Total profit for the share £2,850 of which dividends are £2,464
The share had been traded before in the Snowball so the current
profit is £1,027 of which dividends are £1,748
The current value of the share, which changes daily and could fall from here is
£12,304, current expected dividends for the next twelve months
£314 x 4 = £1,256
Income from re-invested dividends £122
Total £1,378 a yield of eleven percent, which unless the dividend is cut should gently increase to allow for inflation.
With the dividends being re-invest back into the Snowball but without the income compounding, NESF could achieve the Holy Grail of Investing that in 8.7 years it could be producing income at a zero, zilch, nothing cost.
A lot of water, to flow under a lot bridges before then.
For a comfortable retirement in the UK, a single person typically needs a pension pot of around £490,000 to £790,000, according to financial firm St James’s Place. This assumes receiving the full state pension and converting private savings into an annuity.
If the above figures are out of your reach, maybe just maybe you need a dividend re-investment plan.
Remember a plan without an end destination is a very poor plan. GL
DIVIDEND YIELD text written on a notebook with chart
I’m planning to fund my retirement with a broad portfolio of dividend shares with high yields and strong payout histories. That way, I can realistically expect to receive a regular and growing passive income while continuing to increase the size of my pension pot.
How £500 a month in UK and overseas stocks could eventually build a passive income above £64,000.
Diversifying for strength
Whether someone is seeking growth or dividends, building a diversified basket of shares is critical for targeting long-term returns. It allows an investor’s portfolio to better absorb individual shocks. What’s more, this approach can produce a consistent return over time by balancing higher-risk cyclical shares with defensive stalwarts.
This strategy doesn’t need investors need to settle for sub-par returns either. Harry Markowitz — widely considered to be the creator of modern portfolio theory — once described diversification as “the only free lunch in investing.”
Today’s investors can choose from thousands of stocks, investment trusts and exchange-traded funds (ETFs) from around the world. This gives each one of us the power to build a bespoke portfolio suited to our own investment goals and attitude to risk.
Let’s look at what a diversified portfolio might look like:
Past performance is no guarantee of the future. But it this continues, investing £500 a month would grow to £922,923 over 25 years.
A top ETF?
For me, funds like the iShares Edge MSCI World Value Factor ETF are great ‘cheat codes’ for building a well-diversified and high-performing portfolio easily and affordably. It’s why I own several in my own portfolio.
This one holds shares in roughly 400 global companies. It provides “direct investment in global equities which are undervalued relative to their fundamentals,” like book value and predicted earnings.
This approach gives the fund strong growth potential by targeting quality companies priced below their intrinsic value. Key holdings include Qualcomm and Intel, for instance, trading at a substantial discount to industry leader Nvidia and which could theoretically deliver greater long-term share price growth.
Its high weighting of tech stocks could make the ETF more vulnerable during downturns. But I still believe it’s a great fund to consider as part of a diversified portfolio.
IF you were interested in searching Law Debenture, if you type LWDB into the search box at the top of the page, the following articles would be listed.
Select All Title Sort ascending. Author Categories Tags Comments Sort ascending. Date Select LWDB LWDB Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/06/17 at 8:33 am Select LWDB LWDB Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/06/13 at 6:47 am Select LWDB LWDB Edit | Quick Edit | Trash | View admin Uncategorized —No tags 2 2 comments Published 2025/04/29 at 7:11 am Select LWDB LWDB Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/02/06 at 9:17 am Select LWDB: In search of the holy grail LWDB: In search of the holy grail Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/02/06 at 8:46 am Select Chart of the day LWDB Chart of the day LWDB Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2024/06/12 at 7:37 am Select The Snowball The Snowball Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/06/03 at 7:50 am Select ii 2025 Portfolio ii 2025 Portfolio Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/02/10 at 9:12 am Select DYOR DYOR — Draft Edit | Quick Edit | Trash | Preview admin Uncategorized —No tags —No comments Last Modified 2025/02/10 at 8:46 am Select Warren Buffet mini me could b.u. Warren Buffet mini me could b.u. Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/02/07 at 12:13 pm Select KEPLER: Dividend Increases part 2 KEPLER: Dividend Increases part 2 Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/01/23 at 7:19 am Select The MoneyWeek’s portfolio of I T’s The MoneyWeek’s portfolio of I T’s Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2025/01/14 at 11:52 am Select Discounts Discounts Edit | Quick Edit | Trash | View admin Uncategorized —No tags 2 2 comments Published 2024/12/22 at 7:36 am Select Search Search Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2024/12/12 at 7:09 am Select Income 101 Part 2 Income 101 Part 2 Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2024/12/11 at 7:42 am Select If you think it’s easy. If you think it’s easy. Edit | Quick Edit | Trash | View admin Uncategorized —No tags 1 1 comment Published 2024/11/05 at 8:25 am Select It’s De Lorean day It’s De Lorean day Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2024/09/18 at 8:28 am Select Discounted UK equity investment trusts offer margin of safety. Discounted UK equity investment trusts offer margin of safety. Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2024/05/31 at 6:23 am Select Income Trust shares Income Trust shares Edit | Quick Edit | Trash | View admin Uncategorized —No tags —No comments Published 2024/04/28 at 6:44 am
I think that everything said was very logical. But, what about this? what if you were to create a killer headline? I mean, I don’t wish to tell you how to run your website, but what if you added a post title that makes people want more? I mean IF – Passive Income is a little vanilla. You might look at Yahoo’s home page and watch how they create post titles to grab viewers to open the links. You might try adding a video or a pic or two to grab readers excited about everything got to say. Just my opinion, it could make your posts a little bit more interesting. https://6t4q8.mssg.me/
Investing one’s hard earned to make your retirement comfortable is serious and not to be approached lightly. The headlines are provided as way for readers of the Snowball to carry out their own research.
