,000 in 19 years. But this would require me to contribute £400 a month and increased this contribution by 5% annually throughout those 19 years.
And by contributing £400 a month, I’d fall way under the maximum annual ISA contribution of £20,000.
Compound returns isn’t a perfect science, and as with any investment, I could lose money. But it’s certainly safer than investing in growth stocks.
Of course, the above is great in theory, but I’d need to pick the right stocks. I’m looking for stocks with strong dividend yields, but I also need to be wary. Big dividend yields can be a warning sign, and the dividend coverage ratio is a good place to start.
Let’s do a one eighty turn and look at the opportunity from the opposite angle, concentrate on the tail and not the body.
You may only have 10k of seed capital but it’s still the Snowball effect where your income roughly doubles every ten years.
So10k would earn income of £1,286, after twenty years £2,572 and after 30 years £5,144. A yield of 51% on seed capital. You have to allow for inflation but you could also add capital to your Snowball.
Thursday 28 May
Aberdeen Equity Income Trust PLC ex-dividend date
Alliance Witan PLC ex-dividend date
BlackRock Greater Europe Investment Trust PLC ex-dividend date
Greencoat Renewables PLC ex-dividend date
HICL Infrastructure PLC ex-dividend date
Regional Reit Ltd ex-dividend date
Temple Bar Investment Trust PLC ex-dividend date
Michael Foster, Investment Strategist
Updated: May 25, 2026
There’s a clear “disconnect” happening in the US economy right now. And most investors are on the wrong side of it.
Funny thing about it is, it’s pretty obvious. We hear about both sides of it in the news daily, but few people truly see it for what it is. And the 10.5% dividend we’re going to discuss today is the perfect play on this misconception.
The first part of our opportunity? Consumer sentiment, which I’m sure you’ve heard is in the tank:
Here’s the University of Michigan consumer-sentiment survey over the last 50 years. At the right side of this chart we see that the current level is the lowest it’s been in all of that time.
In other words, Americans today feel worse about the economy than they’ve felt in a couple of generations, more or less. Which is where the other side of our disconnect comes in: In the last year alone, the S&P 500 has returned 25%.
That, of course, is good news for those of us who own stocks, but keep in mind that stocks do return around 10% per year including dividends, on average, so this strong gain clearly shows the value of buying for the long term and being patient.
But the disconnect between stocks’ brilliant performance and lousy sentiment raises another question: Are we headed for a correction?
That’s not what we see in the data. Not even close.
As you can see above, S&P 500 firms booked year-over-year gains north of 11% in Q1. That’s the highest since 2022, and it’s historically very high indeed.
Note also that sales growth has been accelerating for years. That’s in part due to businesses benefitting from the AI boom.
Whatever feelings we may each have about AI, there’s no denying the fact that the AI buildout is benefitting utilities, energy, infrastructure, construction, transport, retail and other industries. That’s showing up in US companies’ bottom lines—even those of some of the riskiest firms out there.
In the speculative credit market, we’re seeing default rates fall significantly. Most crucially, they’re falling fastest in the loan market, which was behind the private-credit panic late last year and earlier this year.
The bottom line is that US companies are, on the whole, doing well. But where does that leave everyday Americans?
Despite their dour mood, American families have largely been financially healthy throughout this decade. As we can see above, they’re less likely to default on their debts than they were in the 2010s.
There was a trend of rising defaults earlier this decade, as pandemic-relief efforts from the Fed and US Treasury faded. But there’s been a sharp drop in defaults since early 2025. This shows that Americans’ financial health is improving. Part of that may be due to increased opportunities due to the aforementioned AI buildout.
Finally, the chart above shows inflation-adjusted earnings for workers. Note how from 1980 to 2015, wages didn’t really grow at all. Then they began to gain ground in the late 2010s and have continued to rise since.
Funny thing is, Americans generally started making more money in the late 2010s, just when sentiment began to slide. That trend continues to this day, setting up an odd dynamic: People are generally getting richer—and they’re not happy about it!
It’s an odd situation, to be sure, and it sets the stage for euphoric jumps and steep drops in stocks as rising earnings and lousy sentiment battle it out. We saw the dips around a year ago, when the Liberation Day tariffs were announced, and again this year, due to the Iran conflict (and if you go further back, the deep selloff in 2022, on inflation concerns).
All of those moments were buying opportunities, and I firmly believe that will be true of any future pullbacks, too.
