A simple plan to re-invest the earned dividends back into the share.
During 2023 you would have achieved the holy grail of investing that you could take out your stake and invest in another high yielder and have a share in your portfolio producing income at a zero, zilch nothing cost.
After you have re-invested your capital, you could carry on re-investing your dividends back into the share and try to do it all over again, or re-invest your dividends subject to the available yields in the market.
Dividends per share paid since inception
82.99p
Current yield 10.2% Current discount to NAV 30%
If you re-invested the dividends elsewhere, you are still only a few years away from having all your capital returned and you will have two shares adding dividends to your Snowball.
“These results mark another period of sound operational performance. The Company has raised its dividend target, continuing our record of dividend growth since inception which is once again expected to be fully covered by cash post debt amortisation. The Company also energised two of its largest assets – Yelvertoft (48.4MW) and Mauxhall (44.5MW) – and work on the extensive and accretive development pipeline continued within the constraints of being unable to raise fresh capital.
“As I have reported previously, the discount to which the Company’s shares trade has been a clear focus of the Board, and strategic measures to add shareholder value have continued to be executed successfully during the course of the year. These measures include the completion of Phase Two of our innovative Strategic Partnership with GLIL Infrastructure in September 2024 which released c.£70 million to BSIF. The completion of the Company’s £20 million share buyback programme and the reduction of the Company’s Revolving Credit Facility (‘RCF’) to £133.5 million also represented notable milestones.
“Despite these achievements, the Company’s share price discount to net asset value, whilst being among the narrowest of our peers, has continued to widen. Given this situation, the Board has concluded that it is the right time to explore strategic initiatives and options including reviewing fee arrangements, to address the share price discount and to continue to seek to maximise value for our shareholders.
The Board is committed to reviewing all options available to the Company and we will look to update shareholders on progress as appropriate.
Fear of missing out (FOMO) is possibly one of our longest and most enduring failings; those religious amongst us would say it goes all the way back to Adam and Eve in the Garden of Eden and that juicy apple.
Fear of missing out (FOMO) is a common emotional investing mistake that can lead to impulsive decisions and poor risk management when investors chase fabulous, exciting, new, shiny and well-marketed ideas. Investors are surrounded by social media, bulletin boards, chatrooms, blogs, podcasts and investing channels on YouTube, and the frequency and level of information disseminated with regards to a single stock, fund, investment company or asset class at any one time can make it extremely overwhelming, for the inexperienced and even the experienced investor.
The confidence of a well-spoken, articulate, well-written and well-meaning individual about e.g. stock X, can lead to private investors being drawn into something which may not be for them and may not be as great, in reality. We can sometimes, make the mistake, through our ‘fear of missing out’ on committing to a ‘surefire, fast-rising, winning, opportunity’, irrespective of where stock X is in its growth journey, revenue generation or even fundraising* activity.
Daniel Kahneman sums this beautifully when he states, “Wherever there is prediction, there is ignorance, and probably more of it than we think.” If we are all thinking alike, then how many of us are actually thinking about the challenges, the risks and the issues? This is not to say that all marketing and sales persuasion is unhelpful, but what it does mean is that you should conduct your own due diligence to make sure that you know what you are buying and what you may realistically gain in return.
*Fundraising activity – means that the marketing and sales persuasion is elevated to gain interest and to increase the return for those who already hold or are looking to sell into the momentum of a rising stock. This often happens with AIM penny shares and private investors can experience a hugely discounted placing after an initial purchase. This can also happen with established, profitable, and even larger market-capitalised companies.
Ultimately, controlling FOMO is about maintaining and improving one’s own strict research strategy and being open to continual learning. Not falling for the next hype stock or asset class. Not believing the investment performance hype of your favoured anonymous Fintwit avatar individual whose proof of buys or sells you have absolutely no clue about. Instead of falling for FOMO, please take the time to analyse, research and evaluate each investing opportunity thoroughly and independently of the hype or noise of any individual or the crowd. There are no investment gurus and all that glitters is not gold! Or as Benjamin Graham famously said, “If everyone is thinking alike, then no one is thinking”.
The Board of Directors of the Company has declared an interim dividend of 1.06 pence per share for the three-month period to 31 December 2024. The dividend will be paid on 3 April 2025 to shareholders on the register as at 7 March 2025. The ex-dividend date is 6 March 2025. The 1.06 pence per share dividend represents the net revenue return earned by the Company for the three-month period to 31 December 2024.
Achilles (AIC) does what no other fund in London has managed to do in recent years – raise over £50m as part of an initial public offering; Foresight Solar (FSFL) joins the growing ranks of funds adopting more shareholder-friendly management fee structures and is also exploring all options in terms of its future strategy; while Assura (AGR) turns down a 48p per share cash offer from KKR.
