First the chart. It includes dividends earned but re-invested wherever your want is.

U will notice the 2 year period where the share price flatlined, so belt and braces, the importance of dividends.

If u bought near to the low u have achieved the holy grail of investing in that u can take out your stake and re-invest in a higher yielder, while still receiving a dividend on a Trust that sits in your account at zero, nil cost.

Part of the dividend is paid from capital but u wouldn’t care tuppence where the cash came from, when u spend it. In fact it means u don’t have to sell any shares to achieve the yield.

Tristan Hillgarth, Chairman, commented:

“I am delighted to report a 23.6% increase in the Company’s dividend for our current financial year. Since we adopted the enhanced dividend policy in 2016, shareholders in the Company have seen an increase in their dividends of 613%, equivalent to over 24% per annum, and we have delivered nine consecutive annual dividend increases.

“This growth is a function of the outstanding returns that our Portfolio Managers have generated over this period, assisted by the fact that they are unconstrained by the requirement to achieve a certain level of income. This allows them to select the ‘best’ stocks, rather than those that fit a specific income profile.

“Our capacity to part-fund dividends from our significant level of realised capital profits provides JGGI with the means to meet our shareholders’ desire for income, combined with clarity over dividend payments for the coming year.”

Now those who have been paying attention will know that 4% is not 7%, so if u want to buy u might need to pair trade it with a higher yielder, although IF the share price keeps rising the next dividend yield will also rise on your buying price.

If u had bought at 250p the current fcast dividend is 22.8p a yield on your buying price of 9%

The Trust usually trades above NAV as it’s been an outperforming Trust.

Should u buy today, maybe not unless u have a De Lorean parked in your garage but one to include in your buy list the next time Mr Market gives u the chance to buy.

Kepler

Bull

• Merger of assets leads to further benefits that come with increased scale
• Strong relative and absolute performance over multiple time frames
• 4% of financial year-end NAV dividend policy can offer good income

Bear

• Consistently trades at a premium to NAV, which can impact returns if premium falls
• Growth bias may enhance volatility compared with other strategies in the Global Equity Income sector
• Dividend may experience some volatility in tandem with NAV

Foresight Sustainable Forestry still Winterflood’s top monthly mover in London’s investment company space – that’s five weeks in a row now. But with the 97p cash offer now a month old, which fund is best placed to challenge for top spot?

By Frank Buhagiar

The Top Five

Foresight Sustainable Forestry (FSF) still occupying number one spot on Winterflood’s list of top investment company monthly movers courtesy of a +30.7% share price gain. That’s now five weeks in a row. But with the 29 May 2024 press release announcing the 97p a share cash offer from 29.64% shareholder Averon Park now a month old, chances are the shares won’t be sitting atop of the tree next week.

Gresham House Energy Storage (GRID), may be a contender for top spot after jumping from fourth to second. Shares, which extended their gain on the month to +28.4% from +17.9%, have seen strong investor demand ever since the 5 June Tolling agreement with Octopus Energy release. The agreement promises to add more visibility to the company’s earnings. And it would appear, BlackRock has been among those investors buying GRID shares after the company announced on 28 June that the asset manager had increased its holding to 12.1% from 11.1% previously.

Downing Strategic Micro-Cap (DSM) shares retained top-five status despite seeing the share price gain on the month shrink to +14.6% from +18.2%. Rewind to 18 June 2024 and DSM announced a third special interim dividend of 17.5 pence per share, equivalent to, in aggregate, £8.0 million. Nine days later, on 27 June, and DSM shares went ex-dividend. Cue an immediate drop in the share price by an amount equivalent to the dividend due to be paid, as those who buy shares now won’t be eligible for the payout in July. Shares still up enough to keep their place among the top five but eagle-eyed readers will have noted that DSM also featured in the latest Discount Watch, after the shares hit a 52-week high discount. The dividend is yet to be paid, hence net assets have yet to be marked down.

