Residential Secure Income plc (“ReSI)”, or the “Company“) (LSE: RESI), which invests in independent retirement living and shared ownership to deliver secure, inflation-linked returns, is pleased to declare an interim dividend of 1.03 pence per Ordinary Share to be paid in the financial year to 30 September 2024.
The full 1.03 pence of the dividend will be paid as a Property Income Distribution (“PID“) in respect of the Company’s tax-exempt property rental business.
This dividend will be paid on 21 February 2025 to Shareholders on the register as at 31 January 2025. The ex-dividend date is 30 January 2025.
ReSI intends to pay dividends to Shareholders on a quarterly basis and in accordance with the REIT regime.
Aiming for passive income in 2025 ? Consider these 3 simple strategies
Creating a passive income stream is a common way to safeguard against unexpected financial troubles. Many UK residents are constantly on the look out for new ways to bring in extra cash.
With that in mind, here are three ways to harness this power in 2025.
Dividend stocks
One of the most popular methods of earning income from stocks is via dividends. These are regular payments companies deliver to shareholders as a reward for their loyalty. The yield is the percentage paid out per share.
The amount varies and can be altered at any time depending on how well the business is performing. So it’s important to look for reliable companies with a long dividend track record.
For example, Vodafone recently cut its annual dividend from 9 cents to 4.5 cents per share. Whereas British American Tobacco has been increasing its dividend consistently for over 20 years.
Exchange-traded funds (ETF)
Recently, earning extra income by investing in ETFs has become more popular. These products provide a quick and easy way to get exposure to a wide range of stocks — often, an entire index.
For example, the iShares Core S&P 500 ETF has delivered annualised returns of 12.66% over the past 10 years. The fund attempts to beat the overall performance of the S&P 500 by weighting each stock based on market cap.
Investment trusts
Like an ETF, an investment trust provides exposure to a range of stocks. However, it’s usually a much smaller and more focused selection based on a goal like income or growth.
The advantage of an investment trust is that the hard work is taken care of. Rather than try to analyse stocks and balance a portfolio themselves, investors can leave that up to the fund manager.
However, this service incurs an ongoing fee, typically between 0.5% and 1%. This needs to be factored into the expected return.
For example, the City of London Trust (LSE: CTY) maintains an yield of around 6%. It’s been paying and increasing its dividend consecutively for over 50 years. While past performance doesn’t indicate future results, it provides some peace of mind.
The trust is focused on British income stocks like HSBC, Shell, and RELX. Its ongoing charge is 0.37%.
While the fund is worth considering for dividend income, it isn’t highly diversified. Consequently, if the UK market dips, the trust falls with it. The share price is down 0.9% in the past five years because high inflation has hurt the UK economy. As such, it’s returned no more than the dividend payments. This is an ongoing risk that could hurt the fund’s performance if inflation rises again.
When picking stocks, investors should always consider the company-specific risks. Fortunately, companies typically provide guidance along with their interim results, helping investors to make informed decisions.
The post Aiming for passive income in 2025? Consider these 3 simple strategies appeared first on The Motley Fool UK.
Dividend stocks are a popular way to earn passive income on the stock market. The regular payments made to shareholders can equate to a decent flow of cash.
When investing in dividend shares, early investors often fall foul of some common mistakes.
Here are two to keep in mind.
Not all companies are created equal
There’s no shortcut when picking dividend stocks and no single model that applies to all companies. When considering investing for dividends, the individual strengths and weaknesses of each company must be accounted for.
This is particularly true when it comes to dividend coverage. This metric is used to assess how much cash the company has to cover its dividend obligations. Presumably, if its cash is less than the full amount of dividends, there’s going to be a problem.
Companies that need steady cash flow to operate typically pay a low dividend and as such, have high coverage. However, some companies don’t need much cash to operate and so pay a high dividend with low coverage. This reveals how low coverage isn’t necessarily a bad thing.
It’s important to find out how the company operates before making a decision based solely on coverage. Even a company with high coverage may cut the dividend if it has a lot of debt to finance.
These factors differ from company to company, so each one needs to be assessed on an individual basis.
Investing for the yield
Investing purely for the yield isn’t a good long-term strategy. Yields fluctuate wildly and are often high for the wrong reasons, such as a crashing price.