By Frank Buhagiar
Achilles, London’s first £50m+ fund IPO since 2021
Achilles (AIC) has done what others have failed to do in recent years – raised over £50m as part of an initial public offering (IPO) in London’s investment company space. As per the press release o21 February 2025, the fund will invest in a “concentrated portfolio of closed-ended investment companies, admitted to trading on a market of the London Stock Exchange, with a focus on alternative assets (being assets other than publicly quoted equities) and to seek to maximise value for Shareholders through constructive activism.” The fund’s managers, Christopher Mills and Robert Naylor have form when it comes to getting the maximum value out of alternative assets – both played key roles in the successful sales of music royalty investors Roundhill Music and Hipgnosis. Investors clearly thinking the pair can repeat the trick elsewhere in the alternatives sector.
Liberum: “There does tend to be less activist involvement in Alternatives. Compared to equity funds, shares are far more widely held by institutions and wealth managers. While AIC’s ticket sizes may not be particularly large, it is likely that it will have the support/backing of some of the largest owners of Alternative funds and will therefore be able to represent the views of a large portion of registers in the funds it targets. We think the more good outcomes that can be delivered, the more chances there are for good strategies caught in the crossfires to come back into favour and the more likely it is for the sector to successfully introduce a wider pool of buyers.” Achilles to the rescue!
Foresight Solar cuts fees and assesses options
Foresight Solar (FSFL) joins the growing ranks of funds adopting more shareholder-friendly management fee structures. “The Board and the Investment Manager are acutely aware of the growing preference from investors for management fee structures to more closely reflect the share price performance experienced by shareholders.” Two “significant improvements” have been made. Under the new arrangements, rather than being wholly applied to net asset value (NAV), the new management fee will be applied to an equal weighting of (i) the average of the closing daily market capitalisation during each quarter and (ii) the published NAV for the quarter.
There’s also been a change to the fee rate charged. Previously, the Investment Manager received an annual management fee calculated at the rate of 1% p.a. of NAV up to £500m and 0.9% p.a. of NAV greater than £500m. From 1 March 2025, new fee rates of 0.95% up to £500m and 0.8% over £500m will be applied. As for what this means in terms of savings, the company helpfully provides an example. Using the 17 February 2025 77.7p share price, £436.3m market capitalisation and 31 December 2024 NAV of £634.4m, the changes would generate an annualised saving of c.£1.2m (19%).
Further changes could be afoot too. That’s because the Board has been talking with shareholders who “have expressed a range of views to the Board. While some have expressed a desire for liquidity, others are seeking ongoing exposure to the listed renewables sector through a vehicle with greater secondary market liquidity and scale to drive efficiencies. The Board’s role is to balance these objectives and deliver value to Shareholders in an efficient and effective manner by exploring all options available.” So, watch this space.
Jefferies: “the fee reduction and the fact that the board is ‘exploring all options available’ in terms of the future strategy of the fund should be welcomed by shareholders, with the hope that a more specific path forward is outlined ahead of this year’s discontinuation vote.”
Assura turns down takeover offer
Healthcare property co. Assura (AGR) put out a press release in response to an announcement from KKR “relating to the indicative, non-binding proposal that it submitted to the Assura Board on 13 February 2025 regarding a possible cash offer for the entire issued share capital of the Company.” The AGR Board however deemed the 48p per share offer “materially undervalued the Company and its prospects and therefore rejected it unanimously.” Ball back in KKR’s court.
Numis: “KKR confirmed that it has to-date made four indicative non-binding proposals to the Board. The latest proposal reflects a 28% premium to Thursday’s closing price, a 27% premium to the three-month volume weighted price, and a 2.8% discount to the September 2024 NTA.”
If you bought at issue price and simply re-invested the dividends, you would be in profit but you would have built a substantial holding, which hopefully you will be benefit from, one day..
Yield on issue 5.5%. Current yield 8.5%
Discount to NAV 20%
GOLDMAN RAISES SUPERMARKET INCOME REIT PRICE TARGET TO 94 (92) PENCE – ‘BUY’
Supermarket Income announced a dividend of 6.1p per share, up 1.7% from 6.0p a year ago.
Looking ahead, Chair Nick Hewson said: “In the context of the recently challenging macro headwinds, we can now begin to consider the possibility of a more favourable interest rate environment. Market expectations of modest interest rate cuts over the coming months, albeit not returning to the levels of the 2010s, provide confidence that we have now seen the floor in this current cycle.”
He added: “Looking ahead, we remain optimistic that the improving interest rate environment should provide positive tailwinds for the company.”
3 Tax-Free Funds Throwing Off “Stealth” Dividends Up to 12%
Michael Foster, Investment Strategist Updated: February 24, 2025
Today we’re going to use a simple strategy to (legally!) beat the tax man. The key is a (too) often-ignored group of funds whose dividends are beyond the reach of the IRS.
