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FCIT Dividend (Q1 increase to 3p)

Closed-end funds and OEICs
monabri
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FCIT Dividend (Q1 increase to 3p)

#421178

Postby monabri » June 21st, 2021, 4:07 pm

https://www.investegate.co.uk/f--38-c-i ... 05495881C/

"The Directors of the Company have resolved that the first interim dividend for the year ending 31 December 2021 will be a payment of 3.00 pence per ordinary share, which compares with a 2.90 pence per share first interim dividend this time last year. The dividend will be paid on 2 August 2021 to shareholders registered at the close of business on 16 July 2021. Please note this payment will include a Dividend Re-investment Plan facility, for which the election date will be 23 July 2021.

As explained in the Report and Accounts for the year ended 31 December 2020, the Company has substantial revenue reserves and can therefore support dividend payments that are not covered by current year income. With this significant investment trust advantage over many open-ended funds, the Company remains well positioned in continuing to deliver dividend rises to shareholders over the longer term."

LooseCannon101
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Re: FCIT Dividend (Q1 increase to 3p)

#421429

Postby LooseCannon101 » June 22nd, 2021, 5:14 pm

This is not much of a dividend increase - only 3%. However, share buybacks have increased recently due to the discount widening.

The dividend yield has not kept pace with its peer group e.g. Witan and Alliance, but has easily beaten inflation.

I am only interested in total return and so am not unduly concerned with the yield.

1nvest
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Re: FCIT Dividend (Q1 increase to 3p)

#447440

Postby 1nvest » October 3rd, 2021, 11:48 am

LooseCannon101 wrote:I am only interested in total return and so am not unduly concerned with the yield.

SWR with ratchet applied to total return provides consistent rising (with or in excess of inflation) income. i.e. pick a SWR such as 3% as the amount drawn from the initial portfolio value, standard SWR has you uplift that amount by inflation each year as the amount drawn at the start of each year, the ratchet extension has you uplift the withdrawal rate either by inflation or to 3% (or whatever SWR %) of the portfolio value, whichever is the higher. Somewhat like stop/restart afresh. That might see withdrawals increase ahead of inflation, such as at a inflation +4% rate.

Image

Above includes both FCIT alone and 67/33 FCIT/gold as longer term history indicates a tendency to see something broadly like two thirds of time seeing stocks do well, a third of time seeing gold do well. The comparisons in that image suggest that history continues to persist and results in better risk adjusted rewards (such as dividing CAGR by the standard deviation as a crude form of Sharpe Ratio type measure (higher the value the better)).


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