Best dividend paying collective investments...?

C_Mababejive

Hi all,

I'm currently looking for collective investment vehicles which are reasonably solid and pay a good dividend.

One of my favorites is CTY but the price is riding a little high for me at the moment. I usually like to try and buy it at sub 390.

Any other good ideas for ITs/ETFs/Funds obviously with low costs. 

tacpot12

Have a look at IUKD (EFT). 

ColdIron

ITs
https://www.theaic.co.uk/income-finder/dividend-heroes

If you want a tracker/ETF you might look at VHYL
https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-high-dividend-yield-ucits-etf-usd-distributing/overview

Linton

Choice of income fund depends on whether you want capital gains as well. A couple of funds that put more emphasis on Yield, both of which are in my income portfolio.  Costs withon reason are not a major factor in my investing.

European Assets Trust (EAT)  which is actually a Europan Small Companies growth fund but managed with the aim of producing a high dividend.  Currently Yield is 8% according to Trustnet. Hiowever long term capital gains are small.

MAN GLG Income. A UK income fund.  Its performance with dividends reinvested is similar to CTY but its Yield is higher at 5.3% and capital growth lower.

adindas

People could track Global ETFs from here. This is just example if people are interested in just high dividend yield.

https://www.justetf.com/uk/how-to/dividend-etfs-world.html

Motley foll also listed a few they consider fund with good dividend.

https://www.fool.com/investing/how-to-invest/index-funds/dividends/

For investment listed in the US stock market they normally labelled with dividend Aristocrat. But IMO for people who are more interested in dividend, rather than growth performance; the best things is to assemble them by ourself stable value companies with good fundamental but provide reasonably good dividends. Typically good dividend is on the expense of growth. They are paying high dividend for a reason. Some companies are still paying dividend even they are making significant loss. What they are doing is just returning part of your own money that they have collected. The one who benefit the most from dividend are the acute traders as just by owning a few days in a year and run they could get dividend like any investors investing in those stocks/ETFs which might be equivalent of the yield produced by savings/treasure bonds.

But there could be still a few gems in the haystack to be found and assembled if people look for it.

LHW99

I have held BERI since 2017, and it has done well in both capital growth and income over that time (dividend 3.36% currently) but charges are high at 1.26%. Its also the case that it has benefitted from the last few years of rises in its investment choices, which may not continue going forward.

I have a number of other funds intended for income, as we will be drawing only natural yield for the next few years. However, I have been building the portfolio slowly since around 2014 to get the overall yield up to around 4%, so have some collectives with higher yield and some with lower / higher capital growth.

adindas

LHW99 said:

I have held BERI since 2017, and it has done well in both capital growth and income over that time (dividend 3.36% currently) but charges are high at 1.26%. Its also the case that it has benefitted from the last few years of rises in its investment choices, which may not continue going forward.

I have a number of other funds intended for income, as we will be drawing only natural yield for the next few years. However, I have been building the portfolio slowly since around 2014 to get the overall yield up to around 4%, so have some collectives with higher yield and some with lower / higher capital growth.

Just rough comparison, It seems to me this one is better.

Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT:SPHD)    DY: 3.89%, ER:0.30%

They are assembled from low volatility S&P500 companies. Companies in S&P500 are already indication that they are quality companies. And because they are assembled from low volatility S&P500 companies, their volatility shall be lower than the S&P 500 volatility.

Prism

Linton said:

Choice of income fund depends on whether you want capital gains as well. A couple of funds that put more emphasis on Yield, both of which are in my income portfolio.  Costs withon reason are not a major factor in my investing.

European Assets Trust (EAT)  which is actually a Europan Small Companies growth fund but managed with the aim of producing a high dividend.  Currently Yield is 8% according to Trustnet. Hiowever long term capital gains are small.

MAN GLG Income. A UK income fund.  Its performance with dividends reinvested is similar to CTY but its Yield is higher at 5.3% and capital growth lower.

I have never really seen the point of dividends from trusts like EAT that sell a fixed portion of NAV to generate the income. There is no stability of income and it isn't based on the dividends that they receive. It also makes it a forced seller which is one of the benefits of a trust to not have to be. Looks like a 30% dividend cut this year. I could do the same myself by selling 2% of the shares per quarter.

It may be a good European smaller companies trust in its own right, but the high dividend from low dividend holdings seems odd.

LHW99

adindas said:

LHW99 said:

I have held BERI since 2017, and it has done well in both capital growth and income over that time (dividend 3.36% currently) but charges are high at 1.26%. Its also the case that it has benefitted from the last few years of rises in its investment choices, which may not continue going forward.

I have a number of other funds intended for income, as we will be drawing only natural yield for the next few years. However, I have been building the portfolio slowly since around 2014 to get the overall yield up to around 4%, so have some collectives with higher yield and some with lower / higher capital growth.

Just rough comparison, It seems to me this one is better.

Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT:SPHD)    DY: 3.89%, ER:0.30%

They are assembled from low volatility S&P500 companies. Companies in S&P500 are already indication that they are quality companies. And because they are assembled from low volatility S&P500 companies, their volatility shall be lower than the S&P 500 volatility.

Possibly, but I have deliberately chosen a reduced (relative to Global) US content for various reasons.

Certainly BERI may not continue to perform in the same way over the next 5 years (and I will review it from time to time) - but then neither necessarily will the S&P500. You have to read what you can and take your own view IMO.