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Murray International Trust (MYI)

Closed-end funds and OEICs
richfool
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Re: Murray International Trust (MYI)

#392585

Postby richfool » March 5th, 2021, 8:46 am

monabri wrote:https://www.investegate.co.uk/murray-intnl-trust/rns/annual-financial-report/202103050700032548R/

"Three interim dividends of 12.0p per share (2019: three interims of 12.0p) have been declared during the year. Your Board is now recommending a final dividend of 18.5p per share (2019: fourth interim dividend of 17.5p) which is subject to shareholder approval. If approved at the Annual General Meeting, this final dividend will be paid on 18 May 2021 to shareholders on the register on 6 April 2021. Subject to this approval, total Ordinary dividends for the year will amount to 54.5p (2019: 53.5p), an increase of 1.9% which compares favourably with the 1.2% increase in the Retail Prices Index in 2020. This represents the 16th year of dividend increases for the Company and cements its position as an AIC 'Next Generation Dividend Hero'. The payment of the final dividend will use approximately £10.2 million from the Company's accumulated revenue reserves, amounting to approximately 15% of these reserves"

Thanks for that. Not the largest of increases, but MYI does have a higher dividend yield than many in the first place, and it's against a backdrop of the Covid dividend curtailment.

Arborbridge
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Re: Murray International Trust (MYI)

#392631

Postby Arborbridge » March 5th, 2021, 10:23 am

Well, another one in the bag, with an increase. Dividends up 3.26% pa over five years, ahead of RPI, though the rate of increase has understandably slowed.
The main thing for me is whether it keeps its head above or equal to RPI (or similar index!).

Arb.

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Re: Murray International Trust (MYI)

#392640

Postby Dod101 » March 5th, 2021, 10:33 am

Slightly off topic, but Alliance yesterday also announced an increase in its dividend for the 54th year in succession. A 3% increase on the year, with a raid on its ample Revenue Reserves. Mind you it yields only about 1.5% so it is not one for dividend junkies.

Dod

ADrunkenMarcus
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Re: Murray International Trust (MYI)

#392792

Postby ADrunkenMarcus » March 5th, 2021, 3:46 pm

MYI forms the core of my dividend growth portfolio. I take the dividends from it and get more in the way of growth from other holdings with smaller, faster growing dividend yields.

It was interesting to note the call options they are going to use to generate 'small additions to revenue'. The Board also 'encouraged the manager to continue to seek out stocks that offer balanced yield and growth potential'. I wonder if they are trying to improve things somewhat on the capital front, as well, which has been disappointing in recent years.

Given the current high dividend yield, I would not mind only modest just-above-inflation dividend growth for a few years if the potential for growth further improves. The modest proportional increase in dividends from MYI actually contributes a fair bit to my overall dividend per unit growth, because the smaller dividend payers growing their dividends at a much faster rate contribute much less in absolute terms to the current yield.

Best wishes

Mark.

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Re: Murray International Trust (MYI)

#392943

Postby johnstevens77 » March 5th, 2021, 11:05 pm

I started with a savings plan in Oct. 1997. I stopped the plan in 2001 but reinvested the divis. I started adding cash after the dividend hiatus in the early 2000's, topped sliced in 2007 and bought chunk for my wife's ISA in June 2019. The combined holding represents 15.55% of our IT portfolio. The yield is ok ish @4.8%, and we just let it plod along withdrawing the dividends to fund our retirement.

john

richfool
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Re: Murray International Trust (MYI)

#392993

Postby richfool » March 6th, 2021, 9:22 am

ADrunkenMarcus wrote:MYI forms the core of my dividend growth portfolio. I take the dividends from it and get more in the way of growth from other holdings with smaller, faster growing dividend yields.

It was interesting to note the call options they are going to use to generate 'small additions to revenue'. The Board also 'encouraged the manager to continue to seek out stocks that offer balanced yield and growth potential'. I wonder if they are trying to improve things somewhat on the capital front, as well, which has been disappointing in recent years.

Given the current high dividend yield, I would not mind only modest just-above-inflation dividend growth for a few years if the potential for growth further improves. The modest proportional increase in dividends from MYI actually contributes a fair bit to my overall dividend per unit growth, because the smaller dividend payers growing their dividends at a much faster rate contribute much less in absolute terms to the current yield.

Best wishes

Mark.

Yes, a bit more capital appreciation certainly wouldn't go amiss! :D

ADrunkenMarcus
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Re: Murray International Trust (MYI)

#393133

Postby ADrunkenMarcus » March 6th, 2021, 4:15 pm

The worry with a high dividend yield is that you are basically eating your capital and just having it paid back to you. The annual report does mention selecting investments with c. double digit growth potential. If so, you'd want - for example - a 4% yield that can grow at 6%.

Best wishes

Mark.

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Re: Murray International Trust (MYI)

#393614

Postby Arborbridge » March 8th, 2021, 12:50 pm

ADrunkenMarcus wrote:The worry with a high dividend yield is that you are basically eating your capital and just having it paid back to you. The annual report does mention selecting investments with c. double digit growth potential. If so, you'd want - for example - a 4% yield that can grow at 6%.

Best wishes

Mark.


I'd rather see that re-written: The worry with a high dividend yield is that you may be eating your capital and just having it paid back to you.

Yes, it is certainly something to keep an eye on. You can do this in a rough and ready way via HL charts, or by comparing one's XIRR achieved with the average yield.

Not too easy to do in practice. My XIRR at present is 6.55% but it is sometimes much higher, or recently much lower. So much for that idea :roll:

Arb.

ADrunkenMarcus
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Re: Murray International Trust (MYI)

#393716

Postby ADrunkenMarcus » March 8th, 2021, 6:57 pm

Arborbridge wrote: My XIRR at present is 6.55% but it is sometimes much higher, or recently much lower.


My purchase in July 2012 had the share price at about £10 and it closed today at £11.18, so it's gained almost 12 percent and a c. 1.2 percent annual CAGR in the share price. However, inflation probably exceeds that! Adding in the dividends gets me to c. 4.9 percent if I just assume they have been taken as cash and not reinvested. That comes to a 53 percent or so total return. (About the same as MasterCard since April 2019!)

The dividend CAGR is c. 3.7 percent on a nominal basis or 2.1 percent on a real terms basis, so it has achieved its objective of a growing dividend.

From memory, the share price hit over £13 at one point. However, as it stands today the capital return is about the weakest of my entire portfolio.

Best wishes

Mark.


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