The simple formula that reveals how long it will take to double your money
Story by Rachel Lacey
Graphic of a formula on a piggy bank
The Telegraph
One of the most common questions people have when they start investing is: “How fast will my money grow?”
The honest answer is likely to begin with “Well, it depends…”, but there is a handy formula to give you a rough idea of how long it will take to double in value.
Here, Telegraph Money explains how to use the “rule of 72”, and how it could help you make decisions about your savings, borrowing and pensions, but only if you use it properly.
What is the ‘rule of 72’?
“The rule of 72 is a useful financial planning tool. The simple formula helps investors and savers estimate how long it will take them to double their money,” said Jemma Slingo, pensions and investment specialist at Fidelity International.
“The maths is pleasingly straightforward. Just divide 72 by your average return, or your average interest rate, to calculate an estimate in years.”
So, for example, if you have an investment with a 6pc average annual return, your money will double in approximately 12 years (72 ÷ 6 = 12).
Or, if your investment yields a punchier 8pc a year, it will only take nine years or so to double your money (72 ÷ 8 = 9).
The formula will also work in reverse, said Laura Suter, director of personal finance at AJ Bell. “If you want to know what rate of return you’d need to double your money in 10 years, for example, divide 72 by 10 and you’ll get 7.2pc.
“It’s not exact, but it’s a useful guide.”
David Little, chartered financial planner at Evelyn Partners, added: “No calculator or compound interest table is required to make the calculation. The simplicity is exactly why [the rule] is so widely quoted.”
The rule of 72 isn’t just for investments
The rule of 72 is most often employed with investments, but Ms Suter pointed out it’s not its only use.
“Most people think of it purely in terms of investment growth, but it applies anywhere compounding is at work.”
For example, you can also use it to give you an idea of how quickly debts, such as credit cards, can grow if they aren’t repaid.
“Compounding works both ways,” said Mr Little. “A balance growing at 18pc a year doubles in four years (72 ÷ 18). Many borrowers underestimate this, and the rule of 72 makes the reality – and the danger – of debt instantly clear.”
You can also use this rule to highlight the threat of inflation to your cash. By taking the number 72 and dividing it by the prevailing rate of inflation, it’s possible to calculate how long it will take for the spending power of your money today to halve. This can be particularly useful when it comes to planning retirement income.
Ms Slingo said: “If inflation settled at 3pc, you could input this number into the formula to determine it would take roughly 24 years for your purchasing power to halve. This is a sobering thought, given the current state of inflation.
How helpful is the rule for financial planning?
The rule of 72 could, potentially, guide you to make more informed financial decisions.
For example, if you’re comparing cash or stocks and shares Isas as a long-term home for your money, applying the rule of 72 can highlight the power of compounding and give you the nudge to invest.
According to the rule, a cash Isa earning an average rate of 3pc a year would take 24 years to double. But a stocks and shares Isa with an average annual return of 6pc would double in half that time.
Remember if you only have a modest amount in your Snowball but intend to add when you can, compound interest takes a few years to make a noticeable difference. So the sooner you start the sooner you will finish.
I’ve sold the shares in SDV for a profit of £78 including the earned dividend but not yet received. Whilst this years income is well ahead of target, the SNOWBALL needs a higher yielder looking ahead to next year’s income.
Real Estate Credit Investments Limited (the “Company”)
Ordinary Dividend for RECI LN (Ordinary shares)
Real Estate Credit Investments Limited announces today that it has declared a fourth interim dividend of 3.0 pence per Ordinary Share for the year ended 31 March 2026. The dividend is to be paid on 24 July 2026 to Ordinary Shareholders on the register at the close of business on 3 July 2026. The ex-dividend date is 2 July 2026.
A hawkish Fed and a global tech rout, driven by an AI-euphoria reality check, prompted a market sell-off in today’s trading – the eve of Micron Technology’s third quarter earnings announcement.
Heavy concentration in artificial intelligence has structurally transformed the equity environment, amplifying routine headline noise into frequent and severe tech sell-offs.
Prioritizing stocks with elite dividend safety grades delivers a reliable, anxiety-free harbor that actively cushions a long-term portfolio against these sharp market drawdowns.
