Each firm offers a yield of at least 5%, so patient shareholders should be rewarded with a generous income.

The boss is back

Shares in fashion brand Superdry (LSE: SDRY) have fallen by about 75% since January 2018.

Are there problems at Superdry? Yes. Is the business going to fail? I don’t think so.

Founder Julian Dunkerton is back in the driving seat and determined to return this brand to growth.

In a trading update last week, Mr Dunkerton warned that profits would be lower than expected for the year ended 28 April. But since taking charge on 2 April, he’s already made a number of changes that are expected to boost sales and improve profits margins.

Flagship stores are being restocked with a greater choice of items. Discounts and sales are being scaled back. And the range of choices available on the website has been expanded. These changes are expected to generate more full-price sales, boosting profits and helping to rejuvenate the brand.

There’s still a lot to do. But with the shares trading on 9 times forecast profits and offering a 5.5% dividend yield, I think the shares rate as a value buy at current levels.

Keeping it in the family

Leeds-based property firm Town Centre Securities (LSE: TOWN) owns a mix of retail, leisure and office property. It’s also the owner of the CitiPark car park business, which owns multi-storey car parks in a number of major towns and cities.

Town Centre’s shares have fallen by about 25% over the last year, and now trade at 40% discount to their net asset value of 361p per share. To some extent, I think this caution is justified.

But although some retail tenants have gone into administration, others are looking for new shops. Management has already found new tenants for six of the eight units that became vacant last year, with higher average rents than before.

The founding Ziff family still controls about 60% of Town’s shares. They’ve supported and grown the business since its foundation in 1959. Town Centre Securities survived the financial crisis without needing refinancing and I don’t see any reason why this impressive track record can’t continue. With the shares trading at a 40% discount to book value and offering a yield of 5.5%, I think now could be a good time to buy.

A growth business

A key growth area for retail landlords is leisure businesses such as 10-pin bowling operator Ten Entertainment Group (LSE: TEG). This business has impressed me since its flotation in 2017.

Adjusted pre-tax profit rose by 4% to £13.5m last year, while the dividend climbed 10% to 11p per share. Analysts expect earnings to rise by 25% to 20.9p per share this year, thanks to a mix of new openings and refurbishments.

The business carries very little debt and reported an impressive 15% operating profit margin for 2018. However, the shares pulled back during the second half of last year, perhaps due to concerns that Brexit could hit consumer spending.

I suspect this risk may be overstated. Trading on 11 times 2019 forecast earnings and offering a dividend yield of 5.4%, I think Ten Entertainment could be a good long-term growth buy for UK-focused investors.

The post 3 top small-cap stocks yielding 5%+ I’d buy right now appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Superdry. 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.

The problem is that owning and renting your own properties leaves you exposed to unpredictable repair costs, problem tenants, void periods and a tidal wave of paperwork. That’s why I prefer to generate an income from bricks and mortar by investing in good quality property stocks.

One company that’s on my radar is Leeds-based commercial property firm Town Centre Securities (LSE: TOWN), which published its full-year results today. This family-owned business has held or increased its dividend every year since its flotation in 1960. That’s 58 years without a dividend cut.

A long-term buy?

A mix of retail, leisure, office and car park properties helped to increase the group’s EPRA net asset value by 6.8% to 384p per share last year. With the share price at a last-seen level of 260p, the stock now trades at a 32% discount to its net asset value.

Although adjusted earnings fell by 2% to 13p per share last year, the dividend rose by 2% to 11.75p, giving the stock a 4.5% yield at current levels.

Conservative management helped this company to make it through the financial crisis without needing to cut the dividend or raise fresh equity. Over the last two years, the family-led board of directors has maintained this approach by cutting the firm’s exposure to the troubled retail sector from 70% to 55%.

I’m confident in the firm’s long-term prospects. But it has to be said that overall returns are average, rather than outstanding. The business delivered a total property return of 9.4% last year, broadly level with the 9.3% return from the benchmark MSCI (IPD) All Property index.

This stock has also traded at a discount to book value more often than not in recent years. So I don’t see this as a buy signal in itself.

However, Town’s falling share price is widening the valuation discount and pushing up the dividend yield. I’m starting to get interested, and have added the stock to my watch list.

