Primary Health Properties PLC

Acquisition of Assura plc – CMA Phase 1 Clearance

Further to the announcement by the UK’s Competition and Markets Authority (“CMA”) earlier today in relation to its Phase 1 review of the Company’s combination with Assura plc (“Assura”), PHP is pleased to note that the CMA has concluded that the transaction gives rise to no competition concerns.

As a result of this decision, the CMA’s requirement for the businesses to be held financially and operationally separate, subject to certain derogations, is expected to conclude shortly. PHP will now turn its full attention to the integration of the two businesses and realising the full benefits of the combination, including delivery of the expected run-rate cost synergies of at least £9 million.

Mark Davies, CEO of PHP, commented:

“We are pleased with the decision announced by the CMA today that there are no competition concerns with this strategically important transaction and we appreciate the work done by the CMA team during their review.

The management team can now focus on the integration of the two companies and is excited about the prospect and opportunity it will bring by creating a £6bn healthcare REIT owning, managing and investing in critical social infrastructure assets in a sector well placed to deliver growth.

This earnings-accretive transaction, which has compelling strategic and financial benefits, will give PHP a lower cost of capital and a strong platform to accelerate our future expansion.

I’m looking forward to working with our new colleagues from Assura and working together to help the NHS deliver its 10-year plan by shifting more patients into primary care which will help the NHS save money. We have the knowledge, expertise and relationships and with a lower cost of capital are well-placed to help deliver modern, flexible healthcare buildings in communities around the UK and Ireland.”

The person responsible for arranging the release of this announcement on behalf of PHP is Toby Newman, Company Secretary.

2 pros and 2 cons of investing through an investment trust

An investment trust is a common way for people to buy into existing portfolios of managed investments. Our writer weighs some potential pros and cons.

Posted by Christopher Ruane

Published 27 October

SMT

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

There are lots of different ways to put money into the stock market. One is to buy shares (or even a single share) in an investment trust.

Investment trusts come in all shapes and sizes but basically they are pooled investment vehicles. Think of an investment trust as a company listed on the stock market that has investing as its own business.

Each trust needs to be considered on its own merits. But at a high level, there are some potential pros and cons of buying into an investment trust, as I see it. Here are a couple of each.

Diversification

Even a private investor with a small amount to put in the market ought to reduce their risk by spreading it over multiple investments.

That can be hard to do on a very limited budget – but an investment trust can offer a potential solution.

Take Scottish Mortgage Investment Trust (LSE: SMT) as an example. Its share price is currently below £12.

But its portfolio spans dozens of companies. They include listed tech giants like Meta Platforms and Nvidia. They also include unlisted companies a small private investor may otherwise struggle to invest in, such as SpaceX (Scottish Mortgage’s biggest holding right now).

By buying just one share in Scottish Mortgage, an investor would get access to a diversified portfolio.

Professional management

Over the long run, Scottish Mortgage has been a runaway success story. It has not cut its dividend per share for almost a century.

The investment trust’s share price has moved up 16% over five years, but that has included periods of significant volatility. It is up 80% since October 2020, for example – but still 24% beneath its price back in November

Why has Scottish Mortgage been so volatile? Its focus is on growth companies. As their prices have moved around a lot, so has Scottish Mortgage’s.

The investment trust has professional fund managers who help decide what shares to buy and sell. Expert managers can offer skills and experience a private investor lacks. But not all managers are equally good.

Still, in many cases I think an investment trust having a team of professional stock pickers can help make it more attractive.

Regular fees

Who pays for that? After all, fund managers do not usually come cheaply no matter how good or bad they turn out to be!

Above I said an investment trust is a listed business (that just happens to be a pooled investment). So it needs to pay costs like staff wages.

To do that an investment trust typically levies an annual management fee. That can be modest, but over the long term can add up.

Imperfect pricing

Being listed in its own right also brings another possible disadvantage (though it can actually work to investors’ advantage too).

The stock market price for an investment trust reflects what investors are willing to pay for it. That can differ from a ‘sum of the parts’ valuation (or what is known as the net asset value).