The low-risk assets behind this income stream really should be part of any income investor’s portfolio. And the three funds we’ll discuss below, which yield up to 7.3%, are a great place to start. Thanks to their tax-free status, their “real” yields will likely be considerably more for us.
Enter “Boring But Beautiful” Municipal-Bond Funds
Here’s the truth on taxes: If you’re an American and you receive any kind of income, you’re going to get taxed. This is a constant of life. But there is one exception: municipal bonds, the income from which is tax-free for most Americans.
That tax-exempt status drives plenty of investors to muni bonds, making them a secret weapon for state and local governments and American industry, as these bonds fund many infrastructure and other public works projects around the country.
It adds up to a big difference-maker for many folks. A municipal, or “muni,” bond yielding 4% might not seem impressive at first glance, but for someone in the top federal tax bracket, this 4% tax-free yield is equivalent to a taxable yield of 6.6%.
And of course, the higher our “headline” muni-bond yields get, the bigger the taxable-equivalent yield: for that same taxpayer in the top federal bracket, for example, 5% yields turn into 8.3% on a taxable-equivalent basis.
Creating Your Own “Tax-Free Income Machine”
The best way to buy municipal bonds is through closed-end funds (CEFs), which give us three key advantages:
Active management: The world of municipal bonds is challenging for individuals to access, so we want pros from well-established firms like BlackRock, Nuveen and others “running” our muni-bond portfolio for us.
High yields: Plenty of muni-bond CEFs pay 4%, 5% and more, which, as we just saw, translates into a bigger yield on a taxable-equivalent basis.Discounts to net asset value (NAV): Because CEFs have more or less fixed share counts for their entire lives, they can, and often do, trade at different levels than the per-share value of their portfolios, and regularly at discounts. That lets us buy our “munis” for 90, 85 and sometimes even fewer cents per dollar of assets, as we’ll see in a moment.
With all that in mind, let’s go ahead and create a tax-free income portfolio with just three CEFs, all of which are diversified across municipalities, projects and credit ratings.
Muni Pick #1:BlackRock MuniYield Quality Fund (MQY)
MQY is notable for its consistent performance and ability to offer tax-free income for a long time, making it a great long-term hold.
MQY’s Long History of Profits
MQY currently trades at a 7% discount to NAV, so we’re paying 93 cents for every dollar of assets with this one. Cheap! Moreover, like all muni-bond funds, MQY dropped in 2022, as interest rates rose. But now, with rates having come down a bit, and likely to move lower over time, the fund is nicely positioned to grind higher, in addition to handing us a nice long-term (and of course tax-free) income stream.
The kicker here is that MQY’s 5.9% yield—already attractive on its own—“converts” to a 9.8% taxable-equivalent yield for top income earners.
Muni Pick #2:Nuveen AMT-Free Quality Municipal Income Fund (NEA)
Let’s carry on with NEA, known for its strong management team (Nuveen gets access to high-quality municipal-bond issuances early, which is possible thanks to the company’s deep contacts in the muni-bond world and the fact that the muni market is small).
Like MQY, NEA trades at a discount (4.9% in this case) but its yield clocks in at a massive 7.6%, thanks in no small part to higher yields the fund has been able to lock in as interest rates rose and stayed elevated.
And like MQY, this fund has a long track record of healthy total returns, especially for a stable asset class like munis.
NEA Keeps Delivering Income and Gains
Bear in mind, too, that thanks to NEA’s high yield, much of that return has come in the form of dividend cash.
Muni Pick #3:RiverNorth Managed Duration Municipal Income Fund II (RMMZ)
Finally, for further diversification in the muni-bond fund space, consider RMMZ, which has an interesting method of managing duration and credit risk: It buys more individual municipal bonds when the muni market is hot, then leans more into buying other muni-bond CEFs when the market is cold and CEF discounts are unusually wide.
RMMZ’s Clever Approach to Maintaining Income
Source: RiverNorth Capital Management
This fund also trades at a wide discount to NAV—7.4% today—which is yet again a nice bonus for a high-yielding fund. But the real standout stat is RMMZ’s yield: 7.2%. On a taxable-equivalent yield basis, that’s 12%. Plus, RMMZ’s discount to NAV has been eroding, giving investors who buy at a discount the potential to sell at a profit as the discount shrinks.
RMMZ’s Discount Is Evaporating
RMMZ is far from perfect: its payouts were cut at the start of 2025 by two-tenths of a penny, and if that were to happen again, its current yield would “fall” to around 7%, with little effect on that 12% taxable-equivalent yield for our top income earner!
I don’t know about you, but that’s a pretty reasonable “downside” to me. The upside is that these funds all have diversified portfolios in municipal bonds, which sport just a 0.1% default rate across the asset class.
The bottom line: If you need a tax break (and who doesn’t?), these are three funds worth serious attention.