New Star Investment (NSI) claims fourth spot thanks to a +13.8% gain on the month. News that the flexible investor is proposing to return £17 million to shareholders via a B share scheme, the trigger for a 10%+ jump in the share price.

Augmentum Fintech (AUGM) completes the top five. Shares are up +13.5% on the month. A well-received set of full-year results, which included a +5.4% NAV per share increase, good for a jump in the share price. As Chairman Neil England pointed out ‘This continued our history of increases for every reporting period since the Company’s IPO in 2018.’

Scottish Mortgage

Scottish Mortgage’s (SMT) share price finished the week ended Friday 28 June 2024 with a monthly gain of just +0.5%, compared to +2.4% the previous week. NAV fared a little better – up +0.6% but this was still down from +1.7%. The wider global investment trust sector managed to increase its monthly gain to +2.4% compared to +2.2% seven days earlier. Can’t blame SMT’s weaker performance on the Nasdaq – the tech-heavy index finished the week flat. Nor was there a lack of buybacks as SMT was regularly buying back its shares during the week too. And yet the share price tickled lower to 884p from 888p during the week.

One piece of news to catch the eye. Broker Numis commented on media reports that SpaceX, Scottish Mortgage’s largest private position (4.4%), is to sell insider shares at $112 per share, valuing the company at around $210bn. That’s an improvement on the previously reported $200bn valuation and a 14% premium to the $180bn valuation at the time of SpaceX’s 2023 tender offer. Thing is, according to Numis, ‘It is more difficult to understand any direct valuation impact because Baillie Gifford have an active approach to valuation which seeks to reflect valuation information rapidly, and therefore may already be partly reflected in the NAV. We calculate an implied valuation for SpaceX of $205bn as at 31 May, based on Scottish Mortgage’s carry value.’ That would imply only a modest increase for SMT. So, was the market a tad underwhelmed?

JPMorgan Global Growth & Income plc

(the ‘Company’ or ‘JGGI’)

Dividend for the year to 30th June 2025

The Board is pleased to announce that it intends to pay dividends totalling 22.80 pence per share (5.70 pence per share per quarter) in relation to its financial year commencing 1st July 2024. This is in line with its policy of paying out 4.0% of the Company’s net asset value as at 30th June 2024 and represents an increase of 23.6% on the last financial year’s total dividend of 18.44 pence per share. This will be the ninth consecutive year that the dividend has been raised.

It is expected that the dividends will be paid by way of four equal distributions, with the first interim dividend for the financial year ending 30th June 2025 of 5.70 pence per share (for the period to 30th September 2024), being paid on 7th October 2024 to shareholders on the register at the close of business on 30th August 2024. The ex-dividend date is 29th August 2024. The three other dividends are expected to be paid in January, April and July 2025.

Tristan Hillgarth, Chairman, commented:

“I am delighted to report a 23.6% increase in the Company’s dividend for our current financial year. Since we adopted the enhanced dividend policy in 2016, shareholders in the Company have seen an increase in their dividends of 613%, equivalent to over 24% per annum, and we have delivered nine consecutive annual dividend increases.

“This growth is a function of the outstanding returns that our Portfolio Managers have generated over this period, assisted by the fact that they are unconstrained by the requirement to achieve a certain level of income. This allows them to select the ‘best’ stocks, rather than those that fit a specific income profile.

“Our capacity to part-fund dividends from our significant level of realised capital profits provides JGGI with the means to meet our shareholders’ desire for income, combined with clarity over dividend payments for the coming year.”

Impact Healthcare – Disposal of five non-core care homes

Impact Healthcare REIT plc

(“Impact” or the “Company” or, together with its subsidiaries, the “Group“)

DISPOSAL AT LATEST BOOK VALUE OF FIVE NON-CORE CARE HOMES FOR £8.8 MILLION

The Board of Directors of Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which gives investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, announces that as part of its active portfolio management policy the Group has exchanged contracts for the sale of five non-core care homes for £8.8 million, which is in line with the latest valuation of these homes as at 31 March 2024.

