For example, over the past decade, shares in the trust have produced a return of 271%, compared to a gain of 178% for its benchmark (a combination of global indexes). 

I reckon this performance is set to continue for the foreseeable future as the team at Witan continues to seek out growing businesses around the world. 

Indeed, one of the reasons why this business stands out to me over other trusts is its record of picking out-performers both at home and overseas, which gives investors plenty of diversification as we head towards the uncertainties of Brexit. UK investments make up just 35% of assets. North American investments account for 24%, and European stocks make up 20% of the portfolio. 

Dividend record 

Another reason why I’m attracted to the firm is its record of dividend growth. Every year for the past 43, Witan has consistently paid and increased its dividend. 

For 2018, the company is on track to distribute 23p per share according to my figures, indicating a dividend yield of 1.9% is on offer. This might not seem like much, but in my view, the record of dividend growth more than makes up for the below-market yield. 

Market-beating income

Alongside Witan, I’m also interested in River and Mercantile Group (LSE: RIV). 

This small-cap investment management firm has more than doubled profits over the past five years as revenues have increased at a compound annual growth rate of 20% since 2013. 

For the three months ending 30 September 2018, according to a trading update published by the firm today, “strong net inflows” resulted in an increase of 3.3% in fee-earning assets under management. Market volatility has impacted demand for the group’s services, but management is confident that the business is “highly diversified and therefore the effect on our overall numbers will likely be more muted than it is for others.“

This cautious statement seems to suggest that investors should expect River’s earnings growth to slow for 2018, which appears unavoidable — the company can’t control the markets after all. Analysts had been expecting the firm to report earnings per share growth of 21% for fiscal 2019. Unless there’s substantial improvement in its fortunes for the rest of the year, River is now unlikely to hit this target. 

Still, what management can control is the firm’s dividend payout. And City analysts are expecting a big jump in the payout for fiscal 2019 to 18.1p, giving a dividend yield of 6.2% on current prices. So, even though earnings growth might be about to come off the boil, investors will be paid to wait for a recovery. 

Overall, I would rate River a ‘buy’ for its dividend and recovery potential. When combined with Witan in a retirement portfolio, I think the combination of income and growth could turbocharge your investment returns. 

The post Why I’d pick this investment trust to help double my State Pension appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns shares in the Witan Investment Trust. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Hiscox (LSE: HSX) is a great example. Over the past 15 years, shares in this insurance giant have produced a total compound annual return for investors of 15.1%, turning £1,000 into £8,200. 

I believe this performance is set to continue.

Growing business

Today Hiscox reported yet another set of strong results, sending the shares up by just under 8% at the time of writing.

It reported numbers for the first half of the year, noting “strong growth” in insurance premiums written across the group. Pre-tax profit increased 27% to $164m following an increase of 21% to $2.2bn in the value of insurance premiums written. 

The group’s combined ratio, a quick and easy measure of insurance profitability, declined to 88% down from 91% in the previous period (if the combined ratio is less than 100%, the insurance business is profitable).

On the back of these numbers, Hiscox’s management has rewarded shareholders with a 5% increase in the interim dividend. The current dividend yield is 2.3%. 

The bulk of the company’s growth over the past few years has come from its retail division. According to today’s update, this business is on track to hit 1m customers this year, which is still relatively small compared to the size of the insurance market. Motor insurer Admiral, for example, has nearly 6m customers, so there’s plenty of room for Hiscox to expand further in my view. 

As it continues to invest and build out its retail business, I believe that it can continue to produce double-digit annualised returns for investors. And looking at City expectations for growth, the shares are not too expensive either as they trade at a 2019 forward P/E of 16 — not too bad for a business that is expected to grow EPS 31% over the next two years.

Income champion 

Another company that has a record of producing market-beating returns for investors is River and Mercantile Group (LSE: RIV).

This asset management business has attracted my attention due to its dividend potential. This year, analysts have pencilled in a per share payout of 17.1p, giving a dividend yield of 6%. Next year, the company is expected to hike its distribution 10%, which will provide an estimated dividend yield of 6.6% at the current price.

Like Hiscox, River and Mercantile is also benefiting from rising demand for it services. According to an update published by the company today, fee-earning assets under management increased 9% across the group for the 12 months ended 30 June, putting the firm on track to hit the City’s EPS growth target of 17% for 2018. Based on this estimate, the shares are trading at a forward P/E of 14.8, an attractive multiple for a business growing earnings at a double-digit rate.

What’s more, this company has more than £20m of net cash to back up the dividend. In fact, this cash balance is equivalent to just under 10% of River’s current market capitalisation of £232m.

