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        <title>Sdcl Efficiency Income Trust Plc (LSE:SEIT) Share Price, History, &amp; News | The Twelfth Magpie</title>
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	<title>Sdcl Efficiency Income Trust Plc (LSE:SEIT) Share Price, History, &amp; News | The Twelfth Magpie</title>
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                                <title>Could these 8 FTSE 250 shares turn £20,000 into £297,276 within 25 years?</title>
                <link>https://stage2026.twelfthmagpie.com/2026/04/08/could-these-8-ftse-250-shares-turn-20000-into-297276-within-25-years/</link>
                                <pubDate>Wed, 08 Apr 2026 09:19:15 +0000</pubDate>
                <dc:creator><![CDATA[James Beard]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1672756</guid>
                                    <description><![CDATA[<p>James Beard reckons it’s possible to use dividend shares to create long-term wealth. But could his strategy work with these FTSE 250 stocks?</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/04/08/could-these-8-ftse-250-shares-turn-20000-into-297276-within-25-years/">Could these 8 FTSE 250 shares turn £20,000 into £297,276 within 25 years?</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">There are loads of <strong>FTSE 250</strong> shares paying generous dividends at the moment (7 April). But income shares are sometimes overlooked in favour of stocks that are perceived to be more exciting, for example, ones that are believed to have better growth prospects.</p>



<p class="wp-block-paragraph">However, by reinvesting dividends it’s possible to take some high-yielding <strong>FTSE 250</strong> shares and replicate the success of growth stocks.</p>



<h2 class="wp-block-heading" id="h-leading-the-way">Leading the way</h2>



<p class="wp-block-paragraph">There are presently eight stocks on the index with a yield in excess of 10%. Their average is 11.4%.</p>



<figure class="wp-block-table has-p-small-font-size"><table><thead><tr><th><strong>Stock</strong></th><th><strong>Yield</strong> (%)</th></tr></thead><tbody><tr><td><strong>SDCL Efficiency Income Trust </strong>(<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>)</td><td>15.1</td></tr><tr><td><strong>Foresight Environmental Infrastructure</strong></td><td>11.8</td></tr><tr><td><strong>The Renewables Infrastructure Group</strong></td><td>11.4</td></tr><tr><td><strong>Bluefield Solar Income Fund</strong></td><td>10.9</td></tr><tr><td><strong>Energean Oil &amp; Gas</strong></td><td>10.8</td></tr><tr><td><strong>Greencoat UK Wind</strong></td><td>10.5</td></tr><tr><td><strong>Victrex</strong></td><td>10.4</td></tr><tr><td><strong>TwentyFour Income Fund</strong></td><td>10.1</td></tr><tr><td><strong>Average</strong></td><td><strong>11.4</strong></td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Source: dividenddata.co.uk</sup></figcaption></figure>



<p class="wp-block-paragraph">If this level of return was maintained, a £20,000 investment would grow to £297,276 after 25 years. I reckon an investor who generally prefers growth stocks to dividend shares would be happy with this result.</p>



<p class="wp-block-paragraph">So yes, to answer my headline question, it&#8217;s possible to turn £20k into a much higher amount. But big returns should be treated with caution. There’s a rule of thumb that says if a stock’s yield is close to twice that of the UK’s 10-year gilt rate (currently around 5%), then it’s <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/">likely its dividend’s going to be cut</a>.</p>



<h2 class="wp-block-heading" id="h-top-of-the-pile">Top of the pile</h2>



<p class="wp-block-paragraph">A closer look reveals that the FTSE 250’s highest yielder is SDCL Efficiency Income Trust. It invests exclusively in the energy efficiency sector and has a £1bn+ portfolio.</p>



<p class="wp-block-paragraph">The table below shows that a collapse in the trust’s share price is the biggest contributor to its above-average yield.</p>



<figure class="wp-block-table has-p-small-font-size"><table><thead><tr><th><strong>Financial year</strong></th><th><strong>Net asset value per share</strong> (pence)</th><th><strong>Dividend per share</strong> (pence)</th><th><strong>Share price</strong> (pence)</th><th><strong>Yield</strong> (%)</th></tr></thead><tbody><tr><td><strong>31.3.21</strong></td><td>102.5</td><td>5.50</td><td>111</td><td>5.0</td></tr><tr><td><strong>31.3.22</strong></td><td>108.4</td><td>5.62</td><td>118</td><td>4.8</td></tr><tr><td><strong>31.3.23</strong></td><td>101.5</td><td>6.00</td><td>84</td><td>7.2</td></tr><tr><td><strong>31.3.24</strong></td><td>90.5</td><td>6.24</td><td>59</td><td>10.6</td></tr><tr><td><strong>31.3.25</strong></td><td>90.6</td><td>6.32</td><td>48</td><td>13.2</td></tr><tr><td><strong>31.3.26</strong></td><td>87.6 (at 30.9.25)</td><td>6.36 (target)</td><td>42</td><td>15.2</td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Source:<strong> London Stock Exchange Group</strong>/company reports</sup></figcaption></figure>



<p class="wp-block-paragraph">Since March 2021, its shares have crashed more than 60% and its dividend has increased by around 15%. Had its share price remained unchanged, it would now be yielding 5.7%. Although still impressive, I suspect fewer alarm bells would be ringing.</p>



<p class="wp-block-paragraph">The table also shows an increasing divergence between the share price and net asset value (NAV) per share.</p>



<p class="wp-block-paragraph">Clearly, all&#8217;s not well. Fortunately, it’s easy to see what the problem is.</p>


<div class="tmf-chart-singleseries" data-title="SDCL Efficiency Income Trust Plc Price" data-ticker="LSE:SEIT" data-range="5y" data-start-date="2021-04-08" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-what-s-going-on">What&#8217;s going on?</h2>



<p class="wp-block-paragraph">At 30 September 2025, SDCL reported debt equal to 71.9% of its NAV, breaking its own rules which limit this to 65%. Further borrowing has been suspended. Some of <a href="https://stage2026.twelfthmagpie.com/investing-basics/understanding-company-accounts/gearing/">the increase in gearing</a> is due to the investment manager taking a “<em>more cautious view of certain valuation drivers</em>” in a volatile market.</p>



<p class="wp-block-paragraph">More fundamentally, it’s now treating a “<em>tax equity bridge loan</em>” as debt when calculating its gearing ratio. This is equivalent to 6% of its NAV.</p>



<p class="wp-block-paragraph">Since exceeding the threshold, the trust’s been trying to sell some of its assets. But it’s taken longer than hoped. In March, it announced that it had realised £105m. This returns it close to its 65% limit. Further disposals are planned.</p>



<h2 class="wp-block-heading" id="h-final-thoughts">Final thoughts</h2>



<p class="wp-block-paragraph">However, it worries me that the deal was done at a 9% discount to the carrying value of the assets. The trust puts this down to a buyers’ market.</p>



<p class="wp-block-paragraph">Current valuation calculations assume that SDCL’s investments will have access to the necessary finance to help them grow. If the trust’s unable to unlock the required debt it might be forced to use some of the cash set aside for its dividend. It looks as though investors are already pricing this in.</p>



