Some great points in this thread. Hereās my two penniesā worthā¦
I like the core-satellite strategy, so I have most of my money in tax-wrapped passive investments and Iām slowly adding a high-yield portfolio as a satellite through a Freetrade basic account.
Why? First, Iād like to learn more about investing; second, I like the idea of having separate pots; and third, I think dividend payers are easier for relative novices like me to get your head around.
As mentioned above, high-yield ETFs are not a bad shout. A word of caution though: some seem to pick stocks in a yield-at-all-costs manner.
Evraz and Plus500 are IUKDās top two holdings, for example. The 15-30% dividend yields may be enticing but theyāre certainly not for the faint-hearted!
If you do go the income route, for me at least, the biggest factors are size of company, yield, dividend cover, dividend growth record, debt levels and sector diversification.
Hi jspen, I donāt think anyone would suggest that you āshouldā do anything when it comes to investing.
You need to do plenty of research to decide what works best for you. There are many free places online where you can get professional information. Seeking Alpha, Investor Place, Market Watch are just three that come to mind. See what they say about Dividend Stocks and mull it over. Read as much as you can. The FT at the weekend is great. Investors Chronicle has good info too. Get books to educate yourself as much as possible on investing.
I love YouTube for an easy and quick way to get information. I have a number of favourite Youtubers who I listen to almost on a daily basis. Alessio Rastani is great.
I highly recommend Kenny Robinson if you want to learn more about Dividend Stocks and investing. Hereās one of his videos: Living off of Dividend Stocks - YouTube
Do a search on YouTube for Dividend Stocks and see what other Youtubers have to say too. Certainly, Kenny has persuaded me that itās time to invest in Dividend Stocks. Also, the FT Money section in last weekendās paper had a column saying Growth Stocks are coming to the end of their cycle and that now is the time to go into Dividend Stocks. Thereās possibility of a global recession within the next 12-18 months, and it is expected to be more hard-hitting than 2008.
Be aware though that the stocks with the highest dividends will be riskier. Lower dividends are not bad to shoot for. It really depends on your risk level but a well diversified portfolio should help balance out your portfolio when we hit another recession.
But before you start throwing money at stocks you need to do your due diligence. And patience is also a key: buy low and sell high. Donāt chase stocks that are rallying.
Iām going to list some of the stocks that Kenny recommends some time soon.
When I started investing I didnāt really take dividends into account when considering what stocks to buy but I have recently been moving over to investing in higher dividend paying stocks. Hereās a couple Iād recommend.
Got you. Id personally like a way of sorting general activity buy type. So buy, sell, income. That type of thing. Canāt think of anything worse than having to go in to each individual share to view the dividend income on recent activity.
This is why, unfortunately, I find myself using a spread sheet to keep track of a lot of things within my FT ISA - dividends, buying, selling. It would be so much better if you could do more things within the app, not least sort your stocks into alphabetical order! To get back to dividends though, the email you get is very helpful where you can see how many shares there were on ex-dividend date and what the dividend per share was. Sadly, the app activity feed shows none of this, nor does it include the dividend within the stock information!
Umm. Not sure this is true. A lot of people on the internet are providing Financial advice - even when they say things like āDYORā etc etc. It is up to you to decide whether to take that advice or not. It is important to understand under what capacity the advice is provided. Specifically be clear whether you are dealing with an entity that is registered to provide the financial services that it says it does. In the UK advice on products can only be offered by FCA regulated firms.
The UK FCA differentiates between āguidanceā and āadviceā. It requires companies to be clear about what services they provide and this has a huge bearing on regulations and protections customers receive. We need to be aware whether we are dealing with (a) regulated firms and (b) whether those firms do explicitly indicate they provide advice. Dealing with regulated forms which legally provide advice (on the internet or otherwise) gives us various consumer protections.
your reputation has been ruined now! Thought you was āthe oneā 