ORIT’s average asset life has increased from 28 to almost 30 years over the last four years through active management, which is crucial for maintaining and increasing dividend cover over the long term. This gives us further reassurance that the progressive dividend policy can be maintained in the future.

The Holy Grail of Investing for the Snowball is to own mainly Investment Trusts that pay a ‘secure’ dividend, no dividend is completely secure but some dividends are more secure than others.

A Trust that pays a dividend of 7% returns your capital in 14 years, less if it’s a progressive dividend, then you have a share in your Snowball that pays income at a cost of zero, zilch, nothing.

The dividends could either be re-invested back into the Trust or another Trust earning more dividends to be re-invested back into the Trust or another Trust.