Investing in dividend paying stocks.

ChesterDog

I hold each year's ten FTSE100 dogs, which are the highest prospective dividend yielders.

But that's just for fun, really, and it's only about two or three percent of my portfolio in total; in fact I regard them as a single investment entity.

Flobberchops

Well done for starting investing early and best of luck with your plans. Sounds like an enviably promising situation. Take good care of your girlfriend, she could prove to be your most valuable investment!

For now, go for funds rather than individual stocks. Also, if your P2P ventures are only getting you 3%, invest in more exciting platforms. 10%+ should be your goal.

enthusiasticsaver

I would agree that funds are less risky than individual stocks and question your investment strategy. Usually younger investors go for growth although of course you can reinvest the dividends but the acc fund will do the same job.

Which funds does your Lloyds e investment invest in and what is the performance and charges like?

Thrugelmir

Malthusian wrote: »

Some years ago I bought a few dividend-paying, cash-generative, blue-chip stocks on the basis that they were very unlikely to go bust or permanently lose value and the reinvested dividend yield would provide a good return over time, especially with no fund management fees to come out. Unfortunately the blue chips I bought included BP and one or two other stinkers and the steady reinvestment of dividends never made up for the capital loss. When the time came to sell the portfolio I just about broke even on the individual shares. Lesson learned.

That's a different scenario to the proven historic facts that reinvesting income makes a material difference over an extended period of time. Paying a dividend makes management more accountable from an outsiders perspective.