For example, Scottish Mortgage currently trades at a 12% discount to its net asset value.

That may frustrate shareholders, who think the market undervalues their holding. Seen as a cup half-full, though, such discounts may offer investors a chance to buy something for less than its value.

Thursday 30 October

abrdn UK Smaller Cos Growth Trust PLC ex-dividend date
Bluefield Solar Income Fund Ltd ex-dividend date
Brunner Investment Trust PLC ex-dividend date
CQS Natural Resources Growth & Income PLC ex-dividend date
Edinburgh Investment Trust PLC ex-dividend date
Foresight Solar Fund LTD ex-dividend date
Henderson Far East Income Ltd ex-dividend date
Invesco Global Equity Income Trust PLC ex-dividend date
JPMorgan Claverhouse Investment Trust PLC ex-dividend date
M&G Credit Income Investment Trust PLC ex-dividend date

How much do you need in an ISA to target a £20,000 passive income at 60?

The power of compound returns means the prospect of retiring with a good passive income from stocks and shares can be within reach.

Posted by Alan Oscroft

Published 27 October

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.

It might be obvious that the sooner we start saving and investing, the better our chances of reaching 60 with some decent passive income in the bag.

How much we need depends on how much we hope to withdraw. There’s a rough rule that suggests taking 4% per year.

Should you buy Empire Metals Limited shares today?

The idea is that should still leave enough capital to grow with inflation for the future. Based it on that, the sums are easy. We need £500,000 by age 60 to take out £20,000 per year.

25 years? Nah!

That’s not a trivial task. But the miracle of compound returns makes it look more achievable.

What we need to do is reinvest any dividend cash we get into new shares. And then those new shares earn us extra dividends next year, which we then can use to buy even more shares… and so on.

Over the past 10 years, the average Stocks and Shares ISA has returned 9.6% annually. That’s ahead of the annual FTSE 100 average over the past 20 years, approximately 7%. Let’s take the more conservative of those two figures.

How soon?

Invest the full ISA limit every year in shares, and buy new shares with all dividend cash. With an annual 7% return, we could reach the half million in a bit less than 15 years.

Someone age 45 today could reach £500,000 by 60. But… a 40-year-old who starts today could have £850,000 by the same age. Starting just five years earlier could result in a 70% bigger passive income pot!

Now, we can’t all reach the ISA limit every year. But whatever we can afford to invest, the key thing is that starting sooner can make a huge difference.

Starting earlier could make another difference too.

Empire strikes back

We all dream of finding the elusive multi-bagger. And the more years we have at our disposal, the better our chances. Looking at what’s happened to Empire Metals (LSE: EEE) reminds me of that — it’s up 460% over the past 12 months, and more than 1,000% in five years

Even with such a rise, Empire has crashed more than 90% since 2010

It’s a mining explorer, going after precious and rare metals. Companies like that can be very risky. And once they get way down in penny-share territory, they often never make it back.

But then, the company made a titanium discovery in Australia in 2023, which gave it a boost. And now we have some clues of the size.

An update on 14 October described it as “One of the largest and highest-grade titanium resources reported globally.” Estimates suggest there’s more than 200m tonnes of titanium oxide down there.

Balance is best

I’m not saying we should pin our passive income hopes on finding big winners. In fact, it’s easy to lose 100% on a speculative investment like this. As it happens, Empire shares have already fallen back from September’s peak.

But the more years of investing ahead of us, the more we can consider risking a small amount on a stock like this. I’m thinking about it for my ISA.

Here are five non-UK (or globally oriented) income-focused investment trusts / funds which may be accessible to a UK investor and potentially suitable for a retirement portfolio (with appropriate due diligence). These differ from the purely UK-listed trusts I listed earlier; they bring exposure to other markets, sectors or closed-end structures. This is not personal financial advice. You must check availability, tax/treaty issues, domicile, yield sustainability, currency risk, and suitability for your circumstances.

