From small streams, mighty rivers do flow
By following these steps, I have worked towards building a stream of passive income that can support my financial goals, whether it’s for retirement, additional income, or fulfilling other personal aspirations.

The Motley Fool

by Kate Leaman

I believe that creating a passive income stream through investing can be a smart way to build wealth over time. Here’s my five-step guide that helped me achieve this goal.

1. Understand the basics of the Footsie and stock market investing
   Gaining a basic understanding of the FTSE 100 and stock market mechanics is key before investing. The Footsie includes 100 major companies on the London Stock Exchange, some offering dividends from profits. It’s vital to keep abreast of each stock’s fundamentals and dividend schedules for potential yield and growth.

2. Open a tax-efficient investment account
   In the UK, I’ve found that a Stocks and Shares Individual Savings Account (ISA) is a great vehicle for tax-efficient investing. Any gains made within an ISA, including dividends, are not subject to tax. This means I can reinvest my full dividend earnings, enhancing the potential for compound growth. It’s important to understand the annual limits and rules for ISAs to make the most of this tax advantage.
   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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
3. Start by investing in high-dividend yield stocks
   I begin by investing in companies within the FTSE 100 that have a history of paying high dividends. I research companies that have consistently paid and increased their dividends over the years. This consistency is key to creating a reliable second income stream. Remember, investing in a diverse range of sectors can help mitigate risks.

Some of the top dividend payers in the Footsie that I’m active with include:

Shell: Shell is known for its consistent and high dividend payouts.
British American Tobacco: this multinational tobacco company has a long history of paying substantial dividends to its shareholders.
GSK: GSK has been a reliable payer of dividends, thanks to its strong pharmaceutical and consumer health business.
HSBC Holdings: HSBC is known for its significant dividend payments.
BP: another major player in the energy sector, BP has historically provided high dividend yields.
AstraZeneca: a global, science-led biopharmaceutical business that has been consistently paying dividends.

4. I reinvest my dividends for compound growth
   The power of compounding cannot be overstated. Instead of spending the dividends I receive, I reinvest them to purchase more shares. This increases the number of shares I own, potentially increasing my future dividend income. Over time, this reinvestment strategy can lead to exponential growth in my investment portfolio and, consequently, my passive income.

5. I monitor and adjust my portfolio regularly
   Investing is not a ‘set and forget’ process. I regularly review my portfolio to ensure it aligns with my income goals and risk tolerance. I’m aware of market changes, and I consider rebalancing my portfolio if certain stocks or sectors become too dominant. This will help in managing risk and keeping my investment strategy on track.

Bluefield Solar Income Fund Limited

Unaudited NAV and Second Interim Dividend

Bluefield Solar (LON: BSIF), the London listed UK income fund focused primarily on acquiring and managing solar energy assets, announces its net asset value (‘NAV’) as at 31 March 2024, and the Company’s second interim dividend for the current financial year, which ends on 30 June 2024. Unless otherwise noted herein, the information provided in this announcement is unaudited.

Unaudited Net Asset Value as of 31 March 2024

			(pps)
	Unaudited NAV as at 31 December 2023		136.0
	Power prices		-0.3
	Operational updates		-0.7
	FY24 first interim dividend		-2.2
	Share buyback accretion		0.1
	Other movements		1.0
	Unaudited NAV as at 31 March 2024		133.9

The NAV as at 31 March 2024 was £815.7 million, or 133.9 pence per Ordinary Share (‘pps’), compared to the unaudited NAV of 136.0 pps as at 31 December 2023. This equates to a movement in the quarter of -1.5% and a NAV total return for the quarter of 0.07%.

The published power curves from the Company’s three leading independent power forecasters all showed lower price forecasts at 31 March 2024 for the near term compared to the previously published power curves. However, due to the fact Bluefield Solar has over 92% of power sales hedged for FY2024 and 81% through FY2025, the Company’s earnings are materially insulated from the impact of reductions in near term power prices, such that the downside impact was limited to 0.3 pps.

The decrease in operational updates reflects a slight revision to the cost of the Company’s Revolving Credit Facility as well as the minor impact of inflation being slightly below earlier assumptions.

The Company launched its share buyback programme following the release of the interim report on 28 February 2024 and repurchased 2.45 million shares during the period to 31 March 2024, providing an additional 0.1 pps of NAV accretion to shareholders.