Impact has exchanged on the sale of three care homes in East Yorkshire for a total consideration of £4.3 million: Ashgrove Care Home, a 56-bed care home in Cleethorpes; Emmanuel House, a 44-bed care home in Hessle; and Hamshaw Court, a 45-bed care home in Hull. The purchaser is a local owner and operator of care homes, and the transaction is subject to re-registration of the care home operations from the current tenant, Minster Care Management Limited (“Minster”), to the purchaser which requires the approval of the independent regulator, the Care Quality Commission (“CQC”). Completion is expected during the third quarter of this year.

In addition to the above disposals, Impact has exchanged and simultaneously completed on the sale of two care homes for a total consideration of £4.5 million: Eryl Fryn Care Home, a 30-bed care home in Llandudno, Wales; and Stansty House Care Home, a 73-bed care home in Wrexham. Eryl Fryn Care Home and Stansty House Care Home were sold to an affiliate of Minster. In assessing the merits of the transaction with an associate of Minster, the Company commissioned a second independent valuation, which supported the sale price.  Minster is deemed to be a related party of the Company under the Listing Rules. The sale of Eryl Fryn Care Home and Stansty House Care Home is a smaller related party transaction for the purposes of Listing Rule 11.1.10R and this announcement is therefore made in accordance with Listing Rule 11.1.10R(2)(c).

Impact acquired the five care homes as part of its IPO seed portfolio in May 2017. The homes have either had a history of relative under-performance, have low EPC scores or are smaller than the ideal size for a care home (the average size of homes in the Impact portfolio is 56 beds). Following the sales, Impact will own 135 properties. The disposal of these five homes will help improve the sustainability performance of the Group’s portfolio either by reducing our exposure to homes with an EPC C or D, or disposing of homes that have higher CO2e emissions per m2 than the portfolio average (portfolio average 2023: 54kg CO2e per m2).

Impact has achieved an unlevered IRR on these non-core homes from purchase to sale of 6.6% per annum. On the whole of the Minster and Croftwood IPO seed portfolio its unlevered IRR from May 2017 to March 2024 is 10.5% per annum. Once completed, these transactions will also reduce the Group’s exposure to the Group’s largest tenant.

Thursday 4 July

Alpha Real Trust Ltd ex-dividend payment date
Big Yellow Group PLC ex-dividend payment date
BioPharma Credit PLC ex-dividend payment date
CC Japan Income & Growth Trust PLC ex-dividend payment date
CT Private Equity Trust PLC ex-dividend payment date
CT UK High Income Trust PLC ex-dividend payment date
CT UK High Income Trust PLC B ex-dividend payment date
European Assets Trust PLC ex-dividend payment date
ICG Enterprise Trust PLC ex-dividend payment date
Manchester & London Investment Trust PLC ex-dividend payment date
Martin Currie Global Portfolio Trust PLC ex-dividend payment date
Murray International Trust PLC ex-dividend payment date
NewRiver REIT PLC ex-dividend payment date
North American Income Trust PLC ex-dividend payment date
Premier Miton Group PLC ex-dividend payment date
Real Estate Credit Investments Ltd ex-dividend payment date
Safestore Holdings PLC ex-dividend payment date
Shires Income PLC ex-dividend payment date
Triple Point Energy Transition PLC ex-dividend payment date
Warehouse REIT PLC ex-dividend payment date
Workspace Group PLC ex-dividend payment date

Discount Watch

We estimate there to be six Investment Trusts trading at 52-week high discounts with three new names making it into the latest Discount Watch.

ByFrank Buhagiar •01 Jul,

We estimate there to be six investment companies trading at 12-month high discounts over the course of the week ended Friday 28 June 2024 – the same number as the previous week.

Next new name to mention, The Renewables Infrastructure Group (TRIG). No news out this past month apart from Company announcements detailing fractional movements in wealth manager Brewin Dolphin’s interest in the fund. Not much to write home about there. And not much in the way of press coverage either. Something of a mystery then as to why the shares are trading at a year-high discount to net assets. Does Mr Market know something the rest of us don’t? One to keep an eye on.

