Investment Trust Dividends

The current Snowball portfolio

RGL may be trimming their dividend.

LBOW no longer pays a dividend and is a rump position which will be sold when there is news.

PHP 7% yield.

If I was spending my dividends PHP would be a core holding because of their dividend paying history.

Currently the blog is still re-investing to grow the Snowball and as PHP is in profit it may be sold soon and the funds re-invested into a higher yielder.

A reminder of the Snowball rules.

To buy Investment Trusts that pay a dividend, to buy more Investment Trusts that pay a dividend.

Any Trust that changes their dividend policy must be sold even at a loss.

The ten year plan to provide a ‘pension’ of 14-16k on 100k of seed capital and u retain all your capital.

If u could add new funds to your portfolio, the figure will be higher.

Risk/reward

As always it’s best to DYOR and have a portfolio that u are happy with which might mean a lower yield and a longer time scale

1 Comment

  1. Richard Togher

    Hi Anthony,

    Thanks very much for this info.

    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 CityWire 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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