The completion of Phase One of the Strategic Partnership with GLIL Infrastructure (‘GLIL’), an investment of £20 million of equity, alongside £200 million from GLIL, to fund the acquisition of a 247MW portfolio of UK solar assets, and movements in working capital all contributed to the 1.0 pps gain in the NAV over the quarter shown in the table above under Other movements.

Gearing

The Company’s UK holding companies and subsidiaries have total outstanding debt of £598 million, with a leverage level of circa 42% of Gross Asset Value (31 Dec 2023: 41%).

Second Interim Dividend

The Second Interim Dividend of 2.20 pence per Ordinary Share (May 2023: 2.10 pence per Ordinary Share) will be payable to Shareholders on the register as at 24 May 2024, with an associated ex-dividend date of 23 May 2024 and a payment date on or around 24 June 2024.

Dividend Guidance Reaffirmed

The Board is pleased to reaffirm its guidance of a full year dividend of not less than 8.80 pence per Ordinary Share for the financial year ending 30 June 2024 (2023: 8.60 pence). This is expected to be covered by earnings and to be post debt amortisation.

abrdn Equity Income Trust plc

Half Yearly Report 31 March 2024

Chair’s Statement

“Company earnings remain solid across the majority of our holdings, supporting confidence in the dependable nature of the dividend and income and capital growth during 2024”

Sarika Patel, Chair

Performance

In the six months ended 31 March 2024, the Company delivered an NAV total return of 1.6% compared to the total return of the FTSE All-Share Index of 6.9%. Over the period, the share price total return was -8.2%. As an asset class, UK equities struggled to keep up with other major equity markets, notably US equities. Whilst performance has been disappointing, the portfolio continues to deliver a  dependable income and  the Investment Manager has re-focused current positioning in the portfolio to stocks where he sees the potential for a combination of dividend yield, dividend growth and valuation re-rating. The Investment Manager’s Review provides a more detailed explanation of the drivers of this performance.

Revenue

Total income for the six months ended 31 March 2024 increased by 13.9% to £5.4 million, compared to £4.7 million for the same period last year. Management fees decreased by 21.9% compared to the same time last year. This was in part attributable to the reduction in the management fee to a flat fee of 0.55% per annum on net assets which the Board negotiated with the Manager and took effect on 1 October 2023 at the beginning of the period.

Administrative expenses were largely unchanged, meaning that overall costs charged to revenue were down 9.4% at £368k compared to £406k in 2023. The tax charge, which increased significantly from £57k last year to £447k in this reporting period, reflects an increase in withholding tax on overseas dividends, primarily in relation to South African-listed Thungela Resources. After interest costs and tax, net earnings increased by 6% to £4.3 million with revenue per share of 9.05 pence compared to 8.60 pence in 2023 for the same period. Typically, the Company earns between 30% and 40% of its total income for the year in the first six months and this year we are in the top half of that range. As a result, given the outlook for the balance of the financial year, the Board expects that the full year earnings will be sufficient to cover the proposed dividend.

Dividends

The Board declared its plans for the dividend for the current financial year in last year’s annual report and the proposed schedule is unchanged at this time. The Company currently intends to pay three interim dividends for the current year of 5.70 pence per share. The first interim dividend was paid to Shareholders on 28 March 2024.

The Board is declaring that the second interim dividend of 5.70 pence per share will be paid on 27 June 2024 to shareholders on the register on 24 May 2024 with an associated ex-dividend date of 23 May 2024. The fourth interim dividend will be determined towards the end of the Company’s financial year. The Board’s current expectation remains for a fourth interim dividend of at least 5.80 pence per share, making a total payment for the year of a minimum of 22.90 pence per share.

Based on the share price of 277.0p at 31 March 2024, this puts the Company on a dividend yield of 8.3%, amongst the highest of any investment trust invested in equities.

AEW UK REIT plc

NAV Update and Dividend Declaration

Share price and Discount

The closing ordinary share price at 31 March 2024 was 86.0p, a decrease of 14.85% compared with the share price of 101.0p at 31 December 2023. The closing share price represents a discount to the NAV per share of 16.29%. The Company’s share price total return, which includes the interim dividend of 2.00 pence per share for the period from 1 October 2023 to 31 December 2023, was -12.87% for the three-month period ended 31 March 2024.