There are a couple of of new names we’d like to highlight, or in the case of Downing Strategic Micro-cap (DSM), a reappearing name. DSM, which is in wind-down mode, last appeared on the Discount Watch List on 10 June 2024. It subsequently disappeared from the list only to find itself among Winterflood’s top-five monthly movers. The sharp turnaround in fortunes was due to the announcement of a managed wind-down.

On 18 June 2024, DSM announced a third special interim dividend of 17.5 pence per share, equivalent to, in aggregate, £8.0 million. Fast forward to 27 June and DSM shares went ex-dividend. That means those who buy the shares now will no longer be eligible for that special dividend. To reflect this, the share price dropped by the amount of the dividend to be paid. The dividend is due to be paid on 18 July so net assets haven’t yet been adjusted downwards. Share price down + net assets unchanged = shares back on the Discount Watch. Question is, will DSM’s shares muscle their way back into Winterflood’s top-five movers once the dividend is paid in July?

Finally, Henderson High Income (HHI). Only new news out, the latest monthly factsheet on 21 June 2024 showing a NAV total return of +2.7% for May compared to the composite benchmark’s (80% FTSE All-Share Index/20% ICE BofA Sterling Non-Gilts Index) total return of +2.1%. Imagine what the shares would have done if the fund had underperformed the index.

The top-five discounters Fund Discount Sector

Ground Rents Income GRIO -70.60% Property

Ceiba Investments CBA -69.64% Property

Downing Strategic Microcap DSM -69.40% UK Smaller

The Renewables Infrastructure Group TRIG -26.08% Renewables

Henderson High Income HHI -11.08% UK Equity & Bond Income

The full list

Fund Discount Sector

Ceiba Investments CBA -69.64% Property

Ground Rents Income GRIO -70.60% Property

Renewables Infrastructure Group TRIG -26.08% Renewables

Diverse Inc DIVI -10.91% UK Equity Income

Henderson High Income HHI -11.08% UK Equity & Bond Income

Downing Strategic Microcap DSM -69.40% UK Smaller

Warren Buffett at a Berkshire Hathaway AGM Provided by The Motley Fool

How to earn passive income using the Warren Buffett method
Story by Stephen Wright

Investing like Warren Buffett involves two things. The first is buying shares in great companies at decent prices and the second is being patient and allowing the investments to develop.

Coca-Cola shares

Berkshire Hathway has owned its stake in Coca-Cola since 1994. At the time, the dividend yield was around 5.75% and Buffett’s company received around $75m in the first year.

That’s not bad, but over the last three decades, the investment has grown into something spectacular. Last year, Berkshire received $704m – a return of 54% on the initial outlay. 

From a passive income perspective, that’s a spectacular result. And it comes down to two things that are central to the Warren Buffett approach to investing – finding great businesses and being patient.

Finding great businesses

In Buffett’s words: “If a business does well, the stock eventually follows.” The mean reason Berkshire’s investment in Coca-Cola has worked so well is because the business has two important characteristics. 

Second, the firm has a has a significant advantage over its competitors. Its powerful brands and wide distribution network allows it to bring products to market better than its rivals.

Don’t be in a rush

The other part of Buffett’s approach is being willing to wait for opportunities. As he puts it: “The stock market is a device for transferring money from the impatient to the patient.”

If Berkshire had paid twice as much for its stake in Coca-Cola back in 1994, the dividends it receives today would be 27% of the initial outlay, not 54%. That’s still impressive, but not nearly as good.

Being patient also means being willing to hold investments for the long term. On average, Coca-Cola’s dividend has only grown by 8% per year – but over 29 years, that becomes something really significant. 

8.7% yield. A dividend growth stock to consider stashing in a SIPP for decades

I’m looking for the best dividend growth stocks for SIPP investors to consider today. Here’s one with an 8.7% yield that deserves close attention.

