Month: April 2024 (Page 16 of 21)

If u would like to own any of the above shares for their yield but do not have enough funds to spread the risk, one way of owning, as u wait for their share prices to rise, is to DYOR on AEI to re-invest the dividends, in whatever sector of the market that appeals to u.

Chart observations.

Price before the covid crash 420p dividend 20.5p yield 4.8%.

Price after the covid crash 210p the price halved so the dividend yield doubled. Squeaky bum time for the holders but not a time to sell. If u had sold during the crash, u could have bought back for the yield, which u should receive for as long as the Trust exists. But that is as they say is a story for a different day. If u study the chart, u will note that the price anchors just below the NAV value, so the price could increase to the NAV or vice versa. Whilst u wait for the outcome the current yield is 8%, which may remain until there are several rate cuts, which of course is not a given. Next xd date next month.

When I wrote the plan for the blog the initial yield target for the portfolio was 5%. As Investment Trust prices fell the yields rose so the current target for a blended yield is 7%.

7% is interesting because compounded it doubles your income in ten years which makes the concept easier to understand.

Investment Trusts as some have a long history of paying a gently increasing dividends as they have built up reserves within the Trust to smooth out any market crashes. They often trade at a discount to NAV as Trust prices reflects the balance from buyers and sellers, so not only can the dividends be re-invested, there is an opportunity to take profits by selling some Trusts to add to the Snowball

In fact with a dividend re-investment plan u can actually welcome falling share prices as u get more shares for your money and a higher yield.

The plan is to provide a ‘pension’ of between 14-16k, based on seed capital of 100k with no further funds to be added.

When u start to spend your dividends, u will need the portfolio shares to provide the dividends so they cannot be sold, so the value of the portfolio is of

no interest, although in time as more and more dividends are re-invested the total should also start to grow.

The plans total is not in doubt, but the timescale could slip although currently it is ahead of plan.

Also it may not be possible to add to the Snowball at a yield of 7% plus so again the timescale could slip, although there normally is a sector of Investment Trusts that is unloved.

Finally the rules for blog, there are only 2.

Buy Investment Trusts that pay a dividend to buy more Investment Trusts that pay a dividend.

If any Trust drastically alters its dividend policy the Trust must be sold

even at a loss.

Thursday 11 April

Amedeo Air Four Plus Ltd ex-dividend payment date
Balanced Commercial Property Trust Ltd ex-dividend payment date
BlackRock Latin American Investment Trust PLC ex-dividend payment date
Capital & Regional PLC ex-dividend payment date
CT Private Equity Trust PLC ex-dividend payment date
Downing Strategic Micro-Cap Investments Trust PLC ex-dividend payment date
F&C Investment Trust PLC ex-dividend payment date
International Personal Finance PLC ex-dividend payment date
International Public Partnerships Ltd ex-dividend payment date
JPMorgan Asia Growth & Income PLC ex-dividend payment date
JPMorgan Japan Small Cap Growth & Income PLC ex-dividend payment date
Lloyds Banking Group PLC ex-dividend payment date
Lowland Investment Cos PLC ex-dividend payment date
Luceco PLC ex-dividend payment date
Man Group PLC ex-dividend payment date
Manchester & London Investment Trust PLC ex-dividend payment date
Marble Point Loan Financing Ltd ex-dividend payment date
Mercantile Investment Trust PLC ex-dividend payment date
Mobius Investment Trust PLC ex-dividend payment date
North American Income Trust PLC ex-dividend payment date
Savills PLC ex-dividend payment date
Schroder Asian Total Return Investment Cos PLC ex-dividend payment date
Schroder European Real Estate Investment Trust PLC ex-dividend payment date
Supermarket Income REIT PLC ex-dividend payment date

VPC Specialty Lending Investments PLC

Initial Return of Capital through the B Share Scheme

Shareholders in VPC Specialty Lending Investments plc (the “Company“) approved the B Share Scheme at a general meeting of the Company held on 5 April 2024 (the “General Meeting“). Following that approval the Company is announcing an initial return of Capital via the B Share Scheme.  

The Company’s managed wind-down investment policy was approved by shareholders in June 2023. In the six months ending 31 March 2024, as indicated in the monthly updates, the Company has made progress in realising value both through debt repayments and the sale of equity securities, raising a total of approximately $58 million. As noted in the updates, these proceeds were applied in part to paydown the Company’s gearing facility which, over the same period, was reduced by approximately $41 million. These repayments have reduced the Company’s gearing to around $43 million, from $84 million as at 1 October 2023 and the gearing ratio has declined from 0.27x to 0.15x. Shareholders should note the gearing ratio could fluctuate as the Company progresses the managed wind-down.

After taking into account the contractually required reduction to the Company’s gearing facility as well as preserving liquidity for foreign exchange hedging and working capital requirements, the Board has decided to make an initial distribution to shareholders of $15 million, equivalent to approximately £11.9 million as at the date of release, through the issue and redemption of B Shares. The capital to be returned represents approximately 5.12 per cent. of the Company’s Net Asset Value as at 31 January 2024.

