I’ve got £15k spread across a lot of things:
VUKE, BCPT, RIO, ULVR, GSK, NG., SSE, LGEN, PSN, LLOY, DGE, BTA, IUKD, BDEV, SBRY, HSBA, RMG, AV., ADM, POLY, ITV, CSH, MNG
Worst performers are ADM, RMG and SBRY it is also a pity that I bought a lot of stuff the day before the invasion of Ukraine. I was down £1k at some point, but as is said, it is time in market not time the market I’m sure RMG SBRY and ADM will continue to exist and pay dividends, so as long as they are self sustaining, I try not to worry about the loss of capital.
I sent a small amount to it in the small window after the war started and when you could still buy on FT. Nothing big just £200, but enough that if it resums dividends in the future would be 35% of 200 for a long time. Not expecting much in the short term, but will see and if it all goes poof it is only £200.
In the investment trust sector North American Income Trust.
Present dividend about 3.5% Nothing to write home about. Average dividend increase of 9% with excellent dividend cover over 5 years. Covid dividend increase 5% cover 1.18 (118%). Last increase was only 3% with 100% dividend cover. Most US companies are heavily into buybacks during the crash they cancelled them so only one company in the portfolio reduced its dividend out of 40. They also sell covered options which were extremely profitable. They have a dividend reserve of just over one year. The change to a dividend investment trust only happened 10 years ago.
Bought on the expectation that its low (4.1% when i bought) dividend would increase to the extent that it would surpasse other companies that are presently on higher dividend. Still at a discount (5.5%). Share price increase 26% over 5 years, decent for an income Trust.
Dividend investing is a popular method of generating revenue but it isn’t universally popular. During COVID companies that were historically popular with dividend holders such as BP & Shell cut their dividend, it’s a good reminder not to rely on them as a guaranteed source of income.
Here are two links worth reading -
@Freetrade_Team wrote this piece and while some of the % are a little old it should give you a great starting point for further investigation.
The counter point to dividend investing and discussion around them can be found on a thread from @Cameron and might be insightful.
As noted above I don’t believe dividends are relevant to total returns, but if I did have a preference for dividend yield I’d probably go for an ETF like WQDS. The reason for this is it filters for quality as well as yield, which should help avoid stocks paying unaffordable/unsustainable dividends.
A bit more detail on this combination of Yield & Quality here:
One of the key concerns of yield-seeking investors is reductions in dividends. Investors can therefore look for stocks that are high yielding and quality companies, which we define as corporates with high returns-on-equity and low debt-to-equity ratios.
In general if you want to invest in something like a factor it’s probably simplest to invest in that directly via an ETF rather than trying to find individual stock(s) that reflects it. This gets you the exposure you want but without the unsystematic risk of an individual stock.
There are plenty of investment trusts with good consistent dividends, my all time favourite being SAIN (I am a huge baillie gifford fan and I usually stear clear of the highly UK weighted ones like CTY). Might be worth considering and researching what suits you. This is not financial advice though.