As A Dividend Investor

Freetrade Chat 🔥
1

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.

Its frustrating!

3 Likes
3

I’m on the fence. I agree with your points, but I also see we’re all comparing a company only a few years old to companies all over a decade old (decades in some cases).

I believe at the moment RIETS are the only ISA eligible item not available in ISAs? I know they’re aware as plenty of people have brought it up before. I believe this was the last update on it

At the moment i just use other platforms for securities not on Freetrade. Not perfect, but there are a few types Freetrade still need to work into their system (nationality declaration being another)

They will get it sorted out, I guess its just a case of when. Being so young there seems to be a tonne of things still to do.

3 Likes
4

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%

6 Likes
5

Is GSK still a quarterly dividend payer @weenie? It used to be when I held the stock up until a year or so ago.

6

Yes, it is @Jim_mcgrain - I could have put all 4 payments in my example above but I wanted to show some other investments available on the platform.

In fact, I think all of the ones I’ve listed pay out quarterly.

1 Like
7

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

8

Same as a US stock, just whether you bought it before or after the ex dividend date?

9

You will get paid a dividend if you purchase (or hold) a stock before its ex-dividend date.

If you bought after the ex-dividend date, you will be eligible for the next quarterly dividend.

2 Likes
10

I quite like Legal and General LGEN - forward div yield is over 7% and that’s even after the share price going up a fair bit this month.

11

LGEN is one of my stocks too but I didn’t include it in my example as I was in a rush! :slight_smile:

Similarly, Standard Life Aberdeen (8.07%) and at the extreme, BP (currently yielding an eye-watering 13.3%).

1 Like
12

For BP that’s the yield before the dividend cut (which is not likely to be reversed), the forward yield is around 6-7%. Although that is still pretty high

2 Likes
13

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 :smiley:
I was just reading the reality Income one where they were talking about monthly payouts

1 Like
14

Monthly payout matters. Simply put I don’t pay my bills quarterly. :wink:

1 Like
15

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).

16

True, but “Earlier” just depends on when you started investing with respect to dividend dates. You could call the larger less frequent dividend earlier if you get one straight away :slight_smile:

17

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?

1 Like
18

This topic was automatically closed 416 days after the last reply. New replies are no longer allowed.