7 Nov ’20 – 08:14 – 5 of 580  Edit		 0 0

If u bought 10k of MRCH yielding 8%, it’s easier to switch
to a cash equivalent so £800 pa.
If u assume the dividend is unchanged over 10 years
but the share price doubles, u will still earn £800 pa
but it will only now yield 4%
(still 8% on buying price)

If u sold your MRCH shares say roughly 20k plus dividends earned
of 8k and re-invested in a share say a Renewable yielding 6%
your dividend would rise to £1,680 pa

If the share price doesn’t rise keep re-investing in MRCH for as long
as they don’t change their dividend policy, your dividend take
after 10 years would be £1,440, more if the share price fell as
the yield would rise.

Above is a post that I made 5 years ago, note the yield on MRCH today 5.1% and the yield on the renewables sector.