A FTSE 100 landlord with a 5% yield

If you’d prefer to invest in a larger business with a more diverse range of assets, one potential choice is FTSE 100 firm British Land Company (LSE: BLND).

This firm’s portfolio contains a mix of prime London office property and major shopping sites such as Broadgate in London and Meadowhall in Sheffield.

It’s clear that this business is heavily exposed to the retail market. However, the group’s focus on so-called tier 1 sites and its ownership of top-quality London office property should help reduce the risks.

Another attraction is that the group’s debt levels and borrowing costs are very low. I don’t see much risk of a cash crunch here, even if bosses are forced to cut rental rates for retail units.

Too soon to buy?

At about 620p, British Land shares currently trade at a 35% discount to their last-reported book value of 967p per share. There’s also a forecast dividend yield of 5%.

I suspect that these shares could be a decent long-term buy at this level. However, as a value investor I’m only interested in serious bargains. I plan to wait for the group’s half-year results in November before making a decision on whether to invest.

The post Forget buy to let! This commercial property stock hasn’t cut its dividend for 58 years appeared first on The Twelfth Magpie.

More reading

• Here are 2 FTSE shares I’m excited about this July — and 1 I’m avoiding
• Which UK stocks are the best for passive income right now?
• FTSE 100 to surge to 11,668! 2 cheap stocks to buy before the rally
• With a 5.8% yield, how much is needed in a Stocks and Shares ISA for £1,000 of monthly passive income?

Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended British Land Co. 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.

However, with the company having put in place what seems to be a sound business model following major restructuring in recent years, the prospects for the stock seem to be improving. As such, now could be the right time to buy it from an income perspective, with a smaller dividend share that reported positive news on Tuesday also offering investment potential.

Growth potential

The smaller company in question is property investor and developer Town Centre Securities (LSE: TOWN). It released news of an acquisition on Tuesday, purchasing The Cube in Leeds for £12m. Completion is set to take place in October, with the purchase due to be funded from the company’s existing resources and planned disposals. The deal represents an initial yield of over 12.5% on the passing income, although the yield will reduce to around 9% after lease expiries in 2019 and 2020. Still, this remains a relatively enticing level for a city-centre asset.

With Town Centre Securities having a dividend yield of 4.3%, it seems to offer income investing potential for the long term. Although the company is UK-focused and could experience some uncertainty in the near term due to Brexit, its acquisition pipeline means that it may be able to capitalise on low valuations across the commercial property sector. As such, and with a price-to-book (P/B) ratio of 0.8, it seems to offer an impressive investment outlook.

Improving business

Aviva’s income potential also appears to be impressive. The company recently announced that it has been able to generate excess capital that is expected to be deployed over the next two financial years. So far, this has helped to reduce the company’s leverage, while a portion of the capital has been earmarked for acquisitions. This could help to further diversify the company’s operations and may lead to improved growth performance over the medium term.

Due in part to its disappointing share price performance, Aviva has a dividend yield of around 6% at the present time. This is expected to rise to around 6.8% next year, with dividend growth of 13% forecast in the next financial year. Beyond 2019, further dividend growth could be ahead, with the potential for additional excess capital generation as well as a more generous payout ratio.

With Aviva having a price-to-earnings (P/E) ratio of around 10, the stock seems to offer a wide margin of safety. Alongside its international exposure, improving business model and rising dividend, this could help it to outperform the FTSE 100 in the long run. It seems to offer a strong income investing opportunity at the present time.

The post Have £1,000 to invest? Aviva is a FTSE 100 dividend growth stock that could help you retire early appeared first on The Twelfth Magpie.

More reading

• A £10,000 ISA buys 1,931 shares in these 6.5%+ yielding dividend stocks!
• 3 top passive income shares to consider with dividend yields above 5%
• How much do you need in a SIPP to target a stunning £750.75 weekly passive income?
• How to turn a £20k ISA into a £12,000 yearly second income
• Starmer resigns as PM — what could this mean for UK stocks and the FTSE 100?

Peter Stephens owns shares of Aviva. 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.

There wasn’t a lot wrong with the numbers. Net rental income of £370m, underlying earnings of 31.1p a share and a 25.5p dividend were all in excess of 6% ahead of the prior year, while EPRA net asset value (NAV) increased 5% to 776p a share.

