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D

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

The difference between the prices at which you can buy and sell shares and securities. It’s also known as the ‘spread’ or ‘bid-offer spread’.

When you buy and sell shares in investment companies, you may see two prices quoted:

  • the higher price (the 'offer' price) is the price that you can buy the shares for.
  • the lower price (the ‘bid’ price) is the price you can sell the shares for.

The difference between the two is the dealing spread.

If you buy shares, you’ll need the bid price of the shares to rise by more than the dealing spread to make a profit. The dealing spread varies between investment companies. For example, large generalist investment companies may have smaller spreads than more specialist smaller investment companies.

See also share price.

The amount, expressed as a percentage, by which the share price is less than the net asset value per share.

Learn more about discounts and premiums

See premium.

The previous financial year’s annual dividends from a Venture Capital Trust as a percentage of the current share price.

See also dividend yield.

Investing in a wide range of assets to spread risk.

Income from an investment in shares.

Dividends are usually paid twice a year but can also be paid quarterly or monthly. Not all investment companies pay dividends. Dividend income isn’t guaranteed and may fall as well as rise.

The number of years that the current revenue reserves can provide the last full financial year of dividends. Where companies publish retained earnings in place of revenue reserves, we cannot always publish this information. Please be aware that revenue reserves are taken from the company's annual accounts and this may not include the final dividend payment (if applicable), therefore the revenue reserves and dividend cover published may be higher than the actual cover following payment of the final dividend.

In some wrapper schemes dividends are automatically used to buy more shares in the investment company.

Learn more about wrapper schemes

The annual dividends expressed as a percentage of the current share price.

If a company has paid an interim dividend of 2p, and a final dividend of 3p, and the share price is currently £1.25p, the dividend yield would be 4% (2p + 3p = 5p / 125p = 4%).

A dividend yield can give you an indication of the level of income you might get from an investment company share. However, depending on the performance of the company, future dividends may be higher or lower than indicated by the current dividend yield.

The dividend yields published by the AIC don’t include any special dividends paid.
 

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