I’ve noticed that when the main indexes FTSE100 S&P 500 are down, bonds / gilts and commodities tend to being doing ok and vice versa. So it’s good to have a slice of these too. I’ve done some research on the Vsnguard US Corp bond and it provides a reasonable return statistically.
Why are you seeking a “dividend paying” one? Most will pay a small dividend anyway, I guess what you actually mean is that you want a “high” dividend paying one.
But do you know why?
For long term investments, you typically wouldn’t care about the dividend yield. You would only care about total returns.
For investing small amounts of money, it is actually disadvantageous to have most of the returns be in dividend form, because even at a high yield you might only be receiving pennies or a handful of pounds - which aren’t enough to reinvest in to another share, so that money just sits as cash, losing you compounding benefits.
An investment trust works in a similar way to a fund (ETF or mutual) there are some differences but I wouldn’t worry about those finder details as they are more technical and don’t impact the investment.
These guys are not on the cheap side in terms of ongoing fees, they are active managers and being listed on London Stock Exchange isn’t cheap. I like to think you get value for money though.
This was the first big dividend paying stock I ever picked up, they are heavily UK focused but spread across multiple industries. They are very well known for never reducing their dividend.
Personally I don’t hold this investment anymore as I go for accumulation units or don’t value a dividend as much.
It depends on the type of ETF.
Your HY corporate bond ETF tracks fixed income securities, where income of underlying = interest payments (the coupon).
A FTSE100 ETF tracks the stocks within the FTSE100, where income of underlying = dividend payments (a share of the company profits)
ETFs usually have 2 versions: Accumulating Income or Distributing Income. The first will reinvest the income described earlier, the latter distributes the income on a regular basis into your account.
Yes, these are treated as dividend payments so at the moment, we’ll send you a message from Intercom with a push notification, that explains where the cash has come from. In the future, you’ll receive a notification from the app & see the payment in your activity feed.