£10,000 to invest In shares for dividend income

Totton

If investment is the chosen way then 10k is imho too small an amount for choosing shares, I only suggest that due to the risk involved as dealing costs etc will probably be a little restrictive for you to gather together a decent portfolio.

One possibility is something like the B7 or B8 portfolios of Investment Trusts as suggested by a poster on the Motley Fool. This isn't a portfolio for me but testing it against a lot of other suggested portfolios does see the B7 do very well comparatively.

You can read the relevant threads over at MF to give some idea and there is also the Investing for Income board over there. A link to some B& posts - http://www.fool.co.uk/search/solr.aspx?q=b7#2 Un-tick 'Articles' and tick 'Discussions' in order to see the threads.

HTH,
Mickey

atush

blinko wrote: »

interesting might they not be better off simply investing in a risk free saving account?

the OP do you have any more info for us?

Maybe because there are no risk free savings accts in that none pay above inflation?

If the OP wants income above inflation, it has to be invested.

I too have a portfolio, half of which includes income paying shares such as UU, Vod, Glaxo et all, but I hold other assets too. In isolation, i'd agree that a few Investment trusts would be more secure investment with lower costs than buying 10 individual shares.

socrates

Interesting thread

alanq

atush wrote: »

Maybe because there are no risk free savings accts in that none pay above inflation?

No longer absolutely true.

A couple pay above the current rate of inflation measured by CPI for limited sums of money when savers are willing to tie up their funds for several years.

Leeds BS: 3% 5-year ISA bond (ISA limits but transfers in allowed)

For people paying low/no tax Skipton BS 3.5% gross 7-year online bond (£10,000 limit)

Non-tax payers also have the option of Leeds BS 3% gross 5-year bond which will accept much larger sums.

cashbackproblems

For yields, im invested in Kames High Yield bond which pays i think 7/8%, Vodapone, Barclays (who are increasing divi next yr), Aviva.

sabretoothtigger

cos wrote: »

Most people in the UK don't pay income tax simply because their income is under the threshold. I'd imagine it's the reason here.

The Queen doesnt pay income tax, it could be the Queen or her butler posting

give me some sound advice

Unit trusts, cheap ones bought regularly. Dont over think it.

FTSE yields 324 from 10k which is fine, trying to get a grand is likely over stretching and will lose more then it gains

atush

alanq wrote: »

No longer absolutely true.

A couple pay above the current rate of inflation measured by CPI for limited sums of money when savers are willing to tie up their funds for several years.

Leeds BS: 3% 5-year ISA bond (ISA limits but transfers in allowed)

For people paying low/no tax Skipton BS 3.5% gross 7-year online bond (£10,000 limit)

Non-tax payers also have the option of Leeds BS 3% gross 5-year bond which will accept much larger sums.

So 2/3 accts out of 850 pay above CURRENT inflation, but none pay out in one year or less.

So useless to beat inflation which could be anything in the timeframe of 5-7 yr accounts.


I think my comment stands.

grey_gym_sock

sabretoothtigger wrote: »

The Queen doesnt pay income tax

she has done since 1993. (though she pays "voluntarily", which isn't quite like other tax payers.)