Discover two high-quality dividend stocks, supported by strong Quant Ratings, that offer dependable income and defensive characteristics in an increasingly unpredictable market.
I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Quant Growth and Income, which is a model portfolio for dividend investors interested in capital appreciation and income.
Eoneren/iStock via Getty Images
AI-Driven Volatility
Today’s steep tech-led decline, spearheaded by a retreat in the Nasdaq (NDX) and high-flying AI and semiconductor stocks, is yet another reminder to investors just how fragile this high altitude market environment has become.
While the broader market rally seemingly moves higher, the air pockets of market turbulence are hitting with a greater frequency and magnitude. U.S. stocks have reached higher valuations than the levels seen in 1929 and the dot.com bubble.
Bloomberg
As valuations and earnings push markets to new heights, volatility seems to be growing as well. On the surface, it may appear that the markets are being driven by a revolving door of headline catalysts -geopolitical events, economic reports, or a sudden drop in international markets. However, this headline-driven chaos isn’t happening in a vacuum. It’s being fueled by the structural shift that AI is having on the markets, and these two factors of structural AI change and headline catalysts continue to play off each other. Because index performance has become so heavily concentrated in AI and broader tech, markets have become more exposed to these sudden reactions.
Daily Chartbook
This chart shows that the relationship between forward implied volatility of several tech-sector benchmarks relative to the broad market (SPX) is accelerating at a tremendous rate. The implied volatility ratio for the VanEck Semiconductor ETF (SMH) has skyrocketed to an extreme high of 2.67 relative to the SPX. The MSCI South Korea ETF (EWY), which generally serves as a proxy for global memory chip manufacturing, has blown past historic norms to a massive 3.76 ratio. And both the broader Nasdaq 100 (NDX) and tech sector (XLK) are pressing up against their absolute highest volatility premiums of this cycle. With tech concentration hitting new highs, its influence over inducing market volatility continues to grow with it.
Amid the erratic market changes, many investors would prefer a bit more predictability and a lot less anxiety – safety.
Historically, that stability has not been found in tech growth stories or rate-sensitive sectors, but rather in companies supported by resilient demand, strong pricing power, and recurring cash flows. When the market becomes unpredictable, investors should consider stable income and lower risk from top dividend-paying and income-based stocks. To find these opportunities, we can look to Seeking Alpha’s Quant Model, which points us to two top-rated dividend stocks with excellent dividend safety grades.
Top Dividend Stocks
To select the top dividend stocks to feature in this article, I used the Seeking Alpha Stock Screener and chose the pre-selected Top-Rated High Dividend Stocks and filtered for Quant Strong Buys/Buys and a Dividend Safety Grade of an A or higher.
Unlike many industries that can become collateral damage in this AI-driven market, electricity remains one of the most indispensable commodities in the world. That’s precisely what makes American Electric Power Company a growth and income opportunity for investors looking for stability.
One of the largest electric utilities in the United States, AEP operates approximately 252,000 circuit miles of distribution lines and 25,000 megawatts (‘MW’) of regulated generating capacity. AEP runs the power grid across much of the Midwest and Central United States.
Strategically positioned in growth regions and focused on innovation, AEP’s diverse commercial and industrial footprint currently serves hyperscale customers such as Amazon (AMZN), Alphabet (GOOG) (GOOGL), Microsoft (MSFT), and Meta (META), creating a well-insulated accelerant for sustained growth and value. AEP gives investors the opportunity to gain safe exposure to the continued AI trend.
AEP May 2026 Investor Presentation
Q1 2026 earnings beat both top-line and bottom-line estimates, with management reaffirming 2026 EPS guidance of $6.15-$6.45 and outlining a $78B capital plan targeting 7%-9% earnings growth through 2030.
AEP May 2026 Investor Presentation
AEP earns a B Profitability Grade with the company’s growth driven by strong data center demand, fueling its exceptional margin performance across the board, led by a 16.29% Net Income Margin, which beats the sector median by about 31%.