<p class="wp-block-paragraph">The trust’s operating in a growth sector and I don’t see any immediate threat to its dividend. But there’s too much negativity surrounding the stock for me to buy. Even so, there are plenty of other high-yielding shares to look at.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/04/08/could-these-8-ftse-250-shares-turn-20000-into-297276-within-25-years/">Could these 8 FTSE 250 shares turn £20,000 into £297,276 within 25 years?</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Meet the top 10 highest-dividend-yield stocks in the FTSE 250</title>
                <link>https://stage2026.twelfthmagpie.com/2026/03/22/meet-the-top-10-highest-dividend-yield-stocks-in-the-ftse-250/</link>
                                <pubDate>Sun, 22 Mar 2026 07:41:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1663216</guid>
                                    <description><![CDATA[<p>In 2026, the UK’s flagship growth index offers a 3.4% dividend yield. But these 10 income stocks currently offer an average of 10.5% a year!</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/03/22/meet-the-top-10-highest-dividend-yield-stocks-in-the-ftse-250/">Meet the top 10 highest-dividend-yield stocks in the FTSE 250</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">The <strong>FTSE 250</strong> is filled with some enormous dividend yields right now. And while the index as a whole only averages a 3.4% payout, the top-10 dividend payouts are far more generous. Some stocks even stretch into double-digit territory.</p>



<p class="wp-block-paragraph">So what are these seemingly enormous passive income opportunities? And should investors be considering these stocks for their own dividend portfolios?</p>



<h2 class="wp-block-heading" id="h-10-huge-yields">10 huge yields</h2>



<p class="wp-block-paragraph">The 10 largest payouts in the FTSE 250 as of March 2026 are:</p>



<ol class="wp-block-list">
<li><strong>SDCL Efficiency Income Trust</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>) – 13.7%.</li>



<li><strong>Renewables Infrastructure Group</strong> – 11.1%.</li>



<li><strong>Foresight Environmental Infrastructure</strong> – 10.9%.</li>



<li><strong>Greencoat UK Wind</strong> – 10.7%.</li>



<li><strong>Bluefield Solar Income Fund</strong> – 10.7%.</li>



<li><strong>TwentyFour Income Fund</strong> – 10.3%.</li>



<li><strong>Victrex</strong> – 9.9%.</li>



<li><strong>Energean</strong> – 9.9%.</li>



<li><strong>GCP Infrastructure Investments</strong> – 9.4%.</li>



<li><strong>Sequoia Economic Infrastructure</strong> – 8.5%.</li>
</ol>



<p class="wp-block-paragraph"></p>



<p class="wp-block-paragraph">Combined, this basket of businesses and trusts generates a chunky 10.5% payout – almost three times what their parent index offers. But as all experienced income investors know, a high yield doesn’t guarantee a high passive income.</p>



<p class="wp-block-paragraph">In fact, it can often be a warning sign that a dividend cut might be right around the corner. With that in mind, let’s dig a little deeper and look at the biggest yield on the list.</p>



<h2 class="wp-block-heading" id="h-opportunity-or-trap">Opportunity or trap?</h2>



<p class="wp-block-paragraph">SDCL Efficiency Income Trust (or SEIT) is arguably one of the more complex income stories on the <strong>London Stock Exchange</strong> right now.</p>



<p class="wp-block-paragraph"><div class="tmf-chart-singleseries" data-title="SDCL Efficiency Income Trust Plc Price" data-ticker="LSE:SEIT" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>
</p>



<p class="wp-block-paragraph">As a quick introduction, the trust manages a <a href="https://stage2026.twelfthmagpie.com/investing-basics/what-is-diversification/">diversified £1.2bn portfolio</a> of energy efficiency infrastructure assets scattered across the globe. And despite having an enormous near-14% yield, shareholder dividends are actually covered by cash flow. What’s more, this coverage is actually improving.</p>



<p class="wp-block-paragraph">As of September 2025, SEIT’s dividend cash coverage ratio stood at 1.2, up from 1.1 a year ago, with <a href="https://stage2026.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-cash-flow-statement/">cash inflow</a> from its investments growing by 20%, from £48m to £58m year on year.</p>



<p class="wp-block-paragraph">That’s obviously an encouraging signal. So then why are SEIT shares trading at a gargantuan 48% discount to their net asset value (NAV)?</p>



<p class="wp-block-paragraph">The problem is debt. SEIT has a lot of it. So much so that the group’s gearing is a staggeringly high 71.9% of NAV, firmly breaching the group’s self-imposed limit of 65%.</p>



<p class="wp-block-paragraph">As a consequence, the firm&#8217;s in the process of selling off assets to bring down leverage. But if these assets cannot be sold at fair value, the group’s ability to reduce debt could force some structural refinancing at a time when interest rates are still elevated.</p>



<p class="wp-block-paragraph">To make matters worse, the board publicly stated that it may not recommend that shareholders vote for the company’s continuation, signalling a potential wind-down that could see the entire trust come to an end.</p>



<h2 class="wp-block-heading" id="h-a-special-situation">A special situation</h2>



<p class="wp-block-paragraph">The CEO of SEIT has since pulled back on the comments of a potential wind-down. And the group’s dividend coverage suggests that the 13.7% dividend yield is here to stay for now.</p>



<p class="wp-block-paragraph">Where uncertainty creeps into the dividend picture is 2027 and beyond. If asset sales fail to bring down leverage, dividends may end up on the chopping block.</p>



<p class="wp-block-paragraph">So is the potential reward worth the risk? This FTSE 250 stock isn&#8217;t a traditional income opportunity. It’s a special situation with a near-guaranteed short-term dividend, but substantial uncertainty over the medium-to-long term. And as a long-term investor, that’s not something that tickles my fancy.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/03/22/meet-the-top-10-highest-dividend-yield-stocks-in-the-ftse-250/">Meet the top 10 highest-dividend-yield stocks in the FTSE 250</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>With dividends of up to 12.6%, these could be the FTSE 250&#8217;s best passive income stocks</title>
                <link>https://stage2026.twelfthmagpie.com/2026/02/02/with-dividends-of-up-to-12-6-these-could-be-the-ftse-250s-best-passive-income-stocks/</link>
                                <pubDate>Mon, 02 Feb 2026 07:45:00 +0000</pubDate>
                <dc:creator><![CDATA[James Beard]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1641649</guid>
                                    <description><![CDATA[<p>The FTSE 250’s stuffed full of high-yielding dividend shares, many of which are offering returns close to 10%. James Beard takes a look at three of them.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/02/02/with-dividends-of-up-to-12-6-these-could-be-the-ftse-250s-best-passive-income-stocks/">With dividends of up to 12.6%, these could be the FTSE 250&#8217;s best passive income stocks</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">Although the <strong>FTSE 250</strong>&#8216;s full of passive income opportunities, it’s sometimes overlooked by investors. In fact, the index is presently offering a yield higher than the <strong>FTSE 100</strong>, its more famous cousin.</p>



<p class="wp-block-paragraph">Here are three members of the UK’s second tier index of listed companies that currently have an amazing combined average yield of 9.6%. I think all are worth considering for those on the lookout for dividend shares.</p>



<h2 class="wp-block-heading" id="h-as-safe-as-houses">As safe as houses?</h2>



<p class="wp-block-paragraph">Despite suffering a torrid time following the pandemic, UK housebuilder <strong>Taylor Wimpey</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-tw/">LSE:TW.</a>) is currently paying a dividend of 8.8%. And with the housing market appearing to be recovering slowly &#8212; driven primarily by an improvement in mortgage affordability &#8212; I think the worst could be over.</p>


