U want to invest for a passive income stream, to buy and forget about and use the income stream to re-invest in the market, either for growth or more passive income.

The first consideration is how safe is the income stream, understanding that only Government gilts and deposit accounts are truly safe.

U are prepared to to take the risk for some or part of your capital.

The future dividends are fcast to be secure and gently increasing.

The consensus is of no interest better if it’s positive but not a requirement.

Commenting on the results, Alexander Ohlsson, Chairman of Foresight Solar, said:

“Foresight Solar delivered resilient performance with record electricity production and cash distribution against a challenging market backdrop. Our operational strength, the powerhouse behind our progressive dividend, enabled us to comfortably meet our dividend target of 7.55p per share for 2023 and allows us to propose an above inflation increase of 6.0% for the 2024 target dividend of 8.0p per share.

The companies chair is confident that the dividend will be paid, u have to believe the management, until there is a reason not too.

Dividend cover.

 Total dividend of 7.55 pence per share declared for the full year, in line with the Company’s target. Dividend cover for 2023 was 1.61x.

·   Target dividend of 8.00 pence per share for 2024, an increase of 6% compared to the previous year. The 2024 target is expected to be 1.50x covered from cash generated in the period, with around 1.35x cover for 2025 – assuming current revenue forecasts.

The ability to pay a dividend if trading is worse than the fcast.

A solid history of dividend payments

Next dividend payment date 24/05.

The xd date is 25/04, if u buy before the date u will receive the next dividend.

Current share price 84.4p to buy dividend fcast 8p

On a 10k investment, u should receive income of £940.00

In around ten years u should have received all your capital back as income and the Trust would sit in your account earning interest at zero, zilch, nothing.

The share price may have recovered but u will not be overly concerned about that as u have no intention to sell, unless circumstances change.

Trading at discount of 28% to Net Asset.

The chance to make a capital gain as well as the dividend stream.

FSLF currently have a share buyback programme to try and close the discount.

Finally the chart

GL

Dividends received £3,139.00

Fcast for 2024 dividends received of £8,000

Target for 2024 dividends received of £9,000

Cash for re-investment £1,301.00

Cash for re-investment for April £721.00

Target of cash for re-investment of 7k, which should add around another £500 to the Snowball for next year after it’s re-invested.

All according to the plan at the current time.

Baldrick

I have a cunning plan.

LABS have re-based their dividend and will be leaving the watch list portfolio.

The Motley Fool

How I’d make passive income for life with just £5 a day

Story by Harshil Patel

One of my favourite ways to earn passive income is by owning dividend shares. Receiving a chunk of company profits in the form of dividends sounds appealing, as I can let companies do all of the heavy lifting for me.

Once I’ve made my purchases, I can sit back and watch those quarterly payments roll in. It would be great if that was all, but there are a few points to consider.
What I’d look for in stocks
First, companies pay dividends from earnings. So investors would need to find dividend stocks that are likely to grow their income over time. I’d focus on solid, established and profitable business models.

I’d also concentrate on areas that benefit from strong underlying trends like population growth and healthcare.

Although the dividend yield is important, I’d also look for consistent payment history and dividend growth. With several FTSE 100 shares currently offering over 8%, there’s no shortage of potential shares I could buy.
Supersizing passive income
The good thing about dividend investing is that it’s possible to start with a relatively modest sum. Even just £5 a day is enough to get started. That amounts to £1,825 a year.

With that I could buy a bunch of dividend shares and start receiving quarterly payments shortly thereafter. I’d reinvest them to buy more shares. That way, I’d not only earn dividends on the original shares, but also on these new ones.

By continuing this process, my investment should grow in a snowball effect. It’s called compounding and Albert Einstein famously referred to it as the eighth wonder of the world.

I’d also continue investing £5 a day, or £1,825 a year. By delaying when I cash in my dividends to spend on treats, my total pot should grow larger over time.

Next, let’s turn to which stocks to buy to achieve an 8% dividend yield. If I didn’t already own enough dividend stocks, I’d buy Phoenix Group, Legal & General, Imperial Brands, NatWest and SSE.

This selection averages 8% and is spread across different industry groups. With an average dividend history of over 20 years, it shows management’s policy towards distributing cash to shareholders.

But in addition to looking at the past, I’d need to keep an eye on the present. Even established businesses can be affected by change. For instance, new competition or regulation can change a company’s prospects and future profits.

That said, right now I’m happy with how these shares are faring. And if that changes, I’m confident there will be many others to replace them. Either way, I’d expect my passive income plan to reap dividends.

PHP currently yields 7.2%. If/when the price rises the yield will fall.

As the Trust is currently printing a profit and as PHP only has 6k invested, it will most probably be sold to buy a higher yielding Trust.

It’s easier to explain with an example.

Trust A 10k invested yielding 7%.

As long as the dividend remains the same the portfolio should receive £700 pa in dividends, the price makes no difference.

