Which would you Guys picks for long Divided investing.
Neither. Just invest in a dividend ETF.
If you’re in for dividend investing then the SPDR dividend ETFs should be of interest.
If it’s for the dividend alone I would back the guys above and say just use the ETF, its far safer over the long term.
All individually have their own long-term risks, but if I had to choose I would go to AT&T - it has the least long term risk of the 3 with fairly stable revenues combined with a plan for the future.
AT&T seems to have good fundamentals, great dividend history and high return annually plus large cash in the bank. Its future direction through acquisitions seems set and should offer good expansion of the brand and 5G likely will give it a boost too. I am about to invest into AT&T myself.
I’ve just invested in AT&T, they seem to be quite stable, and entertainment company acquisitions might give them a bit of a boost in terms of growth
A word of warning about dividend ETFs: the stock selection can be quite arbitrary. For example, some don’t look at much beyond yield. Personally, I wouldn’t be comfortable holding volatile stocks like Evraz and Plus500, which often appear in the top 10 holdings of such funds.
Unless it’s a Dividend Aristocrat ETF which is usually more stable because it’s based on a long history of growing dividends - not flash in the pan companies.
Agreed. There are some honourable exceptions.
Thanks for reply’s I’m going to get some AT&T and leave WPP
Same reason I did. They need to widen their footprint and have the muscle to become an entertainment provider as well as telephony etc., They also dividend well and consistently.
I’m going to stick £300 on AT&T and then build from there each month
I understand recommending ETF’s however when Vanguard High Dividend Yield ETF offers a dividend of 3.12% I wonder why people don’t just create their own from the highest paying major shares.
So something like: HSBC, Shell, BP, Severn Water, Man Group, AT&T, SSE etc., as the long term impact of losing even 1% per annum with compounding interest is huge.
IE £1000 invested every year and compounding at 3.45% = £13,108 after 11 years whereas at 4.45% it is £13,805. You’ve put in £11,000 and in the first example made £2,108 whereas in the second you have increased your return by 33% (£2,108 to £2805). You’ve basically paid some company a quarter of your income to do what you could have done. Obviously if you get higher returns the losses are far more significant.
Just a thought.
yeah tbh you could just look at the ETF’s portfolio and mirror most of the companies there, maybe even exclude some you don’t want to invest in, get the same outcome. My portfolio according to simplywallst is returning a dividend of around 3.4% at the moment. The only dividend ETF’s i invested in is a European companies one, mainly because I can’t invest in those individual companies on Freetrade at the moment
I went with Aviva