Need dividend paying investments

TCA

You're probably getting about 3% annually on your FTSE All Share holding. The City of London Investment Trust pays about 3.7% per annum in quarterly instalments, so on your £10k, that's about £90 odds every 3 months. Is that what you're after?

jimjames

melbury wrote: »

UK FTSE All-Share fund.

You'll get more income from a different tracker that has much lower charges than Virgin as they're one of the most expensive at 1% pa.

Glen_Clark

melbury wrote: »

What is the best way of going about buying shares in an investment trust?

I think the cheapest way is to open an online account with https://www.x-o.co.uk buy them for £5.95 then, if you feel you must, transfer them out into paper certificates for £18. (I thought I was the last one to buy paper certificates on this forum)
I bought Investment Trusts when the discount was wider, and have done well out of them. But since the discount has narrowed I have bought Exchange Traded Funds, because dealing spreads are lower, there is no stamp duty to pay, and annual charges are as low as 0.07% e.g. - although you cannot hold Exchange Traded Funds yourself in paper certificates. Avoiding such costs is one of the ways they keep their charges so low.

jimjames

melbury wrote: »

No I only have £10K in the Virgin index tracker fund. I do have others - some individual companies and some other funds - not mega I hasten to add.

Many investment trusts have their own savings schemes which generally are the lowest cost way to buy their shares outside of an ISA. For many the only buying cost is 0.5% stamp duty with no holding fee and only £10 to sell so for long term holding you won't get cheaper. It does mean dividend reinvestment is very cheap too. They don't provide certificates but that's never been an issue for me.

There is an index tracking investment trust, Aberdeen UK tracker which is probably one of the cheapest ways to invest in a tracker and way cheaper than Virgin. Aberdeen also have some income trusts which may be closer to what you're after too.

http://www.invtrusts.co.uk/

JohnRo

wrt investment trusts,

if you want to focus on a growing sustainable dividend, one suggestion as a single share solution is a multi asset IT like LSLI that acts as a pseudo, UK weighted, multi asset global tracker.

Current annual yield ~3.65% paid quarterly, just a suggestion.

Glen_Clark

jimjames wrote: »

Many investment trusts have their own savings schemes which generally are the lowest cost way to buy their shares outside of an ISA. For many the only buying cost is 0.5% stamp duty with no holding fee and only £10 to sell so for long term holding you won't get cheaper. It does mean dividend reinvestment is very cheap too. They don't provide certificates but that's never been an issue for me.

There is an index tracking investment trust, Aberdeen UK tracker which is probably one of the cheapest ways to invest in a tracker and way cheaper than Virgin. Aberdeen also have some income trusts which may be closer to what you're after too.

http://www.invtrusts.co.uk/

Some used to do that, effectively subsidising the administration of the savings scheme from the rest of the fund. But since they have been under pressure to reduce their hidden charges, they have started charging for running the scheme. This is what encouraged me to buy Foreign & Colonial, which has done very well because the discount has been reduced.

melbury

Glen_Clark wrote: »

I think the cheapest way is to open an online account with https://www.x-o.co.uk buy them for £5.95 then, if you feel you must, transfer them out into paper certificates for £18. (I thought I was the last one to buy paper certificates on this forum)
I bought Investment Trusts when the discount was wider, and have done well out of them. But since the discount has narrowed I have bought Exchange Traded Funds, because dealing spreads are lower, there is no stamp duty to pay, and annual charges are as low as 0.07% e.g. - although you cannot hold Exchange Traded Funds yourself in paper certificates. Avoiding such costs is one of the ways they keep their charges so low.

Thank you for the information. I know people think it is very old fashioned to want paper certificates, but I just like to have them:(

If I open an online account with the above company is it just the one off cost of £5.95 + £18 for the certificate - no charge for keeping the account open or anything?

Must admit I have never heard of Exchange Traded funds so haven't a clue what they are:o

As I said, I am really hoping to get something that pays a dividend to help income a little bit.

Glen_Clark

melbury wrote: »

If I open an online account with the above company is it just the one off cost of £5.95 + £18 for the certificate - no charge for keeping the account open or anything?

Yes thats right.

Exchange Traded Funds are just funds that are traded on the stock exchange just like shares. They have become very popular because of their very low charges. It has been revealed that Warren Buffet recommended in his will that his wife invest her inheritance in this one, which is my largest holding : http://funds.ft.com/uk/Tearsheet/Summary?s=VUSA:LSE:GBP

bowlhead99

melbury wrote: »

Thank you for the information. I know people think it is very old fashioned to want paper certificates, but I just like to have them:(

If I open an online account with the above company is it just the one off cost of £5.95 + £18 for the certificate - no charge for keeping the account open or anything?

You might remember a conversation last summer about your desire for paper shares and how x-o.co.uk would charge £5.95 per electronic trade with no ongoing fees (although obtaining a certificate cost £15 rather than £18 back in those days).

If not, posts 2430 to 2436 of this thread (https://forums.moneysavingexpert.com/discussion/comment/66107049#Comment_66107049) may jog your memory.

The discussion started with you saying "I know I have asked this question before, but ..."

And ended with you almost implying you might give up on worrying about paper certificates.

jimjames

Investment trust saving schemes don't provide certificates but do send holdings details every 6 months which may suit your needs