Income Portfolio: is it feasible?

Norderney

You could put together a portfolio of Investment Trusts choosing ones which yield 4%-5%.
A number of investment trusts have increased their dividends every year for 30 plus years. City Of London investment trust yields about 4% and has increased their dividend for the past 49 years. Of course you cannot predict the future but another advantage of investment trusts is the ability to build up a reserve fund, which they can use to boost the dividend in lean years.

If you don't have much experience with shares investment trusts are ideal to get started with.

Some of my favourite investment trusts are
City Of London
Perpetual Income & Growth

Scottish American Investment Company - Global income

Schroders Oriental Income - Asia
Henderson Far East Income - Asia

i also quite like the CF Woodford Equity Income fund which is a fund and not an investment trust.

Thrugelmir

Investment trusts can only increase their dividends if the companies they invest in do likewise. Not wise to assume anything at the current time.

Norderney

Very true. Nothing is guaranteed with equity investments. But I would think some of the more established equity income investment trusts such as City Of London/Scottish American are likely to be able to continue increasing their dividend or at the least maintain it. I would think (hope!!!) that their investment managers are keeping a close eye on the dividend cover on the companies in which they are invested.

kidmugsy

Max_Antax wrote: »

I would make a habit of monitoring my investment though: possibly even every day and make adjustments as necessary.

I suppose the best thing is to invest ...and see how it goes and whether I have the knack for it. If I go to -20%, then it’s not for me!

(i) Monitoring every six months is more like it. If you fidget about you just run up your costs responding to "noise" from the prices.

(ii) You don't have the knack - almost nobody does. I suggest you read the monevator blog to see the case for "passive investment". You could also visit The Motley Fool, and on its forums find the writings of "Luniversal", whose interest is generating a yield from his portfolio while letting its capital value fluctuate as it may.

(iii) A 20% loss on equities is rather ordinary. You have to be able to hold on for recovery else you'll find yourself buying dear and selling cheap.