I feel like it is very difficult to build an income producing stocks with Freetrade.
What I mean by this is i am trying to build a monthly passive income portfolio in my ISA but there are so many things that Freetrade app doesn’t even support for such portfolios.
For instance, there is very little choices of good REIT companies. But when we do have a good REIT company like Realty Income or Warehouse REITS, These are not even available on the ISA. There are so much hurdle just to have certain little features that a lot of other platforms have already but Freetrade do not offer.
When it comes to the new tax year in April I think I will consider moving all my ISA portfolio to HL. I know it is going to cost more investing via HL but remember you get what you pay for. Even the Freetrade PLUS on here - the features are just basic. Nothing extraordinary.
Realty Income alone took ages to be in the platform. A lot of investors on Freetrade missed out on the opportunities a few months ago when the stock was down.
Understand your frustration because I’d like to add such REITs to my ISA but perhaps in the meantime, you could consider investing in companies other than REITs for income?
Not investing advice or recommendations but here are some of my investments (and their dividend yields) in my Freetrade ISA which provide me with a ‘monthly’ income:
Jan - GlaxoSmithKline (GSK) - 5.56%
Feb - City of London (CTY) - 5.39%
Mar - HICL Infrastructure (HICL)- 4.71%
Apr - Vanguard FTSE 100 ETF (VUKE) - 3.74%
May - iShares Developed Markets (IWDP) - 3.28%
Jun - HICL Infrastructure (HICL) - 4.71%
Jul - GlaxoSmithKline (GSK) - 5.56%
Aug - Greencoat UK Wind (UKW) - 5.21%
Sep - The Renewables Infrastructure Group (TRIG) - 4.98%
Oct - Vanguard FTSE 100 ETF (VUKE) - 3.74%
Nov - City of London (CTY) - 5.39%
Dec - HICL Infrastructure (HICL) - 4.71%
How does the quarterly dividend gets paid if someone invests in middle of a quarter? Do they pro-rate the dividend payment as per the amount of time invested? OR you miss out the payment for that quarter and eligible from next quarter only? Thanks
I think the frequency of payouts is probably the least significant thing to look at when choosing dividend stocks. Does it really matter if they payout 4 times a year or just twice? It doesn’t make any difference to the total return. If you really need some income every month you can diversify into several stocks that payout at different times of the year. Most of my dividend payers only pay twice a year, but I still get something every month. Some months it’s just a few quid, some months it’s a few hundred
Edit: think I posted this in the wrong thread
I was just reading the reality Income one where they were talking about monthly payouts
Depends what the company does with the money in between. If they just put it in money market vehicles until they distribute it (what I assume), you’d be better of getting the payment earlier and re-investing to profit from better compounding (higher return).
Unfortunately it seems I’m such a small time trader the general account is still sufficient for me, but I can see how it can be frustrating to not have some stocks available if you’re building your portfolio in the ISA. My hope is that by the time I’m getting a significant enough income from dividends all these features will be available in the ISA/ Plus.
Speaking of monthly dividend payers, I thought Pembina Pipeline was one? Does anyone who holds this stock get regular monthly payments from them because I don’t seem to?