Some investors buy stocks just before the ex-dividend date as a way to lock in a yield at a certain level. This can be a smart strategy but doesn’t guarantee anything. Ignoring the company’s fundamentals and potential price movements is risky. If the stock falls more than the yield before payment, then it’s all for nothing.
Before making a decision based on the yield, investors should always carefully assess the company’s financial position
1st Interim dividend for the year ending 31 August 2025
The directors have declared the first interim dividend of 6.20p per ordinary share in respect of the year ending 31 August 2025. The dividend will be paid on 28 February 2025 to shareholders on the register on 31 January 2025 (the record date). The shares will be quoted ex-dividend on 30 January 2025.
The Watch List will be reviewed at the end of this month. ADIG as it winds down the dividends will be cut so it will be leaving the Watch List.
Following the June 2024 Court approval, and the payment of the interim dividend in October 2024, it is likely that dividends will be paid in smaller, less regular, amounts principally for the purpose of maintaining the Company’s investment trust status while capital will be returned progressively to shareholders by the most tax-efficient mechanism available, which may include further B share issues.
4 passive income shares with 9%+ dividend yields to consider today!
The dividend yields on these high-yield passive income stocks smash the FTSE 100 forward average of 3.6%.
Posted by Royston Wild
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
Searching for the best high-yield passive income shares to buy for long-term dividends? Here are four of my favourites.
Cash machine
Small-cap minersaren’t often famed for their large dividends. But strong cash generation and zero debt means Central Asia Metals has long delivered market-beating cash rewards.
For 2025, its dividend yield is a whopping 11%.
Profit-sapping volatility on commodity markets can make mining stocks a risk. But that robust balance sheet means Central Asia — which owns copper and lead-zinc deposits in Kazakhstan and North Macedonia — still looks in good shape to deliver big rewards.
It had cash in the bank of $67.6m as of December. That was up from £56.3m six months earlier.
Top trust
Real estate investment trusts (REITs) like Assura are required to distribute 90%of rental profits out in dividends. And so the forward dividend yield here is a healthy 9%.
However, there are other reasons why this particular trust’s a reliable passive income share. It operates in the highly stable medical property sector, where rents are underpinned by government bodies. A large percentage of its rental contracts are also inflation linked, allowing it to offset the impact of rising costs on earnings.
Assura has a strong record of dividend growth, too, which I believe should continue as the UK’s ageing population drives healthcare demand.
That said, the company’s aim to boost earnings with acquisitions does come with risks. Acquisitions that don’t work out can be extremely costly.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
Super star
As one might assume from its grandiose title, the Global X SuperDividend ETF (LSE:SDIP) boasts one of the highest dividend yields on the London Stock Exchange. It currently clocks in at 11.5%.
High-yield stocks can carry hidden risks. Companies often offer generous dividends to attract investors, even when facing challenges like weak earnings or increasing debt. High shareholder payouts can be difficult to maintain, potentially leading to dividend cuts later on.
Investing in an exchange-traded fund (ETF) doesn’t eliminate this threat. But it can help to significantly reduce the risk by spreading cash across a variety of shares.
The GlobalX SuperDividend ETF invests in more than 100 companies, and what’s more, its holdings span multiple sectors and all four corners of the globe. Major holdings include telecoms provider HKBN, iron ore producer Vale, and asset manager M&G.
This level of diversification provides even more protection for investors seeking a large and reliable dividend income over time.
Power up
The Octopus Renewables Infrastructure Trust invests in green energy projects across Europe. These include (but are not limited to) onshore and offshore wind farms in Sweden, Germany, and the UK, along with solar power assets in France and Ireland.
Unlike with fossil fuels, the electricity generated from ‘clean’ sources can be highly variable depending on weather conditions. But Octopus, with its wide range of technologies and broad geographic wingspan, lessens (if not completely eliminates) this threat to group earnings.
