a. The portfolio invests only in Investment Trusts as most Trusts have a reserve of cash to pay dividends in dire times.
b. There are plenty of Trusts paying above long term average yields, one percent compounded makes a huge difference to your final ‘pension’.
c. As in the example below, say DS Smith stops paying a dividend, it will make very difference to the Trust, unlike if u held the share. Also there is a chance of a takeover bid, many a mickle makes a muckle.
d. Trusts often trade at a discount to NAV, giving the patient an opportunity to sell some shares at a profit and then re-invest that profit into other Trusts to earn more dividends. The Snowball effect.
Abdrn Equity Fund
KEY INFORMATION
I’m not sure why but this website is loading extremely slow for
me. Is anyone else having this problem or is it a
issue on my end? I’ll check back later and see if the problem
still exists.
That is a good tip particularly to those new to the blogosphere.
Short but very accurate info… Thanks for sharing this one.
A must read article!