Investment Trust Dividends
Comparison share VWRP
Current value £151,169.00 not too shabby.
Using the 4% rule it would provide a pension of £6,046.00
A joint life annuity currently pays around 5.24%.
So using the value of the comparison share you would today receive an annuity income of £7,921.00 but you still have to surrender all your capital.
I get an itch when there is cash un-invested not earning a dividend, so until I decide on a longer term home for the un-invested cash I’ve bought for the Snowball 18907 shares in SEIT SDCL Energy Efficient.
Yield 12%
Discount to NAV 40%
Even a poor plan is better than no plan, remember a plan without an end destination is a poor plan because it’s a gamble.
Three options when you want your hard earned to provide a pension.
An annuity
The best annuity rate will vary depending on the value of your pension pot, the provider and your own personal information.
We asked retirement broker HUB Financial Solutions to crunch some numbers to get an idea of how much someone aged 65, 70 and 75 could generate from a £100,000 pension pot when purchasing an annuity. The quotes are based on someone living in the S66 postcode in England.
Its analysis shows that Legal and General is currently a market leader when it comes to annuity rates.
A 65-year-old could turn a £100,000 pension pot into an annual income of £7,732.80 by purchasing a single annuity. This changes to £8,459.88 if they have a medical condition, such as lifelong asthma in this scenario.
Older people can often access higher annuity rates. For example, that same £100,000 pot could generate an annual income of £9,957.60 from an annuity for a 75-year old, or £11,006.16 if there is a disclosed medical issue.
However, note that rates can vary and will change regularly.
A joint life escalation is £5,246.00
The 4% rule.
Above is the comparison share for the Snowball. Note the multi year sideways performance before it moves higher.
Current value £151,169.00 not too shabby.
Using the 4% rule it would provide a pension of £6,046.00
The Snowball will return income of over 10k this year, with a target of 10k for 2026.
So the options.
A joint life annuity of £5246.00. You have to surrender all your hard earned and the amount you will actually receive is a gamble on Gilt returns at the time. It could be lower or higher.
A 4% ‘pension’ currently £6,046.00. If the market crashes you may be forced to sell shares and the withdrawal amount will fall. It could of course be higher but you keep all of your capital
A dividend income stream currently 10k and should continue to increase and you also keep all of your capital.
You could include an ETF in your plan supported by your dividend paying shares. The choice my friend is yours.
Michael Foster, Investment Strategist
Updated: December 15, 2025
One thing I’ve always been astonished by is how fast a winning strategy (in investing and in life!) can suddenly slam into a wall—and start causing a lot of pain.
Consider, for example, the life of a mortgage banker in the 2000s: They made easy money for years, then the subprime-mortgage crisis threw them out of work overnight.
This happens in investing, too, which is why it’s always good to stay humble and well-diversified. Some high-yielding closed-end funds (CEFs), for example, look like big winners at any given moment. But if you buy without looking under the hood, you’re risking sharp losses.
Which brings me to …
The Top-Performing CEF of 2025
The year isn’t over, but the ASA Gold & Precious Metals Fund (ASA) is so far ahead of other CEFs that it would take a miracle for it to be overtaken by year-end.
ASA’s Unbelievable Year
ASA is up 172% (!) in 2025, and it’s easy to see why: The CEF invests in miners of gold and precious metals, and gold has been on a tear. But the scale of its run is still breathtaking, as none of the 5 CEF subsectors tracked by my CEF Insider service have even cracked 15%.
Source: CEF Insider
So with that in mind, is ASA a buy now?
No way. For one, the fund yields just 0.1%, while the average CEF pays over 8.3%. So for us income investors, ASA is a no-go. Second, since gold miners’ share prices are tied directly to gold, ASA does well when gold soars, which happens every so often (such as in the past year), but these surges tend not to stick around.
We can see that last point in ASA’s long-term performance, in purple below, in relation to a popular S&P 500 ETF (in orange).
This Gold Fund Trails Stocks …
Over the last two decades, ASA has badly trailed the S&P 500 on a total-NAV-return basis (that is, by the performance of its portfolio, not its market-price-based return).
Worse, if you retired 20 years ago and bought ASA at that time with the intention of relying on it, many of your withdrawals would’ve cost you money, especially during the seven-year period in the 2010s when ASA (again in purple below) would’ve been mostly underwater for you.