Royston Wild

AGR

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.

Investing in UK shares can be an effective way to source a large and growing passive income. The FTSE 100 and FTSE 250 in particular are home to stacks of top dividend growth stocks.

These indexes are packed with established businesses that have market leading positions and robust business models, giving them stable earnings and strong cash flow. This is the perfect recipe for them to deliver a dependable (and often growing) dividend over time.

A top SIPP buy

Remember that dividends are never, ever guaranteed. Indeed, they can fall, or even be suspended altogether, when broader economic conditions worsen.

However, a well diversified portfolio — one which provides exposure to different companies across multiple sectors and geographies — can still generate a rising passive income year after year.

But which UK shares are the best ones to buy for dividend growth today? Here, I’ve identified one that could be a great long-term buy for those who own a Self-Invested Personal Pension (SIPP).

REITs rule

Real estate investment trusts (REITs) can be some of the most secure dividend stocks out there. The regular rents they receive often provide a dependable income that they can distribute to their shareholders.

In fact, these special property stocks are required to pay 90% of annual rental earnings (profits) by way of dividends. While other shares can choose whether or not to pay dividends, REITS simply have no choice if their rental operations are profitable.

Assura (LSE:AGR) is one such share with a strong history of dividend growth. It’s raised annual payouts for the last 11 years on the spin. Over the past nine years, dividends have risen at a healthy compound average of 7% too.

Robust earnings

There are around 50 REITs listed on the London Stock Exchange today. But I like this one because its operations can be considered particularly defensive. As mentioned above, stable earnings usually translate to regular — and in this case, growing dividends.

You see, Assura owns, manages, and leases out medical centres across the UK. More specifically, it owns more than 600 GP surgeries, diagnostics centres and primary healthcare facilities.

Needless to say, these properties remain in high demand at all points of the economic cycle. So in this regard, Assura doesn’t have to worry about empty buildings and problematic rent collection during downturns.

Furthermore, the majority of rents that doctors, NHS bodies and other healthcare providers pay the company are indirectly funded by the government. This, in turn, reduces the possibility of rent defaults.

8.7% dividend yield

Of course no share is without risk. In the case of Assura, changes to NHS policy could significantly alter its long-term growth prospects.

But as things stand today, it’s looking good. Demand for primary healthcare facilities is growing as the government tries to ease the strain on packed hospitals. It is likely to continue expanding too, as Britain’s elderly population swells.

City analysts are expecting Assura’s dividends to continue growing for the next three years, at least. This means its dividend yield stands at a whopping 8.4%, and eventually rises as high as 8.7%.

If I didn’t already own shares in industry peer Primary Health Properties, I’d buy Assura shares to boost my long-term passive income.

Although u know u shouldn’t as it can make an ass out of u and me

When u retire u intend to take out an annuity, that assumes the market hasn’t crashed just before u buy or that interest rates aren’t near to their low.

The present day proposition.

By Sam Benstead from interactive investor

How much do annuities pay ?

Annuity rates are typically greater than gilt yields, as investors pay a lump sum and generally do not receive their money back at the end of their annuity policy. Annuity rates are higher for older buyers and lower for younger buyers, as the length of the term will likely be longer.

A standard single life, no-guarantee annuity rate for a 65-year old is now around 7.13%, or £7,130 a year per every £100,000 saved, according to Sharing Pensions, an annuity comparison site.

This means that a £500,000 lump sum would deliver an income of £35,650 a year until death, with no link to inflation. Annuity rates will vary depending on the provider, the age of the customer, and changes in interest rates.

In contrast, a gilt maturing in 20 years – which would be a typical annuity length for someone retiring at 65 and living until 85, yields 4.5%. This means £500,000 invested in a bond issued by the UK government, trading at its par value, would deliver an equivalent income of £22,500 a year. But at the end of the 20-year term the owner would also receive their £500,000 back. The total profit delivered by the gilt would be £450,000 (£22,500 multiplied by 20).

