The current working example is SUPR but as always best to DYOR.
Looking at the chart (posted below) let’s assume the price continues to rise and fall but doesn’t actually change much.
The current yield is 8% so in 12.5 years u will have received all your capital back and achieved the holy grail of investing of having a share that sits in your account at nada and pays u an income. If SUPR is still being quoted, the time frame of 12.5 years will be less as the dividend should gently increase over the period.
If u compound your dividends at 8%, it could be back into SUPR or anything else that your research identifies as a ‘secure’ dividend payer, u will achieve the holy grail of investing in 9 years. U could have two trusts paying a yield of 8% on two positions 16% pa on your original investment. Compound interest goes crazy bananas if u have 20 years plus to re-invest, remembering u should make more in the final few years than all the preceding years.
GL
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