I have started my own similar high income portfolio. I am using DRIP because I am investing in 4x ISA’s (wife, me, 2 x kids), so DRIP seems like the most efficient way to re-invest.

I understand your two rules for the SB Portfolio, I am wondering what your strategy is for selling / re-balancing / top slicing (or what ever the City Wire lot call it !). E.g. say you have £10k invested in a high yielding stock, the capital value goes up to say £13k, at what point would you be selling some capital down ?

Many thanks
RT

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I try to have very roughly the same amount in each position.

A profit is not a profit until it’s banked and it’s not a profit until the underlying Trust is sold because the market can take back all the profit plus extra.

I am guided by one fact, if a Trust yields say ten percent and the price doubles the yield falls to five percent, I would sell and re-invest if I could get a higher yield.

I f when u start to spend your dividends (drawdown), safety of dividends are more important so I might take out the original investment and re-invest into a higher yielder say eight percent and u would be receiving a yield of thirteen percent on your original investment.

Currently dealing costs are low so I would sell some shares if in profit, not including dividends and re-invest. The worst thing that could happen is the Trust’s price continues to go up and u make more money.

Re-investing earned dividends by DRIP, is a great low cost to grow your Snowball as your dividends are re-invested when markets are weak and u get a higher yield on your re-invested cash.