Highlights

• TwentyFour Income Fund paid three interim dividends of 2.00p and a final of 4.81p across the trailing twelve months.

• The total of 10.81p per share equates to a Yield of about 10.2% on a mid-price of 105.6p.

• The final dividend of 4.81p was lower than the 5.07p paid in April 2025, a drop of around 5%.

• The latest interim of 2.00p went ex on 22 October 2026 and is payable on 6 November 2026.

A double-digit yield makes people look twice. TwentyFour Income Fund (LSE:TFIF) delivers one on paper, built from a simple repeating pattern of three modest interims and one chunky final. What matters is whether the pattern holds, and the latest final suggests the top end is already moving.

The pattern

Interim dividends of 2.00p went ex on 22 January, 16 July and 22 October 2026. A final of 4.81p went ex on 23 April 2026 and was paid on 29 May. Together these make 10.81p per share across the window from 11 November 2025 to 10 November 2026. There were no special dividends. For holders of LSE:TFIF, the final is the largest single payment of the year.

Yield workings

Dividing 10.81p by a mid-price of 105.6p gives 10.24%. A published figure of 9.95% probably reflects a different price date. The price is an indicative midpoint, so the yield changes whenever the share price moves, and a current quote is needed for a precise result.

The final shifted

April's final of 4.81p was below the 5.07p paid in April 2025. The 2.00p interims were unchanged year on year. The variable part is what moves, so the final is the one to watch. A lower final suggests that the fund's Net Income was a little lower or that the board chose to keep more in reserve.

What the fund holds

The fund invests in asset-backed securities, which are bonds backed by pools of loans such as mortgages and consumer credit. The income comes from the interest paid on those loans. Investors in the securities are paid in a set order, which gives some protection to the higher-ranking tranches, but losses can reach lower-ranking ones when defaults rise.

Risks to weigh

Income and prices of asset-backed securities can be hit by rising defaults or weaker Credit markets. A double-digit yield may signal that the market expects some of that risk. Dividend cover should be checked in the fund's reports, and the board can change the interim rate or the final at any declaration.

Putting 10.81p in context

A holder at 105.6p received 2.00p in January, 4.81p in May, 2.00p in July and 2.00p in November, a total equal to about 10.2% in cash. Because the final is variable, the annual figure can move even when the interims are steady. A fall of 0.26p in the final reduced the annual total by about 2.4%.

Index status

TwentyFour Income Fund is a member of the FTSE 250, which can add to Demand for the shares from index funds. Index membership does not protect the dividend, but it can improve liquidity, which helps when buying or selling.

Reinvesting dividends

Reinvesting dividends buys additional shares and allows later payments to be calculated on a larger holding. Over many years, the compounding effect can add noticeably to the value of an investment. Dealing costs and spreads can reduce the benefit for small amounts, so some investors prefer to reinvest when the cash has built up. Others use a reinvestment scheme offered by a broker or the company.

Tax on dividend income

In the UK, dividends outside an ISA or pension may be subject to tax above the annual dividend allowance, with rates that depend on the investor's income band. Shares held in a tax-advantaged account may shelter the income. Allowances and rates can change from one tax year to the next, so investors should check the current rules and consider their own circumstances.

Inflation and the real value of income

A dividend that stays the same loses buying power when prices rise. If Inflation runs at 3% a year, a payment of 10p is worth about 7.4p in today's money after ten years. Companies that raise their dividends at least in line with inflation help to protect the real value of the income. Investors can compare the growth in the payment with the rate of inflation.

Dividend cover

Dividend cover measures how many times Earnings Per Share exceed the dividend per share. A figure above 1 means earnings are larger than the payment, and a figure below 1 means the company is paying out more than it earned. Cover is a useful guide, but Cash Flow also matters, because dividends are paid in cash, and one-off items can distort earnings in a single year.

How to read a trailing yield

A trailing yield divides the dividends paid over the past twelve months by the current share price. It describes what has happened, not what will happen, and it changes whenever the price moves. A rising yield can reflect a higher dividend or a falling share price, so the reason behind the change matters. Comparing yields across companies is useful only when the same period and the same type of payment are used in each case.

What to watch next

The interim of 2.00p is payable on 6 November 2026. The next milestones are the January interim and the April final. Investors in LSE:TFIF should follow credit conditions, net asset value and the discount or premium. A recovery in the final to above 5p would signal an improvement in income.