The current Snowball. VPC are winding down and should return some more capital this year, then it will most probably be sold.
Page 77 of 306
This £20k ISA delivers £1,961 of cash passive income a year© Provided by The Motley Fool
As a long-term investor, I like buying shares in good businesses at fair prices. Also, my investing style nowadays favours value shares and passive income. Thus, when share prices plunge — as they did during the recent market meltdown — I see these falls as opportunities to buy at a discount.
Hence, I’m often drawn to cheap shares offering market-beating dividend yields to patient shareholders. As my family doesn’t need this income right now, we reinvest our dividends by buying more shares. Over time, this increases our corporate ownership and boosts our total long-term returns.
Passive income from dividends
Though share dividends are my favourite form of passive income, they’re no sure-fire route to riches. Indeed, returns from value/income investing have lagged behind those from growth investing for most of the last 15 years. Also, these three problems can cause problems:
- Future dividends aren’t guaranteed, so they can be cut or cancelled at short notice. For example, during 2020-21’s Covid-19 crisis, dozens of UK companies slashed their payouts to preserve cash.
- After paying out dividends, companies have less cash at hand. Therefore, paying out excessive dividends can weaken companies over time.
- After paying out dividends, companies have less cash at hand. Therefore, paying out excessive dividends can weaken companies over time.
- Super-high dividend yields, say, 10%+ a year, can warn of future problems. History has taught me that double-digit cash yields rarely last. Either share prices rise, or dividends get cut, dragging down yields.
Three shares would deliver an average dividend yield of 9.8% a year. Therefore, a mini-portfolio of equally weighted holdings in all three stocks would generate passive income of £1,961 annually. Furthermore, this cash stream would be tax-free inside a Stocks and Shares ISA.
In particular, I like the look of M&G as a long-term producer of passive income. M&G was founded in 1931 and launched the UK’s first unit trust that same year. The current share of 186.75p translates into a huge cash yield of 10.8% a year. But this yield has leapt due to recent falls in the M&G share price. This is down 13.4% over one month and 7.2% in a year, but is ahead 43.4% over five years (excluding dividends).
Then again, what if things turn sour again for financial markets, as happened recently? With £312bn of assets under management, M&G’s profits and cash flow could get slammed if stock and bond prices plunge further. Even so, I note that its yearly dividend has risen from 15.77p a share for 2019 to 20.1p for 2024. In short, this passive income looks sound to me!
The post This £20k ISA delivers £1,961 of cash passive income a year appeared first on The Motley Fool UK.
Of course, there are plenty of other passive income opportunities to explore. And these may be even more lucrative:
We think earning passive income has never been easier
Do you like the idea of dividend income?
The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?
Universitas Telkom
bif.telkomuniversity.ac.id/mengatasi-err_connecti…x
indahayupp04@gmail.com
103.194.173.99
What is the current forecast for the Snowball’s total value, and what is the plan to achieve a 20% income on seed capital within ten years ? |
This year’s income fcast is £9,120 with a target of £10,000.
If the target is achieved and the income is re-invested at a yield of
7% or greater the income received will double in ten years time.
Over the total time frame it may not be able to re-invest the dividends in Investment Trusts at 7%, although there are usually Investment Trusts that are out favour, then it would have to be re-invested with an element of capital gain.
For example only EAT, JGGI etc.,
Questor: how to follow our rules of investing
If you’re ready to take a risk on the stock market, be sure to use our tips in the right way.
James Baxter-Derrington Investment Editor. Richard Evans
Investing is a volatile game. In the space of just a few weeks a stock can double in value or be completely wiped out, and it can require nerves of steel to see through the red numbers.
Since 1945, we have witnessed more than a dozen bear markets, defined as a sustained period in which stock markets collapse more than 20pc in value. During the Global Financial Crisis, stocks fell over 50pc, more than halving your investment on paper.
But zoom out and these cataclysmic financial events pale in comparison to the returns investing offers over the long time. Had you invested £10,000 in the S&P 500 at the highest level before the 2008 crash – the “worst time” to buy – it would have fallen as low as £4,300 – but had you left it invested, it would’ve been worth over £37,000 at the end of 2024.
Stock markets are comprised of individual companies, and we feel there are excellent profits to be made by picking the right firms as part of a prudent, well-diversified investment strategy.
Had you put that £10,000 into, for example, Games Workshop, on that same day in October 2007, it would have been worth £505,100 at the end of 2024. If you’d put it into Lehman Brothers stock, it would be worth £0.
