Month: January 2024 (Page 18 of 20)
The Motley Fool
It’s good to set goals, especially when trying to achieve something remarkable. Like building a six-figure passive income for retirement. Amazing things can be done by drawing up a plan and sticking to it.
I didn’t start investing seriously in stocks and shares until my early 30s, but wish I’d begun a full decade earlier. That’s because time is the biggest friend an investor can have. Especially when investing primarily in FTSE 100 dividend shares, as I do.
In the short term, stock markets are volatile. There are years when my portfolio has fallen in value rather than risen. Yet, over time, history shows that equities beat every other asset class, with the FTSE 100 delivering an average long-term return of 7% a year.
I’m thinking long-term
I love buying FTSE 100 dividend stocks when they’re trading at low valuations and offering ultra-high yields. This is where my long-term buy-and-hold strategy comes into its own. By reinvesting my dividends, year after year, I can buy more and more shares, which pay me more dividends, in an endless virtuous cycle.
I even benefit in years when share prices fall, as my reinvested dividends pick up more stock at the lower price. If I’d been wise (or rich) enough to start investing, say, £500 a month at age 25, I’d be smashing it today, as my crude calculations show. Especially if I had the foresight to increase my contribution by 5% every year.
If I did that and my chosen stocks matched that average FTSE 100 return of 7%, by age 68, I’d have made cumulative contributions of £857,960.
Compound interest would have added a thumping £2.41m to that. Combined, they would give me a total retirement pot of a staggering £3.27m. If my portfolio yielded at 5% of the time and I took all my dividends as income, I’d earn £163,625 a year without lifting a finger.
My capital should keep growing
If I picked my stocks carefully and generated an average annual return of 10% a year (as I hope to do in reality), I’d have £6.88m at the end of my 43-year investment timeframe. With a yield of 5%, that would give me income of £343,797 a year – almost £350,000. And that’s just the income. I’d still have my capital, which should continue to grow as markets rise.
These are crazy figures. They posit a perfect world, where I start investing early, increase my contributions consistently, and never, ever raid my savings. Also, there’s no guarantee I will hit my investment targets. I may fall short if my stock picks underperform or equities do worse in the future than in the past. Dividends are never guaranteed.
Yet my rough maths highlights an important truth about investing. It is possible to build huge sums, from relatively small regular investments. The key is to start young and stick with it. While early birds do best, even starting at age 35, 45 or 55 is far better than never starting at all. My portfolio won’t stop growing when I turn 68, but with luck should keep rising for as long as I live. As will my passive income.
The post How I’d aim to turn £500 a month into a stunning passive income of almost £350k a year appeared first on The Motley Fool UK.
Primary Health Properties PLC
(“PHP” or the “Company”)
Notice of Interim Dividend
The Company announces that the first quarterly interim dividend in 2024 of 1.725 pence per ordinary share of 12.5 pence each will be paid as to 1.45 pence by way of a Property Income Distribution (“PID”) and the remainder as an ordinary dividend on 23 February 2024 to shareholders on the register on 12 January 2024.
SUPERMARKET INCOME REIT PLC
(the “Company”)
LEI: 2138007FOINJKAM7L537
DIVIDEND DECLARATION
Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-linked, long income from grocery property in the UK, has today declared an interim dividend in respect of the period from 1 October 2023 to 31 December 2023 of 1.515 pence per ordinary share (the “Second Quarterly Dividend”).
The Second Quarterly Dividend will be paid on or around 14 February 2024 as a Property Income Distribution (“PID”) in respect of the Company’s tax-exempt property rental business to shareholders on the register as of 12 January 2024. The ex-dividend date will be 11 January 2024.
22/12/23
Bluefield Solar Income Fund Ltd on Friday announced a strategic partnership with GLIL Infrastructure, with both parties investing over GBP200 million total into a UK portfolio.
The Guernsey-based income fund, which focuses on UK-based renewable energy assets, will invest GBP20 million to acquire the 247-megawatt UK-based solar portfolio from Lightsource bp. GLIL, a group of UK pension funds investing in core UK infrastructure, will invest GBP200 million.
Bluefield Solar also said it will repay GBP10 million of its revolving credit facility, reducing its holding companies’ RCF balance to GBP167 million.
Bluefield said both parties have signed a memorandum of understanding with GLIL to form a long-term strategic partnership, which will commit them to investing together in UK-focused solar assets.
This includes a provisional agreement for GLIL to acquire a 50% stake in a Bluefield-owned portfolio exceeding 100 MW in early 2024 but in line with the portfolio’s current valuation.
Subsequently, Bluefield and GLIL intend to commit capital to a selection of assets in Bluefield’s development pipeline, expected to be grid connected over the next two to three years.
“Current capital market conditions make it difficult for us to raise new capital using the instruments which have served the company and its shareholders well through the past ten years,” explained Chair John Scott.