Seeking Alpha (As of June 23, 2026)
In the midst of volatile market conditions, AEP has shown strong and consistent performance over the past year, earning itself an A- Momentum Grade. Headlined by its six-month price performance, which has more than doubled the sector’s median.
Seeking Alpha (As of June 23, 2026)
Dividend Grade Scorecard
Seeking Alpha (As of June 23, 2026)
AEP’s dividend profile is even more impressive, where it obtains a stellar A Safety Grade and an A Consistency Grade. The utilities company holds a 2.92% dividend yield and is backed by 36 consecutive years of dividend payments and 16 years of dividend growth.
As a Top Electric Utilities Stock, AEP offers defensive income with growth catalysts that are set to be sustainable and consistent.
Founded in 1852 and headquartered in Worcester, Mass., The Hanover Insurance Group provides property and casualty insurance products and services for individuals and businesses throughout the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other, offering coverage ranging from commercial automobile and workers’ compensation to homeowners and personal umbrella policies.
As a premier insurer, THG is insulated from most AI-driven drawdowns. Largely profiting on risk management necessities, THG’s business model is as consistent and reliable as they come. Led by its diversified portfolio, which has proven to be resilient across an inflationary environment, maintaining pricing dominance and improving margins as it passes the increase in prices onto consumers through rising premiums.
Seeking Alpha, THG Earnings Presentation, BLS
Hanover Insurance recently delivered exceptional Q1 2026 results, posting non-GAAP EPS of $5.25 – beating estimates by $1.03 – while revenue of $1.7 billion exceeded expectations by $120 million. Management signaled a full-year 2026 expense ratio of 30.3% following an impressive Q1 operating ROE of 20.3%. The company also approved a new $700 million share buyback program, demonstrating confidence in its operational trajectory.
THG is currently rated as a Strong Buy according to Seeking Alpha’s Quant System, backed by an outstanding combination of Factor Grades.
Seeking Alpha (As of June 23, 2026)
THG’s A+ Growth Grade stands out as particularly compelling, with 65.12% EPS diluted growth year-over-year. This exceptional earnings expansion reflects the company’s successful execution of underwriting discipline and operational efficiency initiatives.
The company’s A+ Revisions Factor Grade further reinforces the bullish outlook, with seven upward FY1 earnings revisions and zero downward revisions. This consensus optimism reflects Wall Street’s confidence in Hanover’s ability to sustain its improved profitability metrics.
Seeking Alpha (As of June 23, 2026)
Dividend Grade Scorecard
Seeking Alpha (As of June 23, 2026)
THG receives an A Dividend Safety Grade supported by its strong balance sheet and 21.75% return on common equity. With 19 consecutive years of dividend growth and a conservative 18.07% payout ratio, Hanover offers investors a high level of safety for a company with long-term EPS growth north of 100%.
Seeking Alpha (As of June 23, 2026)
Looking Ahead: Dividend Stability
The months ahead promise no shortage of continued turbulence in markets. With investor sentiment hyper-reactive to an endless stream of market-moving headlines, volatility is a near certainty with AI concentration, interest rate uncertainty, and mid term elections on the horizon. Surviving this chaotic market environment may require investors moving away from speculative noise and positioning into sustainable growth and income stocks. Stocks will likely continue to be put under pressure, whereas dividend stability may present the only off-ramp from AI-led market drawdowns.
If you are looking for a data-driven income strategy, explore our new Quant Growth & Income Portfolio – a systematic model built to outperform dividend ETFs by focusing on yield, growth, and safety. Seeking Alpha’s quant ratings and investment research tools help to ensure you are furnished with the best resources to make informed investment decisions while taking the emotion out of investing.
Could be traded as a safer anchor with high yielding ETF’s in your Snowball.
The Supreme Court Just Did Your Dividends a Favor (Wall Street Calls It a Loss)
Brett Owens, Chief Investment Strategist Updated: June 24, 2026
The Supreme Court just ruled on our closed-end funds (CEFs).
Wait. What? Our beloved dividend machines, the lightly driven passenger payout cars we ride to comfy retirements? Our CEFs?
Yes, the third branch of the US government just spent its time deliberating a legal question about our humble, underfollowed CEFs. Why do the courts care about our underowned and unappreciated funds?