<div class="tmf-chart-singleseries" data-title="Taylor Wimpey - Ordinary Shares Price" data-ticker="LSE:TW." data-range="5y" data-start-date="2021-02-02" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">In 2025, completions were 636 (6%) higher than a year earlier. And the group was able to raise its average selling price by £16,000 (5%). Despite this, as a reminder of how <a href="https://stage2026.twelfthmagpie.com/personal-finance/your-money/guides/what-is-inflation/">post-Covid inflation</a> has affected the cost of building materials, operating profit was broadly flat. Its margin fell from 12.2% to 11%.</p>



<p class="wp-block-paragraph">But with interest rates expected to fall over the coming months, this could help reinforce the early-stage recovery. And despite its recent woes, the group has a healthy balance sheet. Further ahead, the government’s proposed planning reforms should benefit Taylor Wimpey.</p>



<h2 class="wp-block-heading" id="h-becoming-more-efficient">Becoming more efficient</h2>



<p class="wp-block-paragraph">The <strong>SDCL Energy Efficiency Income Trust</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>) has a current yield of 12.6%. Although it’s been steadily increasing its dividend, the dramatic fall in its share price has been the biggest factor behind this incredible return.</p>



<figure class="wp-block-table has-p-small-font-size"><table><thead><tr><th><strong>Financial year</strong></th><th><strong>Dividend per share</strong> (pence)</th><th><strong>Share price</strong> (pence)</th><th><strong>Yield</strong> (%)</th></tr></thead><tbody><tr><td><strong>31.3.21</strong></td><td>5.50</td><td>111</td><td>5.0</td></tr><tr><td><strong>31.3.22</strong></td><td>5.62</td><td>118</td><td>4.8</td></tr><tr><td><strong>31.3.23</strong></td><td>6.00</td><td>84</td><td>7.1</td></tr><tr><td><strong>31.3.24</strong></td><td>6.24</td><td>59</td><td>10.6</td></tr><tr><td><strong>31.3.25</strong></td><td>6.32</td><td>48</td><td>13.2</td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Source:<strong> London Stock Exchange Group</strong>/company reports</sup></figcaption></figure>


<div class="tmf-chart-singleseries" data-title="SDCL Efficiency Income Trust Plc Price" data-ticker="LSE:SEIT" data-range="5y" data-start-date="2021-01-02" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">The trust now trades at a huge 42% discount to its net asset value (NAV). Part of this is explained by difficulties in valuing unquoted companies. But its relatively high <a href="https://stage2026.twelfthmagpie.com/investing-basics/understanding-company-accounts/gearing/">debt has also been a concern</a>. The trust has borrowed more than the 65% of its NAV that&#8217;s allowed under its rules. Asset disposals are underway to reduce this.</p>



<p class="wp-block-paragraph">However, I think companies providing energy efficiency solutions are going to be among the long-term winners. We will get to net zero one day, but it might take longer than some, including shareholders in SDCL, would like. In my opinion, the trust’s been marked down more due to sector-wide concerns than anything specific to its own operations.</p>



<h2 class="wp-block-heading" id="h-going-shopping">Going shopping</h2>



<p class="wp-block-paragraph">Primarily because of its 7.5% yield, <strong>Supermarket Income REIT</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-supr/">LSE:SUPR</a>) is my favourite real estate investment trust (REIT). During its last financial year (30 June 2025), it reported 100% occupancy and no bad debts. This is testimony to the quality of the well-known grocery names that occupy its buildings in the UK and France.</p>


<div class="tmf-chart-singleseries" data-title="Supermarket Income REIT plc Price" data-ticker="LSE:SUPR" data-range="5y" data-start-date="2021-02-02" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Potential challenges include higher interest rates and a cyclical commercial property sector. Investors should also be aware that massive share price growth is unlikely.</p>



<p class="wp-block-paragraph">But by whatever method we buy our groceries, whether it be online or in-store, there’s always going to be a need for physical shops. And with an average unexpired lease term of 12 years &#8212; and the majority of its leases containing provisions for inflation-linked rent increases &#8212; the REIT has plenty of visibility over future income levels.</p>



<p class="wp-block-paragraph"><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.</em></p>



<h2 class="wp-block-heading" id="h-some-quick-maths">Some quick maths</h2>



<p class="wp-block-paragraph">Although I know there can never be any guarantees with dividends, a £10,000 investment spread equally across all three could yield £963 in year one. In my book, that’s worth considering.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/02/02/with-dividends-of-up-to-12-6-these-could-be-the-ftse-250s-best-passive-income-stocks/">With dividends of up to 12.6%, these could be the FTSE 250&#8217;s best passive income stocks</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>2 magnificent investment trusts to consider for a Stocks and Shares ISA in 2026</title>
                <link>https://stage2026.twelfthmagpie.com/2026/01/17/2-magnificent-investment-trusts-to-consider-for-a-stocks-and-shares-isa-in-2026/</link>
                                <pubDate>Sat, 17 Jan 2026 07:00:00 +0000</pubDate>
                <dc:creator><![CDATA[James Beard]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1633202</guid>
                                    <description><![CDATA[<p>At the start of the new year, James Beard takes a look at two (or maybe it should be 128) potential candidates for inclusion in a Stocks and Shares ISA.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/01/17/2-magnificent-investment-trusts-to-consider-for-a-stocks-and-shares-isa-in-2026/">2 magnificent investment trusts to consider for a Stocks and Shares ISA in 2026</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">Investment trusts are a great way of spreading risk across lots of shareholdings, which can make them ideal for an ISA. However, there are over 300 to choose from on the <strong>London Stock Exchange</strong> alone. </p>



<p class="wp-block-paragraph">Here are two that I think are worth considering for 2026 and beyond.</p>



<h2 class="wp-block-heading" id="h-full-of-household-names">Full of household names</h2>



<p class="wp-block-paragraph"><strong>Scottish Mortgage Investment Trust </strong>(<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-smt/">LSE:SMT</a>) says it only invests in the “<em>world’s most exceptional growth companies</em>”.</p>



<p class="wp-block-paragraph">Some investors have expressed concerns that a significant proportion of the fund is invested in unquoted companies, which can be difficult to value. Indeed, its most valuable holding is Elon Musk’s Space Exploration Technologies (Space X). This exposure to private businesses could explain why SMT’s shares trade at a 10% discount to the trust&#8217;s net asset value (NAV). However, this could also be viewed as an opportunity to acquire a stake in some quality companies at a knock-down price.</p>



<p class="wp-block-paragraph">Of concern, I’m mindful that with a heavy tech exposure, the trust could be vulnerable to a meltdown in the artificial intelligence sector. And its <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/">dividend yield of 0.4%</a> is miserly although, remarkably, its payout&#8217;s been increased for 43 consecutive years. Remember, there can never be any guarantees when it comes to dividends.</p>



<p class="wp-block-paragraph">But its portfolio is a who’s who of some of the most famous companies in the world. And if SpaceX does IPO this year, SMT could be one of the biggest beneficiaries.</p>


<div class="tmf-chart-singleseries" data-title="Scottish Mortgage Investment Trust plc Price" data-ticker="LSE:SMT" data-range="5y" data-start-date="2021-01-17" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-going-green">Going green</h2>



<p class="wp-block-paragraph">At the other end of the dividends spectrum is the <strong>SDCL Energy Efficiency Income Trust</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>). Based on amounts paid over the past 12 months, it’s currently (16 January) yielding an astonishing 12.3%. Having said that, a halving of its share price over the past five years or so has been a major contributory factor.</p>



