A trader would buy a tracker VWRL or similar with an historic ARR of 7% and keep everything crossed the market hasn’t crashed before 2028 when they need their money. The choice my friend is yours.

KEY INFORMATION

ISINGB0002404191TIDMTR28ExchangeLSEPar Value £100Maturity Date7/12/2028 Coupons per year2 Next coupon date7/6/24 Coupon 6%Income Yield 5.54% Gross redemption yield 4.10% Accrued interest 206.56p Dirty Price£110.04

U would like to invest your cash to earn some interest, u need the cash for a special reason at the end of 2028 and therefore cannot risk losing the capital but u would like the interest to re-invest in your Snowball.

Most Government debt (gilts) can be bought thru your broker, AJ Bell charges £5 and u just need to leave an order, which is filled very quickly.

The yield u will receive is 5.54% but u have to pay the holder for the accrued dividend, so the redemption yield is 4.1%.

Next payment 7 June. If u hold to redemption, u don’t need to do anything as the money will be paid into your account. Nearer the redemption date u could probably sell in the market for most of the redemption value. Interest tax free if held within a tax free wrapper. If u wanted to achieve a blended yield of 7% u would need to pair trade it with similar to RECI.

How I’d use the Warren Buffett method to aim for £310 in monthly passive income

Story by Christopher Ruane

Earning money without working for it is not as difficult as it might at first sound. By buying shares in well-known companies, for example, I can earn passive income in the form of dividends. If I wanted to try and generate some such income in 2024 and beyond, I would apply some investing lessons from billionaire Warren Buffett.

Starting affordably
When Warren Buffett was a schoolboy, he did not wait to begin investing.

Rather than sitting on his hands until he had more money or experience, Buffett made his first stock purchase on a small scale and grew his portfolio from there.

I would do the same, beginning to invest in a way that made sense for my current financial circumstances.

Compounding dividends
If I wanted to earn £310 per month in dividends, how much would I need to invest?
That depends on the average dividend yield I earned. If I could achieve an average yield of 8%, for example, I would need to invest £46,500.

But that does not mean I need to start investing with that much. In fact I could start with nothing and work my way towards the goal over the long term.

Warren Buffett is certainly a long-term investor. He also uses a technique I think could help me grow the amount I have to invest over time. That is known as compounding, which basically means reinvesting dividends in more shares rather than taking them out as cash.

If I invested £500 each month in shares yielding 8%, for example, I would hit my £310 monthly passive income target after eight years. But simply by compounding my dividends I would hit it after six years.

It is no coincidence that Warren Buffett reinvests the earnings his company makes rather than paying them out to shareholders as dividends.

Going for quality
Is an 8% dividend yield achievable?

It is and is currently offered by FTSE 100 shares like M&G. Some, like British American Tobacco and Vodafone, even offer a higher yield.

But Warren Buffett did not get rich by picking shares only for their yield. After all, no dividend is ever guaranteed to last. Instead, he looks for great businesses selling for what he thinks is an attractive price.

The sorts of shares that are appropriate for Warren Buffett might not make sense for me. He has his own circle of competence when it comes to assessing shares to buy and, like everyone, I also have my own.

But I think the Buffett method could be right for me.

Focussing first and foremost on buying into brilliant businesses at good prices, I could hopefully set up growing passive income streams for years to come. If the businesses do well and I have not overpaid for the shares, I might also benefit from the potential for capital growth.

The plan is to invest 100k to earn a ‘pension of between 14 and 16k and retain all the capital.

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

Let’s be kind and use the figure of 4k, u would need a fund of 400k to buy
an annuity of 16k pa and u would have to donate all your capital to a pension provider.

If u intend to follow the 4% rule u would also need a fund of 400k but u would retain the capital.
It’s madness to me but u may have a different opinion, different strokes for different folks.

One fact is that if u invest 100k in a tracker u will not have a fund of 400k after tenyears, so GL if that’s your strategy as u will need it.

Real Estate Credit Investments Limited

Investment Manager Fact Sheet

Real Estate Credit Investments Limited (the “Company”), a non-cellular company incorporated in Guernsey, is pleased to announce that its Investment Manager’s monthly Fact Sheet as at 31 March 2024 is now available on the Company’s website.

