PHP currently yields 7.2%. If/when the price rises the yield will fall.
As the Trust is currently printing a profit and as PHP only has 6k invested, it will most probably be sold to buy a higher yielding Trust.
It’s easier to explain with an example.
Trust A 10k invested yielding 7%.
As long as the dividend remains the same the portfolio should receive £700 pa in dividends, the price makes no difference.
If the price rises by 10%, the trust still receives the buying yield, dividends
of £700 pa.
The running yield would fall to 6.4%, still £700 pa.
If the Trust A was sold and the11,000 re-invested in a Trust yielding 8%
the dividend would be £880.
In a rising market, as long as there are Trusts out of favour, there are
usually a few, The Snowball can be grown thru Trading.
Many a mickle makes a muckle.
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.