The holy grail of investing is to have an income producing share that pays you a regular income whilst it sits in your account at zero, zilch, nothing.

If you wait for a market crash, you will be rewarded, if you have cash to invest. Whilst you wait let’s look at SEIT.

The current yield is 13% so your cash will be returned in around 8 years, you will also have income from the dividends re-invested but let us ignore that for now.

SEIT trades at a discount to NAV but that is no guarantee that the price will rise, especially if the quoted NAV falls in the future but we will also ignore that for now.

The first consideration is the dividend ‘secure’. The first check is to look is at its dividend history.

The second check is to see what the company says about it dividend.

Jonathan Maxwell, CEO of the Investment Manager, SDCL, said:

“SEEIT’s active management of the assets in its portfolio has delivered substantial income to the Company, in line with previous years. This stable performance ensures that we can cover the target dividend of 6.32p which represents a double-digit yield for investors at the current share price.

“We are confident that the portfolio is well positioned to maintain its performance and secure opportunities that are accretive to NAV. As the market challenges faced by SEEIT and its peers continue, our priority remains reducing the current discount to NAV. We are highly focused on preserving value and upside for shareholders, while at the same time considering ways to cut costs and find capital efficiencies at project and company level.”

Operational Update

During the Period, SEEIT’s operational performance has been generally in line with expectations, delivering the expected distributions to the Company:

Shareholder dividend

During the Period, the portfolio’s stable operational performance has supported distributions to SEEIT that have covered the target dividend of 6.32p per share, with a cash cover in line with the previous year.

If you invest, you must trust what the management say, until your trust is misplaced.

Check three, are there any positive broker comments.

Your duty if you buy, is to check any news from the company about its next and future dividends and wait. The dividend could be cut and still be a valid reason to hold the share.