He continued: “The strategic partnership with GLIL is an exciting and significant development for the company; it creates the opportunity for both parties to invest in [our] sizeable renewable energy pipeline…while responding to shareholder feedback in reducing our short-term debt position.”
“The world is crying out for more solar power and Cop28 has called for a tripling of capacity by 2030,” Scott said. “We see tremendous potential in this partnership as a means to help Bluefield Solar play its part in achieving this goal.”
I’ve bought for the portfolio 7554 shares in Bluefield Solar BSIF
for 9k.
The Board has set a target dividend for the 2023/24 financial year of not less than 8.80 pence per Ordinary Share. This is expected to be covered by earnings and to be post debt amortisation.
Current yield 7.4%
I’ve sold the portfolio shares in ADIG for a loss of £57.00.
The trade was placed to make a profit on the winding up notice
but the market was already ahead of me.
The AGM is in Feb so likely to be a long and winding road.
The Trust only yields 6.9% so there are still better yields
available in the market.
JPMORGAN CHINA GROWTH & INCOME PLC (the ‘Company’)
DIVIDEND DECLARATION
Second quarterly interim dividend for the year ending 30th September 2024
The Board of JPMorgan China Growth & Income plc announces that the Company’s cum income Net Asset Value (‘NAV’) at close of business on 29th September 2023 was 276.05 pence per share. Accordingly, in line with the Company’s distribution policy, the Directors have declared that a second quarterly interim dividend of 2.76 pence per share for the year ending 30th September 2024 will be paid on 1st March 2024 to shareholders on the register at the close of business on 19th January 2024. The ex-dividend date will be 18th January 2024.
TRUSTS
Property 3
Loans 3
Equity 2
Diversified Income 1
Renewables 1 (overweight)
Results analysis: BlackRock Income and Growth
Kepler
BRIG is trading at a wide discount versus its five-year history which could be an attractive entry point for long-term investors…
Overview
Adam Avigdori and David Goldman have managed BlackRock Income & Growth Investment Trust (BRIG) since April 2012 and July 2017, respectively. Over this time, they have constructed a well-diversified, yet concentrated portfolio of around 40 stocks, reflecting their best ideas. Both managers are avid stock pickers driven by bottom-up fundamental research and remain steadfast in their investment process, refusing to change what they look for based on the latest market trend.
The managers will avoid deep value stocks, i.e. businesses that are cheap for a good reason, and unprofitable growth companies. Instead, they want to invest in businesses that they feel showcase strong balance sheets, sustainable free cash flows, discipline in capital allocation and an adherence to their ESG values, which is what delivers a higher quality bias (see Portfolio section). They view any potential and current investments under three categories, allocating roughly 70% of the portfolio to ‘income’ generators, featuring companies with sustainably high free cash flows and a growing dividend, 20% towards ‘growth’ companies and the remaining 10% to ‘turnaround’ opportunities.
BRIG has marginally outperformed the FTSE All-Share Index over the past five years, buoyed by its bias towards quality stocks, and more recently, some exposure to value stocks . However, there have been periods where performance has lagged, largely when style factors have solely driven the market, like the growth rally we experienced during the pandemic.
BRIG’s strong revenue reserves allowed it to maintain its dividends throughout the pandemic. The trust trades on a discount of 13.7%, wider than average for the sector.
Analyst’s View
We believe BRIG offers a differentiated approach to growth and income investing. The managers avoid sector or style biases, allowing for flexibility in portfolio construction when market conditions change, and their focus on quality companies, coupled with a more cautious approach to gearing, provides a defensive element to the portfolio. The total return focus means that BRIG does not pay as high dividends as others in the sector, but we believe that its focus on dividend and capital growth should be attractive to long-term investors.
BRIG’s performance was strong at the beginning of Adam’s tenure, but amidst a volatile macro backdrop over the last five years it has struggled a bit. The investment process reflects a more balanced factor approach than most peers in the sector, meaning it’s not strongly tilted to either growth or value. Over the last five years, we’ve experienced some significant rotations in style, whereby market performance has been led by either growth or value stocks, which has meant the trust underperformed the sector. That said, having a more balanced approach than some peers has meant it has delivered better relative performance more recently and over the long term. We would argue that it could be a good way to invest in troubled market environments where value and growth rotations are no longer driving performance, but quality is more important. BRIG’s discount is much wider than its historical average, so if performance continues, it could lead to the discount narrowing. This would provide investors with an extra kicker to returns and therefore could make it a compelling investment proposition for patient investors looking for exposure to the UK market.
Bull
- A higher dividend yield than the benchmark, coupled with growth prospects
- Wider than average discount could present an attractive long-term entry point for investors
- Portfolio’s quality and value investments have done well amidst the style rotation away from growth
Bear
- Higher level of gearing can magnify losses on the downside
- Small trust size limits institutional investors and liquidity
- Having a more balanced approach to style factors could mean it lags peers when either growth or value drives market performance