Currently xd for 2.11p per share payable on the 31 March

Yielding 12.6% trading at a discount to NAV of 32%

The most important thing to check is how secure is their dividend, although it could still fall or not be increased it would still be a high yielding Trust.

Remember it’s only a fcast but a positive fcast is better than a negative fcast.

What does the company say about it’s dividend.

Dividend:

·  The Board is pleased to reaffirm its full-year dividend target guidance of 8.43p per Ordinary Share for the financial year ending 31 March 2025.

·   The full-year dividend target per Ordinary Share is forecast to be covered in a range of 1.1x – 1.3x by earnings post-debt amortisation. 

·    Total Ordinary Share dividends paid since IPO of £346m.

·    As at 19 February 2025, the Company offers an attractive dividend yield of c.12%.

The paid dividend is covered, so until news it’s looks secure.

Let’s work on a flat dividend for the next ten years.

You would have received all your capital back and achieved the holy grail of investing of having a share in your portfolio that pays you a quarterly income at a cost of zero, zilch nothing.

U could also re-invest the dividends in another High Yielding Trust that would pay u an income, although over ten years the percentage u could re-invest at is the unknown but there is normally one or two unloved sectors to re-invest in.

You simply need to monitor the declared dividends and the company’s guidance on any future dividends. The price of the share in ten years time is of no consideration as the intention is never to sell but use the income as an ‘annuity’.

The worst possible scenario is, if they don’t cut the dividend would be the Trust to be taken over but with the discount u would most probably print a profit.

This case study is not a recommendation to buy.

NESF is in the current Snowball but there is no intention to add to this position at this moment in time.