Scottish Mortgage Investment Trust(LSE: SMT) is one of the names that I would associate with passive income. So I was surprised by the discovery of his impressive pedigree.

Probably the most popular investment trust of all, Mortgage Scottish is known for growth. Star Manager James Anderson turned him into a juggernaut focusing on huge rates in names such as TeslaIN Amazon AND Alibababefore he retired. It became very popular during a pandemic boom, but when the tech did not fall out in 2022, the Scottish mortgage paid the price, promoting by 50%.

It is nicely reflected. The price of the shares increased by 17% in one year and almost 60% over two. Although this is still venerable ups, it is encouraging recovery.

I bought it as he began to liven up in 2023 and I never considered it a second income source. I should have been.

The dividend is still climbing

The Scottish mortgage increased the dividend over the following 42 years. It’s amazing. The Council plans to continue this run by raising a 2025 payment by 3.3% from 4.24 pens to 4.38 pens per share.

Over the past 15 years, the payment of shareholders has increased with an average annual complicated rate of 4.51%. The reason why its performance is so low – only 0.43% – is that the price of the shares increased over time.

Someone who has invested 10,000 GBP in July 2010 in 117 guesthouse that participation would have won 8,547 shares. In the first year, they would collect a dividend of 2.26 pens per share worth $ 193. Today’s 4,38p dividend would give them 374 £. In practice, they would have much more, assuming that they would invest each payment in Betwen again to collect more shares.

Solid long -term contractor

On May 22, the Scottish mortgage published the results of the full year, showing the total reimbursement of net asset value of 11.2% per year to March 31, far before the FTSE All World index at 5.5%. Returns from the share price was more modest 6%, due to the expansion of net assets from 4.5%to 9%. The ongoing fees remain low at only 0.31%

Management emphasized the benefits of holding companies exposed to huge structural changes, especially in artificial intelligence (AI) and semiconductors. Trust also spent £ 2 billion on the purchase of shares from March 2024 as part of the battle to close the discount.

Trust remains risky. It has extensive private resources. Northvolt was significant, but he had to be represented when the Swedish battery manufacturer submitted a bankruptcy application in March.

Scottish Mortgage also has a huge participation in SpaceX Elona Musk, who will be a triumph or a source of trouble. The price of Trust shares remains unstable and exposed to swings in moods, especially in terms of growth and technological inventory.

Tempting discount

It’s still a very game. The history of income is a bonus, not the main event. But with the history of tourist dividends since 1983 (this year a CD player has been invented), the income should reproduce the total number of returns over time.

It will not match everyone. Variability is given. But I think that people with a long investment horizon should continue to consider buying. It offers access to some of the most electrifying private and public companies in the world without choosing individual winners. And if the dividend develops, even better. Scottish Mortgage is a passive income star. I have never guessed.