Investment Trust Dividends
I’ve sold the portfolio shares in Assura for a £200.00 profit after all charges.
The UK market is showing surprising strength, so I’ve owned up to my mistake and bought back AIE Abrdn Equity 2810 shares for 9k.
Current yield 7.1% trading at a discount to NAV of 6%.
Current cash for re-investment £516.00
The blog portfolio received £11,072.00 of dividends for the tax year just finished.
For anyone who wants to compound for the long term.
11k compounded at
7% for 20 years equals £42k per year.
7% for 25 years equals £68k per year.
That’s why lifestyling is a very poor idea, poor being the operative word.
Dividends for the blog portfolio expected at the halfway point £5393.
Month 7, July is the best month for dividend hunters, for this portfolio anyway.
If we add the expected dividends for month 7 and then month 10 £3,332.00.
Total £8,725.00
The blog portfolio will have achieved its fcast, better to under fcast and then outperform. That leaves a bit of wiggle room to either beat the fcast or achieve the target.
The Telegraph thinks Fidelity European can continue to deliver in the years ahead while Shares Magazine says Scottish American provides an opportunity to pick up high-quality assets on the cheap.
ByFrank Buhagiar•14 May, 2024•
Questor: Loyalty to this outperforming trust is poised to be rewarded
Can you name an equity investment company that delivered a 17% capital return over the past year – oh and the fund does not hold any of the Magnificent 7 megatechies? Answer: none other than Fidelity European (FEV), the outperforming trust in the above-titled Questor Column. And the outperformance is no one-off. According to The Telegraph tipster, which first recommended the trust in April 2023, FEV has generated a 100% total return over the last five years, outperforming the FTSE World Europe ex-UK index’s 64% with room to spare.
And with interest rates cuts on the near-term horizon and the economic outlook improving across the region – the International Monetary Fund (IMF) is pencilling 0.8% growth for the Eurozone economy this year and 1.5% for 2025 – Questor believes FEV is well placed to continue delivering in the years ahead.
Not that FEV necessarily needs Europe to pick up as a large number of the companies the fund invests in are global players. There’s healthcare’s poster child Novo-Nordisk, for example, semiconductor co. ASML and consumer goods giant Nestle. The trust is therefore not overly dependent on the prospects for the European economy. The article does note FEV’s high level of concentration – the top-ten holdings account for nearly half of the portfolio – high concentration can lead to high share price volatility. Questor is not put off though. It says this is ‘a price well worth paying for the prospect of continued index outperformance. Questor says: buy.’
Take advantage of Scottish American’s discount to NAV to pick up quality companies on the cheap
Shares Magazine gives Scottish American (SAIN) or SAINTS the once over and likes what it sees. Firstly, shares in the Ballie Gifford run global equity income fund can be bought at a discount to net assets – the shares are currently trading at an 8% discount. That means investors can gain exposure to a portfolio of ‘high-quality assets on the cheap’. High-quality assets? As at 29 February 2024, SAIN’s top-ten holdings included the likes of Novo Nordisk, Microsoft and Taiwan Semiconductor.
The above holdings are the product of the fund’s strategy which is to identify and invest in stocks that generate steady long-term growth and dividends. It’s an approach that has worked well for legendary investor Warren Buffett. And one that has worked well for SAIN in the past. Over the last 10 years, SAIN has delivered a +12.4% compound annual return. If that’s not enough, there’s always the fund’s track record of dividend growth. ‘2023 saw the trust deliver its 50th consecutive dividend increase.‘ In terms of dividends at least, the SAINTS go marching on.
Do I post on Twitter
£££££££££
No, as some articles that interest me are too long for X
The first estimate for the figure at the half year stage of dividends received is
£5,393.00
Some dividends still to be declared, so there could be some slippage but The Snowball is on Target (9k), the fcast remains 8k.
NextEnergy Solar Fund Limited
Interim Dividend Declaration
NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, is pleased to announce its fourth interim dividend of 2.09 pence per Ordinary Share for the quarter ended 31 March 2024, in line with its previously stated target of paying dividends of 8.35p for the year ended 31 March 2024.
The interim dividend of 2.09 pence will be paid on 28 June 2024 to shareholders on the register as at the close of business on 24 May 2024. The ex-dividend date is 23 May 2024.
£££££££££££££££
RBC CUTS NEXTENERGY SOLAR FUND PRICE TARGET TO 105 (110) PENCE – ‘OUTPERFORM’
NextEnergy Solar Fund Limited
(“NESF” or the “Company”)
Unaudited Quarterly Net Asset Value & Operational Update
NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, announces its unaudited Q4 Net Asset Value (“NAV”) and operational update for the period ended 31 March 2024.
Key Highlights
Financial:
· NAV per ordinary share of 104.7p (31 December 2023: 107.7p).
