You may have read that Smaller Company shares are under valued.

But just in case, you are early or late to the news, you want a dividend to re-invest in your Snowball, in case your research is wrong.

Current yield 7% but higher risk as the market cap is very modest.

Chelverton UK Dividend Trust PLC – Chelmsford, England-based investor in UK small- to mid-cap companies – Net asset value per share rises 8.4% to 144.20 pence at April 30 from 133.04p the year prior. Revenue return per share is 7.42p down 45% from 13.32p. Dividends per share paid in the financial year are 10.75p, down from 12.90p the year before. This results in a total return of 16%, the firm says, below the AIC UK Equity Income sector share price total return of 19% and a NAV total return of 17%. “Despite the uncertainties, we continue to be confident in the prospects for companies in the small and mid-cap sector, whose market rating remains historically low,” Chelverton says. “We believe the company continues to offer a compelling combination of an attractive dividend yield and the potential for capital upside from any recovery in the UK small and midcap market. The board keeps market circumstances under review and will continue to seek opportunities to reintroduce gearing into the company’s structure.”

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