Moreover, not only does ASA lag stocks in the long run, but it trails gold prices, too, shown in orange above by the performance of the gold-price-tracking SPDR Gold Shares (GLD) ETF, in orange, since that fund’s inception in late 2004.
… and Gold Prices, Too
The bottom line? If you’re looking for gold exposure, ASA is not the way to do it. In addition, the fund is a good illustration of why we avoid gold at CEF Insider: We’re looking for high current income first and foremost (our portfolio yields 9.5% on average), and there aren’t enough gold investments with yields high enough to excite us.
3 High-Yield Stock CEFs That Beat ASA
Looking beyond gold, there are many CEFs—on the stock and bond side, specifically—that beat ASA in terms of long-term outperformance and income. Below are three that all trade at attractive valuations, as well.
Both the Adams Diversified Equity Fund (ADX) and Liberty All-Star Equity Fund (USA) focus on stocks, including key blue chips like Nvidia (NVDA), Microsoft (MSFT) and Visa (V). And they give us those stocks at attractive discounts, with ADX sporting a 7.1% discount to NAV and USA trading about 10% below its portfolio value.
The 10.9%-yielding PIMCO Corporate & Income Opportunity Fund (PTY), meanwhile, is a corporate-bond fund that’s maintained a strong, and monthly paid, dividend since inception in 2002 (with regular special dividends).
PTY does trade at a 10.1% premium to NAV now, but that’s because it’s a PIMCO fund, and the firm has a sterling reputation in the small CEF world. And that 10.1% premium is actually a bargain, as it’s traded at a 19.7% average premium over the last 52 weeks.
These three funds get you a “mini-portfolio” yielding 10% on average, or roughly 90 times more than ASA. They’ve outperformed the gold CEF (in orange below) going back to 2003, the year that the youngest of these funds, USA, went through its IPO:
Top Bond and Stock CEFs Outrun ASA
Since then, ASA (in orange above) has delivered a return less than half the size of the other three, on average, while yielding basically nothing.
Of course, if we look only at 2025, we don’t see this: ASA looks like a big winner that is crushing the other three funds. That’s the risk investors face when they ignore history: a recency bias that can cost a lot of money.
Anyone making big profits today with ASA might feel like a big winner, and they are—for now. But over the long term, they have a strong chance of underperforming, especially if the fund reverts to the trend line it’s been on for decades. Worse, there’s no real income to tide shareholders over while they wait for ASA’s next rise.
Contrarians: These 8%+ “AI-Powered” Dividends Are My Top 2026 Buys
As we just discussed, gold, and gold-focused funds like ASA, are long overdue for a breather (or worse!). So we’re NOT chasing them as 2026 dawns.
But the sector we ARE buying as the new year breaks will likely surprise you: AI.
Not just AI stocks, but AI stocks (CEFs, to be specific) kicking out huge dividends! I’m talking about 4 specific funds throwing off 8%+ dividends as I write this.
Look, it’s impossible to ignore all the chatter about an AI bubble right now. I get it. But the bottom line is, corporate profits are still rising and American GDP is growing. This is NOT the opening act of a recession—it’s a boom in productivity!
And it’s still early days, too.
The trouble for us income investors is that “classic” AI stocks, like NVIDIA (NVDA), pay low (or no) dividends. Which is why we look to CEFs for our AI buys.
The S&P 500® is the major US stock market index. It tracks the 500 largest US companies. The S&P 500 index weights its constituents by free float market capitalisation.
ETF investors can benefit from price gains and dividends of the S&P 500 constituents. Currently, the S&P 500 index is tracked by 24 ETFs.
0.03% p.a. – 0.15% p.a.
annual total expense ratio
track the S&P 500®
+11.57%
return in GBP in 2025 per 30/11/2025
Source: justETF.com; As of 14/12/2025; Performance in GBP, based on the largest ETF.