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1. HYT (BlackRock Corporate High Yield Fund – US closed-end fund)

• This is a US-listed closed-end fund (CEF) whose recent data shows a distribution yield of ~9.8%. cefconnect.com
• It invests in high-yield (below investment-grade) corporate bonds, giving higher yield but with credit risk, interest-rate risk and leverage risk (the CEF uses debt).
• Why it could fit a retirement income portfolio: High yield means it can generate meaningful cash flow; adding fixed income / credit exposure is a useful diversification away from pure equity dividends.
• Important caveats: Being US-domiciled means tax considerations for UK investor (withholding, US estate tax if you hold US equities, though in bonds less so) — check domicile & holding vehicle. Also, credit risk means higher chance of distribution cuts in stress.
• If you pick it, it could serve as a “higher-income” component, but you’d likely balance it with more stable income sources.

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2. ASGI (Abrdn Global Infrastructure Income Fund – US listed closed-end fund)

• Listed in the “top-5 high-yield closed-funds” list: ASGI offers a yield of ~13.47% (per one 2025 commentary) and invests in infrastructure, public & private/direct, globally. AInvest
• Why it might be appealing: Infrastructure tends to have relatively stable, long-term cash flows (toll roads, utilities, etc.), which fit an income mindset. The high yield is attractive for retirement income.
• Key risks: High yield often reflects higher risk. The fund may borrow, invest in higher risk infrastructure assets, have private asset exposure (less liquid), and global infrastructure brings currency/regulation risk. Also tax/treaty implications for a UK investor need to be checked.
• Use case: A portion of your income-portfolio could hold a global infrastructure income trust like this — but manage the size/weight given higher risk.

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3. HTD (John Hancock Tax-Advantaged Dividend Income Fund – US CEF)

• An example closed-end fund cited for “high yield from dividend equities” (yield ~6.7% in the example article) for US common & preferred stocks. InvestorPlace
• Why consider: Diversifies into US equities with an income tilt (and some preferred securities) — for a UK investor this adds geographic and asset-type diversification compared to UK equity income trusts.
• Risks: US equity risk, dividend sustainability risk, currency risk (USD/GBP), and UK investors must consider foreign tax credit / withholding. Also, some CEFs pay part of their distributions out of NAV (return of capital) which can degrade principal over time — you must check the fund’s distribution policy.

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4. SYI (SPDR MSCI Australia Select High Dividend Yield ETF)

• An Australian listed fund (ASX ticker “SYI”) focusing on high dividend-yielding Australian companies. For instance, its factsheet shows a dividend yield ~4.3% for the index underlying the fund. SSGA+1
• Why include: Provides Australian dividend exposure (which can bring franking credits for Australian tax residents; for UK investors the franking credits may not apply, but still geographic diversification is useful).
• Use in retirement income portfolio: Consider as a “non-UK / Australia dividend exposure” piece.
• Risks: Yield is moderate, not exceptional; Australian equities will bring local economic and currency risk; you must check accessibility (UK investor can buy via UK-broker that offers ASX or via ADR/equivalent) and tax issues (dividends, franking credits, exchange rate).
• Note: The yield is lower than some high-yield US CEFs, but provides diversification.

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5. HVST (BetaShares Australian Dividend Harvester ETF)

• Another Australian vehicle: it targets high-dividend paying Australian shares and shows a 12-month gross distribution yield ~7.2% including franking credits in its factsheet. Betashares
• Why it may appeal: Higher yield than the more “moderate” yield Australian fund above; again provides geographical diversification and income.
• Risk factors: The strategy might have additional complexity (e.g., harvesting, high dividend payers which might have higher business risk or lower growth, currency risk for UK investor). Also franking credits may not benefit UK investor.
• How to use: As a “higher yield / alternative market” piece in retirement income portfolio, but you’d balance with more stable yield trusts.

