Dividend investments

MGant

Hiya,
New here.
I want to start investing in dividend stocks.
What's the best way to do it tax-wise?
Should I buy stocks in UK alone or USA, what is better?
Through which platform?

Have tried to search through the forum without luck so thanks for your answers!

Thank you,
M.

Albermarle

It is better to hold all share related investments in a Stocks and Shares ISA, as this shelters the investments from any tax issues.
There is a maximum you can invest in this way of £20K pa.

Alternatively you can invest via a pension, which also shelters the investments from any tax issues, and you can get tax relief depending on your earnings situation and how long you can wait to access the money.

Have tried to search through the forum without luck so thanks for your answers!

There must be thousands of threads on this and the pensions forum, regarding S&S ISA's and pensions and investment platforms. However the search facility is poor and you would be better to just scroll through a few pages.

If you supply some more details about the amounts involved and you ( and why the focus on dividend stocks) you will get more focused answers.

Bravepants

MGant said:

Hiya,
New here.
I want to start investing in dividend stocks.
What's the best way to do it tax-wise?
Should I buy stocks in UK alone or USA, what is better?
Through which platform?

Have tried to search through the forum without luck so thanks for your answers!

Thank you,
M.

Are you looking to take an income from the dividends? If so, you might consider Investment Trusts, which are companies that hold multiple dividend producing shares, property, bonds etc.

Take a look at the Association of Investment Companies website and look at the list of Dividend Heroes:

https://www.theaic.co.uk/income-finder/sign-in

You can hold these in ISAs or pensions/SIPPs.

You are allowed to take £2000 of dividends a year without paying tax, so if you only need £2000 income you can hold in a general investment account. 

MGant

Albermarle said:

It is better to hold all share related investments in a Stocks and Shares ISA, as this shelters the investments from any tax issues.
There is a maximum you can invest in this way of £20K pa.

Alternatively you can invest via a pension, which also shelters the investments from any tax issues, and you can get tax relief depending on your earnings situation and how long you can wait to access the money.

Have tried to search through the forum without luck so thanks for your answers!

There must be thousands of threads on this and the pensions forum, regarding S&S ISA's and pensions and investment platforms. However the search facility is poor and you would be better to just scroll through a few pages.

If you supply some more details about the amounts involved and you ( and why the focus on dividend stocks) you will get more focused answers.

Thank you.
I'm 47 years old, and the amount can be up to the yearly threshold, looking for passive income.
I already have an ISA at Fidelity index funds, I guess I can pick specific stocks there.
alternatively, is there an index fund that focuses on dividends?

eskbanker

MGant said:

alternatively, is there an index fund that focuses on dividends?

https://www.ftserussell.com/products/indices/high-dividend-yield is one global index that's tracked by funds such as Vanguard's VHYL (https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-high-dividend-yield-ucits-etf-usd-distributing/overview ), but there will be others available, search for 'dividend index'....