If the price rises by 10%, the trust still receives the buying yield, dividends

of £700 pa.

The running yield would fall to 6.4%, still £700 pa.

If the Trust A was sold and the11,000 re-invested in a Trust yielding 8%

the dividend would be £880.

In a rising market, as long as there are Trusts out of favour, there are

usually a few, The Snowball can be grown thru Trading.

Many a mickle makes a muckle.

There is £1,300 of cash to be invested after Easter, now most probably going to be re-invested in FSFL.

The Trust has been very difficult to trade, maybe they wanted to get all the bad news out of the way, if so they certainly succeeded in destroying the share price.

They have a bond to repay and muted a cash raise below the share price at the time. Since then they have stated they have property for disposal.

The current disposal programme comprises of 58 assets totalling c £130m:

·    one disposal contracted for £405,000;

·    10 disposals totalling c. £22 million under offer and in legal due diligence;

·    9 further disposals totalling c. £20 million are in negotiation

·    24 further disposals totalling c. £42 million are on the market and

·    14 potential disposals totalling c. £46 million are being prepared for the market

‘Net LTV 55.1% (31 December 2022: 49.5%) before unamortised costs. The Board continues to target a net LTV ratio of 40%

Whilst their intentions are unclear, maybe a cash raise and disposal of property to target their LTV.

Still trading at a big discount to NAV, so a hold for the portfolio as we await developments.

It’s been a great Trust for traders and likely to continue to be.

Triple Point Energy Transition plc

(“TENT”, the “Company” or together with its subsidiaries, the “Group”)

Completion of Asset Sale

Triple Point Energy Transition plc (ticker: TENT), is pleased to announce that the sale of an LED Facility described in the Circular sent on 5 March 2024, and approved by Shareholders on 22 March 2024, has completed.

The sale has been transacted with TP Leasing Limited (“TPLL“), a member of the group of the Company’s investment manager Triple Point Investment Management LLP and will result in a return of £2.1m to the Company, representing the outstanding loan balance.

Background

In September 2023, the Group, via TENT Holdings Limited, provided a £2.3 million receivables financing facility to Boxed Light Services Limited (“Boxed“) (the “LED Facility“). Boxed installs efficient LED lights and controls at Places for People Homes Limited sites, part of the Places for People group, one of the UK’s leading social enterprises. 

John Roberts, the Company’s Chair commented:

“We are delighted with this strong start to TENT’s orderly realisation process, which was approved by shareholders on Friday 22 March 2024. The completion of this sale reduces the number of investments within the Group’s portfolio from 19 to 18 investments. We will continue to update the market on the orderly realisation process and on our plans for returning capital to shareholders.”

RECI” or the “Company”)

Successor Buyback Programme

The Board of Directors of Real Estate Credit Investments Limited announces that, having reviewed the current circumstances and assessed the Company’s level and allocation of cash available for deployment, it intends to undertake a further buyback programme (the “Programme“) which will run to 30 September 2024. The aggregate purchase price of all shares acquired under the Programme will be no greater than £10.0 million.  The Company’s initial buyback programme will expire on 31 March 2024.

The Company’s initial buyback programme was announced on 31 August 2023, with an aggregate purchase price of all shares purchased of no more than £5.0 million. Pursuant to that programme, a total of 4,095,000 ordinary shares of no par value each (“Ordinary Shares“) were purchased for treasury for an aggregate amount of £5.0 million. Ordinary Shares were repurchased under the initial programme at an average discount to net asset value per share of 16.2%, with the Company’s Ordinary Shares trading at an average discount of 14.1% from 31 August 2023 to 25 March 2024 (the date of the last share repurchase under the programme).

The Programme will occur within the limitations of RECI’s existing general authority to purchase no more than 34,376,938 Ordinary Shares as granted by shareholders at the Company’s annual general meeting held on 15 September 2023 (with such authority sought to be renewed at the Company’s 2024 annual general meeting to allow the Programme to extend to 30 September 2024).

The Company has appointed Liberum Capital Limited (“Liberum“) to make market purchases of Ordinary Shares in respect of the Programme. Liberum will purchase the Ordinary Shares as principal (and not as agent) and sell them on to the Company. The Company intends that any Ordinary Shares purchased by the Company will be held in treasury. 

Any share purchases will be made in accordance with certain pre-set parameters set out in the terms of Liberum’s engagement, the general authority of the Company to repurchase shares granted by shareholders at the Company’s 2023 annual general meeting (and in due course the 2024 AGM); and the EU Market Abuse Regulation (596/2014) as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended); and Chapter 12 of the Financial Conduct Authority’s Listing Rules.

The maximum price payable per share (exclusive of expenses) must not exceed the higher of: (i) 105% of the average middle market quotations for the five business days preceding the date of purchase; and (ii) the higher of the last independent trade and the highest current independent bid on the London Stock Exchange.