To avoid wipe-out and ensure you reap the benefits of investing, we’ve put together this short guide to how our Questor tips should be used.
When we say a stock is a “buy”, we mean that we have good reason – based usually on the opinions, and more importantly the actions, of professionals whose job it is to scrutinise stocks – to expect the price to rise. But nothing is certain in investment and even the most experienced, intelligent and well-informed professionals can have their expectations confounded by events.
In fact, fund managers sometimes say they are doing well if 60pc of their holdings make money.
Faced with these odds, we urge readers never to follow individual tips in isolation. Instead, it is vital that investors protect themselves against the risk of severe, even total, losses of money by the most potent protective medicine in stment: diversification.
So if you are a new Questor reader and have read a column you believe makes a convincing case for buying a particular share, by all means act on it – but in such a way that the stock forms part of a portfolio of shares and does not become the sole home for your hard-earned savings.
Let’s imagine you have £100,000 to invest for your retirement. You read a convincing case in Questor, or elsewhere, for buying a particular stock. Whatever you do, no matter how strongly you believe in that stock, do not commit your entire £100,000 to it.
Instead, limit your purchase to £10,000, or ideally less, and continue your stock research until you have identified another nine shares, or more, into which you are equally happy to commit your money. In other words, spread your cash among at least 10 shares and preferably nearer 20.
These shares should not include more than a couple that are particularly risky or speculative, normally labelled as such in this column. Aim to own companies that operate in a variety of sectors and are exposed to different aspects of the economy.
The only time you should feel free to disregard the advice above is when you are committing sums small enough to be regarded as punts. An investor with £100,000 in total might feel comfortable putting £1,000 into one stock on the basis that if it does go bust the loss is bearable.
But for serious investors who intend to commit the bulk of their life savings to stocks, diversification is essential.
If you do want to put serious sums into the stock market but do not wish for any reason to do the work necessary to identify the 10 or more stocks needed for a prudent level of safety, invest your money in funds instead.
It is still better to invest in a selection of funds than commit all your money to one, but the latter course is much less risky than it is with individual shares.
Anyone who has already put large sums into one or two of our stock picks is advised to sell the bulk of those holdings as soon as possible and reinvest the money in several other shares so as to build the kind of diversified portfolio outlined above.
Finally, remember that even with a portfolio of stocks there is still a risk the entire market could fall severely. Be prepared to hold your stocks for enough time to ride out the ups and downs.
If you are not able to accommodate these risks, do not put money in the stock market.
The UK equivalent to ARE.
Current yield 2.29% Discount to NAV 42.3%
laire Boyle, Chair of Life Science REIT plc, commented: “As announced on 14 March 2025, the Board is currently undertaking a strategic review to consider the future of the Company and to explore all options available to maximise value
for shareholders.
The background to this decision was set out in that announcement and reflects the significant headwinds the Company has faced since IPO, including higher inflation and elevated interest rates, which have driven a fundamental slowdown in leasing activity and negatively impacted investor sentiment. Coupled with the Company’s size and low levels of liquidity, these factors have resulted in the Company’s share price trading at a significant discount to net asset value for a prolonged period of time.
The Board is confident that the Company’s assets, which are focused on the “Golden Triangle” research and development hubs of Oxford, Cambridge and London’s Knowledge Quarter, will prove attractive to a number of parties. Given the uncertainty inherent in the possible outcomes of the Strategic Review, these results have been prepared on a going concern basis with material uncertainty.
In addition, in recent weeks, the Board has successfully reached an agreement with Ironstone Asset Management (“Ironstone”), the Company’s Investment Adviser on a revision of the Investment Advisory Agreement, which will deliver
cost savings of c. £1.0 million per annum based on the December 2024 net asset value.
In the meantime, the team remains sharply focused on capturing upside from the portfolio; £1.5 million of contracted rent has been captured since the interim results in September 2024, a further £1.1 million is in solicitors’ hands, and occupier engagement is encouraging.”