<figure class="wp-block-table has-p-small-font-size"><table><thead><tr><th><strong>Financial year</strong></th><th><strong>Dividend per share</strong> (pence)</th><th><strong>Share price</strong> (pence)</th><th><strong>Yield</strong> (%)</th></tr></thead><tbody><tr><td><strong>31.3.21</strong></td><td>5.50</td><td>111</td><td>5.0</td></tr><tr><td><strong>31.3.22</strong></td><td>5.62</td><td>118</td><td>4.8</td></tr><tr><td><strong>31.3.23</strong></td><td>6.00</td><td>84</td><td>7.1</td></tr><tr><td><strong>31.3.24</strong></td><td>6.24</td><td>59</td><td>10.6</td></tr><tr><td><strong>31.3.25</strong></td><td>6.32</td><td>48</td><td>13.2</td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Source: London Stock Exchange Group/company reports</sup></figcaption></figure>



<p class="wp-block-paragraph">Although SDCL seeks to benefit from the transition towards cleaner energy, it appears to have been affected by investment trusts falling out of favour. The trust itself describes the sector as “<em>distressed</em>” with continued “<em>dislocation in price from value</em>”. Its shares currently trade at an eye-watering 41% discount to its NAV.</p>



<p class="wp-block-paragraph">Its <a href="https://stage2026.twelfthmagpie.com/investing-basics/understanding-company-accounts/gearing/">relatively high debt </a>could also be a factor. To reassure investors, it recently said: “<em>No further debt will be drawn at this stage</em>.” It also plans some asset disposals. But if interest rates fall as expected, this should help improve its cash flow.</p>



<p class="wp-block-paragraph">The trust&#8217;s most recent sale of assets was completed at an 18.75% premium to its value in its books. This should give some comfort that its valuation policy is prudent.</p>



<p class="wp-block-paragraph">I&#8217;m confident that the energy efficiency market is going to be one of the long-term winners. The pace of change might be slowing but the direction of travel is undoubtedly towards a cleaner world.</p>



<p class="wp-block-paragraph">And its amazing dividend – underpinned by investments in many companies with contracted long-term income streams &#8212; could be used to buy more shares at their current depressed level. Adopting this approach, could create even bigger future gains.</p>



<h2 class="wp-block-heading" id="h-final-thoughts">Final thoughts</h2>



<p class="wp-block-paragraph">Anyone taking a position in both trusts is really investing in 128 companies in more than a dozen countries. </p>



<figure class="wp-block-table has-p-small-font-size"><table><thead><tr><th><strong>Stock</strong></th><th><strong>No. of investments</strong></th></tr></thead><tbody><tr><td><strong>Scottish Mortgage Investment Trust</strong></td><td>99</td></tr><tr><td><strong>SDCL Energy Efficiency Income Trust</strong></td><td>29</td></tr><tr><td><strong>Total</strong></td><td><strong>128</strong></td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Source: latest company reports</sup></figcaption></figure>



<p class="wp-block-paragraph">This minimises the risk of suffering a big loss should an investment fail.</p>



<p class="wp-block-paragraph">However, this also means their share prices are unlikely to go gangbusters. But I think this level of diversification could be valuable given the uncertain times in which we live.</p>



<p class="wp-block-paragraph"></p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2026/01/17/2-magnificent-investment-trusts-to-consider-for-a-stocks-and-shares-isa-in-2026/">2 magnificent investment trusts to consider for a Stocks and Shares ISA in 2026</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>These FTSE 250 dividend stocks offer huge 10%+ yields. Can we afford to  miss them?</title>
                <link>https://stage2026.twelfthmagpie.com/2025/09/16/these-ftse-250-dividend-stocks-offer-huge-10-yields-can-we-afford-to-miss-them/</link>
                                <pubDate>Tue, 16 Sep 2025 10:52:17 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1576723</guid>
                                    <description><![CDATA[<p>Thinking of starting in high-yield dividend investing today? Take a look at these whopping double-digit yields from the FTSE 250.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/09/16/these-ftse-250-dividend-stocks-offer-huge-10-yields-can-we-afford-to-miss-them/">These FTSE 250 dividend stocks offer huge 10%+ yields. Can we afford to  miss them?</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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<p class="wp-block-paragraph">The <strong>FTSE 250</strong> is packed with terrific high dividends right now, with eight on forecast yields of more than 10%. Here they are&#8230;</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Stock</strong></td><td class="has-text-align-center" data-align="center"><strong>Forecast yield</strong></td><td class="has-text-align-center" data-align="center"><strong>Market cap</strong></td><td class="has-text-align-center" data-align="center"><strong>Recent share price</strong></td><td class="has-text-align-center" data-align="center"><strong>12-month change</strong></td></tr><tr><td><strong>NextEnergy</strong><br><strong>Solar Fund</strong></td><td class="has-text-align-center" data-align="center">13.1%</td><td class="has-text-align-center" data-align="center">£380m</td><td class="has-text-align-center" data-align="center">65.1p</td><td class="has-text-align-center" data-align="center">-18%</td></tr><tr><td><strong>SDCL Efficiency</strong><br><strong>Income</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE: SEIT</a>)</td><td class="has-text-align-center" data-align="center">11.5%</td><td class="has-text-align-center" data-align="center">£605m</td><td class="has-text-align-center" data-align="center">55.9p</td><td class="has-text-align-center" data-align="center">-14%</td></tr><tr><td><strong>Foresight Environmental</strong><br><strong>Infrastructure</strong></td><td class="has-text-align-center" data-align="center">10.6%</td><td class="has-text-align-center" data-align="center">£469m</td><td class="has-text-align-center" data-align="center">74.3p</td><td class="has-text-align-center" data-align="center">-22%</td></tr><tr><td><strong>Energean</strong><br>(<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-enog/">LSE: ENOG</a>)</td><td class="has-text-align-center" data-align="center">10.4%</td><td class="has-text-align-center" data-align="center">£1.56b</td><td class="has-text-align-center" data-align="center">848p</td><td class="has-text-align-center" data-align="center">-10%</td></tr><tr><td><strong>Renewables</strong><br><strong>Infrastructure</strong></td><td class="has-text-align-center" data-align="center">10.3%</td><td class="has-text-align-center" data-align="center">£1.81b</td><td class="has-text-align-center" data-align="center">73.2p</td><td class="has-text-align-center" data-align="center">-15%</td></tr><tr><td><strong>Bluefield Solar <br>Income Fund</strong></td><td class="has-text-align-center" data-align="center">10.2%</td><td class="has-text-align-center" data-align="center">£515m</td><td class="has-text-align-center" data-align="center">87.0p</td><td class="has-text-align-center" data-align="center">-17%</td></tr><tr><td><strong>Foresight</strong><br><strong>Solar Fund</strong></td><td class="has-text-align-center" data-align="center">10.2%</td><td class="has-text-align-center" data-align="center">£440m</td><td class="has-text-align-center" data-align="center">79.5p</td><td class="has-text-align-center" data-align="center">-16%</td></tr><tr><td><strong>Ashmore</strong><br><strong>Group</strong></td><td class="has-text-align-center" data-align="center">10.1%</td><td class="has-text-align-center" data-align="center">£1.10b</td><td class="has-text-align-center" data-align="center">168p</td><td class="has-text-align-center" data-align="center">-12%</td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Sources: dividenddata, Yahoo</sup></figcaption></figure>



<p class="wp-block-paragraph">One thing is clear. Those cracking <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">dividend yields</a> have been pushed up by falling share prices &#8212; just look at the 12-month change column in the table.</p>