The total expense ratio (TER) of S&P 500 ETFs is between 0.03% p.a. and 0.15% p.a.. In comparison, most actively managed funds do cost much more fees per year. Calculate your individual cost savings by using our cost calculator.
| 1 | Amundi Core S&P 500 Swap UCITS ETF USD Dist | +10.96% | ||
| 2 | Amundi S&P 500 Swap UCITS ETF USD Dist | +10.86% | ||
| 3 | Amundi Core S&P 500 Swap UCITS ETF Acc | +10.68% |
All S&P 500 ETFs ranked by fund return
Thursday 18 December
Barings Emerging EMEA Opportunities PLC ex-dividend date
Diverse Income Trust PLC ex-dividend date
Invesco Asia Dragon Trust PLC ex-dividend date
JPMorgan European Discovery Trust PLC ex-dividend date
Mercantile Investment Trust PLC ex-dividend date
Northern Venture Trust PLC ex-dividend date
Palace Capital PLC ex-dividend date
Real Estate Investors PLC ex-dividend date
SDCL Efficiency Income Trust PLC ex-dividend date
STS Global Income & Growth Trust PLC ex-dividend date
Templeton Emerging Markets IT PLC ex-dividend date
Town Centre Securities PLC ex-dividend date
Volta Finance Ltd ex-dividend date
I’ve bought as the replacement pair trade 1336 shares in BRAI Black Rock American Investment Trust.
BRAI are paying an enhanced dividend of 6% based on the latest NAV, so will be more variable than most dividends.
3 November 2025
The Board of BlackRock American Income Trust plc is pleased to announce the fourth quarterly interim dividend in respect of the financial year ended 31 October 2025 of 3.44 pence per ordinary share. The dividend is payable on 12 December 2025 to holders of ordinary shares on the register at the close of business on 14 November 2025 (ex-dividend date is 13 November 2025). The quarterly dividend has been calculated based on 1.5% of the Company’s NAV at close of business on 31 October 2025 (being the last business day of the calendar quarter) which was 229.56 pence per ordinary share.
If you type BRAI in the search box there is further research on the share there.
I’ve sold the Snowball’s shares in TMPL for a profit of £57, including the earned dividend but not yet received.
That unpredictability is exactly what led Ray Dalio, founder of Bridgewater Associates and an influential voice in macro investing, to develop what’s widely known as the All-Weather Portfolio. It’s designed to be balanced enough to survive different economic climates without requiring constant adjustments. And while his exact institutional strategy is more complex than the simplified version shared publicly, the core idea is accessible to everyday investors: diversify across environments instead of trying to forecast them.
This approach does not promise to outperform every year. What it does promise is resilience. When the market is hot, it participates. When the market turns, it cushions. And in a world where volatility isn’t going away anytime soon, building a portfolio that can handle multiple scenarios is not optional.
Traditional investing advice tends to lean on forecasting. Analysts try to predict the next recession, the next bull run, the next interest rate cycle, or the next geopolitical shock. But the reality, supported by decades of economic research, is that even expert predictions are often wrong.
Rob Pitts
Little investment, big gains (secret to entrepreneurship)
Studies from organizations such as the National Bureau of Economic Research (NBER) show that macroeconomic forecasting consistently struggles with accuracy, especially around turning points like recessions or rapid recoveries.
Markets move quickly, and by the time a trend becomes obvious, it may already be priced in. The All-Weather philosophy avoids predictions altogether. Instead, it accepts a simple reality:
Economic conditions move through cycles like growth, recession, inflation, and deflation — and no single asset performs well in all of them.
Much of the All-Weather strategy is built around understanding how assets behave in different macro environments. The four main environments investors face are:
Companies earn more, consumers spend more, and equity markets typically perform well. Investors feel confident. Risk assets flourish.
Recessions, slowdowns, and contractions. Corporate profits drop. Investors seek safety. Bonds and defensive assets become more attractive.
Money loses value faster, and commodities like gold, energy, and broad commodity indices generally improve. Inflation-linked bonds also offer protection.
Prices stabilize or decrease. Long-term government bonds tend to outperform because interest rates often fall in these conditions.
While the true institutional version is proprietary, the simplified version popularized by Dalio includes:
But understanding the logic behind each piece matters far more than memorizing percentages.
Equities are still the most reliable long-term driver of returns. They perform best when:
Multiple studies, including long-term analyses from Credit Suisse Global Investment Returns Yearbook, consistently show that equities outperform most asset classes over decades but do so with significant volatility.
In an all-weather structure, stocks are essential but intentionally not dominant. You want enough to benefit during expansions but not so much that your portfolio collapses during recessions.