STRATEGIC REVIEW
Strategic Review underway
Commenced 14 March 2025 to explore all strategic options available to maximise value for shareholders, including a possible sale or managed wind down of the Company
FINANCIAL HIGHLIGHTS
Development and leasing progress supporting rental growth, but slower than expected
Contracted rent for the investment portfolio increased to £15.3 million (31 December 2023: £14.0 million), with a further £0.6 million from developments, taking total contracted rent to £15.9 million
Adjusted earnings of £5.9 million (31 December 2023: £6.7 million), impacted by higher financing costs
Adjusted EPS of 1.7 pence per share (31 December 2023: 1.9 pence per share)
Future dividends suspended pending the outcome of the Strategic Review
Valuations stabilising in the second half with yield expansion reducing
Portfolio value £385.2 million (31 December 2023: £382.3 million), a £2.9 million increase on an absolute basis
o H224 like-for-like decline of 0.3% compared to a 3.8% decline in H124
Like-for-like valuation down 4.0% driven by 30bps outward movement in the net equivalent yield (“NEY”) to 5.6%, more pronounced in H1, partially offset by like-for-like ERV growth of 13.7%
o Laboratory space down 3.7%, with ERV growth strong at 8.6%;
o Space defined as offices down 5.3%
EPRA net tangible asset per share of 74.4 pence (31 December 2023: 79.9 pence per share); reflecting the portfolio revaluation loss (£17.4 million) and dividend payments (£7.0 million), partially offset by positive adjusted
earnings
Balance sheet:
Loan to value at 30.4% (31 December 2023: 24.7%), with the increase driven by development progress in the year and corresponding debt drawn
Debt fully hedged at 4.5% interest payable to March 2025 and 5.5% until September 2025
OPERATIONAL HIGHLIGHTS
Leasing activity improved, but transactions taking longer to conclude than expected:
Five new leases commenced in 2024, adding £1.9 million to total contracted rent
Occupancy increased to 84.4% (31 December 2023: 79.0%); like-for-like occupancy increased to 83.6% (31
December 2023: 79.0%)
Since the interim results in September 2024, £1.5 million of new rent has been captured, compared to the target
set of £3.2 million, with a further £1.1 million in solicitors’ hands
Current contracted rent increased to £16.5 million, including breaks exercised at Rolling Stock Yard of £0.7 million
Cambourne repurposing project completed, delivering 8,800 sq ft of fully fitted space
57,000 sq ft completed at Oxford Technology Park (fully let to Fortescue Zero Ltd); formal practical completion of Buildings 6 – 9 comprising 183,000 sq ft delayed to Q2 2025, but unit 6A is effectively complete and fully let.
1 huge diversification mistake to avoid in a Stocks & Shares ISA
Investing through a Stocks and Shares ISA can be a great way of building wealth. But it’s important to not put off thinking about diversification.
Posted by
Stephen Wright
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.Read More
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.
Building a diversified portfolio of investments in a Stocks and Shares ISA can bea great thing. Investors, though, need to be proactive about doing this, rather than waiting until it’s too late.
When share prices are rising, it can be easy to become too concentrated in the names that are doing well. This, however, is exactly when it’s time to think about diversification.
Stock market rotation
For a long time, US shares have outperformed their UK counterparts. More specifically, the set of stocks known as the Magnificent Seven have generated outstanding returns.
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Alexandria Real Estate Equities, Inc. made the list?
At the same time, the FTSE 100 has kept climbing. And both institutional and retail investors have started wondering whether it might be time to start diversifying away from US stocks.
In my view, the better time to think about reducing exposures to the likes of Nvidia was when it was at $150, not now that it’s fallen almost 33% from its 52-week highs.
Of course, investors weren’t so keen to sell Nvidia shares when the price kept going up. But this is the big diversification mistake that I’m hoping to avoid in my Stocks and Shares ISA.
What’s cheap right now?
Instead of shifting away from US stocks, I think now is a good time to be looking at S&P 500 stocks from a buying perspective. And this is especially true in certain sectors.
As a group, US-listed real estate investment trusts (REITs) have fallen around 6% over the last six months. But I think the sector is well worth looking at right now.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
One particularly interesting name is Alexandria Real Estate uities (NYSE:ARE). The company owns and leases laboratory space to pharmaceuticals companies.
The stock has fallen 35% in the last six months and its latest earnings report was disappointing. In short, it’s having difficulties renewing or re-leasing its properties when contracts end.
This is partly the result of increased competition. But it’s worth noting that Alexandria’s 20 largest tenants are committed to leases that have an average of 10 years still to run.
The stock currently has a dividend yield of almost 8%, which is very unusual. So long-term investors might think this is a good time to take a look at the stock from a buying perspective.
Building a portfolio
It’s easy to put off thinking about diversification until stocks that have been doing well start falling, but by then it’s often too late. I think this is a situation where it’s best to be proactive.
That means figuring out where there are opportunities to buy stocks that are out of favour with the market. And the US REIT sector looks like a good example at the moment.
Alexandria Real Estate’s specialism means offers something different to other office REITs. And it could be an interesting choice to consider for investors looking to diversify a portfolio.
