When investing in my Self-Invested Personal Pension (SIPP), I’m at all times in search of shares that I can simply purchase and overlook about. That’s as a result of the technique I’m utilizing for my pension is targeted on long-term dividend progress alternatives. And if executed accurately, modest yields right now can develop into one thing way more substantial by the point retirement comes knocking, offering a gradual stream of passive earnings.
Luckily for UK traders, the London Stock Exchange has a fairly big selection of dividend progress shares to select from. Some of the preferred are generally known as Dividend Aristocrats, blessed with over 20 years of consecutive dividend hikes underneath their belt.
Unfortunately, these earnings investments are very well-known. And with expectations that they’ll hold mountaineering shareholder payouts, these shares typically find yourself buying and selling at a premium. So as an alternative, I’m extra occupied with discovering future aristocrats who commerce at extra cheap costs and extra engaging preliminary yields. That’s what introduced Games Workshop (LSE:GAW) into my SIPP two years in the past.
Games Workshop’s dividend historical past over the past 10 years hasn’t been a gradual upward development. There have been just a few dividend cuts alongside the way in which, in addition to some years when dividends didn’t develop in any respect. Yet when zooming out, the path of shareholder payouts is completely clear – they’re going up.
|
Year |
Dividend per share |
Dividend Growth |
|
2015 |
52p |
– |
|
2016 |
40p |
-23.1% |
|
2017 |
80p |
+100% |
|
2018 |
120p |
+50% |
|
2019 |
155p |
+29.2% |
|
2020 |
145p |
-6.5% |
|
2021 |
235p |
+62.1% |
|
2022 |
235p |
– |
|
2023 |
415p |
+76.6% |
|
2024 |
420p |
+1.2% |
Over the final 10 years, the tabletop miniatures producer has elevated dividends by simply over 700%. That’s an annualised common progress of 23.2%. And whereas I’ve solely been a shareholder since 2022, I’m now incomes a 5.4% yield versus the three.4% at the moment being provided available in the market. That’s on prime of the 50% share value return I’ve loved so far. But what’s been driving this progress?
Since its inception within the Eighties, Warhammer‘s grown to be one of the most popular collections of tabletop wargames in the world. And in recent years, interest in the hobby has surged as the firm rapidly expands its reach. Licensing deals for video games and TV shows, paired with new international reselling partnerships, has drastically increased public exposure to the Warhammer universe at minimal cost across multiple channels.
The impact of this strategy’s completely clear. Looking at its newest outcomes for its 2024 fiscal yr ending in June, income reached a brand new all-time excessive of £525.7m, with working earnings breaking by means of the £200m threshold. And since these outcomes had been launched, one other single-sentence buying and selling replace has adopted, stating buying and selling continues to be “in line with the Board’s expectations”.
