Around £250,000 to achieve £9-£11k per year.
You can work backwards to calculate how much you would need invested as capital to deliver your desired return.
If your target is £10k per annum & you assume a 4% yield as an average dividend across your portfolio, you’d need an initial portfolio value of £250k. (£10k / 0.04).
https://siblisresearch.com/data/ftse-all-total-return-dividend/ Provides quite a useful high level summary to gauge the average FTSE 100 yields over the last 5 years.
This link might help, its a list of companies that have recently cut or suspended their dividends. It wont be exhaustive, but there is a decent amount of information there. Most if not all will resume at some point if you are buying long, but its worth knowing for the short term.
(Of course it helps to post the link!) https://www.reddit.com/r/dividends/comments/fhfgsf/coronavirus_dividend_cut_list/
A lot of work to be done then! Thanks all for the answers and information.
Don’t forget the incumbent of 11 Downing St. will want a chunk of that £10k.
You may add something like: hence the importance of going ISA
how long must you own the stock before the diveden in full is payed
how long. must. you own a stock in your name. before the full dividend is payed
Each dividend paying stock has a date it pays out, and a date you must own it to receive that payment - thats called the ex dividend date.
i.e. IMB last ex dividend date was 7th Feb 2020 and the payout date was 10th Mar 2020. The next ex dividend date is 7th May with the next payout date 10th June.
In theory you can sell the share after the ex dividend date and still receive the payout but I dont know how frequent people do that in real life.
how long must a stock be held in your name,.,. before you claim the full dividend payment
There is no time frame. You have to have hold it on the ex date of a dividend payment. You can just google the ex dates of any stock online or on the company’s investor relation site.
Not sure which one are the best dividend paying stock, personally I like companies which pay dividend quarterly; Imperial Brands and GSK are two of my favourite, commercial property for monthly dividend (not sure whether or not they have suspend it).
Not an investment advice just my two cent!
Also have Imperial Brands and GSK, Halma, Unilever and Rio Tinto.
It’s tempting to go down the UK FTSE 100 dividend payers - HSBA, ULVR, BATS . but look to the states also - AT&T, P&G. JNJ
Also - don’t fall into the trap of ignoirng quality shares like Apple, 3M over cheap n cheerful shares like LLOY and IMB - ‘value traps’ come back to bite, hard ! … and when you come to sell these they’d probably halved in value, unlike the Apples of this world.
Small amendment to your comment…
The Ex-Dividend date is the date that you are no longer eligible for the dividend. You have to hold the stock on the day before the Ex-Dividend date.
Around 2 days after the Ex-Div date is the ‘Record Date’. This is the date the company checks who owned the shares the day before the Ex-Dividend date. The person on the shares register will be the person who holds the shares at market close the day before the Ex-Dividend day.
I guess my advice would be to ignore dividends entirely and just focus on picking good companies.
A company issuing a dividend is functionally the same as you selling part of your holding with 2 downsides: you don’t get to choose when and how much is sold and it may have negative tax implications.
If a company you like does pay a dividend then consider reinvesting it (unless you want to sell) and then sell at your own discretion - rather than being bound by the distributions.
So pick whatever you want and regularly sell shares to gain income as required and don’t assume a dividend is a positive indicator.
On a fundamental level, it seems quite possible that there will be less excess cash available to pay dividends or buybacks, from the likely business slowdowns in coming months and maybe years for some industries
Terry Smith is always worth a read:
Great advice everyone, thank you.
@Jim_mcgrain this would not apply if you’d use an ISA, right?
Yes but bear in mind you can invest a max of £20k / year into the ISA ( current tax rules that can change etc. )