The Lemon Fool

Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.

kempiejon wrote:

Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.

https://www.dividenddata.co.uk/dividend ... ?epic=LWDB give 3.8% current.

88V8 wrote:According to the AIC, LawDeb have ten years of dividend growth.
One of the key criteria in my transition towards ITs is avoidance of cuts. So far so good.

The yield is nothing wonderful, about the same as Unilever, they will be mentally competing for a top-up.

V8

kempiejon wrote:

Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.

https://www.dividenddata.co.uk/dividend ... ?epic=LWDB give 3.8% current.

dundas666 wrote:

kempiejon wrote:

Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.

https://www.dividenddata.co.uk/dividend ... ?epic=LWDB give 3.8% current.

Looks like that 3.8% doesn't take into account this quarterly dividend increase from 6.5p to 8p, which makes the last 4 dividend total increase from 26p to 27.5p pa. If you factor that in then the yield increases to 4%.
https://www.dividendmax.com/united-king ... /dividends

Perhaps more importantly, if you assume all the remaining quarterly dividends this year will also be 8p then the forward yield is 4.6%

Arborbridge wrote:For this IT, that is getting really interesting. Why does everything becoming interesting when my cash pile is almost non-existent!

richfool wrote:I had previously thought about LWDB, but been put off as its rising SP had pushed the dividend yield down too much.

dundas666 wrote:Which by my calculations would make a dividend increase of just over 10% for the year.

So the yield on my LWDB purchase at the beginning of this year has increased from 4.0% to 4.4%.

Dod101 wrote:

dundas666 wrote:Which by my calculations would make a dividend increase of just over 10% for the year.

So the yield on my LWDB purchase at the beginning of this year has increased from 4.0% to 4.4%.

I do not know much about the detail for Law Debenture but I would be surprised if you see an increase in the total dividend of 10% for the year. Maybe its own trading arm will provide the required boost but I doubt it.

Dod

dundas666 wrote:

Dod101 wrote:

dundas666 wrote:Which by my calculations would make a dividend increase of just over 10% for the year.

So the yield on my LWDB purchase at the beginning of this year has increased from 4.0% to 4.4%.

I do not know much about the detail for Law Debenture but I would be surprised if you see an increase in the total dividend of 10% for the year. Maybe its own trading arm will provide the required boost but I doubt it.

Dod

Ah yes, my mistake, that was 2 years growth. So:
2019/20 = 26p (6.6p + 19.4p)
2020/21 = 27.5p (6.5p + 6.5p + 6.5p + 8p) = 5.77% increase
2021/22 = 29p but possibly more (6.875p + 6.875p + 6.875p + 8???p) = 5.45% increase

· 2021 dividend to be increased from 2020 level of 27.5 pence per share

· Dividend yield of 3.7% as quarterly dividend increased by 5.8%

· Investment Portfolio delivered strong positive returns outperforming the benchmark

· Independent Professional Services business (IPS) has entered its fourth consecutive year of both revenue and earnings per share growth.

· ~4 million new ordinary shares issued to existing and new investors, worth c. £29.2 million, exceeding £20 million target to refinance the acquisition of new Company Secretarial business. We continue to issue shares when the opportunity arises to generate value for the Trust

· Increase in the valuation of the IPS business by 10.1% year to date to £149.7m.

The board is committed to targeting both capital appreciation and steadily increasing the income for our shareholders. Subject to market conditions, our current intention is to increase the total 2021 dividend compared to the total 2020 dividend of 27.5 pence per ordinary share. We are confident that, in the long term, the combination of a robust equity portfolio and continued growth in our IPS business will deliver strong NAV total returns and attractive dividend growth."