We love ‘em because they’re obscure. Underfollowed. And, best of all, inefficient.
Wall Street whales can’t jump into our profitable CEF pond. Most of these funds are $2 billion in market cap or less. If a whale cannonballed in, the entire sector would pop and the value would instantly disappear. No whale can stake a meaningful position.
A billion here or there in market cap is plenty liquid for us. So, we take advantage of generous CEF dividends (high single digits or better) and their dynamic discounts (5%, 10%, sometimes more)—which mean these funds regularly trade for 90 to 95 cents on the dollar.
It’s a contrarian value party for us! Thanks to these fish that are simply too small for the suits to fry.
But one player recently created a legal stir in CEF Land. And wouldn’t you know it, the case climbed all the way to the Supreme Court! It’s FS Credit, a purveyor of CEFs, versus Saba, an “industry activist.”
Saba—the activist—wanted more leverage over the funds. You may have run across Saba if you invest in CEFs. They pretend to ride to the rescue when a fund sells at a big discount.
Saba buys big stakes in CEFs when they’re trading at big discounts. It then uses the votes that come with its ownership stake to force the fund to buy back shares or even liquidate at full NAV. In other words, Saba buys shares big time so it can throw around its weight, close the discount quickly, and cash itself out.
The funds in the court case carry bylaws that strip the voting power of any holder above a 10% stake. These funds are specifically built to block that move. So Saba went to the courts—and the case was elevated all the way to the Supreme Court to rule on it. Saba sued, arguing that these bylaws break the Investment Company Act, a one-share, one-vote rule. On June 11, the court sided with the funds. It ruled, six to three, that Saba had no private right to sue here. Only the SEC can enforce the law—so Saba can’t use the courts for its own purposes to crack the funds’ defenses.
Now, note that the court didn’t explicitly bless the bylaws. It just told Saba it wasn’t allowed to raise the issue itself. What does this mean? Well, for us, these funds keep their protection—so Saba and other activist copycats lose their main lever: buying up stakes large enough to force whatever they want on these funds. This keeps the discounted CEF pond intact for us to fish for payouts and deals.
When Saba does pull off a full liquidation, it’s good for them but usually too bad for us dividend investors. We’re here for the payout, not the bonus pennies on the dollar that the activist may extract! Saba will move on to the next deal, like a house flipper. We income investors just want a reliable payout pillow we can rest our heads on! When the fund liquidates, the dividend dwelling is gone.
With each CEF that leaves the market via liquidation, we have fewer options when we shop for dividend deals. So, the SCOTUS ruling that limits Saba’s leverage over CEFs—its shortcut to liquidation—is a nice development for us.
Plus, there’s some irony! Saba masquerades like a CEF crusader whose mission is to eliminate any and every CEF discount. So let’s turn our attention to
the Saba Capital Income & Opportunities Fund (BRW), a CEF that always trades at a discount.
When Saba took over the fund in June 2021, BRW traded at a 2.3% discount to its net asset value. That’s 97.7 cents on the dollar. Today? The fund’s discount has ballooned to 12.3%. The discount coach can’t close its own window. HA!
And the real kicker? Saba doesn’t need to take anything over. It already runs BRW as the fund’s manager! Saba could easily close the discount window with a buyback, but it hasn’t bought back a single share.
Perhaps the Supreme Court ruling saved Saba from itself?
Anyway, what does this mean for us? Well, when we buy a CEF at a discount, we’re not waiting for the white knight Saba to ride in and close the window for us.
We buy funds where we don’t much care if the discount ever closes. We’re satisfied with the payouts we’re collecting, and we treat the discount as a margin of safety. Why pay a dollar for a dollar of assets when we can pay 95 cents? Or 90? Heck—sometimes we grab them for 88 cents on the dollar or better.
Right now, discounts in CEF Land are about normal. The average discount is 6%, or 94 cents on the dollar. Which, again, beats paying $1 for $1.
So, the bargains aren’t everywhere, but there are well-run funds trading at bigger discounts than the pack.
