Where to investment cash in an ISA

AnotherJoe

Sorcerer2018 said:

I invest only in income based Investment Trusts only, many of which have paid an increasing dividend for more than 20 years. City of London over 50 years so far. And whilst i have no idea if this will continue in the future, it's a pretty good track record.

They do that by selling shares in bad years. And holding back dividends in good years.

Just like you could.

The last 5 years for example, if we ignore the recent crash, from which its not (yet?) recovered, CTY has gone nowhere.

83705628

Just guarantee yourself the market rate of return, and the dividend the market pays out, with a good cheap index fund.

83705628

tcallaghan93 said:

Just guarantee yourself the market rate of return, and the dividend the market pays out, with a good cheap index fund.

How is that spam? I seem to have a stalker reporting all my recent posts as spam 

NedS

AnotherJoe said:

Sorcerer2018 said:

I invest only in income based Investment Trusts only, many of which have paid an increasing dividend for more than 20 years. City of London over 50 years so far. And whilst i have no idea if this will continue in the future, it's a pretty good track record.

They do that by selling shares in bad years. And holding back dividends in good years.

Just like you could.

The last 5 years for example, if we ignore the recent crash, from which its not (yet?) recovered, CTY has gone nowhere.

That's fair comment, but in the context of safe withdraw rates of around 3.5%, why would you not want a 5.7% dividend yield from an IT with a 54 year track record who have raised the dividend yield again this year by 2.2% (above inflation increase, even with Covid-19) and have clearly stated their intention to raise the dividend again next financial year. Also, I would rather trust Job Curtis to make the decisions as to when (and how much) to sell shares in the bad years and how much income to hold back in the good years as he has 30 years more experience at making those decisions than me.

If they can maintain this level of payout through the most testing of circumstances they are ever likely to experience (the perfect storm), who cares if the capital growth goes nowhere over the next 10 years? What most retirees want is stable income that will rise with inflation over the long term. That is exactly what CTY has historically provided, at a current rate of 5.7%. I am very interested to see if they can continue over the next few years. I guess this is the ultimate stress test of the sustainability of their approach.

My biggest concern would be that Job Curtis decides this is a good time to hang up his boots with his formidable track record intact. Not sure how old he is but he can't have that many more years before retirement beckons.

schiff

Curtis born in 1961.