Furthermore, the stock appears to offer good value. A rating of just over 15 times earnings isn’t unreasonable, a dividend yield of 5.4% is juicy and a 39% discount to NAV screams ‘bargain.’ So why on earth would I sell the shares?

Intu the future

On 6 December, Hammerson announced it had agreed a £3.4bn all-share offer to acquire FTSE 250 firm Intu Properties. If shareholders of both companies give the deal the go-ahead, it would create, in the words of the directors, “a £21bn pan-European portfolio of high-quality retail and leisure destinations.”

I wasn’t impressed by the deal. Hammerson had been deliberately reducing its exposure to the UK in recent years, but combining with Intu would up it again significantly. Intu’s debt would also weaken Hammerson’s balance sheet. Operating cost savings would be relatively low with potential refinancing synergies being the primary attraction. To me, it smacks of late-stage bull market M&A activity.

I’m not alone in being sceptical. The shares have fallen over 10% since the deal was announced and Hammerson is now flirting with demotion from the FTSE 100 to the FTSE 250. As I don’t see a compelling case for the deal but significant risk and organisational stress in executing it, I rate the stock a ‘sell’.

Long-term outperformer

I believe there’s a lot to be said for owning smaller, nimbler companies in the REIT sector. One I’d be happy to buy is Town Centre Securities (LSE: TOWN), which also released results today. It’s listed in the FTSE SmallCap index and has a market value of about £150m at a share price of 276p — little changed on the day but down from 300p when I wrote about it last September.

Established in 1959 and still run by the founding family, this Leeds-based property investor and car park operator has delivered excellent returns for its shareholders with a predominantly regional approach, playing to the strengths of its local knowledge and expertise.

It’s outperformed the FTSE All Share REIT index over any meaningful period you’d care to look at. For example, at the last reckoning, the compound annual growth rate of total shareholder returns over 25 years was 10.9%, compared with 8.3% for the index.

Today’s half-year results showed NAV at the period-end of 375p a share, trailing 12-month earnings of 12.8p and dividends of 11.5p. The resulting valuation metrics — a 26% discount to NAV, 21.6 times earnings and 4.2% dividend yield — are not as attractive as Hammerson’s on paper. However, I believe they’re attractive in their own right and that the risk/reward trade-off is skewed positively in favour of the well-managed smaller REIT.

The post Why I’d dump Hammerson plc for this other property investment trust appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

G A Chester 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.

Its outlook statement was bold. It said: “Increases in rental income and also in capital value [have] proved the pessimists wrong. We expect this to continue.”

Attractive NAV discount and yield

Town Centre Securities (TCS) reported a 0.6% increase in net asset value (NAV) to £191.1m, or 359p a share. So the shares are currently trading at a discount to NAV of over 16%.

Operating profit (before property valuation movements) increased 1.6% to £14.7m, underlying earnings per share (EPS) rose 6.7% to 13.2p and the dividend was lifted 4.5% to 11.5p. This gives a yield of 3.8%, rising to just over 4% on forecasts of a 12.1p payout for 2017/18. You’ve probably spotted that dividend cover (1.15) is on the low side, but this is because of payout rules for Real Estate Investment Trusts (REITs), such as TCS, as well as FTSE 100 giants like Land Securities and British Land.

TCS continues to intensively manage its portfolio, disposing of mature properties and reinvesting capital when it sees “the right opportunities.” It also has “extensive” development opportunities, while its growing car parks portfolio — £3.9m operating profit (up 11.8%) — provides useful diversification.

History of outperformance

Founded in 1959, TCS has a fine history of growing NAV and dividends over the long term. It has outperformed the FTSE All Share REIT index and forerunner FTSE All Share Real Estate market over one, three, five, 15 and 25 years. Shareholder returns over the quarter-century period are represented by a compound annual growth rate of 10.9% versus 8.3% for the index.

I see this £159m FTSE SmallCap firm as a great dividend stock for the long-term. And I’d be happy to buy a slice of the business right now, with the discount to NAV of over 16% and a prospective dividend yield of over 4%.

Attractive P/E and yield

Bloomsbury Publishing (LSE: BMY) is another FTSE SmallCap dividend stock that looks very buyable to me today. At a current share price of 160p, the company is valued at £121m. It offers a forecast dividend of 7p for its financial year ending 28 February 2018, giving a prospective yield of 4.4%.

