Investment Trust Dividends
Not Meerkats but Markets.
If you think the dividends are ‘secure’, although no dividend is completely secure and you are content with the dividends for the long time, buy the yield. You will only buy at the bottom of the market by luck, so don’t spend a lot of time trying.
With markets falling out of bed the above shares have been removed from the Watch List on a risk/reward basis.
There were only two new additions to the list of bestselling trusts in March – City of London and JP Morgan European Growth & Income.
“One of those new entries, City of London, is no stranger to the top 10,” said Kyle Caldwell, funds and investment education editor at Interactive Investor. “It is managed by veteran fund manager Job Curtis, and this ‘Steady Eddie’ investment trust is a reliable dividend payer, having increased payouts each year since 1966.”
The City of London trust primarily holds FTSE 100 companies.
“In contrast, the other new entry, JP Morgan European Growth & Income, has never appeared in the top 10 since we started compiling the rankings in 2018,” Caldwell said.
The JP Morgan trust invests in Europe and, as Caldwell points out, the region has had a good year so far in 2025. Many European companies look cheap, compared to their US counterparts. Some investors have been switching from one market to the other in light of recent volatility in the US.
Bestselling trusts in March
Source: Interactive Investor.
There are three end destinations for your plan, when you reach retirement and want to spend some of your hard earned.
One. Use your fund to buy an annuity, not a good option for your retirement as you have to surrender all your capital
Two. Using a TR plan you use the 4% rule to fund your retirement.
Three. Use a dividend re-investment plan and use the dividend stream to fund your retirement and access your capital if an unexpected emergency occurs.
The Snowball uses a 100k of seed capital and the dividends are re-invested.
The scores on the doors.
The current 2025 fcast for the Snowball £9,120.00
The control share for a TR plan is VWRP, the current value would be
118k and using the 4% rule would provide income of £4,720
VWRP could be higher or lower at the year end but remember with compound interest the gains accelerate every year you re-invest in your plan.
Any readers with time on there side may wish to have two pots, TR and a dividend re-investment pot and the earned dividends could be re-invested in either pot. Similarly if the TR pot was re-balanced any gains could be re-invested in the dividend pot. That depends on whether you are a gambler or an investor.
I’ve bought 2106 shares in SEIT for 1k.
Belt and Braces.
See below.
| Motley Fool What do Britain’s 4,850 “ISA Millionaires” have in common ? First, many are using Stock & Shares ISAs to save – collecting dividend income and potential capital gains tax free. Second, they seem to prefer dividend paying shares. Here’s a list of their top holdings – according to Hargreaves Lansdown: |
| Legal and General Group Plc Phoenix Group Holdings Plc Aviva Plc IG Group Holdings Intercede Group Plc Beeks Financial Cloud Group BP Plc Rio Tinto M&G Michelmersh Brick Holdings |
| And, as many ISA millionaires will tell you, you can reinvest your tax-free dividends, snowballing wealth over the long-term. I’d argue it’s the big secret of Britain’s “ISA millionaires.” |
REITs often have higher-than-average dividend yields compared to other stocks, making them a solid choice to consider for passive income investors.
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Real estate investment trusts (REITs) offer a combination of high dividend yields, potential for growth, and diversification benefits, making them an attractive option to consider for investors seeking passive income.
Here are a handful owned across the Fool.co.uk contract writing team!
What it does: Primary Health Properties specialises in purchasing and renting primary healthcare facilities within the United Kingdom and Ireland.
By Mark Hartley. Primary Health Properties (LSE: PHP) is a real estate investment trust (REIT) that benefits from stable revenue through long-term leases backed by the NHS and Irish government. This makes it a good candidate for passive income, as it’s low-risk and provides consistent dividend payouts
It has a long track record of dividend growth and has seen moderate price appreciation during strong economic periods. Dividends have increased consistently for over 20 years at a compound annual growth rate of 3.24%.
However, the price has suffered during periods of high interest rates, ramping up borrowing costs and impacting profitability. Recent concerns about the wider property sector and potential government healthcare policy change risk hurting the share price.
Despite a slight decline in performance over the past three years, revenue and earnings have typically been within 1% of expectations. This makes it attractive to income investors looking for stable and reliable performance.
Mark Hartley owns shares in Primary Health Properties.
What it does: Primary Health Properties owns and lets out medical facilities like GP surgeries in the UK and Ireland.
By Royston Wild. Primary Health Properties offers investors the dream blend of long-term dividend growth and market-beating dividend yields.
Cash rewards here have grown every year since the mid-1990s. And City analysts expect this trend to continue until at least 2026, representing 30th consecutive years of rises.
As a result, the yields on Primary Health Properties for this year and next stand at 7.6% and 7.7% respectively. To put that into perspective, the current forward average for FTSE 250 stocks sits way below these levels, at 3.4%.
This REIT’s dividend durability reflects its focus on the ultra-defensive healthcare market, providing profits stability across the economic cycle. It’s also because the lion’s share of rental income is directly or indirectly guaranteed by a government body.
Looking ahead, future dividends could be hurt by NHS policy changes that impact earnings. But with successive governments working to strengthen the role of primary care in Britain, the outlook here for the short-to-medium term at least looks pretty solid.
Royston Wild owns shares in Primary Health Properties.
What it does: Supermarket Income owns a £1.8bn portfolio of 74 stores, with the majority leased to Tesco and Sainsbury’s.
By Roland Head. Big UK supermarkets have regained their status as desirable retail properties since the pandemic. I added Supermarket Income REIT (LSE: SUPR) to my portfolio in July 2024, tempted by the 8%+ dividend yield and near-20% discount to book value.
Admittedly, there’s a risk that higher interest rates will put pressure on the dividend. But my sums suggest that this REIT will be able to refinance while maintaining its dividend.
Recent changes should deliver a sharp drop in management costs. This REIT also benefits from long leases and very reliable tenants. Occupancy is 100% and so is rent payment.
Property valuations also seem realistic – another area of possible concern. During the second half of 2024, Supermarket Income sold Tesco’s Newmarket store back to the retailer at a price 7.4% above its latest book value.
With a forecast yield of 8.3%, I’m quite happy to sit back and collect my quarterly dividends.
Roland Head owns shares in Supermarket Income REIT.
What it does: Warehouse REIT owns and leases a portfolio of well-positioned warehouses across the UK catering primarily to the e-commerce industry.Zo
By Zaven Boyrazian. In a world where e-commerce continues to slowly take market share from brick-and-mortar retail, demand for well-positioned warehouses is growing. This is a trend that Warehouse REIT (LSE:WHR) has been busy capitalising on since its IPO in 2017.
However, with interest rates rising rapidly in 2022, real estate investment trusts have had to endure much higher financial pressures. In the case of Warehouse, that ultimately culminated in property disposals to keep debt in check.
Despite this, dividends have kept flowing. And while elevated interest rates are still a cause for concern, the sell-off by investors seemed a bit overblown. It seems the private equity markets have also come to the same conclusion since acquisition offers began flying in February 2025. So far, they’ve all been rejected.
Even after the recent rise in stock price, the shares continue to offer an attractive 6.5% dividend yield. And with demand for warehouses unlikely to slow down in the long run, the passive income potential for Warehouse REIT continues to look rock solid, in my opinion.
Zaven Boyrazian owns shares in Warehouse REIT.
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