Woodford Equity Income

Thrugelmir

sorcerer wrote: »

With it being a trust, it can also hopefully grow the dividend each year, currently dividend growth is about 1.4% a year.

Much depends on the future direction of exchange rates. What immediately springs to mind is that out of the top holdings HSBC and BP pay their dividends in $ , and Shell in €. Chasing yield for yield's sake isn't a strategy in these uncertain times.

sorcerer

takesyourchances wrote: »

Understand you will have your reasons and you don't believe in the fund manager any more. I'd like to see Woodfords fund in 5 plus years from now and how he has positioned it for ahead, personally as I said I am holding for my reasons above, but I do have a spread and will keep Woodford as part of it.

If you don't mind me asking how much do you have invested in Woodfords?

If your after steady yield and away from Woodfords, would infrastructure even be an alternative or even a spread of P2P could return higher than the income from Merchants Trust if it's income your focus is for this.

I also hold City of London and have also been investing monthly into this. Interesting reading this as well from other replies

I have about £7500 in Woodford and £4000 in City of London, I also hold HICL and P2P Global Investments for alternative income.

economic

Thrugelmir wrote: »

Much depends on the future direction of exchange rates. What immediately springs to mind is that out of the top holdings HSBC and BP pay their dividends in $ , and Shell in €. Chasing yield for yield's sake isn't a strategy in these uncertain times.

Whenever have things been certain???

sorcerer

Thrugelmir wrote: »

Much depends on the future direction of exchange rates. What immediately springs to mind is that out of the top holdings HSBC and BP pay their dividends in $ , and Shell in €. Chasing yield for yield's sake isn't a strategy in these uncertain times.

I agree, I remember when I first started out, I bought something that had a yield of 8%, only after a couple of years this dropped to 5%, and as a price dropped in value too. So I aim between 4-6% , but I average around 5% at the moment. I have some below 4% such as woodford, cty and Saints. But I bought all of these when they paid above 4%.

bostonerimus

sorcerer wrote: »

I agree, I remember when I first started out, I bought something that had a yield of 8%, only after a couple of years this dropped to 5%, and as a price dropped in value too. So I aim between 4-6% , but I average around 5% at the moment. I have some below 4% such as woodford, cty and Saints. But I bought all of these when they paid above 4%.

Dividends are generally emphasized by people looking to generate retirement income, and even then its an arguable strategy. I would concentrate on capital growth and take any dividends as a nice bonus.

firestone

bostonerimus wrote: »

Dividends are generally emphasized by people looking to generate retirement income, and even then its an arguable strategy. I would concentrate on capital growth and take any dividends as a nice bonus.

Capital growth and reinvesting dividends over the long term can be a nicer bonus

sorcerer

I try to do both my Pensions are focused entirely on Growth stocks, with the view to try grow the money as fast as possible. However my ISA is focused entirely on Income, with the view to live off this money until the Pensions can kick in 10-15 years time.


I realise this is not the "Normal" thing that people do, but it works for me from a psychological point of view. This balance gives me a 50/50 break between high risk investments and low risk investments, and a I wear different hats, so to speak depending if I am investing for my ISA or Pensions.

coyrls

Why do you see growth as high risk and income as low risk? I don’t think there is any correlation if you are measuring total return.

bostonerimus

firestone wrote: »

Capital growth and reinvesting dividends over the long term can be a nicer bonus

Yes, I didn't mean to cash in the dividends......let them compound along with the capital gains.

sorcerer

coyrls wrote: »

Why do you see growth as high risk and income as low risk? I don’t think there is any correlation if you are measuring total return.

Perhaps risk is not the right word, I am referring to volatility , off course any investment has risk. It's a case of how much volatility can my little brain cope with.