In a Q1 trading update in July, the company reported revenues up 19% year-on-year (13% at constant exchange rates) and the board said it expects profit for the full year to be in line with its expectations. The analyst consensus is for EPS of 12.2p, giving decent dividend cover of over 1.7 times and putting the company on an undemanding price-to-earnings ratio of 13.1.

Impressive growth

Bloomsbury may be best known as the publisher of Harry Potter but it’s far from being a one-trick pony. For example, in its non-consumer division, its digital resource business is growing revenue fast from a low base.

Overseas growth is also progressing impressively, with 61% of sales now originating from customers outside the UK. Bloomsbury Australia grew revenues by 50% (26% at constant exchange rates) last year and revenues in Bloomsbury India grew 46% (30% at constant exchange rates).

The undemanding P/E, nice dividend yield and growth opportunity from digital resource and international lead me to rate the shares a buy today.

The post 2 ‘under the radar’ dividend stocks I’d buy right now appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended British Land Co. 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.

Improving performance

Real Estate Investment Trust (REIT) McKay Securities (LSE: MCKS) reported improving profit for the full year on Monday. Its adjusted profit before tax increased by 8.3%, with gross rental income up 3.1% to a historic high. It also recorded an increase in its property portfolio value of 7.2%, which generated a 1.7% valuation surplus. The company also made good progress with its contracted rental income, which moved 11% higher.

With the company focused on London and the south east, its outlook is somewhat challenging. In the current financial year it is forecast to report a rise in its bottom line of just 3%, followed by further growth of only 4% next year. Despite this low growth rate, the company’s dividend is expected to increase by around 2.2%. This puts it on a forward yield of around 4%, which should keep its shares popular among income investors as inflation moves higher.

While its outlook is relatively uncertain, McKay Securities offers a wide margin of safety. For example, it trades on a price-to-book (P/B) ratio of only 0.8. This suggests that while there is scope for property valuations and rental income in the UK to come under pressure, McKay Securities’ share price could offer a sound risk/reward ratio over the long run.

Low valuation

Also offering upside potential is property investment and development company Town Centre Securities (LSE: TOWN). Unlike McKay Securities, it is forecast to post a rise in its bottom line which is well ahead of the wider index. Its earnings are due to rise by 13% in the current year, and by an additional 11% next year. When combined with a relatively low rating, this equates to a price-to-earnings growth (PEG) ratio of only 1.6.

As well as offering growth at a reasonable price, Town Centre Securities appears to have income appeal. It has a dividend yield of 4%, and with dividends due to rise by almost 5% next year, its income return should stay ahead of inflation. Beyond 2018, further scope for dividend growth is on the cards, since it has a dividend coverage ratio of 1.2. This is relatively healthy for the property investment sector and indicates that sufficient capital is available for reinvestment.

The last five years have been a prosperous period for Town Centre Securities, as evidenced by a share price which is up 82% during the period. With a low valuation, growth potential and an attractive income outlook, more growth could be ahead.

The post 2 exciting dividend stocks with massive potential appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Peter Stephens has no position in any 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.

The gains were driven by the news that the bank moved back into the black during the first quarter, with a net profit of £259m. That’s five times better than analysts’ forecasts for a £50m profit.

RBS reported good progress on both costs and growth. An increase in mortgage lending helped lift the bank’s total income by 12% to £3,154m. Meanwhile, underlying operating expenses fell to £1,822m, down from £2,151m during the first quarter of last year. This helped to lift RBS’s adjusted operating profit by 30% to £1,371m.

Bad debts were lower, with the bank’s main measure of bad debt falling to 2.9% of loans, down from 3.1% at the end of 2016.

Of course, this favourable set of figures only represents a single three-month period. The bank still has much further to go to deliver on analysts’ forecasts for a 2017 net profit of £2,133m.

Despite this, I believe RBS has now turned a corner. The majority of its problems are out in the open and on the way to being resolved. I also suspect that the Chancellor might start to consider reducing the government’s 72% stake in the bank at some point after the general election.

RBS shares now trade at a 14% discount to their tangible net asset value of 297p, and on a 2017 forecast P/E of 13. Significantly, in my opinion, broker forecasts have turned positive. Earnings forecasts for the current year have risen by 15% to 19.4p per share over the last three months.

Forecasts for 2018 have also been upgraded, and dividend payments are expected to restart next year.