All the profit is currently from the earned dividends. SEIT is currently overweight in the Snowball and would be reduced if the price continues in an upward direction. Current yield 10.9% and the £1,228 has been re-invested in the Snowball and earning dividends both amounts to be re-invested in the Snowball to earn more dividends.
Only one year into the holy grail of investing, so a lot of water to flow under a lot of bridges before that is achieved, if ever.
My name is Brett Owens and I’m an unabashed dividend investor.
Monthly Dividend Superstars: 8% Annual Yields With 10%+ Price Upside, Too Most investors with $600,000 in their portfolios think they don’t have enough money to retire on.
They do – they just need to do two things with their “buy and hope” portfolios to turn them into $4,000+ monthly income streams:
Sell everything – including the 2%, 3% and even 4% payers that simply don’t yield enough to matter. And,
Buy my favorite monthly dividend payers.
The result? More than $4,000 in monthly income (from an average annual yield just over 8%, paid about every 30 days). With upside on your initial $600,000 to boot!
And this strategy isn’t capped at $600,000. If you’ve saved a million (or even two), you can just buy more of these elite monthly payers and boost your passive income to $6,660 or even $13,320 per month.
Though if you’re a billionaire, sorry, you are out of luck. These Goldilocks payers won’t be able to absorb all of your cash. With total market caps around $1 billion or $2 billion, these vehicles are too small for institutional money.
Which is perfect for humble contrarians like you and me. This ceiling has created inefficiencies that we can take advantage of. After all, in a completely efficient market, we’d have to make a choice between dividends and upside. Here, though, we get both.
Inefficient Markets Help Us Bank $100,000 Annually (per Million) Fortunately for you and me, the financial markets aren’t 100% efficient. And some corners are even less mature and less combed through than others.
These corners provide us contrarians with stable income opportunities that are both safe and lucrative.
There are anomalies in high yield. In an efficient market, you wouldn’t expect funds that pay big dividends today to also put up solid price gains, too.
We’re taught that it’s an either/or relationship between yield and upside – we can either collect dividends today or enjoy upside tomorrow, but not both.
But that’s simply not true in real life. Otherwise, why would these monthly payers put up serious annualized returns in the last 10 years while boasting outsized dividend yields?
For example, take a look at these 5 incredible funds that pay monthly and soar:
This is the key to a true “8% Monthly Payer Portfolio” – banking enough yields to live on while steadily growing your capital. It’s literally the difference between dying broke and never running out of money!
But I’m not suggesting you run out and buy these funds.
Some have been on my watchlist and in our premium portfolios over the years, but I mention them only as examples of the potential ahead.
How to earn a passive $40,000 on a half-million … $80,000 on a million … and $100,000+ annually on anything higher. And get paid every month, too.
Plus, you won’t even have to tap your initial capital or “draw down” any of your valuable principal.
How much do you need in an ISA to aim for £10,000 a month in passive income?
Millions of us invest for passive income. Here, Dr James Fox explains how much money an investor would need in an ISA to make £120k a year.
Posted by Dr. James Fox
Published 10 August
Image source: Getty Images
When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.
Earning £10,000 a month in passive income is a financial milestone that many UK investors aspire to. Whether it’s to fund an early retirement, achieve financial independence, or simply provide peace of mind, reaching this level of income is possible.
However, it requires careful planning and a well executed strategy. And, of course, it makes sense to do this through a tax-efficient Stocks and Shares ISA.
With its exemption from income and capital gains tax, the ISA’s a powerful tool for UK investors. But generating £120,000 a year in passive income from an ISA alone is a tall order. To reach that level of cash flow without drawing down capital would need a substantial portfolio. What’s more, investors would need an asset allocation designed to yield reliably
So how much?
So how much is “substantial”? The answer depends on several variables. Chief among them is the average yield of the investments held within the ISA.
A portfolio yielding 4% annually would require a value of £3m to produce £120,000 a year in income. At a 6% yield, the required capital falls to £2m. Of course, higher yields often come with greater risks, including income volatility as well as capital erosion.
Now, many readers may have zoned out at £2m or £3m. However, for those starting early enough, reaching these figures is very possible.
Take the case of investing £500 a month over 40 years with 10% annualised returns. In the first decade, progress can feel modest. After 10 years, the portfolio’s worth just over £100,000.
Source: thecalculatorsite.com
But compounding begins to accelerate. By year 20, the balance grows to around £380,000, and by year 30 it passes £1.1m. In the final 10 years, growth becomes dramatic: the portfolio adds over £2m, ending above £3.1m by year 40.
Despite contributing just £240,000 in total, over £2.9m comes purely from reinvested gains. This is the exponential nature of compounding. It starts slow, then surges.
Of course, it’s not all plain sailing. There are risks involved with investing, and we can lose as well as gain money. What’s more, 10% may prove to be a challenging target for some investors.
An investment for the long run?
Investors typically want to strive for diversification. One way to do that is by investing in 20-30 individual stocks, another is to focus on in a handful of investment trusts or funds.
If you used T56 as a core constituent of your Snowball, you would receive two payments a year with a total yield of 5.46%. If held in a tax free account you could buy and forget about the Gilt, it’s likely the capital value may fall a touch but as you intend to buy and hold forever it’s of no concern.
A minimum blended yield of 7% for your Snowball is recommended, as if this is re-invested at a yield of 7% plus this doubles your income in ten years.
If for comparison purposes only, you pair traded with NESF
The blended yield would be 16.5%, you have reduced the overall risk to your portfolio and achieved a yield of 8%. This could then be re-invested into your portfolio.
