In search of the Holy Grail

The holy grail of investing is to have a share sitting in your account at zero cost that produces a regular income.

The working example is Next Energy but as always best to DYOR.

The first port of call is

Not that one though, is to check the dividend history of the share u are researching.

The Trust has a progressive dividend policy and the yield is 10.69 %.

The next check is their latest dividend fcast

Dividend:

·     Attractive high dividend yield of c.10%, as at closing share price on 9 August 2024.

·   Total dividends declared of 2.10p per ordinary share for the Q1 period ended 30 June 2024 (30 June 2023: 2.08p).

·     Target dividend of 8.43p per ordinary share for the year ending 31 March 2025 (31 March 2024: 8.35p).

·     Forecasted target dividend cover of between 1.1x-1.3x for the year ending 31 March 2025.

·     Total ordinary dividends declared since IPO of £357m.

Dividend fcast is the dividend is covered and no stated intention to reduce the fcast.

Remember these are only fcasts, so they need to be monitored as the company updates their news.

If the company continues with a progressive dividend policy and we assume the dividend is re-invested in another high yielder, before ten years u should receive all your capital back. With NESF providing income at zero cost and another position providing income also.

One thing to consider that NESF is considered to be a wasting asset with a current life of around 24 years. GL