Our job is to find well-run funds trading below their historical averages. Sometimes, this means buying a fund at a premium when it’s a great fund and less than its “average premium!”
Counterintuitive, I know. But that’s what we contrarians live for. We walked through exactly that last week with 16.3% payer PDI (yes, you read right!) trading at a premium that is cheaper than usual:
Bottom line, we’ll keep doing our CEF homework and finding our own bargains. Six out of nine justices confirmed our strategy.
The Board of Primary Health Properties plc (“PHP”) notes the recent press speculation regarding the potential formation of a joint venture in connection with PHP’s private hospital portfolio.
As previously announced, PHP has been exploring a range of strategic options to enhance the long-term value of the private hospital portfolio, including potential joint venture arrangements with highly credible investors.
PHP confirms that it is in advanced discussions with an investor regarding the potential contribution of the private hospital portfolio to seed a new joint venture.
Discussions remain ongoing, will be subject to all necessary approvals and there can be no certainty that any transaction will be agreed, nor as to the terms on which any transaction might be concluded. PHP continues to evaluate all options.
A further announcement will be made as and when appropriate.
SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC
(“SEREIT” or the “Company” and, together with its subsidiaries, the “Group”)
Proposed managed wind-downand return of capital to shareholders
The Board of Schroder European Real Estate Investment Trust plc and the Investment Manager, having assessed a variety of options for the Company, including mechanisms to address the persistent discount that the Company’s shares trade at relative to its Net Asset Value (the “Discount”), announces it intends to present formal proposals to shareholders for a managed wind-down of the Company.
The equity markets continue to disadvantage smaller, listed vehicles, especially sub £100 million market cap, irrespective of management quality or the suitability and effective delivery of strategies, with growing evidence that institutional investors want exposure to larger vehicles that offer enhanced liquidity, diversification and cost efficiencies. Despite offering shareholders unique access to a diversified portfolio of Continental European commercial real estate, delivering strong underlying property performance which has supported over £80 million of dividend payments since IPO, as well as maintaining a robust balance sheet, the Company’s size and low levels of liquidity have adversely affected the share price performance for a prolonged period of time.
The Board has actively explored various strategies, including share buybacks and a transition towards thematic or sector-specific investments. However, primarily as a result of continued macro uncertainty and the above-mentioned structural shift in investor sentiment towards larger UK real estate equities, it does not expect these strategies to significantly close the discount or support substantial long-term growth. In light of this, and following discussions with major shareholders, the Board, together with the Investment Manager, has concluded that it is in the best interests of shareholders to present formal proposals for a managed wind-down of the Company.
The Board and Investment Manager are of the opinion that the Company’s portfolio can be realised in the direct property market at a value in excess of what is currently implied by the prevailing share price.
The Board intends to publish a circular in due course to convene a general meeting, where it will seek shareholders’ approval through an ordinary resolution to modify the Company’s investment objective and policy necessary for a managed wind-down. Additionally, the Board and the Investment Manager have initiated discussions regarding the provision of investment management services during the wind-down, under revised terms aimed at better aligning the Investment Manager with the goal of maximising shareholder returns in a timely fashion. More details will be included in the Circular.
Should shareholder approval be granted, the Board will endeavour to realise all of the Company’s investments in a cost-effective manner, balancing the goal of maximising value from these investments with the timely return of capital to shareholders. Realisations may take the form of single asset or multi-asset disposals, with the proceeds used to repay borrowings and make timely returns of capital to shareholders.
The Company’s diversified portfolio totals 14 assets in high-growth locations across France, Germany and the Netherlands, which should underpin buyer interest, with the Investment Manager having the added benefit of leveraging the wider Schroders pan-European platform. Given the current market backdrop (as outlined in the Company’s most recently published Interim Report) and heightened geopolitical risks, the managed wind-down process is expected to take approximately two to three years to complete. This timing also allows us to execute targeted asset management initiatives to position the assets for sale and manage the French tax litigation.
Should shareholders vote to approve the managed wind-down, it is the Board’s current intention to continue paying dividends in order to maintain the Company’s investment trust status. The level of dividend payments will decline as the portfolio income reduces and as capital is returned to shareholders.