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🧭 How to integrate these into a retirement income portfolio

Given you already have UK-based equity income trusts (from earlier list), these additional vehicles can help broaden exposure. Here’s how you might structure a model approach:

Tier	Role	Example vehicle(s)
Core Income (Stable, moderate yield, strong track record)	Larger weight, foundation of income	UK equity income trusts from earlier list (e.g., UK high-quality dividend trusts)
Diversified Global Income	Moderate weight, helps broaden geography	SYI (Australia), global equity income trusts (from earlier list)
Higher Yield/Alternative Income	Smaller weight, for extra yield but higher risk	HYT, ASGI, HVST — non-UK, higher yield but higher risk
Risk Buffer/Quality Over Yield	Possibly lower yield but more stability	Infrastructure, investment-grade credit, dividend-growth focused trusts

Example allocation (illustrative only):

• 40% UK equity income trusts (stable base)
• 25% Global equity income (developed markets)
• 20% Alternate income (higher yield trusts like HYT / ASGI)
• 15% Geographic/sector diversification (Australia via SYI/HVST)

By doing this you get:

• Diversification across geographies & asset-types
• A tiered risk/yield approach (not putting your entire income on high-risk high-yield)
• Exposure to higher yield but controlled via smaller allocation
• The ability to rebalance over time (if yields change, discounts/premiums change, etc)

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⚠️ Key considerations and risks (especially for UK investor)

• Domicile / tax: Many of the non-UK vehicles may be US- or Australia-domiciled. UK investor issues: withholding tax on dividends, inability to reclaim certain foreign taxes, potential extra tax filing, currency risk.
• Currency risk: Income and capital movement for US/Australia denominated funds will be affected by USD/GBP or AUD/GBP exchange-rates.
• Dividend sustainability: High yields are tempting but need underlying business or asset-base to support them long-term. Especially for closed-end funds carrying debt or with high payout ratios.
• Discount/premium to NAV (for CEFs): Closed-end funds often trade at a discount or premium to net asset value. That influences risk/return.
• Liquidity and accessibility: Some Australian trusts/ETFs may be harder to access via UK broker, or cost more (FX, brokerage).
• Tax treatment of franking credits (Australia): As a UK investor you likely won’t benefit fully from Australian franking credits; thus the “gross yield” including franking credits may over-state your net yield.
• Higher risk = smaller slice: When adding higher-yield/trusts with more risk, keep those as smaller allocations so your retirement income base remains robust.
• Rebalancing & capital drawdown: In retirement you may need to draw capital (not just reinvest). High‐yield trusts may see capital volatility—so plan for drawdown strategy, preserve some capital vs. pure income chasing.

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ChatGPT

ChatGPT said:

Here are five additional investment trusts (largely UK-listed but with global exposure) that may suit a retirement income portfolio. As always, this is for educational purposes only, not individual financial advice — you should check suitability, charges, dividend sustainability, tax implications and diversification for your own circumstances.

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1. JPMorgan Global Growth & Income Trust (ticker JGGI)

• A global equity income trust with worldwide exposure. According to one source, it declared a dividend target to deliver “an attractive level of predictable income and capital appreciation”. Fidelity+2Invesco+2
• Yield in recent commentary: ~3.6-4.0% for the 12-month period. Interactive Investor+1
• Suitable for a retirement portfolio because: offers global diversification (not UK-only), decent income and growth potential.
• Key risks: yield is modest compared to high-yield trusts, global equities mean currency/market risk, and you’ll need to ensure the dividend is sustainable.

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2. Murray International Trust (ticker MYI)

• A trust in the “Global Equity Income” sector. In a listing of “most viewed trusts” it had a yield of ~4.4%. The AIC+1
• Why consider it: again global exposure, which can provide diversification from UK-only trusts; moderate yield with potential for inflation-hedge via global holdings.
• Things to check: the yield is lower than some high-yield UK trusts, so if immediate income is the priority you might need to supplement; global exposure adds more variability.

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3. Aberdeen Asian Income Fund (ticker AAIF)

• Focused on Asia Pacific equity income. In one list it had a yield of ~7.45% and 5-year dividend growth ~9.3%. Interactive Investor+1
• Why consider it: higher yield, plus geographic diversification into Asia Pacific which may offer growth and income potential that complements more traditional UK/US holdings.
• Key risks: Asian markets tend to be more volatile; currency risk; emerging market risk; higher business risk compared to developed markets.