RBS is a significant holding in my own portfolio, and I remain a buyer after today’s news.

A family-owned affair

Not all property stocks target top London addresses. There’s plenty of money to be made by owning the right commercial property in cities such as Leeds and Manchester. That’s what family-owned group Town Centre Securities (LSE: TOWN) does.

TCS has been trading on the London Stock Exchange since 1960. It has a record of stability many larger firms would envy — the group didn’t cut its dividend during the financial crisis, and didn’t need to raise fresh cash from shareholders.

Town Centre’s particular focus is mixed-use developments of shops, apartments and offices in central locations. Occupancy is high, at 98%, but fears about the outlook for the retail sector have weighed on the group’s share price. TCS stock currently trades at a discount of about 20% to its December 2016 net asset value if 355p.

In fairness, some of this discount may be justified. Anecdotal reports suggest that retail rents are falling in many locations. TCS also maintains a fairly high level of gearing, with a loan-to-value ratio of 50%, compared to a more typical level of 30%-35%. Earnings growth has also been limited over the last five years.

Despite these risks, the outlook seems to be improving. TCS announced its first dividend increase for five years in 2016, giving the stock a forecast yield of 4%. In my view, this firm could be worth a closer look at current levels.

The post Why these battered value stocks are on my buy list appeared first on The Twelfth Magpie.

More reading

• How much would you need invested for a second income that covers council tax?
• FTSE 100 banks retreat as investors react to political unrest. What lies ahead?
• Here’s how to invest £18,182 in an ISA for a 5.5% dividend yield
• Everybody is talking about Space X but I’m more excited by the NatWest share price
• How much do you need in a SIPP to replace the average £39,039 UK salary?

Roland Head owns shares of Royal Bank of Scotland Group. 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.

Two of the latter have released results this morning, and I reckon these Brexit bouncers continue to offer great value for investors today.

A 56-year unbroken dividend record

Property company Town Centre Securities (LSE: TOWN) owns predominantly retail, office and car parking assets in the north of England, and said “our portfolio has not seen the Brexit effects reported in central London”.

For its financial year ended 30 June, the company posted a 3.8% rise in net assets to 357p a share and a 2.5% increase in earnings to 12.4p a share. Management sees “an extended period of uncertainty” as a result of the Brexit vote, but said it expects three of its development projects alone to add 20p a share to net assets and 3p a share to annual profits.

I rate Town Centre Securities highly. Under the careful stewardship of the founding Ziff family, the company has a relentless focus on delivering long-term returns for its shareholders. This includes the tremendous achievement of a 56-year unbroken dividend record.

The shares have regained 18% since a post-referendum plunge, but at 314p remain at an attractive discount to net assets. The board lifted the annual dividend 5.4% today to 11p, on the strength of its confidence in the increase in earnings from the aforementioned development projects, giving a healthy trailing yield of 3.5%.

The combination of quality of management, discount to assets and dividend yield leads me to rate the shares a buy.

Strength in uncertain times

The UK’s leading homewares retailer Dunelm (LSE: DNLM) is another business whose success has been built by an owner-entrepreneurial family. Will Adderley, son of the founders, sits on the board as executive deputy chairman, but the company has brought in an outside chief executive to further develop the business while maintaining the family business principles and culture.

Dunelm today reported a 7.1% rise in revenue for the 52 weeks ended 2 July compared with the equivalent period last year. Earnings increased 7.4%, while free cash flow was an impressive 26.9% higher.

The company sees Brexit uncertainty less as a risk and more as an opportunity, due to its value-for-money offering, strong cash generation and low leverage. It said today: “In uncertain times our strengths become even more of an advantage. It should mean that we can expand faster and offer even more to our customers”.

The confidence of the company is such that it today announced it’s increasing its ordinary dividend payout ratio. In line with the new policy, this year’s dividend has been increased by 16.7% to 25.1p, giving a useful trailing yield of 2.7%. Meanwhile, the earnings rating is 18.1.

The shares have bounced 25% since their post-referendum low but, due to the strength of the business, I still see them as very buyable on the current earnings multiple and yield.

The post Should you buy these Brexit bouncers after today’s results? appeared first on The Twelfth Magpie.

More reading

• 3 shares to consider holding in a SIPP for decades
• How much must investors put into this overlooked FTSE dividend star to make an annual second income of £8,686?

G A Chester has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.