Given the stable nature of energy demand, I think this trust is — on balance — a good option to consider for investors trying to target a large and dependable passive income.
abrdn Asian Income Fund Ltd ex-dividend date Bankers Investment Trust PLC ex-dividend date City of London Investment Trust PLC ex-dividend date CQS New City High Yield Fund Ltd ex-dividend date Doric Nimrod Air Three Ltd ex-dividend date Foresight Solar Fund Ltd ex-dividend date Law Debenture Corp PLC dividend payment date NB Private Equity Partners Ltd ex-dividend date
If when the blog portfolio started, I had decided to invest 100k in VWRP Vanguard FTSE All World ETF, (an accumulation ETF) at the end of last year it would have increased to a value of £133,280.00
For comparison purposes we will use the 4% rule so in 2025 u could withdraw income of £5,331.20
The blog portfolio earned income of £10,976.00.
Or to be more conservative, this year’s income fcast is £9,120.00 and the target is 10k.
Michael writes on high income assets that help people retire early.
Jan 18, 2025
Personal portfolio and online wealth managementgetty
Real estate investment trusts (REITs) are making a comeback from their post-pandemic downturn—and with the sector still lagging the stock market, we’ve got a chance to buy at attractive discounts.
And we’re well set up to add some 7%+ dividend yields—that have started to grow lately—as we do, not in REITs directly, but in REIT-focused closed-end funds (CEFs).
REITs’ Lag Has Been Dramatic, But the Winds Are Shifting
While the S&P 500 has enjoyed a 14.0% annualized return over the last five years, as of this writing, REITs, as measured by the performance of the benchmark SPDR Dow Jones REIT ETF (RWR), have returned a paltry 2.6% annualized over the same period.
That’s unusual, as REITs—landlords who own properties ranging from apartments to data centers and warehouses—usually outperform the S&P 500, as you can see by RWR’s long-term return (from the date of RWR’s IPO) below.
RWR Total ReturnsYcharts
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What makes this trend even weirder is that it is happening even when there’s not been a shift in the trendlines between REIT prices and house prices. I know these may sound like separate things, so let me explain.
In the mid-2000s the housing bubble plateaued, as we can see in the US House Price Index (in blue above), but investor fervor for real estate more generally did not, causing investors to bid up RWR (in orange) far above the trendline we saw for houses.
Today, the trend is the exact opposite, with investors bidding less for REITs (again in orange) than the trend in house prices would suggest is most natural.
Home Prices REITsYcharts
Housing prices have gained 7.2% per year on average over the last decade, yet RWR has gained just 3.7% over the same time period.
The reason? A 7.2% annualized gain is just too much for houses—if we go back 33 years, since records of this metric were first kept, housing rises an average 4.5% per year, so we’re due for a pullback. Still-high 30-year mortgage rates add further pressure here.
In other words, all the bad news is currently priced into REITs, which as we just saw, are lagging home prices.
This real estate pessimism means REITs are currently at a lower price point than they were both in 2007, during the bubble, and in 2015 to 2019, after the real estate market had recovered and mortgage rates continued to climb.
REITs on SaleYcharts
This is important because interest rates are going to move lower, either in 2025 or later. And even if they do fall more slowly than people first thought, REITs will still be able to collect rents from their current portfolios as they wait for rates to decline, and still see their properties’ value increase, even if we see no rate cuts in 2025. The Fed, however, has made it clear that it does plan to cut rates.
When rates do fall, mortgages will get cheaper, driving more real estate demand.
But there’s another hidden benefit for REITs specifically, and that’s leverage.
When the Fed lowers interest rates, it lowers the cost of borrowing across the market, and that means REITs can borrow for less (and of course, they can already borrow for much less than your typical homebuyer). This expands their profit margins and results in more dividend cash handed over to investors.
So REITs can take advantage of lower rates to expand their book of owned properties.
Will REITs do that? Not only will they, but the data suggests they’ve already begun.
REIT Leverage RatiosNareit
Before interest rates first started rising, REITs performed well, thanks to the weird economic factors of the pandemic, which meant that leverage was at a multi-decade low in 2021, when interest rates started to climb.
While REITs have started to borrow again (see right side of chart above), bringing current leverage ratios to mid-2010s levels, there’s still plenty of room for them to borrow and expand.
When they do, this will increase their net asset values (NAVs) and the total amount of income they receive, driving up payouts to shareholders in the form of higher dividends.
We’re already seeing this.
RWR PayoutCEF Insider
After an unsurprising dip in income following the pandemic, REITs have been able to grow payouts so that they’re now 7.5% higher than pre-pandemic levels. Yet REITs cost less to buy now than they did back then.