<p class="wp-block-paragraph">I think there&#8217;s a good chance the market has got it wrong here. And if these dividends keep going for another year or two, we might be looking at a list of top recovery candidates.</p>



<p class="wp-block-paragraph">So what should we do about these depressed stocks today? Let&#8217;s look at two from the table.</p>



<h2 class="wp-block-heading" id="h-renewable-energy">Renewable energy</h2>


<div class="tmf-chart-singleseries" data-title="SDCL Efficiency Income Trust Plc Price" data-ticker="LSE:SEIT" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Renewable energy is somewhat out of favour as the world &#8212; especially the US &#8212; backtracks on previous targets. And my pick, SDCL Efficiency Income Trust, invests in energy-efficient projects globally &#8212; including North America.</p>



<p class="wp-block-paragraph">At full-year results time in June, CEO Jonathan Maxwell spoke of &#8220;<em>global economic and geopolitical uncertainty</em>.&#8221; But he added that the company&#8217;s assets &#8220;<em>delivered growing operational performance, in line with expectations, to fully cover dividends</em>.&#8221;</p>



<p class="wp-block-paragraph">Chair Tony Roper said the board is &#8220;<em>frustrated that our share price has drifted down and our shares continue to trade at a material discount to NAV per share.</em>&#8221; And the company is considering &#8220;<em>strategic options to deliver value</em>.&#8221;</p>



<p class="wp-block-paragraph">The discount? At the time, the trust&#8217;s net asset value (NAV) per share stood at 90.6p. So for 55.9p per share we can buy 90.6p in renewable energy assets &#8212; that&#8217;s a whopping 38% discount.</p>



<h2 class="wp-block-heading" id="h-oil-and-gas">Oil and gas</h2>


<div class="tmf-chart-singleseries" data-title="Energean Plc Price" data-ticker="LSE:ENOG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Seeing Energean in the list surprised me, as it&#8217;s a nicely profitable oil and gas producer. It operates in the Eastern Mediterranean region, including Egypt, Israel&#8230; and not far from Iran. Oh, maybe it&#8217;s not such a big surprise.</p>



<p class="wp-block-paragraph">Still, Energean is functioning fine &#8212; fingers crossed. In the first half, reported 11 September, the company posted a 24% rise in profit after tax with earnings per share up 25%. CEO Mathios Rigas said that &#8220;<em>we are therefore pleased to declare our regular quarterly dividend</em>.&#8221;</p>



<p class="wp-block-paragraph">He also told us the company had &#8220;<em>secured over $4bn in new, long-term gas contracts that brings the total value of contracted gas to around $20bn for the next 20 years.</em>&#8220;</p>



<p class="wp-block-paragraph">Forecasts put Energean on a forward <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio of only 5.2.</p>



<h2 class="wp-block-heading" id="h-time-to-buy">Time to buy?</h2>



<p class="wp-block-paragraph">Here we have two companies that are doing fine operationally and look good value on that. But each faces significant geopolitical risk.</p>



<p class="wp-block-paragraph">I reckon investors who can handle that and look for longer-term dividend opportunities might do well to consider both. Together they might even make a nice hedge in the renewables versus hydrocarbons divide.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/09/16/these-ftse-250-dividend-stocks-offer-huge-10-yields-can-we-afford-to-miss-them/">These FTSE 250 dividend stocks offer huge 10%+ yields. Can we afford to  miss them?</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>8 of the FTSE 250&#8217;s 11 highest-yielding passive income stocks have 1 thing in common</title>
                <link>https://stage2026.twelfthmagpie.com/2025/09/01/8-of-the-ftse-250s-11-highest-yielding-passive-income-stocks-have-1-thing-in-common/</link>
                                <pubDate>Mon, 01 Sep 2025 07:00:00 +0000</pubDate>
                <dc:creator><![CDATA[James Beard]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1568801</guid>
                                    <description><![CDATA[<p>The UK’s second tier of listed companies appears to offer some great passive income opportunities. Our writer takes a closer look.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/09/01/8-of-the-ftse-250s-11-highest-yielding-passive-income-stocks-have-1-thing-in-common/">8 of the FTSE 250&#8217;s 11 highest-yielding passive income stocks have 1 thing in common</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">Those looking to generate more passive income from their portfolios have probably noticed there are plenty of high-yielding stocks <a href="https://stage2026.twelfthmagpie.com/investing-basics/understanding-the-market/what-is-the-ftse-250/">on the <strong>FTSE 250</strong></a> at the moment. In fact, there are 11 currently (pre-open on 1 September) offering a return in excess of 9%.</p>



<p class="wp-block-paragraph">Of these, eight are investment trusts that have exposure to renewable energy. Look closer and it can be seen that three operate in the solar sector, three focus on infrastructure and another invests in wind power. The remaining one, <strong>SDCL Energy Efficiency Income Trust</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>), is probably the most interesting as it presently offers the second-highest yield (based on amounts paid over the past 12 months) but also trades at the biggest discount (36.9%) to its net asset value. At first glance, it appears to offer excellent value for money.</p>



<figure class="wp-block-table has-p-small-font-size"><table><thead><tr><th><strong>Stock</strong></th><th><strong>Yield</strong> (%)</th><th>Premium/(<strong>Discount)</strong> (%)</th></tr></thead><tbody><tr><td><strong>NextEnergy Solar Fund</strong></td><td>12.4</td><td>(25.2)</td></tr><tr><td><strong>SDCL Energy Efficiency Income Trust</strong></td><td>11.0</td><td>(36.9)</td></tr><tr><td><strong>Foresight Environmental Infrastructure</strong></td><td>10.0</td><td>(24.9)</td></tr><tr><td><strong>TwentyFour Income Fund</strong></td><td>9.9</td><td>1.3</td></tr><tr><td><strong>Foresight Solar Fund</strong></td><td>9.8</td><td>(23.9)</td></tr><tr><td><strong>Bluefield Solar Income Fund</strong></td><td>9.8</td><td>(22.8)</td></tr><tr><td><strong>The Renewables Infrastructure Group</strong></td><td>9.7</td><td>(28.1)</td></tr><tr><td><strong>Ashmore Group</strong></td><td>9.5</td><td>n/a</td></tr><tr><td><strong>GCP Infrastructure Investments</strong></td><td>9.5</td><td>(27.4)</td></tr><tr><td><strong>Energean Oil &amp; Gas</strong></td><td>9.5</td><td>n/a</td></tr><tr><td><strong>Greencoat UK Wind</strong></td><td>9.2</td><td>(24.0)</td></tr><tr><td><strong>Average</strong></td><td><strong>10.0</strong></td><td><strong>(23.5)</strong></td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Source: Hargreaves Lansdown / data correct at 29 August / yields based on dividends paid over the past 12 months</sup></figcaption></figure>



<p class="wp-block-paragraph">But does it? </p>



<p class="wp-block-paragraph">Let’s take a closer look at the trust that invests in private companies offering energy efficiency solutions. According to its most recent factsheet, it has positions in 50+ companies in five sectors (healthcare, industrial, commercial, retail and data centres) operating across three continents (Europe, Asia and the US).</p>



<h2 class="wp-block-heading" id="h-wider-problems">Wider problems</h2>



<p class="wp-block-paragraph">The first thing to note is that the stock’s yield has been boosted by a falling share price. Over the past year – since August 2024 – it’s ‘only’ fallen by 6%. But looking back five years, it’s nearly halved. During the same period, its dividend has risen 26%. The overall effect is to improve its yield to 11%.</p>