As at 31 March 2024, the Company was invested in a diversified portfolio of 31 investments with a valuation of £304.8m.
–	An interim dividend of 3p per share was declared on 22 February 2024, to be paid to shareholders on the register at the close of business on 15 March 2024; the ex-dividend date was 14 March and it was paid on 5 April.
–	During March, RECI was fully repaid at par its position in a senior facility for a UK industrial site development. RECI received net proceeds of c.£12m and achieved an IRR of 9.2% for a deal with an LTV at inception of 59.3%.
–	RECI continues to use its cash to invest in its existing commitments in highly accretive wider opportunities in senior mortgage lending.
–	Cash Balance as at 31 March 2024 was £23.9m. Net effective leverage currently stands at 1.2%.

Current portfolio holding yielding 10.5% trading at a discount to NAV of 20%. A strong hold as the loans are secured against property.

Getting rich slowly.
To sum up then, my strategy is to invest money regularly into quality income Trusts by reinvesting my dividends along the way. This will add fuel to the fire.

Once this pot is hopefully large enough, I’ll live off the passive income my dividend stocks pay each year. As I want the dividends to provide a ‘pension’ the portfolio stocks cannot be sold so their value in ten years time is of no interest whatsoever.

by Ben McPoland

Forget buying lottery tickets! I’d rather follow Warren Buffett and build passive income
The Motley Fool

UK adults spend over £2bn on lottery games every year despite never winning. As investing legend Warren Buffett once said: “No-one wants to get rich slowly.”

Like most people, I buy the odd line. But I don’t delude myself that it’s likely to result in serious wealth (even though it could). After all, the odds of scooping the Lotto jackpot are currently 1 in 45,057,474.

Therefore, I reckon investing in dividend stocks is a far better bet long term. I can become a shareholder and instantly have a claim on part of a company’s cash flows and dividends.

No extreme luck needed!

Dividend increases
One thing Warren Buffett’s holding company Berkshire Hathaway is noted for is investing in companies likely to raise their annual dividends for many years (potentially decades).
Buffett favours strong brands that sell timeless products and services. And his ideal holding period is “forever“.

A famous example here is Berkshire’s stake in Coca-Cola, which it started accumulating in the 1980s.

Fast-forward to today, the global beverages giant has just increased its annual dividend for the 62nd consecutive year.

And Berkshire’s stake, which cost $1.3bn in total, is now returning approximately $776m each year. Or $1.3bn every 20 months. Then there’s the 1,766% share price appreciation too. Incredible.

A high-yield UK stock
One FTSE 100 stock I’ve been buying recently is insurance group Aviva (LSE: AV.).

Despite the shares rising 25% over the last six months, the dividend yield is still 6.7%. That’s well above the FTSE 100 average of 3.9%.

Now, I should point out that Aviva is no Dividend Aristocrat like Coca-Cola. Its payout record has been a bit up and down in recent years. There might be more lumpiness ahead. Or no divided at all (that’s a risk).

Plus, business could always start suffering if the economy nosedives.

Nevertheless, the forecast payouts and yields look attractive to me.

The company has been streamlining and selling off assets overseas to concentrate on its UK, Ireland and Canada markets. As a result, Aviva has strengthened its balance sheet considerably.

Its Solvency II capital ratio – a key measure used to assess financial strength – fell a little last year but remained at 207% in December. That’s excellent.

Moreover, the firm is benefitting from a boom in private health insurance. In 2023, sales here rocketed 41% year on year as NHS waiting lists hit record highs.

The figures for January showed the NHS backlog was still 7.58m cases. So Aviva could see more take-up in individual policies and businesses paying to cover their employees.

Getting rich slowly
To sum up then, my strategy is to invest money regularly into quality income stocks like Aviva and reinvest my dividends along the way. This will add fuel to the fire.

Once this pot is hopefully large enough, I’ll live off the passive income my dividend stocks pay each year.

According to historical data, the average annual return of the S&P 500 with dividends reinvested over the last 30 years is around 10.2%.

If the historical average continues (which it might not), investing as little as £75 per week could grow into £1m in just under 34 years.

I’ll take those odds every week!

The post Forget buying lottery tickets! I’d rather follow Warren Buffett and build passive income appeared first on The Motley Fool UK.