Changes to the Watch List, include Trusts that have cut their dividend and Trusts that have been taken over.
Watch List shares are higher yielding shares and are posted only for you to DYOR, to increase the income of your Snowball, taking the minimum risks possible.
Saltydog Investor looks at the winners and losers of 2026.
23rd June 2026
by Douglas Chadwick from ii contributor
This content is provided by Saltydog Investor. It is a third-party supplier and not part of interactive investor. It is provided for information only and does not constitute a personal recommendation.
With the summer solstice now behind us and the second half of the year approaching, we thought it would be interesting to look at the best and worst-performing funds so far this year.
Saltydog monitors the vast majority of UK-domiciled funds available through the main investment platforms. Funds are first sorted into Investment Association (IA) sectors and then combined into Saltydog Groups according to their historic volatility.
Our primary focus is on sector performance. Sustained sector trends can reflect changes in economic conditions and investor sentiment. However, the returns of the best and worst funds show that sector labels are only part of the story.
Top 10 funds
The leading funds this year have been focused on South Korea, technology and the Asia-Pacific markets.
and SK Hynix, both of which are major beneficiaries of the global surge in demand for advanced semiconductors and memory chips driven by artificial intelligence (AI) and data centre expansion.
If Barings Korea keeps going at its current pace, it could do even better this year.
The best and worst funds in each sector
We have also identified the best and worst-performing fund within each of the IA sectors that we monitor each week. The results are grouped according to the Saltydog volatility categories.
Data source: Morningstar. Past performance is not a guide to future performance.
*There are a small number of bond sectors where we track only one or two funds. These have been combined into a single Global & Global Emerging Market Bonds sector.
Here, we look at the results one Saltydog group at a time.
‘Safe Haven’
The ‘Safe Haven’ group contains Short Term Money Market and Standard Money Market funds. The spread between the best and worst returns is tiny, reflecting strict limits around credit quality, duration and liquidity.
Royal London APAC ex Jpn Eq Tilt Z Acc (B68SHD9) is up 60.5%, compared with 7.8% from the weakest fund in the Asia Pacific excluding Japan sector. China-focused funds have also produced a sharp contrast, ranging from a 56.7% gain to a 10% loss.
The leadership in this area has changed markedly since last year. In 2025, the strongest Specialist funds were focused on gold and metals. This year, South Korea, smart energy and AI have featured more prominently.
Not every specialist area has performed well. Healthcare and India funds have generally struggled, with the best fund in both sectors still showing a loss.
Final thoughts
The first half of the year has produced exceptional gains in South Korea, technology, artificial intelligence (AI) and Asia-Pacific markets.
However, even within the same IA sector, outcomes can vary dramatically. Sector trends remain an important starting point, but reviewing the funds within those sectors can help investors see where the strongest and weakest returns can be found.
Berkshire Hathaway has a history of poor UK stock picks, and it might have sold too soon again
Published on June 22, 2026
by Dan Jones
Berkshire Hathaway’s (US:BRK.B) $10bn (£7.6bn) investment in Alphabet (US:GOOGL) earlier this month shows that chief executive Greg Abel, aka the man who replaced Warren Buffett, is making his mark. But a different decision by the new man – one that’s made far fewer headlines – holds just as much interest for UK equity investors. In the opening months of the year, the company sold its stake in Guinness and Johnnie Walker owner Diageo (DGE). From this we can learn plenty about sell discipline, managerial strategy and investment philosophies.
There’s no way to sugarcoat it: the drinks giant was a disastrous investment for Berkshire. The sale crystallised a loss of around 50 per cent on the position it bought three years ago. The events of the 1990s, when Buffett chose Guinness as his first major overseas investment only to see the shares subsequently underperform, have repeated themselves.
In this regard, the retreat is also reminiscent of the insurer’s only other UK holding of recent times: a similarly ill-fated stake in Tesco (TSCO). That divestment finally completed in late 2014, Buffett having admitted to making a “huge mistake” with the stock.
If you own shares, one day you will own a clunker, how you deal with that event will dictate how successful your Snowball will be going forward.
