I’ve used SUPR as the working example as it’s one of the safest dividends in the market but no dividend is entirely safe, unless you buy gilts or treasuries and hold to maturity. With the benefit of good ole hindsight, I bought too high but in 2022 high yields were as rare as hens teeth.

After several trades the position was exited, including earned dividends for a small profit of £292.00.

There were £2,861 of dividends in the above figure which have been re-invested back into the SNOWBALL to earn more dividends to buy more shares.

Compounded by the number of years before you start drawdown.

Latest position

There is a general misunderstanding of the term ‘To Top Slice’.

When you top slice the profit is the profit of all the shares in your share holding and you will note although the ‘profit’ taken was £225, great for a holding of one day, until the underlying shares are sold, the actual profit is £6.16.

There are two pots of money in your Snowball, capital where the last profit sits, although the market could take back the profit and some if a Black Swan sails by and earned dividends, which if re-invested elsewhere into you Snowball, SUPR can’t take back your income. Although the more you trade the more chance of buying a clunker.

The closed trades above 1k profit, which will should more than equal any future clunkers in the SNOWBALL.

A new position has been opened in SDIP.

SUPR xd next week for 1.545p = a yield of 7%.

If the SNOWBALL was near to drawdown, even if the price increases and the yield falls it would remain a core holding of the SNOWBALL.

The SNOWBALL is still accumulating, so if the price increases, SUPR would be sold and the cash re-invested in a higher yielder, although the yield you buy at is the yield you should receive for as long as you own the share, hopefully gently increasing.

The best outcome for the SNOWBALL, would be for the price to go sideways or even better fall and then some more shares could be added to the SNOWBALL at a yield higher than 7%.

Now if UK gilts yield 6% the risk reward would mean that holding SUPR at 7% was not worth the risk, although if UK Gilts yield 6%, SUPR’s price could fall and therefore be higher than 7%.

Largest closed clunker.