Having researched the criteria, u know the yield and the discount to NAV.

Then only the criteria is the prospect of the current dividend being paid.

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.

NESF

The next criteria, can u trust the company guidance and their dividend history.

Let’s assume, I know assume can make an ass out of u and me, but u have to trust the company until u have a reason not to.

The price doesn’t rise over the ten years but falls from here.

a. In nine years time u will have received all your capital back, either to re-invest the dividends or to pay your bills, and u have achieved the holy grail of investing in having a share in your portfolio, that cost u nothing, zero, zilch paying u a dividend of ten percent a year, most probably more. The asset life is currently expected to be around 25 years.

b. The price rises to the net asset value and u have made a gain of 20%, if u took the gain it would depend on at what yield u could re-invest at. If u crystalize the gain u could maybe re-invest back into NESF if the price fell back.

If the price rises 20% the yield will fall but still pays a yield of 8%.

The buying yield will still be 10%.

The running yield will be 8%.

Example dividend on 10k invested – 1k- 10% yield

Running yield 12k – 1k- 8% yield

A hold for the Snowball