You knew that MRCH was a dividend hero and watched as the price fell.
The previous year’s dividend was 27.10p. Price 350p a yield of 7.8%.
You also knew that MRCH had dividend reserves to pay the dividend in times of market stress.
You decide to buy and for this example, you decide just to re-invest the dividends back into MRCH.
You decide to take out your stake and re-invest in another high yielder.
You have achieved the holy grail of investing of having a Trust in your portfolio that pays you an income at zero, zilch, nothing cost.
The current yield with MRCH is 5% and if you re-invested in another Trust yielding 10% your yield on your initial buy would be 15% pa.
GRS
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