British and American Investment Trust (BAF)

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Do you know why the dividend is so high?

It is a highly illiquid stock - between 21 July and today there have been only 7 trades on the LSE.
Share price has collapsed over 5 years by 80% and over 48% over one year.

Is it a rough diamond that nobody knows about? Are there are lots of redeeming features or is there something else that has caused the price to collapse and the shares to be so illiquid?

I think you will find that the team that brings in shares on to the platform will ask various questions especially about liquidity because there will be a lot of issues with buying/selling and order rejection.

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To be fair I’m looking into it as we speak. Its been recommended on a service I subscribe to (Dividend Max) and thought I’d start a process here as I looked into it further

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Good you are going to do some research. High dividends should always be treated with caution - questions should be asked. No free lunches.

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@bitflip you weren’t joking. Those trade numbers are miniscule. Since Feb its failed to even make one trade per day in the stock market


Around 50% of their holdings are in 4 companies, so it’s highly concentrated. there’s little information about their investment policy except one sentence.

The company’s policy is to invest predominantly in investment trusts and other leading UK and US-quoted companies to achieve a balance of income and growth.

I would take some considerable time to investigate this company before even considering investing.