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4. Henderson Far East Income Trust (ticker HFEL)

• A specialist Asia Pacific (ex-Japan) equity income trust. It is listed among the highest-yielding equity investment trusts, with yields over ~10% in some reports. The AIC+1
• Why include it: offers very high yield, which can be attractive for retirement income; adds a niche/region layer to your portfolio.
• Caveats: High yield often implies higher risk (region risk, sector risk, currency risk, company risk). Dividend sustainability and underlying company health become more critical.

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5. Invesco Global Equity Income Trust (ticker IGET)

• A globally diversified income trust. Its objective states a focus on providing income and capital growth through a diversified global portfolio. Invesco
• Why consider it: global diversification, income aim, useful alternative to UK-only equity trusts; good fit for a retirement portfolio seeking both income and some growth.
• Key things to check: verify current yield, discount/premium to NAV, fees, underlying holdings and how well income has held up across market cycles.

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✅ Summary & Portfolio Considerations

• These five provide a good spread: some global equity income trusts, some regionally focussed (Asia Pacific) with higher yields, complementing UK-centric trusts you might already have.
• For a retirement portfolio you may aim for a blend of:
  • Moderate yield + good dividend growth (to combat inflation)
  • Geographical diversification (UK, global developed, emerging/Asia)
  • Sector diversification (not all banking or consumer goods)
  • Balance between yield and capital preservation/growth.

⚠️ Key Risks & Things to Do

• Verify dividend sustainability: a high yield is tempting, but check if the trust’s underlying companies can support the dividends during downturns.
• Be aware of discount/premium to NAV: many investment trusts trade at a discount (or premium) to their net asset value; this affects value and risk.
• Consider fees and structure: closed-ended trusts (investment trusts) have some advantages (e.g., ability to hold reserves) but also structural complexities.
• Tax and currency: as a UK resident you need to consider withholding tax on overseas dividends, currency impact (when income/capital is in non-GBP), and tax‐treatment in your retirement account (ISA/SIPP).
• Don’t rely on yield alone: growth of dividends, capital preservation, and diversification are also important, especially in retirement when you may need to draw down income rather than reinvest.

5 world-class investment trust dividend shares for a retirement portfolio.

ChatGPT said:

Here are five UK-listed investment trusts that are commonly considered by income-focused portfolios (such as for retirees). Note: This is not personal advice — you should evaluate suitability in the context of your own retirement portfolio, risk tolerance, tax situation, and diversification needs.

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1. abrdn Equity Income Trust (ticker AEI)

• A UK equity income trust managed by abrdn. In its half‐year report it expected to pay ~23.0 pence per share for the full year, which at the time implied a dividend yield of about 7.1%. Investegate+2AJ Bell+2
• It is listed by the Association of Investment Companies (“AIC”) as a “high yield, consistent income” trust (UK Equity Income sector). The AIC+1
• For a retirement portfolio: this offers a relatively high yield, but being UK equities means it carries equity market risk (and currency/domestic risk for a UK investor).
• Key risk: For high yield, you must check that dividends are sustainably covered and the underlying companies can continue to generate profits and cash-flow.

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2. City of London Investment Trust (ticker CTY)

• One of the longest-running UK trusts: the trust has increased its dividend for 59 consecutive years. Fidelity+1
• Yield currently about 4.2% (according to October 2025 data) on its dividend history. The Motley Fool+1
• For a retirement portfolio: strong track record of dividend growth (important for inflation), relatively moderate yield suggests somewhat more modest income but maybe lower risk compared to high-yield trusts.
• Key risk: Lower yield means less immediate income, and the underlying exposure is to UK equities, so you should ensure diversification.

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3. International Public Partnerships (ticker INPP)

• An infrastructure investment company/trust: as of its 2024 report it quoted a “current dividend yield of 7.2%” from the board. The AIC
• Fidelity data shows its income only yield for recent years around 5.9% and trending up. Fidelity
• For a retirement portfolio: infrastructure tends to be viewed as more defensive (long-term contracts, often inflation-linked cash flows) — good complement to pure equity income trusts.
• Key risk: Infrastructure trusts can still have project risk, regulatory risk, inflation risk, and may carry gearing/discount to NAV risk (many trade at a discount).

