European Assets Trust Share Price (EAT)

NAV gradually recovering and the SP is trying its best to follow suit, hope it will continue.

Divi is locked at 5.9pps for the year giving a current yield of 7%. Acceptable but can the sp hold?

Thanks for useful comments guys. Apologies for my paranoia re winding up, just seems to be happening all too regularly now across my portfolio. Agree no reason to suspect it might happen here though, I certainly hope not.

Trotsky. Yes, I'm aware that the d reserves aren't all cash. The fund holds a diverse portfolio of quality companies but with generally low dividends. As such the sustainability of EATs dividend's going to rely on their trading skills otherwise the fund's going to cannibalise itself. They've done a pretty good job up to now

Silvernight, Don't get distributable reserves confused with cash. The distributable reserves have been reinvested into new investments. As at 30 June 2023, EAT had c£12m of cash and c£17m of bank loans. EAT currently generates c£8m of income before costs and pays c£21m in dividends. The annual dividend isn't covered by net income and EAT therefore needs to sell investments to maintain its dividend. The distributable reserves do give EAT the capacity to continue paying dividends but, without investment growth, those distributable reserves are likely to be progressively eroded.