Equity income investments for a stocks and shares ISA

Dividend for a stocks and shares ISA

A stocks and shares ISA is a tax-free savings account that allows you to invest in a wide range of assets, including individual stocks and shares, investment funds, and exchange-traded funds (ETFs).

Each tax year, you are allowed to invest up to a certain amount in your ISA, which is currently set at £20,000 for the 2022/23 tax year. This means that you can invest up to this amount without paying any tax on the income or capital gains generated by your investments.

Investment funds and ETFs are a popular option for ISA investors because they offer diversification and professional management. They can also be a more cost-effective way to invest, as you can access a diversified portfolio of assets for a relatively low cost.

DirectorsTalk highlights a number of well-known LSE-listed investment trusts and funds that can be bought and held in a standard stocks and shares ISA – JPMorgan Japan Small Cap Growth & Income plc, Real Estate Credit Investments, Fidelity European Trust plc, BlackRock Sustainable American Income Trust plc, Volta Finance and The Diverse Income Trust plc

With the 2022/23 ISA deadline just around the corner, now is an excellent time to review your ISA portfolio and consider whether you are making the most of your tax-free savings allowance for growth and income.

JPMorgan Japan Small Cap Growth & Income (LON:JSGI) is a Japan income investing opportunity giving investors access to a diverse and fast growing sector managed by local managers. The Investment Trust offers a regular quarterly income without compromising on Japanese growth opportunities, by paying a higher dividend funded part by capital reserves as well as revenue returns.

Fidelity European Trust (LON:FEV) is a European investment trust. It  aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.

Real Estate Credit Investments (LON:RECI) is a regular dividend-paying, closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in Western Europe, focusing primarily on the United Kingdom, France and Germany.

BlackRock Sustainable American Income Trust (LON:BRSA) aims to provide an attractive level of income return together with capital appreciation over the long term, in a manner consistent with the principles of sustainable investing adopted by the Company.

The Diverse Income Trust (LON:DIVI) invests primarily in quoted or traded UK companies with a wide range of market capitalisations, but a long-term bias toward small and medium sized companies.

Volta Finance (LON:VTA, LON:VTAS) is a closed-ended limited liability company that seeks to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis.

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Fidelity European Trust Factsheet – July volatility, Legrand and Bankinter gains

Continental European equities were volatile in July, with the Trust underperforming the index due to weak stock selection in financials and healthcare. Novo Nordisk and ASML detracted, while Legrand and Bankinter contributed positively. Over 12 months, the Trust’s NAV rose 1.8% and the share price 1.7%, compared with an 11.3% gain for the index.

Diverse Income Trust reports £257.9m net assets with 4.18% yield

Diverse Income Trust reported net assets of £257.9 million as of 31 July 2025, with a NAV of 109.08p per share and a share price of 104.00p, reflecting a 4.66% discount. The trust, managed by Gervais Williams and Martin Turner, delivered a 19.42% one-year share price total return and maintains a historic yield of 4.18%.

Structured products fund Volta Finance reports July NAV of €274.2m, performance up 2.5%

Volta Finance has reported a July net performance of +2.48%, including a dividend of 15.5 cents per share, bringing financial year gains to +13.9%. Net Asset Value stood at €274.2m (€7.49 per share), with strong contributions from CLO equity tranches, which returned +5.2% during the month

European Investment Opportunities – Fidelity’s Quality Focus (LON:FEV)

FEV portfolio manager Marcel Stotzel highlights how quality companies with strong defensive characteristics can help investors navigate uncertainty and achieve long-term growth.

Real Estate Credit Investments delivers £34.5m loan repayments and stable NAV

Real Estate Credit Investments posted a NAV of 143.7p per share as at 31 July 2025, with a diversified portfolio of 22 investments valued at £301.2m. During the month, two senior loans repaid in full, realising gross proceeds of £34.5m at unlevered IRRs of 8.1% and 9.3%

Diverse Income Trust recommends final dividend of 1.35p

Diverse Income Trust plc has proposed a final dividend of 1.35p per share, payable on 28 November 2025, bringing the total annual dividend to 4.50p, up 5.9% from last year.

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