Highlights

• TwentyFour Select Monthly Income Fund paid eleven monthly interims of 0.50p between November 2025 and September 2026.

• A final Dividend of 0.92p went ex on 15 October 2026, bringing the ordinary total to 6.42p per share.

• An extra 0.25p in April 2026 lifts the total to 6.67p, or about 8.2% on the latest price.

• The October final was lower than the 1.30p final paid a year earlier, so the income pattern has softened.

Monthly paycheques are rare in investing, and TwentyFour Select Monthly Income Fund (LSE:SMIF) is built around them. Its habit is a flat 0.50p each month, topped up by a larger final in October. This year that final shrank, and the numbers tell a more mixed story than the tidy rhythm suggests.

Month by month

Ex-dividend dates fell on or around the third Thursday of each month. Eleven interim payments of 0.50p went ex from 20 November 2025 to 17 September 2026. April 2026 added an extra 0.25p, paid in May. The final of 0.92p went ex on 15 October 2026 and was paid on 30 October. For holders of LSE:SMIF, the monthly cash is the main feature.

Yield workings

Ordinary payments add up to 6.42p. On a mid-price of 81.65p, that is a Yield of 7.86%. Adding the 0.25p extra gives 6.67p and 8.17%. The monthly run-rate alone, 0.50p times twelve, equates to 6.0p or 7.35%. The price is an indicative midpoint, so a current quote is needed for a precise figure.

A smaller final

The final of 0.92p compares with 1.30p a year earlier, a fall of about 29%. Monthly interims did not change, which suggests the board protected the base payment and trimmed the variable part. For income investors, the stable monthly amount is the more dependable part of the total.

How a monthly payer works

Paying monthly means the fund must collect interest from its holdings in a steady stream and distribute it at the same pace. The fund holds a spread of corporate and financial bonds, which pay interest at various dates. A board may choose to set the monthly amount low and pay the remainder as a final, so that the regular payment is easier to sustain.

Risks to weigh

The fund holds Credit instruments, so defaults or spread widening can erode both income and share price. Dividends are not assured, and the price quote carried a spread of 0.30p. Investors should check the fund's own reports for dividend cover.

Putting 6.67p in context

A holder at 81.65p received 0.50p in each of eleven months, an extra 0.25p in April and 0.92p in October, equal to 8.17% in cash. A reader who counts only the monthly 0.50p would see 7.35%, while one who adds the final would see 7.86%. The difference shows why it matters to be clear which payments are included.

Monthly income and planning

A regular monthly amount helps investors who want to match income with monthly costs. It can also be reinvested in small steps. The trade-off is that the amounts are small, so dealing costs can take a large share if shares are bought each month. Investors should consider whether a quarterly reinvestment would be more efficient.

Ex-dividend dates explained

The ex-dividend date is the first day on which a buyer of the shares no longer qualifies for the next dividend. Anyone who holds the shares before that date receives the payment, normally a few weeks later. Share prices often fall by about the amount of the dividend on the ex-date, which is why a dividend on its own does not create value. The payment date is when the cash reaches the account.

Dividends are a board decision

A dividend is not a fixed obligation like interest on a loan. The board decides each payment after looking at profit, cash, Debt and future plans, and it can raise, hold, reduce or suspend the amount. A long record of payments is encouraging, but it describes the past. Investors who rely on dividends for income should look at the cash the Business generates as well as the amount it has paid.

Total return and yield

Yield shows only part of what a Shareholder earns. Total return combines dividends with changes in the share price, so a high yield can still produce a loss if the price falls by more than the income received. The reverse is also true: a modest yield with a rising price can deliver a good overall return. Both parts should be reviewed over a period of several years.

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.

What to watch next

The next steps are the continuation of the 0.50p monthly rate and the size of next year's final. Investors in LSE:SMIF should follow credit conditions, the net asset value and the discount or premium. Another smaller final would suggest further softening, while a recovery would support the income pattern.