With interest rates headed lower (again, even if slowly) and potential declines in housing prices priced in, REITs are compelling, but there’s another part of the story. Some REIT sectors (infrastructure, data centers and cell towers most notably) are seeing strong growth now, regardless of interest-rate trends.
Others, like office REITs, are recovering from the return-to-office trend that is still dominating work life, so much so that companies like Starbucks, Amazon and JPMorgan are requiring workers to return to the office.
Thus, even if housing prices fall in the future, it seems likely that other real estate sectors will see prices rise. And even if housing prices do fall, REITs’ ability to borrow at lower rates will let them pick up residential properties and start renting them out, collecting more income. This suggests REITs’ dividend hikes have just gotten started.
Think CEFs, Not ETFs, When Buying REITs
RWR’s 3.8% yield is really too small for us to take seriously, so I’d suggest playing this trend through a CEF likethe Cohen & Steers Quality Income Realty Fund (RQI). The fund’s 8% yield has been consistent—RQI has maintained its dividend for the last nine years—and its total returns (in purple below) put those of RWR (in orange) to shame.
RQI Total ReturnsYcharts
Despite its outperformance, high yield, and consistent dividend, RQI trades at a small discount to NAV—and that discount is likely to turn into a premium if market demand for both high yields and real estate continues apace.
Furthermore, with 13% of its portfolio in telecommunications, 11.2% in healthcare and 9.4% in data centers, the fund has positioned itself for those kinds of real estate seeing the most demand, while its single-family-home portfolio, at 3.5%, is much lighter, meaning it’s ready to profit from a downturn in home prices if they do happen to take a dip in the short term.
Michael Foster is the Lead Research Analyst for Contrarian Outlook.
3 high-yield shares that could help set a SIPP up for decades
Our writer explains how careful share selection, diversification, and compounding could potentially help an investor turn a £30k SIPP into a £400k+ one.
Posted by
Christopher Ruane
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.
A SIPP is the perfect vehicle for the sort of long-term investing I prefer.
By looking decades into the future and thinking about where business sectors and specific firms may go, I think it is possible to help decide what sort of shares bought today might help set an investor up for a bigger SIPP down the road.
Turning £30k into over £406k!
I do not buy shares just because of their yields. After all, no dividend is ever guaranteed.
But I do think zooming in on yields of the shares I mention below can help illustrate why I am such a fan of the long-term approach to investing.
If an investor put £10,000 into Legal & General today and compounded that investment at 8.9% annually, after 30 years the investment would be worth over £129k. Putting the same amount into M&G and compounding at 10%, after 30 years the holding would be worth over £174k. For British American o (LSE: BATS), compounding at 8.1% for 30 years, the investment would be worth over £103k.
So, £30k invested now could potentially be worth over £406k in three decades.
The power of compounding high-yield shares
How likely is that to happen?
I did not pick those numbers out of thin air. They are the current dividend yields of those high-yield shares.
The example presumes no share price movement and a steady dividend per share. If the dividend moves up, the result could be even better. But dividends can also be cut or cancelled.
All three of these shares have a policy of not cutting their dividend per share. Actually, each has grown it annually in recent years. However, high yields can be a warning sign that the City expects a cut could be on the cards at some point.
Assessing potential risks as well as rewards
To illustrate the point, consider British American Tobacco.
The FTSE 100 firm is a rare British Dividend Aristocrat, having grown its payout per share annually since the last century. Despite falling cigarette volumes, tobacco remains huge – and hugely profitable – business.
But British American has a lot of debt and its core market is in systemic, long-term decline. That could be a real risk to the dividend. Still, although there are risks, I think British American has a lot of strengths too and see it is a share investors should consider for their SIPP.
Building a high-yield portfolio
Risk is part of investing, after all.
I own Legal & General and M&G in my SIPP. Both have strengths, such as a large market of possible customers, deep experience, and sizeable client bases.
But what if the markets crash ? I could imagine many investors scrambling to pull out funds, hurting profits at asset and investment management firms. That could lead either company to cut (or even axe) its dividend.
Over the long run, though, I like the investment case for these firms and have no plans to sell my shares