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4. Henderson Far East Income Trust (ticker HFEL)

• A regional equity income trust (Asia Pacific / Far East equities). One of the highest-yielding trusts according to AIC: yield around ~10% reported in 2024. The AIC+1
• For a retirement portfolio: this offers higher income potential and geographic diversification beyond UK/US — which is helpful.
• Key risk: Higher yield often reflects higher risk — here exposure to emerging markets/Asia & currency risk & possibly higher volatility. Might be less “safe” than a UK equity income trust.

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5. Chelverton UK Dividend Trust (ticker CDIT)

• UK equity income trust focused on smaller companies. Yield reported at around 7.5% in data to August 2025. AJ Bell+1
• For a retirement portfolio: This can boost yield and add small-cap exposure (which can drive growth).
• Key risk: Small cap companies often have higher business risk, may cut dividends in downturns, and the ongoing charges tend to be higher (which reduces net income for investors) as noted by AJ Bell commentary. AJ Bell

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✅ Why these are “world-class” (in a UK context) for dividend/retirement income

• All have long histories of paying/increasing dividends (e.g., City of London with 59 years of increases).
• They offer yields considerably above the typical market (FTSE All-Share might yield ~3.5-4%).
• They provide diversification across geographies (UK, Asia, infrastructure) and asset types (equity income vs infrastructure).
• The investment-trust structure has beneficial features for income-seeking (closed-ended, ability to retain reserves to smooth dividends, long-term horizon) — commentary from the AIC notes this is a key advantage.

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⚠️ Some important caveats

• Dividends are never guaranteed. Past increases don’t guarantee future increases.
• Yield isn’t everything: A high yield might come with higher risk (business risk, valuation risk, discount to NAV risk, sector/regulatory risk).
• Diversification risk: If you load up on UK equity income trusts you may miss out on growth or global diversification.
• Inflation risk: Even a 4-7% yield may not keep up with inflation over long retirements unless there’s dividend growth.
• Tax and currency: If you’re UK-resident, dividends are subject to UK dividend tax rules. For trusts with overseas exposure (Asia, infrastructure) currency and overseas tax/growth effects apply.
• Discount to NAV risk: Many trusts trade at a discount to net asset value — that can offer opportunity, but also reflects investor concerns.
• Gearing/leverage risk: Some trusts borrow (gear) which can amplify dividends but also amplify losses in downturns.

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🔍 My selection criteria summary

• Yield ≥ ~4-5% in the UK context.
• Long record of consistent dividends or increasing dividends.
• Diversified across sectors/geographies.
• Sufficient size/liquidity (to ensure you can get in and out).
• Reasonable cost/ongoing charges and understandable risk profile.

Here are five world-class investment trusts with strong dividend records ideal for a retirement portfolio: City of London (CTY), Bankers (BNKR), F&C (FCIT), Scottish Mortgage (SMT), and Henderson Smaller Companies (HSL). These trusts have consistently raised dividends and offer diversified exposure across sectors and geographies.

🏆 Top 5 Investment Trust Dividend Shares for Retirement
These trusts are recognized as “Dividend Heroes” by the Association of Investment Companies (AIC), having increased their dividends for at least 20 consecutive years:

1. City of London Investment Trust (CTY)

• Dividend streak: Over 57 consecutive years of increases
• Focus: UK equities with a tilt toward income-generating blue chips
• Yield: Around 4%
• Why it’s great: CTY is a stalwart for income investors, offering stability and a long-term track record.

1. Bankers Investment Trust (BNKR)

• Dividend streak: Over 55 years
• Focus: Global equities with a balanced approach
• Yield: ~2.2%
• Why it’s great: BNKR provides global diversification and consistent income growth.

1. F&C Investment Trust (FCIT)

• Dividend streak: Over 50 years
• Focus: Global equities with a large-cap bias
• Yield: ~1.5%
• Why it’s great: FCIT is one of the oldest trusts, offering broad exposure and steady income.

