Month: April 2024 (Page 19 of 21)

The Company expects to make an announcement in connection with an initial return of capital using the B Share Scheme next week.

Enquiries:

The Motley Fool

Story by Zaven Boyrazian MSc

Building a passive income stream is arguably one of the most common financial goals. After all, who doesn’t love the idea of making money without having to lift a finger.

There are lots of different ways to get started tackling this objective. But most, such as starting a business or becoming a real estate mogul, require considerable starting capital. Investing in the stock market is slightly different.
It’s true investors will still need a large portfolio to make any meaningful income. But the journey to get there can be launched with just £25 a week.

Here’s how.

Building passive income from scratch
To kick off an income portfolio, an investor first needs money to make their first purchase. Fortunately, we live in a time of technological and financial innovation where the cost of buying and selling stocks is extremely low, from as little as £5 per transaction.
But even at this level, if I’m consistently investing £25 a week, it creates a problem. That’s because £5 out of £25 is 20%. In other words, I would need to generate a 20% return on investment before breaking even. So clearly, a smarter approach is needed.

Instead of investing money each week, let’s put it into a savings account until a more substantial sum has been accumulated. A benefit of the recent interest rate hikes is that many savings accounts are currently offering around 4% interest, so investors can still earn while building a lump sum of capital.
After about three months, investors will have around £325 saved up (excluding any interest earned). And now, to break even, a passive income investment only needs to generate a 1.5% return – far easier to achieve.

Finding the right dividend stocks
Since the objective is focused on income rather than growth, dividend stocks will likely be the ideal investment target. These are companies that have typically reached a state of industry maturity.

As such, they’re not likely to deliver skyrocketing share price gains. But they also have a habit of returning excess generated cash to shareholders via a dividend. And in the long run, this can more than make up for it.

Dividend stocks exist in almost every industry, giving investors plenty of room to diversify. However, it’s essential to understand that dividends, unlike interest payments on debt, are not mandatory. These are optional payments made at the discretion of the management team. And consequently, there are countless examples of firms cutting or suspending shareholder payouts.

Needless to say, a dividend cut will be bad news for a passive income portfolio. So how can investors avoid this situation? There’s always an element of risk when it comes to investing. And sometimes companies can become disrupted through no fault of their own – just look at travel stocks in 2020.

However, the risk of being exposed to a dividend cut can be mitigated by carefully examining a business’s cash flow. This is what ultimately funds shareholder pay outs. And dividends often follow if a group has a consistent track record of expanding revenue and earnings.

Generally

Above the cloud the sun is shining.

Below the cloud it’s raining on your portfolio.

There is £2,023 cash for re-investment to grow the snowball but it’s not going to be re-invested today.

If u have limited funds, u may want to build up your cash resources by investing in Growth and Income Trusts.

As always timing is more important than time in and it may be better

to have a higher yield, in case u buy at the wrong time.

JGGI

Dividend Policy

The Company’s dividend policy has now been in place since 2016. As a reminder, the dividend policy aims to pay, in the absence of unforeseen circumstances, dividends totalling at least 4% of the NAV of the Company as at the end of the preceding financial year. Where, in the view of the Board, the target dividend is likely to result in a dividend yield that is materially out of line with the wider market, the Board may choose to set the target dividend at a different level that is more in-line with the wider market and other global income trusts and funds.

U may wish to buy JGGI for its potential growth profile but is below the blogs current recommended yield of 7%.

U could split your investment between JGGI and NESF (other Trusts are available DYOR) with the chance of capital growth and an income stream for re-investment.

Now that the portfolio dividends have been declared for payment

in May, the income figure will be £4,260.00.

Which means we are on track for the target of 9k of income

for re-investment.

The fcast remains at 8k.

The 10 year plan for the blog is income of between 14-16k, which

will be achieved but although we are ahead of the plan, the unknown

is within ten years.

Stick to your task until it sticks to u.

SUPERMARKET INCOME REIT PLC  

  

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 January 2024 to 31 March 2024 of 1.515 pence per ordinary share (the “Third Quarterly Dividend”).

The Third Quarterly Dividend will be paid on or around 16 May 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 April 2024. The ex-dividend date will be 11 April 2024.

U may want to save for a special event, maybe a special holiday

or similar, on a specific date and can’t take the risk of the market

crashing just before u need the cash.

Summary for 0 3/8% Treasury 2026

KEY INFORMATION

26A Exchange LSE Par Value£100 Maturity Date22/10/2026 Coupon per year2 Next coupon date22/4/24 e Coupon 0.375%Income Yield0.41% Gross redemption yield 4.13% Accrued interest16.7p Dirty Price£91.15

U want a guaranteed amount of 5k.

U buy 50 units for £4,558.00 and on the 22/10/26 u will receive 5k.

All capital gains are tax free, tax has to be paid on any interest but

here income is negligible. Most brokers allow u to leave an order to buy and

AJ Bell charges £5.00.

U can most probably get a better yield at the present time but when

interest rates start to fall, u will have locked in a better rate.

U can also sell in the market closer to the maturity date to receive

most of the profit.

A bird in the hand is worth two in the bush.

A positive sign.