Month: January 2024 (Page 8 of 20)

Chart of the day

January 22, 2024 / admin / 6 Comments

BSIF

Compounding

January 22, 2024 / admin / 5 Comments

The Motley Fool

If I invest £10,000 in National Grid shares, how much passive income would I receive?

The London Stock Exchange contains dozens of high-yield dividend shares. These are stocks that pay above the 4% average yield. All have the potential to generate reliable passive income for my portfolio.

One of the most popular FTSE 100 dividend stocks is National Grid (LSE: NG). Its regulated monopoly status has helped it pay rising income for nearly 30 years.

The stock is part of my own portfolio. And it’s one of only a handful of income shares in which I feel comfortable reinvesting the dividends. In other words, buying more shares with the payouts I get, which fuels compound returns.

But what if I had £10,000 to invest in the stock right now and wanted passive income? How much could I expect to receive? Let’s find out.
Solid track record
Today, the National Grid share price is 1,023p (or £10.23 per share). That’s nearly 30% higher than it was five years ago, which means it has comfortably outperformed the wider FTSE 100 index.

The company even kept the dividends flowing to shareholders during the pandemic.

In November, it reported a first-half underlying operating profit of £1.8bn, which was down 15% year on year but in line with expectations. The full-year results are due in May.

The stock carries a forecast dividend yield of 5.8% for the next 12 months. This means I’d expect to receive passive income of around £580 from a £10,000 investment.

Slow and steady
National Grid manages most of the UK’s flow of electricity and gas, thereby ensuring a reliable and secure supply of energy to homes and businesses.

It makes money primarily through charging fees to electricity generators, distributors, and large industrial consumers for using this transmission infrastructure. But it is restricted by regulations in how much it can charge customers.

Therefore, as we saw in the table above, the annual dividend increases are slow and steady rather than high growth. However, the utility giant’s payments are incredibly reliable. This is why I value them in my income portfolio.

I also like that the share price does tend to trend higher over time, unlike some other income stocks, including many banks and telecoms.

Of course, past performance is no guide to the future, but I do prefer to hold stocks that investors haven’t ran a mile from for multiple years.

Energy transition
National Grid is currently investing huge sums — £42bn over the next few years — to decarbonise the network. Part of this has seen it pivot towards electricity by selling off some gas transmission network assets.

But there are still massive multi-year logjams for renewable energy projects to be connected to the grid. This is threatening the government’s plan to run the grid entirely on clean electricity by 2035.

Meanwhile, the firm already has net debt of £44bn. This is manageable for now, but if capital expenditure keeps going up, this could become a risk to the dividend.

On balance, though, I value the defensive qualities the share offers my portfolio. No dividend is ever certain to be paid, but I’d be very surprised if this stock missed a beat.

Addition to the SNOWBALL

January 22, 2024 / admin / 0 Comments

I have bought for the portfolio 470 shares in HFEL

ahead of this week’s xd date for 1k.

Warehouse REIT

January 22, 2024 / admin / 7 Comments

Warehouse REIT plc

Third quarter leasing update

Continued leasing momentum with 0.9m sq ft of activity, 22.1% ahead of previous rents

Warehouse REIT, the multi-let industrial warehouse investor, is pleased to report a strong quarter of leasing activity for the three months to 31 December 2023. This reflects the resilience of the UK multi-let warehouse sector as well as our active asset management focused on capturing reversion across our 8 million sq ft portfolio, which is a key priority for the year.

During the period, the Company completed 0.9m sq ft of leasing activity, securing £5.2 million of contracted rent, on average 22.1% ahead of previous contracted rent, comprising:

· 15 new lettings, 33.2% ahead of previous contracted rent, 8.4% ahead of March ERV

· 16 renewals, 38.2% ahead of previous contracted rent, 9.8% ahead of March ERV

· 6 rent reviews, 13.7% ahead of previous contracted rent, 1.4% ahead of March ERV

Notable deals included:

· A new lease to a leading UK intralogistics business at Bradwell Abbey in Milton Keynes generating £97,000, 10.5% ahead of March ERV;

· A renewal to a thermoplastics business at Kingsland Grange, Warrington at a new rent of £498,000, 42.3% ahead of previous contracted rent;

· A renewal to a tile business at Matrix Park, Chorley at a rent of £320,500, 22.7% ahead of previous contracted rent;

· A rent review to a precision manufacturer of machines for the oil and gas industry, at a new rent of £55,000, 57.1% ahead of previous contracted rent.

Nine months performance

This brings total leasing activity for the nine months to 31 December 2023 to 1.4 million sq ft, on average 26.9% ahead of previous contracted rent. It demonstrates good progress against our objectives, with £1.2 million of reversion captured, equivalent to 0.3 pence per share on an annualised basis. Total rent attributable to these transactions is £8.5 million and the like-for-like contracted rental growth for the nine month period is 3.7%, significantly ahead of a healthy half year rate of 1.7%.

Simon Hope, Co-Managing Director of Tilstone Partners, Investment Advisor to Warehouse REIT commented: “This pace of activity demonstrates that the market for affordable, well-located, multi-let industrial space is holding up well. Deals have been agreed well ahead of prior rents and the portfolio is successfully appealing to more higher value occupiers from a wide variety of sectors. The Warehouse REIT portfolio was 11.7% reversionary at half year and this good performance demonstrates great progress capturing that upside.”