Pursuant to the authority received from shareholders at the General Meeting B Shares of 1 penny each will be paid up out of the reserves of the Company and issued to all Shareholders by way of a bonus issue pro-rata to their holding of Ordinary Shares held at the Record Date of 6p.m. on 18 April 2024. The B Shares will be issued on 19 April 2024 and redeemed at 1 penny per B Share. The Redemption Date in respect of this initial return of capital is 25 April 2024. The proceeds from the redemption of the B Shares will be sent to uncertificated Shareholders through CREST or via cheque to certificated Shareholders on or around 10 May 2024.

Shareholders are reminded that the issue of B Shares will not reduce the number of the Company’s ordinary shares in issue. However, following the issue and redemption of B Shares, the NAV (and NAV per ordinary share) will be reduced by the total amount of capital returned and the share price is likely to reflect the reduction in NAV. The pence per ordinary share amount of any dividends is therefore expected to reduce as a consequence of the reduction in NAV and, over time, through the changing composition of the portfolio.

The Company will continue to realise value from its debt and equity positions and will allocate the proceeds as between the repayment of the Company’s borrowings and further returns of capital using the B Share Scheme, and taking into account the foreign exchange and other working capital needs of the Company. We are not able to specify the timing and amount of future returns, which will continue to depend on the repayment of the Company’s debt assets as well as the sale of other securities. One of the advantages of the B Share Scheme is that now it is in place, returns of capital can be made to shareholders on a more cost-effective basis than through a tender offer. This would allow for smaller and potentially more frequent returns to be made.

Terms used and not defined in this announcement have the meanings given to them in the circular to the Company’s shareholders dated 15 March 2024.

Timetable

It is expected that the timetable will be as follows:

Even with a Trust which is out favour, for whatever reason, usually has its day in the sun. U will be able to recognise this because as the price rises the yield falls, then it’s time to take some money off the table and re-invest in a higher yielder. If u had bought around the covid low u would have doubled your money, with dividends re-invested.

During the 2023 Santa rally, u could have taken out your capital and re-invested in another high yielder to grow the Snowball.

The Trust has been disappointing since but a great opportunity to start re-investing the dividends and do it all over again.

GRS

Trying to go higher but still very trying.

Still yielding 8%, so it’s just watching and waiting.

Yielding over 6%, is this the best FTSE REIT for juicy passive income?
By Sumayya Mansoor
The Motley Fool

Real estate investment trusts (REITs) are generally viewed as attractive passive income stocks.

What is a REIT?
A REIT is a property business that builds, operates, manages, and rents buildings out to make money from them. These firms are set up in a certain way that allows tax breaks from the government.

In exchange for these tax breaks, the business must return 90% of profits to shareholders. This is the main reason why dividend seekers like them.
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.
I must admit I already own a few of these types of stocks as part of my holdings.

Properties in a REIT can cover a wide breadth of industries. Some have diversified interests, and others focus on one sector. Examples of industries include rental homes for the public, healthcare properties for the NHS, storage and warehousing facilities for e-commerce giants, retail parks, office blocks for businesses, student accommodation, and more.

Best around?
British Land (LSE: BLND) is one of the largest and oldest REITs on the FTSE.

The business is one example of a REIT that possesses a layer of diversification. It owns a number of different types of properties. Some examples include office blocks and retail parks.

Macroeconomic volatility has hurt many property stocks, due to higher interest rates and inflationary pressures. So, it’s no surprise to see the shares haven’t progressed over a 12-month period and are up less than 1%. At this time last year, they were trading for 382p, compared to 383p at present.


I like the stock for a few reasons. Firstly, the layer of diversification is a positive, as it means one burgeoning segment could offset weaker ones that are struggling. I’ve found that a lot of REITs focus on one area only.

Next, its sheer size, as well as long track record, are positive for me. The business has been around a long time, and knows a thing or two about navigating a tough economic picture. However, I’m conscious that past performance is not an indicator of the future.

Moving on, the passive income opportunity looks enticing, offering a dividend yield of over 6%. However, I do understand that dividends are never guaranteed.

Finally, the shares look decent value for money to me on a price-to-earnings ratio of just over 12.

Risks and final thoughts
Despite my bullishness, there are risks that could derail British Land. Higher interest rates are hurting property values, and in turn, its share price and sentiment.

Next, some of its segments are under pressure. For example, office blocks are being hurt by working from home trends, and retail parks are under pressure from online shopping trends continuing to soar. I’ll keep an eye on these issues, and see how they impact performance and returns.
The firm’s market position, income prospects, and diversification are plus points. Furthermore, the business has an average lease of close to five years, and an occupancy rate of over 96%. These aspects could help keep performance stable to deliver consistent returns.

I’d definitely be willing to buy some British Land shares when I next can.

The portfolio is not entitled to the dividend from Assura as the position was bought after the xd date.

In the income portfolio, I’d highlight JPMorgan Global Growth and Income’s latest six- month numbers which showed NAV up 9.2% on a total return basis in Sterling, outperforming the 7.0% return from the MSCI AC World Index. Numis analysts noted that the “outperformance was particularly impressive in 2023 given market performance was driven by a small number of US tech stocks, and the approach (of the JPMorgan fund) seeks to combine ideas in both “growth” and “value” styles”.