It yields 5.5%, the dividend is up 4.8% and revenue earnings per share are up 8.6%. Indeed, there have been thirty-seven years of dividend growth. Is it a bird, is it a ‘plane … no, it’s The Merchants Trust, 130 years old this year. A dividend super-hero that trades close to its NAV. If you are a pedant you will shun it because the apostrophe is absent.
Robert is a cheer-leader for Merchants; 5.5% buys a few tennis balls. I incorrectly assumed when I ceased to be employed in the work-place, as it was laughingly called, I would be an income hunter too but as the cards have fallen I am an income minimalist. Now we must dig and delve. Actually, don’t put on your miners’ helmet ‘cos MT plumps for the big companies, low hanging fruit, that we know and they are almost all household names. But they do pull a rabbit out of the hat; 113% of their money (£672 million) is invested in the UK. How do they do that?
They borrow cheap money and invest it in companies that throw off dividends like a Soho stripper’s knickers. It’s called gearing. This is more or less precisely Northern Rock’s business model that proved to be disastrous. However, I believe you can put your trust in Merchants Trust because they have a steady hand on the tiller. Chairman, Simon Fraser, just happens to be Chairman of McInroy & Wood, a job that I secretly coveted, but I well know that he – and almost anybody – can do it better than me.
So, as this post is about money, I may as well ‘fess up. The UK stock market has been more resilient than I anticipated. Ken Fisher, very annoyingly, seems to have got it right. What’s up in Ukraine?
Happiest of Birthdays to you Christopher. Enjoy France and the Celebration. Charlie
My goodness, your birthday celebrations have sprinkled magic dust over your literary endeavours. Many thought it might have the opposite effect. Shame on us.
A missing apostrophe is of course the most likely solecism, but what about a missing word?
The Merchants Trust……. Dividends? Racy Gearing? Scottish Stockbrokers?