<div class="tmf-chart-singleseries" data-title="SDCL Efficiency Income Trust Plc Price" data-ticker="LSE:SEIT" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Although it’s hard to tell, I suspect some of the loss of market value has been caused by investment trusts falling out of favour. A higher interest rate environment makes other less-risky assets more attractive. </p>



<p class="wp-block-paragraph">Investors could also have concerns about the valuation of the assets in which they invest. This is particularly relevant for SDCL as it has positions in unlisted companies. These can be hard to value accurately and it’s often difficult to quickly convert these investments into cash should the need arise.</p>



<p class="wp-block-paragraph">Another problem is that the renewables industry is going through a period of transition. The direction of travel is undoubtedly towards cleaner energy. But cash-strapped governments are coming under pressure to reduce subsidies and support for the sector.</p>



<h2 class="wp-block-heading" id="h-what-next">What next?</h2>



<p class="wp-block-paragraph">The trust has been discussing possible strategic options with its shareholders. These conversations have stressed the importance of maintaining the dividend and continuing with asset disposals <a href="https://stage2026.twelfthmagpie.com/investing-basics/understanding-company-accounts/gearing/">with a view to reducing debt</a>. Having said that, I don’t think the trust is particularly highly geared. But any debt reduction is to be welcomed as it reduces borrowing costs and frees up more cash for a dividend.</p>



<p class="wp-block-paragraph">My research suggests that SDCL&#8217;s large discount is predominantly due to industry-wide problems rather than anything specifically wrong with the trust. For this reason, those looking for a high-yielding stock could consider taking a position in SDCL Efficiency Income Trust. I also think it could deliver capital growth. However, this might take some time due to the sectoral and industry issues outlined earlier. Impatient growth investors should probably look elsewhere.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/09/01/8-of-the-ftse-250s-11-highest-yielding-passive-income-stocks-have-1-thing-in-common/">8 of the FTSE 250&#8217;s 11 highest-yielding passive income stocks have 1 thing in common</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Discover 2 reliable FTSE income trusts with dividend yields above 10%</title>
                <link>https://stage2026.twelfthmagpie.com/2025/08/29/discover-2-reliable-ftse-income-trusts-with-dividend-yields-above-10/</link>
                                <pubDate>Fri, 29 Aug 2025 08:07:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1567518</guid>
                                    <description><![CDATA[<p>A dividend yield above 10% is usually a red flag but our writer's found two lesser-known income stocks that look surprisingly reliable.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/08/29/discover-2-reliable-ftse-income-trusts-with-dividend-yields-above-10/">Discover 2 reliable FTSE income trusts with dividend yields above 10%</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">High dividend yields are often treated as a trap. In most cases, when a company offers investors more than 10% a year, alarm bells should be ringing.&nbsp;</p>



<p class="wp-block-paragraph">After all, firms have to balance shareholder rewards with reinvestment in their operations. If the payout is too generous, profits eventually suffer. And when profits fall, dividend cuts usually follow. More often than not, a double-digit dividend yield is the sign of a sinking share price, not a sustainable stream of income.&nbsp;</p>



<p class="wp-block-paragraph">But there are exceptions. Some investment trusts are specifically designed to deliver high yields and long-term income for their shareholders. A couple of these look surprisingly steady to me, despite their eye-watering payouts.</p>



<p class="wp-block-paragraph">Here are two that stand out on the <strong>FTSE</strong>.</p>



<h2 class="wp-block-heading" id="h-henderson-far-east-income">Henderson Far East Income</h2>



<p class="wp-block-paragraph">This £419m trust has one of the highest yields on the market, sitting at a hefty 10.78%. Normally, that would have me suspicious. But <strong>Henderson Far East Income </strong>(<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-hfel/">LSE: HFEL</a>) has a long track record of rewarding shareholders, with 15 consecutive years of dividend growth.</p>


<div class="tmf-chart-singleseries" data-title="Henderson Far East Income Ltd. Price" data-ticker="LSE:HFEL" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Its current share price is 231p, up 1.7% in 2025, and it typically trades at a small premium to net asset value — currently around 4.18%. The portfolio is stacked with Asian heavyweights, including <strong>Taiwan Semiconductor Manufacturing Company</strong>, <strong>CTBC Financial</strong>, <strong>China Hongqiao Group</strong>, <strong>Evergreen Marine</strong> and <strong>Tencent</strong>.</p>



<p class="wp-block-paragraph">Financially, it is something of a mixed bag. A net margin of 66.8% is impressive, and the <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-to-value-shares/return-on-equity-and-return-on-capital-employed/" target="_blank" rel="noreferrer noopener">return on capital employed</a> (ROCE) of 5.36% shows efficiency. But the payout ratio of 207.8% suggests dividends are not well-covered by earnings, which risks a cut if profits slide.</p>



<p class="wp-block-paragraph">At a <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio of 19.3, the trust is not cheap either. Still, given its 15-year dividend history, I think it is worth considering as part of an income portfolio &#8212; albeit, with limited growth potential.</p>



<h2 class="wp-block-heading" id="h-sdcl-energy-efficiency-income-trust">SDCL Energy Efficiency Income Trust</h2>



<p class="wp-block-paragraph">This one is a little different. Rather than focusing on big-name equities, <strong>SDCL </strong>(<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE: SEIT</a>) invests in energy efficiency projects across Europe, America, South East Asia and Africa, spanning healthcare, retail, industrial and commercial sectors.</p>


<div class="tmf-chart-singleseries" data-title="SDCL Efficiency Income Trust Plc Price" data-ticker="LSE:SEIT" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">With a market-cap of £637m and a share price of 58p (up 6.36% this year), it offers a dividend yield of 10.77%. Unlike Henderson, its payout ratio of 97.8% looks far more sustainable – but it only has six years of consecutive dividend growth under its belt.</p>



<p class="wp-block-paragraph">Still, the numbers look solid. A staggering net margin of 94.8% makes for highly profitable operations, and with a P/E ratio of just 9.1, the trust actually looks undervalued compared to peers. The balance sheet is strong too, with no debt – rare for an investment trust.</p>



<p class="wp-block-paragraph">The main risk is political. With shifting policies in the US leaning back towards fossil fuels, renewable and sustainable energy projects could face pressure. But with such strong financials, I feel confident in its dividend policy and believe it is worthy of further research.</p>



<h2 class="wp-block-heading" id="h-final-thoughts">Final thoughts</h2>



<p class="wp-block-paragraph">Most double-digit yields in the FTSE are unsustainable. But investment trusts like Henderson Far East and SDCL Energy are built with income in mind. Both come with risks &#8212; one looks overvalued, the other exposed to policy headwinds &#8212; but their commitment to shareholder returns gives them credibility.</p>



<p class="wp-block-paragraph">For long-term income investors, I think these trusts are among the rare few where a dividend yield above 10% is actually worth considering.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/08/29/discover-2-reliable-ftse-income-trusts-with-dividend-yields-above-10/">Discover 2 reliable FTSE income trusts with dividend yields above 10%</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>7.9%+ dividend yields! Here are 3 high-yield income stocks, investment trusts, and ETFs to consider</title>
                <link>https://stage2026.twelfthmagpie.com/2025/08/24/9-yield-heres-3-high-yield-income-stocks-investment-trusts-and-etfs-to-consider/</link>
                                <pubDate>Sun, 24 Aug 2025 03:32:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1564582</guid>
                                    <description><![CDATA[<p>Looking for ways to make a heathy long-term passive income? Here are three top London income stocks with giant dividend yields.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/08/24/9-yield-heres-3-high-yield-income-stocks-investment-trusts-and-etfs-to-consider/">7.9%+ dividend yields! Here are 3 high-yield income stocks, investment trusts, and ETFs to consider</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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<p class="wp-block-paragraph">I think these UK income stocks, exchange-traded funds (ETFs), and investment trusts are worth serious consideration from serious dividend investors. Here&#8217;s why.</p>