Play Defense With Munis. Then BUY These 10% Dividends for Trump 2.0 GAINS
I know there’s a lot of uncertainty out there, and these 3 muni-bond CEFs, with their stability and huge tax-free dividends, are the perfect way to protect your portfolio.
But we do NOT want to fully pull back into our shell. Because Trump 2.0, despite its disruption out of the gate, is going to set us up with some terrific income (and growth) opportunities in the coming years—and we do NOT want to miss out on those.
Contrariain Outlook
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I know absolutely nothing about Munis, so it’s strongly advised that you do further research before deciding to invest any of your hard earned.
The current profit for the Snowball on closed positions is £13,443.00
The current loss for the Snowball on closed positions is £8,855.00
Both include dividends received.
Whilst the Snowball’s plan isn’t a trading strategy but a buy and hold forever, if the market gods allow it, if a profit can be taken and invested back into a higher yielder, the Snowball will grow quicker.
Remember a profit is not a profit until the underlying share is sold and the profit banked.
Obviously, we should all think more like Warren Buffett
By James Baxter-Derrington Investment Editor
Each and every year since Berkshire Hathaway stopped operating primarily as a textile manufacturer and began its path to synonymity with “investing genius”, its chair has produced an annual letter.
Since 1973, the Oracle of Omaha has also invited shareholders to quiz him in person at an event which has come to be known as “Woodstock for Capitalists”.
With Woodstock still a few months away, investors will have to make do with Warren Buffett’s annual letter for now.
Part of Buffett’s appeal is precisely what allows him to succeed so famously – contrition and honesty.
The very first subhead of his letter reads “Mistakes – Yes, We Make Them at Berkshire”. In fact, Berkshire’s birth as Buffett’s investment vehicle was a mistake, if you ask him. Thanks to a desire to get even with somebody he felt had slighted him, Buffett says he missed out on $200bn of compound returns by purchasing the firm.
There is nobody so famous for offering investment lessons as Buffett, and his letter continues in this vein. A tip for life as well as investing, he describes “delaying the correction of mistakes” as the “cardinal sin” – or, in the words of his late business partner Charlie Munger, “thumb-sucking”.
“Problems, he would tell me, cannot be wished away. They require action, however uncomfortable that may be.”
Delaying the inevitable will only ever cause further pain – a 50pc loss is considerably better than a 100pc loss.
To be honest with yourself is also to prevent yourself from believing lies – was your 2018 purchase of Tesla really genius? Did you actually predict 1,800pc growth?
“If you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself as well,” he says.
The letter also takes a moment to touch on a point I addressed last week – the opportunity of Japan.
Given the firm’s near-entire US focus, it bears considering just what it means for Berkshire to have spent the past six years building stakes in Japanese companies.
The rationale was straightforward: “We simply looked at their financial records and were amazed at the low prices of their stocks. As the years have passed, our admiration for these companies has consistently grown. Greg has met many times with them, and I regularly follow their progress. Both of us like their capital deployment, their managements and their attitude in respect to their investors.”
(Greg is Greg Abel, heir apparent to Berkshire Hathaway.)
Has it worked? Berkshire has spent an aggregate $13.8bn (£10.9bn) purchasing its stakes, which are currently worth $23.5bn.
Buffett also references the success of their “yen-balanced strategy” – “the annual dividend income expected from the Japanese investments in 2025 will total about $812m and the interest cost of our yen-denominated debt will be about $135m”.
Decent.
To invest like Warren Buffett is simple – buy Berkshire Hathaway; to think like Warren Buffett is a little tougher, but will offer returns beyond capital growth.
Depending when you bought you may be sitting on a substantial loss.
You would have built up a large position with the Trust, so stick to your task until it stick’s to you, as long as it continues to pay a dividend.
Current yield 7.6%
Discount to NAV 35%
Dividends
The Company has declared the following interim dividends in respect of the year:
Quarter to
Declared
Paid/to be paid
Amount (p)
30 June 2024
31 August 2024
6 October 2024
1.6
30 September 2024
22 November 2024
27 December 2024
1.6
Total
3.2
The total dividend was therefore in line with the Group’s target for the year of 3.2p. 1.6 dividends were property income distributions and 1.6 was a non-property income distribution. The cash cost of the total dividend for the year will be £13.6 million (30 September 2023: £13.6 million).
Nov 2024
19 February 2025
Warehouse REIT plc
(the “Company” or “Warehouse REIT”, together with its subsidiaries, the “Group”)
Dividend Declaration
The Company has declared its third interim dividend in respect of the third quarter of the financial year ending 31 March 2025 of 1.60 pence per ordinary share, payable on 11 April 2025 to shareholders on the register on 14 March 2025. The ex-dividend date will be 13 March 2025.
The dividend of 1.60 pence per ordinary share will be paid in full as a Property Income Distribution.