Dividend

Dividend declaration

The Company today announces an interim dividend of 2.00 pence per share for the period from 1 January 2024 to 31 March 2024. The dividend payment will be made on 14 June 2024 to shareholders on the register as at 24 May 2024. The ex-dividend date will be 23 May 2024. The Company operates a Dividend Reinvestment Plan (“DRIP”), which is managed by its registrar, Link Group. For shareholders who wish to receive their dividend in the form of shares, the deadline to elect for the DRIP is 24 May 2024.

The dividend of 2.00 pence per share will be designated 2.00 pence per share as an interim property income distribution (“PID”).

The Company has now paid a 2.00 pence quarterly dividend for 34 consecutive quarters, providing high levels of income consistency to our shareholders.

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Thursday 16 May

abrdn Property Income Trust Ltd ex-dividend payment date
Alternative Income REIT PLC ex-dividend payment date
Aquila European Renewables PLC ex-dividend payment date
EJF Investments Ltd ex-dividend payment date
Greencoat UK Wind PLC ex-dividend payment date
Henderson Opportunities Trust PLC ex-dividend payment date
Majedie Investments PLC ex-dividend payment date
Mercantile Investment Trust PLC dividend payment date
Murray Income Trust PLC ex-dividend payment date
Octopus Renewables Infrastructure Trust PLC ex-dividend payment date
Pershing Square Holdings Ltd ex-dividend payment date
Princess Private Equity Holding Ltd ex-dividend payment date
Supermarket Income REIT PLC dividend payment date
Target Healthcare REIT PLC ex-dividend payment date
TwentyFour Select Monthly Income Fund Ltd ex-dividend payment date
Witan Investment Trust PLC ex-dividend payment date

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Using Fast Hosts/Word Press, currently a couple of pounds a month, although I guess it will increase. U can choose a theme or upload your own theme buy using snip and sketch and pasting. GL

Warren Buffett, the Oracle of Omaha is a name synonymous with success, wisdom, and wealth in the world of investment.

Buffett has shared his advice with fellow investors. But there’s one lesson that should stand above the rest for the young cohort. That’s the power of time.

That because, while it’s true that Buffett made a significant portion of his wealth after the age of 50, this was largely due to the miraculous effects of compounding.

The power of time

The hallmark of Buffett’s success is undoubtedly the magical concept of compounding. This phenomenon, which he refers to as the “eighth wonder of the world,” is responsible for the substantial growth of his wealth.

Compounding accelerates the growth of investments over time, and the sooner one starts, the more powerful the effect.

It essentially works because, by reinvesting our returns year after year, we start to earn interest on our interest as well as our starting capital.

For anyone in their twenties, it’s a huge opportunity, even starting with a small sum.

Compounding takes time to work its magic, making the early years of investment crucial for long-term wealth accumulation.

Long-term outlook

Buffett’s long-term outlook syncs perfectly with the principles of compound returns, allowing him to reinvest returns in his carefully selected long-term investments year after year.

Moreover, his commitment to long-termism enables him to ride out market volatility, avoid emotional decisions, and focus on the enduring value of his investments.

Bringing it all together

What does investing for the long run and leveraging time look like for young investors. Well, let’s imagine I’m starting a portfolio at the age of 20, and I have no starting capital.

And because I have no starting capital, I’m going to commit to contributing £200 a month, and I’m going to increase that contribution by 5% annually — broadly in line current inflation.

The thing is, at 20 I’ve got a long investment horizon, and theoretically, I could be working for the next 50 years.

So, taking into account the aforementioned, and using a 8% annualised return as an example, here’s what I’d potentially have at the end of it — £3.2m.

Created at thecalculatorsite.com© Provided by The Motley Fool

Of course, if I invest poorly, I could lose money. Compound returns also works negatively too.

But while I’ve used 8% as an example, it’s worth noting than more experienced investors will aim for low double-digit annualised returns.

If u had bought when they were issued at 100p and re-invested the dividends your10k would be worth around 14k.

Better than losing money but not a great result because of the discount to NAV.

U would have had a chance to take out your stake in 2022, one word on vanity.

If u waited to take out your stake when the share price doubled, vanity has cost u some cash. Always better to trade the area and not strictly the line.

The dividend yield on issue price was 5% and is now 9%.

Current yield 10% discount to NAV 29%

Dividend fcast is to gently increase so a strong hold, unless the stats change.