<h2 class="wp-block-heading" id="h-the-ftse-100-cash-machine">The FTSE 100 cash machine</h2>



<p class="wp-block-paragraph">Today <strong>Phoenix Group </strong>(LSE:PHNX) has the fourth-highest dividend yield on the <strong><a href="https://stage2026.twelfthmagpie.com/personal-finance/share-dealing/guides/what-is-the-ftse-100/" target="_blank" rel="noreferrer noopener">FTSE 100</a></strong>. At 7.9%, its yield is only topped by those of <strong>Taylor Wimpey</strong>, <strong>WPP</strong>, and <strong>Legal &amp; General</strong>.</p>



<p class="wp-block-paragraph">But unlike those first two blue chips, Phoenix&#8217;s yield hasn&#8217;t been supercharged by extreme share price weakness. The financial services giant has a long record of paying a large and growing <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/" target="_blank" rel="noreferrer noopener">dividend</a>, and its yields have long topped the blue-chip average.</p>



<p class="wp-block-paragraph">This in part reflects its exceptional cash generation, even during tough times. Today, its Solvency Capital Coverage Ratio is 172%, well inside its 140%-180% target. It may not protect Phoenix&#8217;s share price from falling if economic conditions worsen. But it at least means the company looks in good shape to pay this year&#8217;s expected dividends.</p>



<p class="wp-block-paragraph">Over the longer term, I expect dividends here to rise steadily as demographic changes drive retirement product demand and push its profits skywards.</p>



<h2 class="wp-block-heading" id="h-a-discounted-trust">A discounted trust</h2>



<p class="wp-block-paragraph"><strong>FTSE 250</strong>-listed <strong>SDCL Energy Efficiency Trust </strong>(<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>) offers tantalising all-round value in my book. Its forward dividend yield is 10.8%, more than triple the Footsie average of 3.3%.</p>



<p class="wp-block-paragraph">The investment trust also trades at a whopping 36.8% discount to its net asset value (NAV) per share of 91.5p.</p>



<p class="wp-block-paragraph">Higher interest rates have weighed heavily on SDCL&#8217;s performance of late. With inflation edging upwards again, this is a threat that remains in play.</p>



<p class="wp-block-paragraph">Yet I&#8217;m still confident in the trust&#8217;s long-term potential. It invests in projects that reduce heat wastage, improve on-site power generation, and cool commercial buildings, for example. And as such, it has considerable growth potential as companies try to meet their green targets.</p>



<p class="wp-block-paragraph">On the dividend front, SDCL has raised shareholder payouts at an average rate of 4.8% over the last five years.</p>



<h2 class="wp-block-heading" id="h-the-global-etf">The global ETF</h2>



<p class="wp-block-paragraph">Launched in March 2024, the <strong>iShares World Equity High Income ETF</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-winc/">LSE:WINC</a>) doesn&#8217;t have a long record of annual growth. But it&#8217;s tipped to raise the annual payout again this year, resulting in a vast 9.6% dividend yield.</p>



<p class="wp-block-paragraph">The fund is designed &#8220;<em>to generate income and capital growth with lower volatility than developed market equities</em>&#8220;. To achieve a more stable performance than 100% share-based ETFs, some of its capital is also tied up in cash and government bonds.</p>



<p class="wp-block-paragraph">That&#8217;s not to say that the fund&#8217;s fully protected from choppiness, however. Weighty exposure to cyclical sectors like information technology and financial services leaves it exposed to economic downturns.</p>



<p class="wp-block-paragraph">However, it aims to counterbalance these with holdings of defensive shares like utilities, healthcare, telecoms, and consumer goods shares. As an investor, it&#8217;s also worth remembering iShares World Equity&#8217;s large contingent of high-growth shares (like <strong>Nvidia</strong> and <strong>Apple</strong>) also create potential for robust long-term dividend growth.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/08/24/9-yield-heres-3-high-yield-income-stocks-investment-trusts-and-etfs-to-consider/">7.9%+ dividend yields! Here are 3 high-yield income stocks, investment trusts, and ETFs to consider</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>2 FTSE 250 dividend stocks with triple the average dividend yield</title>
                <link>https://stage2026.twelfthmagpie.com/2025/08/12/2-ftse-250-dividend-stocks-with-triple-the-average-dividend-yield/</link>
                                <pubDate>Tue, 12 Aug 2025 08:38:00 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1560049</guid>
                                    <description><![CDATA[<p>Jon Smith runs through a couple of dividend stocks with juicy yields, including one at 10.95% he believes is sustainable.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/08/12/2-ftse-250-dividend-stocks-with-triple-the-average-dividend-yield/">2 FTSE 250 dividend stocks with triple the average dividend yield</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">The current average <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">dividend yield</a> of the<strong> FTSE 205 </strong>is 3.31%. An investor who bought a tracker fund could expect to get this income payout. However, there are dividend stocks within the index that have a much higher yield. With active investing, good value can be found with generous yields. Here are two that I&#8217;ve spotted.</p>



<h2 class="wp-block-heading" id="h-elevated-risk-but-high-returns">Elevated risk but high returns</h2>



<p class="wp-block-paragraph">The first is the <strong>TwentyFour Income Fund</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-tfif/">LSE:TFIF</a>). The investment trust specialises in buying higher-yielding, asset-backed securities. These include things like mortgages and collateralised loan obligations. Given that most of these securities pay out interest, the fund can generate strong cash flow, which it then pays to shareholders in the form of dividends.</p>



<p class="wp-block-paragraph">The stock&#8217;s up 8% over the last year, with a dividend yield of 9.87%. One of the reasons why the yield&#8217;s so high is due to the nature of the assets being bought and sold. These loans and other debt products can be pretty risky. Therefore, the interest rate charged on them is much higher than normal. As a result, the overall yield that the portfolio produces is also high.</p>



<p class="wp-block-paragraph">Of course, this can be seen by some investors as a key risk in the future. Even though the company owns a wide range of assets to diversify the concerns around defaulting, it&#8217;s still not perfect. Some of the securities used, such as credit default swaps, are very complicated financial instruments that can go badly wrong.</p>



<p class="wp-block-paragraph">Even with this risk, the yield&#8217;s exceptionally high. Importantly, the fund has consistently grown its dividends, and revenue reserves are positive. This supports continued dividend payments from now on, due to the strong track record.</p>


<div class="tmf-chart-multipleseries" data-title="TwentyFour Income Fund Ltd + SDCL Efficiency Income Trust Plc Price" data-tickers="LSE:TFIF LSE:SEIT" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-predictable-cash-flows">Predictable cash flows</h2>



<p class="wp-block-paragraph">A second option is <strong>SDCL Efficiency Income Trust</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>). Like TwentyFour, it&#8217;s an investment trust. In this case, it focuses on projects designed to reduce energy consumption and carbon emissions, while generating predictable, inflation-linked cash flows.</p>



