Guitarsolo
02 Jul 2015
Buy for the yield Bond prices may rise and bond prices may fall and that will affect the NAV. But with such a large proportion of NCYF's assets in fixed income you would think (baring financial calamity) that the income is pretty much guaranteed. Furthermore, by paying out circa 85% of their income as dividends that leaves a balance to cover costs and reinvestment of whatever is left in more fixed income assets. Thus there should be a small but predictable increase in the aggregate income each year to allow NCYF to increase the dividend by an acceptable margin (e.g. 3% per annum). It that's the case, I am surprised there aren't more people piling into these shares. Most investments yielding 7% tend to come with a concern (or degree of certainty) that the dividend will be cut. But the chance of that happening to NCYF is very low and would only be caused by wide scale default on the fixed income bonds (by either the governments or corporations who issued them). I'd welcome any other perspectives on this. Guitarsolo
Ben Alligin
29 May 2015
Don't miss out on the 7% yield from New City The CQS New City High Yield investment trust is overlooked, arguably because it's in the wrong sector, says James Carthew. - See more at: [link]
Guitarsolo
18 May 2015
Re: Tax payable - correction Or why not hold inside an ISA? No 10% withholding tax or 32.5% additional tax to pay if you're a higher rate taxpayer. In fact, absolutely nothing to declare to anyone!To me, the fact that this is paid gross is the perfect reason to slot it into your ISA. Unless, of course, you're investing in sums too large for an ISA. Overall, the near 7% yield is excellent. NCYF's track record suggests a moderate, but consistent-uplift each year. Books show that they have about one year's worth of cash in reserve to cover the dividend so they ride out a small to moderate crisis.GS
Krayl
14 May 2015
Re: Tax payable - correction .... and when I put it on my tax form the dividend was grossed up by a notional amount as though the 10% withholding tax had been paid, and then treated like UK dividends (i.e 32.5% tax payable on the grossed up amount if applicable).
Krayl
14 May 2015
Re: Tax payable - correction Just got my annual statement from Barclays. New City is registered in Jersey so the dividend counts as foreign earnings and there is no withholding tax deducted.
Krayl
09 May 2015
Re: Bought in today As I understand it all dividends have a notional 10% tax paid which is non refundable. If you pay basic rate tax it makes no difference whether it is held in an ISA or not, but if you are a higher rate tax payer you will need to pay an additional 22.5% of the gross payment if not in an ISA.
FRTEB
09 May 2015
Re: Bought in today You receive the full 'gross' amount of the dividend.
Damp Seaweed
09 May 2015
Re: Bought in today Can I just ask, Is the Divi paid 'Gross' or does it have 10% tax deducted ?It is important because I would be investing through an ISA
FRTEB
10 Apr 2015
Re: Bought in today Thanks, DT. My reason for buying NCYF is long term income. NCYF has grown the divis consistently since 2010 (that's as far back as the HL website goes) whereas the CMHY divi has been flat and it's also a lower starting yield so CMHY will stay on my watchlist until I see evidence of the yield increasing.
Dragons teeth
09 Apr 2015
Re: Bought in today FRTEB , I still hold SLI , see my post 27Feb, now up about 16% for me. I'm contemplating CMHY but it may be a switch out of NCHY which has performed poorly compared to CMHY.
FRTEB
09 Apr 2015
Re: Bought in today I still have the following on watch list:CMHYGCPHDIVHFELIPESLII'm also tempted by BRWM for the yield but haven't as yet pressed the button due to their past shenanigans. It's on the watchlist though...
FRTEB
09 Apr 2015
Bought in today Two small tranches purchased today for my and Mrs FRTEB's ISAs @ an average cost of 61.8225p giving us an average running yield of 6.97%. ...Beats the 1.5% gross from Tesco's savings account.I hadn't realised that there is no stamp duty to pay on purchasing these.It looks distinctly possible that the sp could fall a tad, in which case we can double up, but we'll happily take the 6.97% in the meantime.
Ben Alligin
26 Mar 2015
How 7% yielding New City plans to keep divis flowing There's an interview with the manager at:[link]
FRTEB
06 Mar 2015
RNS regarding new share placing [link] to 158,250,000 new Ordinary Shares will be issued at a premium to NAV of 3.00%. When I first added this to my watchlist the premium was well over 6%. This was in line with the average premium over the last twelve months (today showing as 6.23% on HL). I've been watching the premium fall over the last few days and it's currently 4.65% (calculated from yesterday's NAV of 59.01). It looks like the premium is gradually falling into line with the new share issue premium.
FRTEB
02 Mar 2015
Re: Interest/IPE O/T Excellent stuff. Thanks soi. That casts more light on IPE's charges. It's on my watchlist as I also think the sp is a tad high at the moment.
