Tracks the performance of an index composed of UK companies to the higher yielding sub-set of the FTSE 350 Index. Income will be distributed as cash.
I wonder if it’s a good time to buy into this fund at £6.72
Is this worth having or is the return too low?
3.91% Div yield is pretty solid considering external factors and even better when comparing to interest rates right now
Yes, but it’s also down roughly 50% since inception. From the top of my head I can’t think of any index performing worse. Seems like just holding cash might have given you a better return than investing in this ETF.
Yeah, the returns are marked as ‘below average’ to ‘low’ over 3-10 years by MorningStar, which nets them a mighty 1 star out of 5 for the ratings.
I think it would probably be better to invest elsewhere for returns, and perhaps even dividends to be honest.
Is there a better dividend ETF? I’ve been considering closing my position on this one for a while.
Easy, all others on the app seem to have better performance
Personally, I’d prefer dividend aristocrats over just high dividend etfs because that’s focussed on companies paying steadily increasing dividends over decades. So it’s sort of a mix between growth and dividend approach.
I see they’re behind the plus pay wall, but I’ll definitely consider them, cheers.
Would you say it’s better than CTY or about the same?
I wouldn’t want to give direct investment advice like this. They are different vehicles as well. CTY is a fund - actively managed, higher fees - while IUKD is an ETF - passive, lower fees.
CTY has a much better performance historically at least.
Supposedly performed better than aristocrat and this ETF but only just.
How long have you held this one for?
Not long at all, a while was a massive exaggeration lol
Hmm ok so I guess you didn’t hold it long enough to get any dividends. I’m really tempted on buying into this ETF as the yield is not too bad, higher than many other a I’ve seen. Just curious on why you decided to sell it
If you’re going for yield you may want to read this beforehand: Is dividend investing a good strategy? - Occam Investing
Very good article, thank you! I’m new to investing so I didn’t know that the dividend is deducted from the share price. What’s the point buying stocks that pay dividends then
I am new myself so this is only what I have gathered from my reading;
I would think they’re excellent for when you’re older and approaching retirement, when there’s not that much time for growth. You want to enjoy some income to supplement your pension without selling off your holdings. This way, you get a regular payment to keep you going and if you need a lump sum can then, sell as needed.
That’s how I’m thinking in fairly general terms anyway.
Thanks for that article. It was very interesting and informative. I’m very much a newbie to investing and thought the drop in share price after the dividend was paid was due to people holding on for the dividend, then selling their shares. It’s given me something to think about!
One thing i dont understand reading that article.
The powerpoint picture shows that 1000 shares worth £9 = £900 (with your cash dividend of £100 now in the bank) and 1000 shares at £10 = £1000.
Yes that means both the yield paying and non paying stocks still = the same.
However. After taking the £100 dividend payment, you still own all 100 shares in that company, so after taking the money, if the price rises back to its original £10 price.
The money paid in dividend was in fact a bonus right?
Sorry if what im saying is stupid, im trying to get my head around it.
Dividend is paid, stock price lowers to reflect what i have been paid, BUT… I still own all my shares yes? Or do i physically loose some shares too?