A scenario where u have been re-investing your dividends and intend to spend some of your hard earned in 3 years time.

U want to have a special holiday to mark your retirement and have earmarked 10k to be withdrawn from your SIPP. If u haven’t crystalized any of your funds, under current tax law it will be tax free.

U decide to invest 10k in NESF yielding 11.7% and 10k in a gilt.

NESF

7 November 2024

Interim Dividend Declaration

NextEnergy Solar Fund, a leading specialist investor in solar energy and energy storage, is pleased to announce its second interim dividend of 2.11 pence per Ordinary Share for the quarter ended 30 September 2024, in line with its previously stated target of paying dividends of 8.43p for the financial year ending 31 March 2025.

The interim dividend of 2.11 pence will be paid on 30 December 2024 to Ordinary Shareholders on the register as at the close of business on 15 November 2024. The ex-dividend date is 14 November 2024.

GILT TS 28

If U buy today, u have to pay the holder for interest accrued, which u will be paid on the 7th Dec.

If u hold to maturity u will earn 4.36% tax free if held within a tax free wrapper. If outside a tax free wrapper a low coupon gilt would be the preferred option.

Until u retire u have maintained a blended yield above 7% and have a guaranteed cash sum for that special occasion. Another option would to buy 10k of a money market account but the amount returned would be subject to how low interest rates fall before they start to rise.

But as always not recommendations to buy as it’s always best to DYOR subject to your own circumstances. GL