On track to double your stake but as you can see from the chart above it’s about timing and then time in.
Buying yield would have been 5.75%.
Top ten holdings
Current yield 4.77% Discount to NAV 4.3%
‘I’m 65 years old with a £100,000 pension pot – how much can I get in retirement?’
Story by Temie Laleye
A £100,000 pension pot could now secure a significantly higher income in retirement, with recent market shifts driving up annuity rates.
Experts have explained how much a 65-year-old could expect to receive annually and why shopping around for the best deal has never been more important.
A 65-year-old with a £100,000 pension can now get up to £7,882 per year.
Retirees can get this guaranteed income for life through a single life level annuity with a five-year guarantee, according to latest data from Hargreaves Lansdown’s annuity search engine. This is up 63 per cent on what was available five years ago.
Couple at laptop© GB News
Helen Morrissey, head of retirement analysis Hargreaves Lansdown said: “Annuity incomes have been a ray of sunshine for retirees in these turbulent times.
“These increases are welcome news for anyone in the market for a guaranteed income in retirement and have contributed to a real revival in a market that was once considered on the edge of extinction.
“2024 was a bumper year for the annuity market and current rates will continue to fuel interest.”
Pension folder© GB News
Using an annuity search engine is crucial for retirees to understand what the market can offer before making their final decision.
This revival in annuity values has driven increased market interest, with Financial Conduct Authority retirement income market data showing sales up 38.7 per cent in 2023/24.
Morrissey has warned that while annuity incomes are currently strong, they may begin to dip if the Bank of England starts cutting interest rates — as widely expected in May.
Pensioners look at statements© GB News
However, she urged savers not to panic. Rates aren’t expected to drop as sharply as they rose, and a return to the ultra-low levels seen in previous years is unlikely.
Morrissey noted that retirees don’t need to annuitise their full pension all at once.
Buying annuities in stages can provide greater flexibility and allow income to rise over time — particularly for those who may qualify for enhanced annuities due to age or health conditions.
She said: “You can secure guaranteed income as your needs change. And if you develop a qualifying condition, you’ll get a further bump in income.”
Fancy a gamble with your retirement ?
This is up 63 per cent on what was available five years ago.
Plus you have to surrender all your hard earned. GL with that.
The FTSE 100 index is on fire! What’s going on ?
Story by Ben McPoland
UK supporters with flag© Provided by The Motley Fool
Incredibly, the FTSE 100 just completed 11 days of positive gains. This was the blue-chip index‘s best run since 2019 !
The Footsie tanked in early April when President Trump’s sweeping tariffs announcement threatened to send the global economy into a tailspin. Since then though, there have been rowbacks and pauses from the US administration. This has calmed markets, at least for now.
Specifically for the FTSE 100, it means the index has nearly clawed back all the losses following Trump’s announcement. I certainly didn’t expect 11 days of gains, proving once again how utterly unpredictable markets can be in the short term.
Damage might already be done
But we’re not out of the woods just yet. The 90-day pause on most ‘reciprocal’ tariffs ends in July. Depending on what happens then (or before), the index could pull back sharply or keep climbing to notch new record highs. It’s a bit of a coin toss.
Moreover, there will already damage done to global growth from all the uncertainty. How much damage we don’t know yet, but the 10% blanket tariff is still in place, as is the extraordinary 145% duty on goods from China.
At the price of 400p, the dividend was 26p a yield of 6.5%.
Latest full year dividend 33.5p a yield on the buying price of 8.25%
A current yield of 3.76% trading at a small premium
You have doubled your capital invested, which could now be withdrawn, leaving a share in your Snowball producing income at a cost of zero, zilch, nothing.
You also have received the dividends which could have been re-invested back into the share until the yield fell and then switched to investing in another high yielding Trust.
Sadly Mr. Market didn’t give you another chance to buy but one to keep in your watch list, if the opportunity arises.
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.19% of 2024 NAV but has funded approximately one-third of dividends paid by the Company in the last 10 years. |
| · | IPS has now delivered seven consecutive years of mid to high single digit underlying growth, with a 5 year underlying PBIT CAGR of 7.3%. |
| · | 2024 valuation of £194.5 million (excluding net assets), up 83.6% since 2019. |
| · | Non cash goodwill impairment of £17.0 million on the 2021 acquisition of CSS. |
Awards
Winner in the Active-Income category for the third year in a row at the 2024 AJ Bell Investment Awards.
Winner of the Best for Long-Term Income award at the QuotedData awards.
Recognised by the AIC as an “ISA Millionaire” performer