The planned amount of income was £8,014 and the income figure will be £13,282.00
This figure includes some special dividends so the fcast for the next tax year is £10,500, which means we will achieve year 7 of the plan.
The SNOWBALL has a comparator share VWRP, to compare the income from using the 4% rule, where if the same amount of seed capital for the SNOWBALL was invested it would be worth £148,460. Despite the value falling £8,354 in a month, not too shabby.
The amount of income that could be withdrawn, after allowing for a 3 year cash fund would be just over 5.4k against the SNOWBALL figure of £10,500.
Like many investors who have been in the stock market for a few decades, I have several 10-baggers, or shares whose price soared by 10 times or more, under my belt.
Ian Cowie ii
Interesting to compare charts to see how they react to market panics and how they all recover in time. The charts show a KISS strategy of re-investing all earned dividends back into the share but as the prices get over bought the yield falls and it would be more profitable to re-invest in your Snowball’s higher yielders or squirrel away your dividends to re-invest in market panics.
Remember it’s always easier with
But if you are happy with the yield, your entry price in ten years time will be of little importance, advice only for Trusts with ‘secure’ dividends, such as Dividend Heroes.
With the recent changes to the SNOWBALL the first projection for next year, that starts very soon, where we start with nothing, zilch, zero in the pot is for income above the fcast of £10,500.
With fast changing markets the figure may change if more Trusts reduce their dividends but there is a built in buffer as earned dividends are added to some truly wonderful yields.
There is 10k to be allocated to 2 dividend hero shares, which will add a modest amount of income to the total and unless markets reverse un-expectedly earned dividends may be added to these shares.
Temple Bar eyes overseas expansion if UK market ‘continues to reduce materially’
The £1.1bn trust considers expanding its 30% limit on investments outside of the UK.
ByLotte Edwards
CityWire
Temple Bar (TMPL) has delivered another strong set of results, with six stocks in its portfolio rising more than 50% in 2025.
The £1.1bn UK equity income trust’s net asset value (NAV) was up 33.9% in 2025, outperforming the FTSE All-Share’s 24% gain. Returns for shareholders soared an even further 45.3% over the period.
It builds upon a strong few years since Redwheel duo Nick Purves and Ian Lance took over the mandate in November 2020, with shares up 224.9% and NAV climbing 193.2%.
But while the managers continue to see a large enough opportunity set within the trust’s current investment restrictions, chair Charles Cade said he and the board will consider broadening its overseas limit beyond the current 30% constraint should the universe of UK listed companies continue to reduce materially. Any such proposal would require shareholder approval.
Top performers in 2025 included banks and financial services providers NatWest, Barclays and Standard Chartered, Aviva and NN Group, as well as specialist chemicals and sustainable technologies leader Johnson Matthey − each contributing at least 2% to absolute returns.
Another eight stocks − ABN Amro, GlaxoSmithKline, Aberdeen, Macys and BET − added at least 1%, while only one stock, advertising company WPP, detracted more than 1% over the period.
Total dividends of 15p were declared for the year representing an increase of 33.3% . TMPL moved from a discount of 6.6% to a premium of 1.4% and was able the re-issue around 5m shares from treasury at a 3% premium, raising £19m.
Post year-end, an additional 8.1m shares were issued, raising £32m and expanding the trust’s market capitalisation by £1.1bn. The board said it remains committed to discount control, having bought back shares worth £114m since 2021.
Commenting on the results, Purves and Lance noted that ‘although valuations have risen from quite extreme levels seen post the COVID pandemic, they are still low in an absolute and historical sense’.
In aggregate, the trust’s portfolio is now valued at around eleven times earnings, higher than it was, but still a discount to the wider UK market, and around half the valuation given to the wider global equity indices. ‘Accordingly, we believe the company is still price to deliver meaningful excess return, and shareholders can look forward to the future with optimism,’ they said.
Panmure Liberum’s Callum Stokeld recognised a ‘strong streak’ for TMPL under the current management.
‘Undoubtedly the managers have enjoyed style factor-tailwinds when we assess their performance relative to the FTSE All-Share, with Value having enjoyed a strong streak as interest rates normalised from the lows seen during the pandemic, but… TMPL’s NAV has also consistently seen positive alpha generation relative to the wider UK Value-factor index,’ he said.
The analyst added that TMPL’s bumper dividend policy, designed to reflect increasing use of buybacks by UK corporates, ‘looks well-aligned to the investment process too, with the managers placing emphasis on returns of capital from all sources.’
‘We see evidence to support the contention that UK companies are increasingly returning capital via buybacks, with more FTSE companies retiring more than 5% of starting issued share capital over each of the last 4 years than in the S&P 500, aside from the premium level of yield that the UK market offers,’ he said.
Market sell offs are opportunities for dividend hunters but only buy if you think the dividend is ‘secure’ and you are happy with the yield as if prices continue to fall the yield will widen. Mr. Market may prove your thinking wrong and you will need to take action.
If you used the cloud chart, you were late to the party, buying just before the xd date turned out to be a good entry point but it could be different this time.
If you buy the yield and are content with the yield and if you intend to buy and hold forever, the price isn’t that important. The risk is that you end up with no position.
Buy the first reversal candle but only if you are content with the yield or set yourself a target if the price goes up between 3-5%.
The market will most probably bounce again when a ceasefire is announced but the critical element will be how the oil price reacts.
I’ve added FGEN yielding around 10% with the intention of pair trading with a lower yielder but with a higher chance of growth, the risk is that the growth becomes a negative figure.
The 4 shares I am considering, all for different reasons
CTY,LWDB,MRCH,TMPL
I can’t decide on any share so I may split the 10k investment into two Trusts.
The blended yield would still be around 8%
Oil market faces ‘higher for longer’ risk: Saxo Bank
Ole Hansen, commodity strategy head at Saxo Bank, discusses the impact of the ongoing conflict in the Middle East on energy markets as oil heads for another weekly gain. Speaking on Bloomberg Television, Hansen says everything “points to a higher for longer” scenario. “It will take time to get that supply back, so higher for longer seems to be the risk right now,” he adds.
But there may be no rush to buy until the Gulf of Hormuz problem is addressed.
