The blog portfolio currently wants to re-invest earned dividends at
a yield of 7% as this compounded doubles your cash in ten years.
U have DYOR and would like to buy NESF for their 11% yield with an above average chance of making a capital gain.
U are nervous about buying anything that yields 11%, so u could pair trade it with buying a gilt.
| Summary for 3 1/4% Treasury 2033 |
KEY INFORMATION
| ISINGB00BMV7TC88TIDMTR33ExchangeLSEPar Value£100Maturity Date31/1/2033Coupons per year2Next coupon date31/7/24 e | Coupon 3.25%Income Yield 3.43%Gross redemption yield3.92%Accrued interest 33.04pDirty Price£95.31 |
If u hold until 31/01/3033 u will be returned your stake and if
u do the yield will 3.43%.
U will be paid a coupon (3.92% interest) twice a year
10k to invest
5k in a Gilt £196.50
5k NESF £550.00
Total £746.50 = yield £7.46%
Whilst your capital in the gilt is only guaranteed to be returned if u hold to maturity, the income can be re-invested in your portfolio.
Also if/when the next market crash happens u might want to sell your gilt to invest in a Dividend Hero Trust.
But as always best to DYOR.
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