· Ordinary shareholders’ NAV of £618.6m (31 December 2023: £636.4m).
· Total gearing (including preference shares) of 46.4% (31 December 2023: 45.7%).
· Financial debt gearing (excluding preference shares) of 29.3% (31 December 2023: 28.8%).
· Weighted average cost of capital of 6.4% (31 December 2023: 6.4%).
· Weighted average cost of debt of 4.5% including preference shares (31 December 2023: 4.4%).
· Weighted average discount rate across the portfolio of 8.1%1 (31 December 2023: 8.0%).
Dividend:
· Total dividends declared of 8.35p per ordinary share for the twelve months ended 31 March 2024 (31 March 2023: 7.52p).
· Dividend cover for the twelve months ended 31 March 2024 was 1.3x (31 March 2023: 1.4x).
· Announced target dividend of 8.43p per ordinary share for the year ending 31 March 2025.
· Attractive high dividend yield of c.11%, as at closing share price on 14 May 2024.
· Forecasted target dividend cover of between 1.1x-1.3x for the year ending 31 March 2025.
· Total ordinary dividends declared since IPO of £345m or 67.8p per ordinary share.
Portfolio:
· Maiden 50MW standalone energy storage asset (“Camilla”) achieved commercial operation.
· Energised two international solar co-investments totalling 260MW alongside NextPower III ESG (“Santarém and Agenor”).
· Increased portfolio size to 103 operating assets (31 December 2023: 100).
· Reached 1GW installed capacity milestone with 1,015MW (31 December 2023: 933MW2).
· Remaining weighted asset life of 25.9 years (31 December 2023: 26.1 years).
£20,000 in cash? Here’s how I’d aim to unlock a £15,025 annual second income
By Ben McPoland
The Motley Fool
How nice would it be to have a solid second income passively rolling in one day?
While this remains a dream for many people, some have already made it a reality. And the great news for UK investors is that it can be achieved tax-free through a Stocks and Shares ISA.
If I had £20k sitting idle today, here’s how I’d invest it to target an eye-catching second income down the road.
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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
Taking action
To get the ball rolling, I’d stick this cash into a Stocks and Shares ISA rather than a Cash ISA. The reason is that while Cash ISA returns are guaranteed, the average return from the stock market easily beats cash over the long run.
A Stocks and Shares ISA gives me almost endless investing options. I could put my money behind shares like Facebook-owner Meta Platforms or Amazon.
Or UK dividend stocks such as Lloyds, Tesco and HSBC. These regularly dish out a portion of their profits to shareholders
For diversification, I could buy exchange-traded funds or investment trusts. These would give me instant exposure to many stocks in one fell swoop.
A UK share I like
So, one route is to let a professional manager invest for me. I don’t mean visiting one in an office. I’m talking about investing in funds run by professionals who do the stock-picking.
If I were starting out, one FTSE 250 option I’d consider is Baillie Gifford US Growth Trust (LSE: USA).
As the name implies, this is a trust that invests in US-listed growth stocks. Some of these will be familiar, such as artificial intelligence leader Nvidia and streaming giant Netflix, but some are more obscure.
Yet that’s the point. I’m trusting the managers to pick a portfolio of (mainly) winners, to help drive returns. Some will be hidden gems, hopefully.
What I particularly like here is that the portfolio has a number of exceptional private companies. Indeed, the top holding today (with about a 7% weighting) is SpaceX, Elon Musk’s unlisted space exploration firm.
The company has pioneered reusable rockets, which has significantly reduced launch costs. This allows it to offer competitive pricing for satellite launches and other space missions.
The firm has just put its 5,999th Starlink satellite into orbit, and this was the 307th time SpaceX has landed its rocket booster.
Reports suggest revenue at Starlink, its direct-to-consumer satellite internet system, will jump to around $6.6bn this year, up from just $1.4bn in 2022.
Finally, Baillie Gifford US Growth is currently trading at a 10% discount to the net asset value of its underlying investments. In retrospect, this might prove to be a bargain.
The path to £15,025
Now, despite my enthusiasm, growth stocks can be very volatile. Using rocket metaphors, they have a tendency to either crash and burn or go to the moon. Underperformance is a risk
However, assuming a portfolio of stocks like this collectively returned an average of 8.5% a year, my £20k would grow to £231,165 after 30 years. This is with any dividends reinvested.
At this point, if I switched entirely to dividend stocks yielding an average 6.5%, I’d receive annual passive income of £15,025.
That’s without adding another penny beyond platforms fees. However, if I regularly invested along the way, the final figures would obviously be much higher.
The post £20,000 in cash? Here’s how I’d aim to unlock a £15,025 annual second income appeared first on The Motley Fool UK.
© 2025 Passive Income
Theme by Anders Noren — Up ↑