The emotional benefits of dividend re-investment.
In fact, with this investment strategy you can actually welcome falling share prices.
Maybe you should, that is, if you don’t have a dividend re-investment plan.
Month: April 2025 (Page 10 of 12)
I’ve sold the Snowball shares in RECI for a profit £772.25, with the aim to buyback at a higher yield.
I’ve sold the Snowball shares in SERE for a loss of £317.97 and a total profit of £542.68, as there may be more interesting opportunities in the market one day, but one day is not today.
Not Meerkats but Markets.
If you think the dividends are ‘secure’, although no dividend is completely secure and you are content with the dividends for the long time, buy the yield. You will only buy at the bottom of the market by luck, so don’t spend a lot of time trying.
With markets falling out of bed the above shares have been removed from the Watch List on a risk/reward basis.
Most popular trusts
There were only two new additions to the list of bestselling trusts in March – City of London and JP Morgan European Growth & Income.
“One of those new entries, City of London, is no stranger to the top 10,” said Kyle Caldwell, funds and investment education editor at Interactive Investor. “It is managed by veteran fund manager Job Curtis, and this ‘Steady Eddie’ investment trust is a reliable dividend payer, having increased payouts each year since 1966.”
The City of London trust primarily holds FTSE 100 companies.
“In contrast, the other new entry, JP Morgan European Growth & Income, has never appeared in the top 10 since we started compiling the rankings in 2018,” Caldwell said.
The JP Morgan trust invests in Europe and, as Caldwell points out, the region has had a good year so far in 2025. Many European companies look cheap, compared to their US counterparts. Some investors have been switching from one market to the other in light of recent volatility in the US.
Bestselling trusts in March
- Scottish Mortgage
- Greencoat UK Wind
- JP Morgan Global Growth & Income
- Alliance Witan
- City of London
- F&C Investment Trust
- Allianz Technology
- JP Morgan European Growth & Income
- 3i Group
- The Renewables Infrastructure Group
Source: Interactive Investor.
There are three end destinations for your plan, when you reach retirement and want to spend some of your hard earned.
One. Use your fund to buy an annuity, not a good option for your retirement as you have to surrender all your capital
Two. Using a TR plan you use the 4% rule to fund your retirement.
Three. Use a dividend re-investment plan and use the dividend stream to fund your retirement and access your capital if an unexpected emergency occurs.
The Snowball uses a 100k of seed capital and the dividends are re-invested.
The scores on the doors.
The current 2025 fcast for the Snowball £9,120.00
The control share for a TR plan is VWRP, the current value would be
118k and using the 4% rule would provide income of £4,720
VWRP could be higher or lower at the year end but remember with compound interest the gains accelerate every year you re-invest in your plan.
Any readers with time on there side may wish to have two pots, TR and a dividend re-investment pot and the earned dividends could be re-invested in either pot. Similarly if the TR pot was re-balanced any gains could be re-invested in the dividend pot. That depends on whether you are a gambler or an investor.
I’ve bought 2106 shares in SEIT for 1k.
Belt and Braces.
See below.