The clue is in the title why it was a Trust to buy.
415p to buy dividend 26p yield 6.2% trading around NAV.
If u had bought around the low and simply re-invested the dividends u would have doubled your money.
U could have taken out your stake and re-invested in another high yielder and achieved the holy grail of investing a Trust in your portfolio that sits in the account at zero, zilch, nothing and produces income to add to the Snowball.
So what made it a buy ?
IPS Highlights
| · | The Company’s wholly-owned provider of professional services is a key differentiator to other investment trusts and offers additional portfolio flexibility. |
| · | Accounts for c.20% of 2023 NAV, but has funded approximately 34% of dividends paid by the Company in the last 10 years. |
| · | IPS has now delivered six consecutive years of growth, with a 5 year net PBT CAGR of c.8.7%. |
| · | 2023 valuation of £185 million (excluding net assets) up 111.4% since 2018. |
Longer-Term Record
| · | 135 years of history. |
| · | Long-term record of valuation creation for shareholders. |
| · | 113% aggregate increase in the dividend over the last 10 years (7.9% CAGR). |
| · | 45 years of increasing or maintaining dividends to shareholders. |
Robert Hingley, Chairman, said:
“Law Debenture made creditable overall progress in 2023. The share price total return of around 8% includes a further good increase in our full-year total dividend of 4.9%. Law Debenture’s long-term record of benchmark outperformance remains strong.”
“We remain confident that, in the long term, the combination of a robust and well-positioned equity portfolio and continued growth in our IPS business will deliver attractive returns for our shareholders.”
Current yield 4% so wait for the next market crash ?
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Your article helped me a lot, is there any more related content? Thanks!