1. Scottish Mortgage Investment Trust (SMT)

• Dividend streak: 40+ years
• Focus: High-growth global companies, especially in tech and innovation
• Yield: ~0.9%
• Why it’s great: While the yield is low, SMT offers capital growth potential and a long-term dividend record.

1. Henderson Smaller Companies (HSL)

• Dividend streak: 20+ years
• Focus: UK smaller companies
• Yield: ~2.5%
• Why it’s great: Adds exposure to UK small caps with a reliable income stream.

🔍 Why These Trusts Work for Retirement

• Consistency: All five have long histories of annual dividend increases.
• Diversification: They span UK and global markets, large and small caps.
• Resilience: Their ability to smooth dividends using revenue reserves makes them ideal for weathering market downturns.
  co pilot

Here’s how the dividend income on a capital investment of 10k grows when compounded annually at 7%, using the formula:

A = P \cdot (1 + r)^t

Where:

• P = 700
• r = 0.07 (7% annual interest)
• t is the number of years

If you have longer to compound

Reaching 53%, you have to allow for inflation and any for any years when the dividend yield is under 7% but you will have years like now when the dividend yield is above 7%. On the capital invested, the dividends should gently increase and you will get the yield on your buying price not the current headline price.

Near-zero savings ? Start building wealth with Warren Buffett’s golden method

Learning these Warren Buffett tips can help investors potentially become significantly richer in the long run, especially when starting early.

Posted by Zaven Boyrazian, CFA

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice.

Warren Buffett is one of the most successful stock market investors in the world, with a net worth of almost $150bn. That’s despite starting out with only around $2,000.

Throughout this journey, he’s been quite a vocal teacher, offering powerful advice over the years to guide the next generation of investors. And while the economic landscape’s very different in 2025, Buffett’s method remains a proven strategy for building long-term wealth, even when starting with little-to-no savings.

Focus on the business

In the short term, the stock market can feel a bit like a casino with prices jumping up and down almost randomly. But in the long run, shares ultimately move in the same direction as the underlying business.

So long as the company’s able to grow and create value, the share price will eventually follow. Yet that rarely happens overnight. That’s why Buffett once said: “What we really want to do is buy businesses that we will be happy to hold forever”. And in order to do this confidently, investors need to dive deep into research, or as Buffett puts it, “you have to understand the business”.

Depending on the company, the process can be a lengthy one. And it’s also why the ‘Oracle of Omaha’ strategically only looks at stocks within his circle of competence. But even then, when hunting for the best businesses in the world, Buffett admitted, “we can’t find a lot of them”.

As someone who’s been analysing stocks for over a decade, following these core principles, my research often ends with a ‘not good enough’ conclusion. And it’s why Buffett also advised that investors who lack the stamina to invest in this way should opt for passive index funds.

But “for those willing to put in the required effort”, stock picking can open the door to tremendous long-term wealth.

Practising what he preaches

Perhaps a perfect example to consider is Coca-Cola (NYSE:KO). Buffett first bought its shares in 1988, recognising the soft-drink company’s powerful global brand that granted the business an enduring competitive advantage.

Since then, he’s never sold a single share. And with earnings expanding as the firm entered and captured new markets, dividends have been hiked consistently. The result ? His initial investment’s now generating a yield close to 60% a year !

Fast forward to 2025, and Coca-Cola continues to demonstrate the world-class traits Buffett loves to see. Management has been adapting its product range to shifting consumer tastes, most notably with its Coke Zero variant. And with the group’s digital transformation offering new efficiency opportunities, Buffett continues to hold his shares, enjoying consistently and reliable dividends.

Does that make Coca-Cola a no-brainer buy in 2025? Not necessarily. Having reached a $290bn market-cap and worldwide dominant status within the beverages industry, Coke’s future growth is likely to be less impressive moving forward. And while management’s diversifying the product portfolio to tap into new opportunities, the group nonetheless faces rising pressure for both its growth and profit margins.