<p class="wp-block-paragraph">Over the past year, the stock&#8217;s down 8%, with a dividend yield of 10.95%. Part of the bump higher in the yield can be attributed to the share price fall over this period. Some of this move can be attributed to a general hit to sentiment for renewable infrastructure trusts. Also, concerns about interest rates staying higher for longer have negatively impacted the stock. After all, SDCL partly finances these large projects with debt. If interest rates do remain elevated, the costs of servicing the debt&#8217;s expensive.</p>



<p class="wp-block-paragraph">Even with these risks, I think the stock&#8217;s a sustainable dividend payer. The <a href="https://stage2026.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-cash-flow-statement/" target="_blank" rel="noreferrer noopener">predictable cash flows</a> from secure, multi-year agreements mean steady revenue streams. In time, this filters down to consistent income payments. Also, many of the contracts are indexed to inflation, meaning that they can support real dividend growth. Further, it has solid clients, who are often investment-grade companies or public bodies, lowering default risk.</p>



<p class="wp-block-paragraph">When I put all of this together, I don&#8217;t see the dividend as being under immediate threat. Both companies have a high yield and can be considered by investors for inclusion in a portfollio.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/08/12/2-ftse-250-dividend-stocks-with-triple-the-average-dividend-yield/">2 FTSE 250 dividend stocks with triple the average dividend yield</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>With a yield of 11.5% &#8212; and a 39% discount &#8212; is this stock the best for passive income?</title>
                <link>https://stage2026.twelfthmagpie.com/2025/07/24/with-a-yield-of-11-5-and-a-39-discount-is-this-stock-the-best-for-passive-income/</link>
                                <pubDate>Thu, 24 Jul 2025 07:16:00 +0000</pubDate>
                <dc:creator><![CDATA[James Beard]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://stage2026.twelfthmagpie.com/?p=1550742</guid>
                                    <description><![CDATA[<p>Always on the lookout for passive income opportunities, our writer looks at the highest-yielding stock on the FTSE 350 that also trades at a big discount.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/07/24/with-a-yield-of-11-5-and-a-39-discount-is-this-stock-the-best-for-passive-income/">With a yield of 11.5% &#8212; and a 39% discount &#8212; is this stock the best for passive income?</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
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<p class="wp-block-paragraph">At first glance, it appears as though <strong>SDCL Energy Efficiency Income Trust</strong> (<a class="tickerized-link" href="https://stage2026.twelfthmagpie.com/tickers/lse-seit/">LSE:SEIT</a>) is the best <strong>FTSE 350</strong> stock for passive income. With <a href="https://stage2026.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/">a current (23 July) yield of 11.5%</a>, it comfortably beats the average of the <strong>FTSE 100</strong> (3.5%) and <strong>FTSE 250</strong> (3.4%).</p>



<h2 class="wp-block-heading" id="h-what-s-going-on">What&#8217;s going on?</h2>



<p class="wp-block-paragraph">But as the table below shows, it hasn’t always yielded nearly three times the average of these two indexes. Around five years ago, it was close to 5%.</p>



<figure class="wp-block-table has-p-small-font-size"><table class="has-fixed-layout"><thead><tr><th><strong>Date</strong></th><th><strong>Dividend (previous 12 months)</strong></th><th><strong>Share price</strong> (pence)</th><th><strong>Yield </strong>(%)</th></tr></thead><tbody><tr><td><strong>31.3.21</strong></td><td>5.50</td><td>111</td><td>5.0</td></tr><tr><td><strong>31.3.22</strong></td><td>5.62</td><td>118</td><td>4.8</td></tr><tr><td><strong>31.3.23</strong></td><td>6.00</td><td>84</td><td>7.1</td></tr><tr><td><strong>31.3.24</strong></td><td>6.24</td><td>59</td><td>10.6</td></tr><tr><td><strong>31.3.25</strong></td><td>6.32</td><td>48</td><td>13.2</td></tr><tr><td><strong>23.7.25</strong></td><td>6.32</td><td>55</td><td>11.5</td></tr></tbody></table><figcaption class="wp-element-caption"><sup>Source: <strong>London Stock Exchange</strong></sup></figcaption></figure>



<p class="wp-block-paragraph"><a href="https://stage2026.twelfthmagpie.com/investing-basics/isas-and-investment-funds/investment-trusts/">The trust</a>, which holds equity stakes in companies that provide energy efficiency solutions to commercial, industrial and public sector users, has increased its payout by 15% over the past five years.</p>



<p class="wp-block-paragraph">However, since July 2020, the trust’s share price has halved.</p>


<div class="tmf-chart-singleseries" data-title="SDCL Efficiency Income Trust Plc Price" data-ticker="LSE:SEIT" data-range="5y" data-start-date="2020-07-24" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Yet this downwards spiral doesn’t appear to be supported by a fall in the underlying value of the trust’s assets. In fact, this has remained relatively constant. The upshot is that the stock now trades at a 39% discount to its net asset value.</p>



<p class="wp-block-paragraph">One possible explanation is that the trust’s investments are in unlisted companies. These can be difficult to value as there’s no readily-available market for their shares. It’s also the reason why a small discount‘s sometimes justified.</p>



<p class="wp-block-paragraph">But in May 2024, SDCL sold a solar portfolio for £90.8m. This was at a 4.5% premium to its asset value, which gives some comfort that its valuations are not too far out.</p>



<h2 class="wp-block-heading" id="h-some-issues">Some issues</h2>



<p class="wp-block-paragraph">More generally, investment trusts appear to be suffering from a similar problem with large discounts commonplace. A higher interest rate environment isn’t helping as most borrow to buy their assets.</p>



<p class="wp-block-paragraph">Specifically to SDCL, the renewable energy sector&#8217;s also facing some challenges. Some prominent projects in the UK have been cancelled due to uncertainty over the level of future returns.</p>



<p class="wp-block-paragraph">Whatever the reasons, the trust has said it remains “<em>frustrated</em>” and that the “<em>status quo is clearly unsustainable</em>”. The directors are “<em>considering all strategic options to deliver value for all shareholders in an effective and efficient manner</em>”.</p>



<p class="wp-block-paragraph">This could mean a delisting, share buybacks or the acquisition of another trust. In recent months, there’s been a trend among investment trusts to merge funds.</p>



<p class="wp-block-paragraph">But trusts are a great way of spreading risk. For example, having a stake in SDCL means owning a proportion of over 50 businesses.</p>



<h2 class="wp-block-heading" id="h-my-view">My view</h2>



<p class="wp-block-paragraph">Although I’m attracted by the generous yield, I can’t help but feel nervous about the falling share price. There’s little point banking generous dividends if the capital value of the underlying asset is being slowly eroded. Having said that, I don’t think SDCL&#8217;s done too much wrong.</p>



<p class="wp-block-paragraph">It certainly seems to be in the right sector to me. The transition towards renewable energy is, in my opinion, irreversible. The only doubt is the timescale. Therefore, long-term, it should do well.&nbsp;</p>



<p class="wp-block-paragraph">And it looks as though things may have stabilised. Over the past six months, the trust’s share price has risen 6%. Okay, this isn’t an amazing performance but at least it’s stopped falling.</p>



<p class="wp-block-paragraph">Therefore, on balance, it may not be ‘the best’ but I think it’s a stock for income investors to consider buying. However, they should be mindful of the possible short-term risks to their capital.</p>
<p>The post <a href="https://stage2026.twelfthmagpie.com/2025/07/24/with-a-yield-of-11-5-and-a-39-discount-is-this-stock-the-best-for-passive-income/">With a yield of 11.5% &#8212; and a 39% discount &#8212; is this stock the best for passive income?</a> appeared first on <a href="https://stage2026.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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