If that cash were invested in an average high-yield share then its annual income would chase £1,200, while it would produce less than £300 if it stayed in a deposit account. The gap of about £900 would mean a shortfall of 5 per cent or so in the amount that the fund is likely to distribute in 2020. Avoiding such a loss is hardly a reason to rush into any old high-yield stock; even so, it would be nice to secure the extra income – and soon.
One way to do so would be via a holding in spirits distributor Stock Spirits (STCK) since the company’s final dividend for 2018-19 is in the share price until the end of January and that alone yields 2.7 per cent. True, that return will also depend on the sterling/euro exchange rate as Stock pays its dividends in euros, which is also its reporting currency.