investments trust for income

Audaxer

NedS wrote: »

I was looking at something like CTY (City of London IT) who have raised their dividend for the last 51 or 52 years and have yielded a 5% forward yield on the last purchase I made a year ago plus an 11% capital gain.

You must have bought it at a good time when the price had dropped a year ago. I bought some CTY two and a half years ago, and the price now is lower than when I bought it. However I still think it is a good IT if looking for regular and rising income.

coastline

Opinion seems to be split on income investing as some stocks offer a high yield for a reason which could be a recent lack of growth. The FTSE 100 itself is regularly highlighted about this.
Income can still be steady despite downturns in world markets as shown below and has a reasonable performance comparing inflation.

https://seekingalpha.com/article/439171-has-dividend-growth-kept-up-with-inflation

The FTSE didn't do badly in the 2008-10 financial crash.

https://www.linkassetservices.com/images/uk-div-1.png

https://i.dailymail.co.uk/i/pix/2017/12/22/12/4785A2C800000578-5203341-image-a-9_1513947360472.jpg

A global trust which doesn't get much of a mention on here but might be worth a look.?

https://www2.trustnet.com/Tools/Charting.aspx?typeCode=NM990100,FITJMO

Thrugelmir

coastline wrote: »

Opinion seems to be split on income investing as some stocks offer a high yield for a reason which could be a recent lack of growth.

A number of the major payers declare dividends in either $ or €. Dividends have remained flat for a number of years. The increase in sterling terms is due to the falling exchange rate.

The S&P 500 taken as a whole. Reported flat profit growth year on year (to the 30th September). Lack of growth isn't purely a UK issue.

MichelleN

I am considering City of London (CTY), Merchants (MRCH) or Troy Income & Growth (TIGT) as part of my portfolio but am finding it difficult to choose between them. They all pay a decent regular dividend 4.6, 5.2 and 3.3 respectively and the top 10 funds are all of a similar nature ie. large cap high yield companies. The charges are higher for TIGT at 0.91% whereas MRCH is 0.59% and CTY just 0.39%.

If anybody more experienced than me can point out if there are any major differences between the three it would be appreciated.

StellaN

MichelleN wrote: »

I am considering City of London (CTY), Merchants (MRCH) or Troy Income & Growth (TIGT) as part of my portfolio but am finding it difficult to choose between them. They all pay a decent regular dividend 4.6, 5.2 and 3.3 respectively and the top 10 funds are all of a similar nature ie. large cap high yield companies. The charges are higher for TIGT at 0.91% whereas MRCH is 0.59% and CTY just 0.39%.

If anybody more experienced than me can point out if there are any major differences between the three it would be appreciated.

Merchants is slghtly higher risk than CTY or TIGT.

Linton

Merchants is 27% financial services, TIGT and CTY are 21%./ I start getting wary once any single sector exceeds 20%, especially finance. CTY is the most broadly balanced in its investments.


According to Trustnet, over the past 10 years the performances with income reinvested has been:
TIGT:172.4%
MRCH:165.4%
CTY:165.2%

which are in reverse order to what one might expect from the charges. This could suggest that charges are not the over-riding factor that some people take them to be.


There is no killer statistic, so you just make your choice.

NedS

Audaxer wrote: »

You must have bought it at a good time when the price had dropped a year ago. I bought some CTY two and a half years ago, and the price now is lower than when I bought it. However I still think it is a good IT if looking for regular and rising income.

Yes, I bought on 2/1/2019 at 375p. I monitor the yield and look to buy or top up my holding when it reaches a certain level and likewise look to sell or reduce my holding when the yield drops below a certain level. For example, during this year I sold at end of July at 430.55p and bought back two weeks later at 397.95p.

I guess I am trading/timing the market, but for me it's adding value. I missed similar opportunities at the end of April and may have just missed a similar opportunity now (I thought about selling on Monday opening) so don't always get it right, but I'm happy to sit on the shares in the knowledge I'll be getting my dividend and more opportunities will arise to take advantage of share price movements. At last weeks high I'd seen a 26% overall return on the year, of which ~11% was growth in share price, and ~5% dividend yield, meaning my trade in July added around another 10% to my annual returns.

ArchBair

MichelleN wrote: »

I am considering City of London (CTY), Merchants (MRCH) or Troy Income & Growth (TIGT) as part of my portfolio but am finding it difficult to choose between them. They all pay a decent regular dividend 4.6, 5.2 and 3.3 respectively and the top 10 funds are all of a similar nature ie. large cap high yield companies. The charges are higher for TIGT at 0.91% whereas MRCH is 0.59% and CTY just 0.39%.

If anybody more experienced than me can point out if there are any major differences between the three it would be appreciated.

I hold MRCH and my wife holds TIGT in our SIPPS but personally I don’t think there is anything particular to choose between them, they are all well run/good IT’s.

MichelleN

Linton wrote: »

Merchants is 27% financial services, TIGT and CTY are 21%./ I start getting wary once any single sector exceeds 20%, especially finance. CTY is the most broadly balanced in its investments.


According to Trustnet, over the past 10 years the performances with income reinvested has been:
TIGT:172.4%
MRCH:165.4%
CTY:165.2%

which are in reverse order to what one might expect from the charges. This could suggest that charges are not the over-riding factor that some people take them to be.

There is no killer statistic, so you just make your choice.

Thanks for that and I agree that CTY seems to be the most broadly balanced in its portfolio of investments.
I'm not too sure on whether to invest now or wait until after the general election. If the Tories win and can deliver Brexit in theory UK equity funds should spike in price, however if there's a hung parliament (or even a Labour government) and more Brexit dithering then share prices will almost certainly drop.

Linton

MichelleN wrote: »

Thanks for that and I agree that CTY seems to be the most broadly balanced in its portfolio of investments.
I'm not too sure on whether to invest now or wait until after the general election. If the Tories win and can deliver Brexit in theory UK equity funds should spike in price, however if there's a hung parliament (or even a Labour government) and more Brexit dithering then share prices will almost certainly drop.

I would question your forecast as the £ is low because markets hate uncertainty and so equities, at least the big ones that are priced on a global market, are high in £ terms. A Tory win and quick BREXIT would remove uncertainty causing the £ to rise against other currencies, resulting in global company equities to fall in £ terms.


As UK investors we really would do better with a hung parliament.


Sadly we never know what the future will bring so on average it is best not to wait as equities broadly rise in price over time and the longer the time for which you are invested the higher your return.