The post This FTSE 250 income and growth stock could double your money appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns shares in Admiral. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

And with a 3.35% dividend yield and forward valuation of just 14.9 earnings, I think long-term investors may find now an opportune moment to snap up a great company at an attractive price. Of course, with its market cap nearing £9bn, it will be much more difficult for Schroders to nearly quadruple in size in the next decade. But with the founding family still steering the company on a path of conservative, long-term-oriented growth, I don’t think it’s impossible.

In fact, judging by the group’s results for 2017, it’s well on its way. During the period, assets under management (AuM), the lifeblood of asset managers, rose a fantastic 13% to £2,068bn due to good performance from its funds and net inflows of £9.6bn. Rising AuM boosted pre-tax profits from £644m to £800m, which provided the firepower to increase dividends from 93p per share to 113p per share while maintaining adjusted earnings cover at 2 times.

Looking to the future, I still see considerable scope for Schroders to grow. Part of the reason is its steady-as-she-goes business model that is attractive to both investors in the company’s stock and investors looking for someone to effectively manage their money. On top of this, the group is actively expanding into new asset classes and pushing into regions such as the US, China and Japan that provide exciting long-term potential.

While asset managers are facing pressure from passive investing, I believe the strongest active managers such as Schroders will still have a role to play for decades to come. For those who are willing to ride the bumps that come with investing in such a cyclical industry, I reckon Schroders could be a great long-term option.

And one with more room to grow

Another asset manager that is still pulling in net inflows from clients while bigger competitors struggle is River and Mercantile (LSE: RIV). The £265m market cap firm reported a solid set of H1 results this morning that showed £800m of net inflows and positive performance from its funds helped boost AuM 13% year-on-year to £32.6bn.

In turn, rising AuM led to a 17% rise in post-tax profits to £9.6m thanks to ongoing fund charges and performance fees. Adjusted earnings per share came in a bit higher and led management to offer shareholders a 7.6p interim dividend. This goes some way towards meeting analysts’ consensus expectations for a 17.7p full year payout that would yield 5.5% at today’s share price.

With this half year continuing the company’s track record of high performance, it’s little surprise that its shares have risen 70% since going public in 2014. While the company has run into some trouble in recent months, including a star fund manager being sacked for conduct issues and an FCA investigation into a possible breach of competition rules, River and Mercantile is still a relatively small firm with a loyal following that could have plenty of room to grow in the future.

The post 2 high-yield stocks that are making their shareholders rich appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
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Ian Pierce has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Even though shares in the utility have recently come under pressure due to concerns about the government’s plans for the UK power industry, I believe there’s no immediate threat to the firm’s existence.  

However, if you are concerned about National Grid’s future, then there’s one ‘secret’ dividend stock that I believe is a great alternative. 

Hidden income 

Boutique investment firm River & Mercantile (LSE: RIV) flies under the radar of most investors. Over the past five years, the company has gone from strength to strength as revenues have risen threefold, from £20m in 2014 to nearly £70m for the year ending 30 June 2017. Over the same period, earnings per share have expanded 194%, from 7.7p to 22.9p. 

Today the company reported yet more growth. According to a trading update for its fiscal first quarter, mandated assets under management increased by 2% to £31bn although fee-earning assets under management decreased by 1% following the restructuring of certain equity transactions.

Commenting on the numbers, CEO Mike Faulkner said: “Despite the markets at their current levels and with material uncertainties faced by investors we continue to see significant interest in this form of active equity risk management and synthetic structured equity solutions.”

Dividend growth is key 

So, it looks as if investors are still attracted to the company’s offering, which is good news for shareholders. 

As well as its impressive record of growth, River & Mercantile has a history of returning the majority of earnings to investors via dividends. For the fiscal year ending 30 June 2018, City analysts have pencilled in a dividend per share of 16.2p, giving a yield of 4.5%. The one downside of the company’s growth and income record is that the shares are quite expensive. The stock currently trades at a forward P/E of 19.5, but this is, in my view, is a price worth paying. 

National Grid is a slightly cheaper buy. The shares of this UK utility giant currently trade at a forward P/E of 15.6 and support a dividend yield of 4.9%. 

However, while the shares might be cheaper, the company lacks growth. Over the past five years, earnings per share have hardly budged. Some growth is expected over the next two years, but the majority of this expansion will come as a result of a lower share count. 

The company is currently in the process of spending £835m to buy back stock following the sale of its gas division. Even though earnings per share are set to rise, pre-tax profit will remain unchanged from the level reported for 2014. 

The bottom line 

Overall, I believe that National Grid remains an attractive income investment, but the one thing that the company is lacking is growth. With this being the case, River & Mercantile makes the perfect portfolio partner as this asset manager offers an exciting blend of both income and growth. 

The post A ‘secret’ dividend stock I’d buy alongside National Grid plc appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns shares in National Grid. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.