This 10.5% Dividend Is a Smart Play on the Earnings/Sentiment Mash-Up
This is where a closed-end fund (CEF) called the Liberty All-Star Equity Fund (USA) comes in. It’s a 10.5%-yielder that holds large cap S&P 500 stocks.
Its top holdings are NVIDIA (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Amazon.com (AMZN), Capital One Financial (COF), Meta Platforms (META), Visa (V) and Wells Fargo & Co. (WFC).
And because USA is a CEF, we can get access to its holdings at a discount to net asset value (NAV, or the value of the fund’s underlying portfolio). That’s a deal that just doesn’t exist with ETFs.
It’s particularly timely in USA’s case because the fund’s already-steep discount means we don’t have to wait to buy the dip here: USA already trades at an 11.3% discount, well below the 7.5% it’s averaged in the last year and far below the 0.7% it’s averaged over the last five years.
Deals like this are difficult to track down in a rising market like this one.
But the most exciting part is that 10.5% dividend, which USA generates by taking the returns on its holdings and “converting” them into an income stream for us. It manages that by linking the dividend to its NAV and committing to paying out roughly 10% of NAV as dividends every year.
That does mean the quarterly payout floats a bit, but we’re okay with that, since the result has been a pretty consistent dividend over the last three years:
Source: Income Calendar
And then there is the fund’s overall performance, which has been strong:
USA Delivers a Steady Long-Term Return
USA has delivered a 12.3% annualized total return over the last decade, and it’s done so consistently, thanks to that strong portfolio.
And since the fund gives out most of its price gains as dividends, you can reinvest in USA and grow your income (and portfolio value) further. Or you could withdraw your dividends and use them to finance your lifestyle, as many retirees do.
The choice is yours, and strong CEFs with proven track records, like USA, make that flexibility possible
Story by Mark Hartley
Low angle close up color image depicting a man holding a shopping trolley filled with essential fresh groceries in the supermarket.
Global markets are wobbling again, so UK investors looking for stocks to buy need to pay close attention to their options.
Rather than showing signs of resolution, the ongoing conflicts in Ukraine and the Middle East seem to be more uncertain than ever.
Oil prices are swinging wildly as tensions around the Strait of Hormuz increase, leading to growing uncertainty among market analysts.
As these issues drag on, more and more investors are asking: is the stock market heading for a crash?
This year, the Dow Jones has flip-flopped between 45,000 and 50,000, while the S&P 500 dipped to 6,340 before surging past 7,500. Meanwhile, the FTSE 100 nearly cracked 11,000 points before briefly falling back below 10,000.
When I see sharp index moves like that, I think less about predicting the next crash and more about making my portfolio resistant to risk.
A few simple actions can help:
That does not mean hiding from the market. It means being ready if sentiment turns and investors start moving into bonds and other lower-risk assets, which can feed a broader correction.
What, then, counts as a defensive share?
Defensive shares are businesses that tend to hold up better when the economy slows. They often have resilient earnings, dependable dividends, and exposure to sectors with steady demand, like utilities and healthcare.
Many also sell globally, which can smooth out weakness in any single market.
| what is skills whatisskills.comx qowgvw@yahoo.com 112.51.42.159 | I’ve been exploring passive income streams for a while, and this post gave me a fresh perspective on how RECI could fit into a balanced portfolio. The live tracking aspect seems especially useful for staying realistic about returns instead of just chasing hype. Do you have any thoughts on how it compares to traditional dividend-focused REITs in terms of risk? |
All the companies are loan arrangers, currently all paying a high yield, which tells you all you need to know about the market. The SNOWBALL would like to own NCYF but at a higher yield and at a discount to NAV, which means waiting for a market crash.
Now that’s a scary chart, when the market thought that due to covid companies wouldn’t be able to make loan repayments. Using good ole hindsight it was a great opportunity because as the price fell the yield rose and around the low the dividend was trimmed but the yield was still around 30% (subject to when you bought), where you would still be receiving a similar buying yield.
Back to RECI their loans are secured against property, so they should be a lower risk.
It never stopped the share from falling but it recovered fairly smartly but still not back to its previous price.
Everything crossed for the next market crash.
A lower risk core share for your Snowball.
Price 129p dividend 7.6p yield 5.9%
If the price rises and the yield falls, you could book your profits and re-invest in a higher yielder/risk IT. If not keep re-investing the dividends either back into CMPI or your Snowball.
The SNOWBALL currently doesn’t invest in CMPI as the earned and re-invested dividend stream means that the SNOWBALL can take more risks when re-investing. When the SNOWBALL nears its drawdown period, it could become a key component of it’s income stream.
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