If u buy into a Trust like CTY/MRCH or other income Trusts some of the underlying shares in the Trust have been held for many years and the yield they receive is way ahead of the headline yield as with Coca Cola.

JEFFERIES RAISES PRIMARY HEALTH PROPERTIES TARGET TO 120 (110) PENCE – ‘BUY’

JEFFERIES RAISES ASSURA GROUP PRICE TARGET TO 52 (51) PENCE – ‘BUY’

Brokers targets, not something I would use to buy but a positive comment is always better than a negative comment.

THE CITY OF LONDON INVESTMENT TRUST PLC

Dividend on Ordinary Shares

The Board of The City of London Investment Trust plc announces that:

A third interim dividend of 5.25p per ordinary share of 25p, in respect of the year ending 30 June 2024, will be paid on 31 May 2024 to holders registered at the close of business on 26 April 2024. The Company’s shares will go ex-dividend on 25 April 2024.

The Board intends to declare a fourth interim dividend of 5.25p per share for the year to 30 June 2024. The fourth interim dividend will be declared in July 2024. This would make a total dividend for the year to 30 June 2024 of 20.6p per share, an increase of 2.5% on the previous year and the Company’s 58^th consecutive annual increase.

£££££££££

The current yield of the Trust is 5%, this is below the current target of the blog of 7%, so if u want to own, for the long term, one of the safest yields in the market but still want to earn a yield of 7%, u could pair trade it with another Trust yielding 9%. 50/50 or 40/60 depending on your risk tolerance and how many years before u need to start spending your dividends.

GRS but GR

How I’d aim to make millions the Warren Buffett way

Story by Cliff D’Arcy

Thanks to decades of share-buying, my wife and I had amassed enough assets to retire in 2021. But I love financial writing and she’s great at her job, so we keep working. I also know that if I’d listened to my guru Warren Buffett earlier, we’d have millions more pounds today.
Thanks to his success as an investor, Buffett’s fortune exceeds $115bn. As a committed philanthropist, he’s already donated $55bn to good causes — and plans to give away 99% of his pot.

What I’ve learned
Though I’ve read so much about Warren, it took me way too long to learn from him. Here are five ‘Buffett bullet points’ that I wish I’d absorbed earlier.

1. Don’t lose money
   Investing is as much about avoiding losers as picking winners. Boy, have I backed some flops in my time: my three worst investments cost me around £1m. If I’d not bought this trio of losers, I’d have perhaps £2m+ more now.
   My biggest failures were caused by investing too heavily in a favoured stock, so I had too much concentration risk. Never again. Today, I make sure our money is spread widely across companies, sectors and countries.
2. Bet big on America
   Buffett has repeatedly warned investors: “Never bet against America.” How I regret not taking this advice to heart when young.

Nowadays, our family wealth is heavily skewed towards the US — including our global trackers, may of which are weighted 60% to 70% towards American stocks.

3. Buy businesses, not stocks
   In my early years of investing, I behaved more like a gambler or trader than a proper investor. In this effort to ‘get rich quick’, I made many mistakes.

One fundamental Warren Buffett lesson I’ve now absorbed is to buy companies rather than shares. Now I behave like an owner by only buying into businesses that I’d be willing to own for, say, a decade. And it’s this boring, long-term approach that has delivered my best returns from investing.

4. Investing is a marathon, not a sprint
   Chasing short-term gains when I was younger probably cost me more money than any other blunder. I’d buy shares, aiming to flip them for quick profits. Surprise, surprise, this tricky tactic kept backfiring.

Warren Buffett has said: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” This is my motto today when it comes to owning shares. I only buy stocks in solid businesses run by competent managers. And like Buffett, my ideal holding period is forever.

5. Don’t let a crisis go to waste
   These days, I’m not afraid of stock-market crashes, because they give me opportunities to buy into sound businesses at rock-bottom prices. As Warren Buffett urged in October 2008: “Be fearful when others are greedy, and greedy when others are fearful.”

For example, during the Covid-19 crash of spring 2020, my wife and I poured everything into shares after the US and UK stock markets had crashed by a third. And the returns from this one brave bout of buying have been life-changing.

££££££££££££££

Here’s hoping for the next market crash.