On the other hand, the annuity would have paid out £713,000, but minus the £500,000 cost of the plan, this would only be a profit of £213,000 – that’s an equivalent annual yield of about 2.15%.

Buying a gilt therefore could offer a substantially better return, with the advantage that it can be sold at any point in the term, which may be triggered by an early death. Annuities don’t come with the same advantage, and deliver a worse return for a typical life span. All subjective to your tax position.

££££££££££

The capital sum of a gilt is only guaranteed if u hold to maturity, if u sell earlier u may not get back all of the amount invested but considerably more than zero.

A journey of a thousand miles begins with a single step.

Lao-tzu

 Provided by The Motley Fool

What makes for a good investor ?
Story by Malcolm Wheatley

Over the years, I’ve seen good investors, and bad investors. And an awful lot of average investors. 

But what is it that differentiates a good investor from an average investor? Or a bad investor?

Some quite simple things, actually.

Good investors have a strategy

We’ve all seen them. “Magpie” investors that just pick up shares on a whim — a Sunday newspaper tip, a share that someone from the golf club recommended, a supposedly hot initial public offering, and so on.

There’s usually not much more to say about the resulting mess except to note the fact that it is, well, a mess.

Better by far to have a strategy. And even better to stick to it.

What might such a strategy be?

Investing in growth shares might be one such strategy. Investing for income might be another. Investing for global diversification might be another. Investing in resources and energy shares might be another.

And so on, and so on.

Good investors choose metrics that match their strategy

How are your shares doing? Ask this, and you’ll hear some awful answers.

“Dog Star Dynadrive is up 80%!” they’ll gush. Yes, but all your other shares are down 10%.

“Not so good: the dividends are really, really poor.” But what do you expect? You’re invested in growth shares. Some of your shares don’t even pay a dividend.

“The market seems very volatile at the moment.” I’m not surprised: you’re only invested in three shares.

“My portfolio is up 30%!” Yes, but over the same period, the market is up 40%.

And so on, and so on.

If you’re pursuing income, measure — and report on — income. If you’re pursuing growth, measure — and report on — that growth. If you’re only investing in oil shares, measure yourself against the overall oil sector.

And measure yourself against the market, or against a relevant sub-sector of the market. Simply being ‘up’ is not good enough: are you beating the market, and by a reasonable amount? Otherwise, a cheap — and probably better diversified — index tracker might serve you better.

Good investors are opportunistic

Warren Buffett summed it up best: in the long term, the market is a weighing machine — but in the short term, it’s a voting machine.

Meaning that individual shares — or market sectors, or even whole markets — go in and out of fashion, and experience buoyant conditions, or not so buoyant conditions.

So when shares go ‘on sale’, these investors are prepared to buy. It might mean some short-term pain — and often does, in my experience — but market conditions, and market opinion, eventually change.

Leaving investors sitting on assets bought at attractive prices, and income streams larger than they would otherwise be. I’ve noted before my opportunistic purchases of Shell: £12.95 in 2016, and £13.40 in March 2020. They’re now over £28. And let’s not even mention the dividends.

Good investors invest for the long term

Good investors — as opposed to traders — are in it for the long term.

They understand that investing returns compound over time. They understand that timing the market is very, very difficult, and that it’s often better just to take a long-term view. And they understand that it’s perfectly natural for the market to go up and down, and that it’s better to simply ride out such fluctuations.

They don’t expect to get rich by next Wednesday. They don’t panic and sell out when the market turns down. And — wherever possible — they buy shares that are able to withstand economic downturns and adverse conditions.

How long is ‘long term’? Longer than five years. 10 or 15, at a minimum. And because they’re investing with long-term goals in mind — retirement, or early retirement, say — they’re sanguine about an investment horizon of 20+ years.

So there we have it

Do you recognise yourself in the above? Perhaps not

But would you like to recognise yourself in the above

You know where to start.

The post What makes for a good investor? appeared first on The Motley Fool UK.