IanTHughes wrote:
Can I ask you, are you currently living of your dividends?
The reason I ask is that if I were retired and spending my dividends, I would most likely be more cautious. I mean if the "Retirement Income" including HYP dividends is sufficient for one's needs, why rock the boat?
What I am getting at is that while I am still adding, quite substantially, to my HYP each year, and of course not yet dependent on the dividends for my income, I can be a bit more aggressive in my search for increasing income. If things go awry I still have some years and more funds to help put things right.
Hi Ian,
No, I'm still working and adding capital and accrued dividends to my HYP (Investment Trusts and individual shares..), so not too different to you in that regard, and I'm especially aligned with your view of simply 'flicking the switch' when the time comes, and just taking the dividends as part of my retirement income, rather than think at all about an overall switch in the strategy itself at that time..
I think the HYP idea is wonderful in this specific aspect, as we can
'get used to the idea' as we grow the HYP, and there's no more worrying about a potentially different strategy not '
suiting us' later down the road...We've seen the dividends go 'somewhere' for a number of years at that point, growing as they tend to do, and all we're going to do then is simply pivot the valve so that it flows somewhere near to our pockets....
I think, following recent posts and also some of the ones between yourself and Dod, that the difference between us is really down to the level of aggressiveness in pursuing these high-yields, and not much more.
I'm not overly fussed about chasing additional 7% yields in this market too much, although if I were in your position with SGRO
and if it were overweight in my HYP,
and I'd 'found' a new 7% yield that I was happy with in terms of the underlying company (a lot of '
if's's, I'll grant you...) then I might well have considered selling some SGRO and balancing out
some of that capital into the 7% yielding share, but it
would be a balancing out, and I'd personally be wary of committing large amounts of capital to that high a yield with a full new purchase, even though I should say that some of my current long-term holdings are in that yield-territory at the moment.
If I tell you, having just checked my HYP spreadsheet, that the whole portfolio forward yield is expected to be around the 4.3% mark, then this might well explain to you why our position might differ.
Do you have a portfolio-level figure of your own yield, either current or forecast?
Cheers,
Itsallaguess