Long-term Treasury bonds (or their equivalent in your country) shine during:
During market stress, investors tend to move money into government-backed securities, which boosts bond prices. Historically, long-term Treasuries have often delivered some of their strongest performances when equities sold off sharply.
The key is that long-duration bonds are extremely sensitive to interest rate changes, which is both a risk and an advantage. In an all-weather approach, that sensitivity works as protection against deflation and slowdowns.
These bonds don’t swing as dramatically as long-term bonds, making them a useful buffer. They hold value during mild recessions, moderate inflation shifts, and periods where rates fluctuate without strong direction.
Their purpose is to provide consistent ballast so the portfolio doesn’t feel like a rollercoaster.
Commodities (such as oil, agricultural products, and industrial metals) are tightly linked to global supply and demand. When inflation rises, commodity prices often follow the same upward trend.
Modern analyses from the International Monetary Fund (IMF) show a strong historical correlation between inflation surprises and commodity price increases.
Including commodities helps prevent inflation from quietly eroding your real returns.
Gold behaves differently from traditional commodities. It’s influenced by:
During crises, gold often rises when stocks fall — making it a valuable diversifier. Analysis from the World Gold Council highlights its historical role in improving risk-adjusted returns when added to a diversified portfolio.
In an All-Weather context, gold protects against monetary instability and unexpected shocks.
The All-Weather portfolio became popular long before today’s concerns around:
You might wonder whether the strategy still holds up.
So far, it suggests that diversification across economic regimes remains effective, even in unpredictable global environments. Research from firms like BlackRock, Vanguard, and Bridgewater continues to support risk-parity-inspired structures (the foundation of All-Weather logic).
However, the modern market calls for slight adaptations, which we’ll cover shortly.
Market timing requires being right twice:
Very few investors consistently achieve that. Studies repeatedly show that most individual investors underperform the broader market because they react emotionally instead of strategically.
The All-Weather approach removes emotion. You’re not trying to guess what’s next, you’re building resilience so the “next” doesn’t break you.
While the classic version offers a good foundation, your modern adaptation should take into account:
Here’s how to construct a practical version:
Use the principles, not the exact percentages. Your goal is to spread across:
Think of it as a balancing act where no single piece dominates the portfolio.
ETFs make the All-Weather structure accessible. Look for:
Focus on low fees because the strategy already relies on holding long-term.
U.S. investors tend to use U.S. Treasuries; other countries can use their local sovereign bonds or global bond ETFs. Inflation dynamics also vary by region, so commodity exposure can play a slightly bigger or smaller role depending on your environment.
This is crucial. Rebalancing ensures:
It forces disciplined behavior without needing to predict anything.
Cash isn’t part of the traditional All-Weather structure, but it is part of real-life investing. Maintaining an emergency fund (typically 3–6 months of expenses) keeps you from liquidating assets during market downturns.
Resources from the Consumer Financial Protection Bureau (CFPB) reinforce the importance of cash buffers for long-term financial stability.
Some investors adapt the All-Weather idea with additional assets that didn’t exist or weren’t widely available decades ago:
They adjust with inflation, offering more targeted protection.
Examples include:
These offer additional diversification in some regions.
Low-volatility, value, or quality-focused funds can complement your equity exposure.
Global stocks have different economic drivers than U.S. only or region-specific stocks.
These enhancements are optional but can help fine-tune your all-weather structure for a more modern financial landscape.
It’s important to be realistic.
An All-Weather portfolio will not:
The goal is durability, not dominance. You trade some upside for far less downside, and for many investors, especially long-term planners, that trade-off is worth it.
You don’t need to be Ray Dalio to apply the principles of an All-Weather Portfolio. You just need an honest understanding of the cycles that drive the market and the humility to accept that nobody can predict them perfectly. Instead of betting on the right cycle, you prepare for all of them.
Economic patterns today move faster than they did decades ago. Information spreads instantly, central bank policies shift more frequently, and global supply chains adjust in real time.
If you build a balanced structure, rebalance consistently, and stay disciplined, your portfolio can survive inflation spikes, recessions, growth booms, and everything in between. Over time, consistency becomes your advantage.
The All-Weather philosophy absorbs shocks, adapts through balance, and removes the emotional guesswork that derails so many investors.
You could do all or some of the above and hope to right more times than you are wrong. Or you could have a dividend re-investment plan and check to see if the next and future dividends will be paid.
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