Investment Trust Dividends

What’s your plan ?

If you want to buy a high yielding Trust/Etf but are concerned about the risk, one way of lowering the risk is to pair trade the purchase.

The income yield is 5.42%, the income is paid twice a year, better if held in a tax free account.

It’s likely that over the time period that you could make a capital loss but only if you sell and as you only want the income to re-invest it matters little. If/when interest rates rise above 5.42% you could simply re-invest your income into a money market account. To double your income in ten years the target is re-investing for a blended yield of 7% plus.

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