While a good guide, I donāt think theyāre necessarily hard-and-fast rules. I tend to avoid highly cyclical stocks but, for a high-yield portfolio, Iād probably want TW and RIO in there. That said, if I was to go this route, it would be easier ā and arguably better ā to buy investment trusts instead.
The message from @rehpotās summary is: diversify. Tried and tested message .
I read an interesting point somewhere once. If all your stocks are green then you probably havenāt diversified well. Tongue in cheek. But there is a point to that statement.
Diversification is key for a high-yield portfolio but itās often overlooked.
I see so many portfolios crammed with stocks from similar sectors and industries, eg three banks, two insurers and an asset manager ā but what happens when financials nosedive and dividends dry up?
Mine are all red bar a few like money gram etc which are still +20% the S n p is still in green other than that pretty much every other stocks red hehe.
Like I have said on other posts with 100 pounds a month it doesnāt get you far and to actully reach out and buy a few stocks all around the globe I would need more cash or else wait months until I have enough to buy all or buy one stock one month and the others the next but I feels a long wait, so s n p are my go to for now with rio and any change left was random others uk100 etc
IMO Ā£100 a month is a lot of money. In my early stages of investing I would have used it to buy a pooled Fund be it an ETF, Investment trust or a unit trust. Freetrade doesnāt sell Unit trusts. So certainly easy to diversify from the get go if you want to. Few individual stocks is a risky business.
Sounds like most of his money is going on ETFs, eg S&P, FTSE 100, with the loose change going on individual shares, so getting all his Ā£100 working for him!
Yes the majority of my fund is in the rio, uk100, snp500 and all world, then I have admiral, Drax, meggitt, and a few others, with a big loss in MGC Pharma. I fell for the penny stock trap lol
In total I have 22 stocks but many are single buys or some left over free shares with the majority of the cash in 8 shares out of the 22.
If youāre looking to build a portfolio which pays a āmonthly incomeā, selecting only companies which pay monthly dividends is one way to go but there arenāt that many to choose from.
Over time however, if you invest in various companies/investments which pay dividends at different times of the year, you can end up getting income every month - most companies pay out quarterly.
Thanks for reply. I have done some research on this-I invested in 10 companies now and most pay quarterly-however i can still get a monthly small income which is great. I am diversifying my portfolio too which makes it more interesting,
Also answering your question, I hold Balanced Commercial Property Trust Ltd (BCPT) which pays monthly. Share price has been decimated recently, yield is 5.4% but this REIT is currently trading at 48.34% discountā¦