kempiejon wrote:
I had a little think about this. A lowering yield isn't a lowering income. As my HYP is a buying strategy if my portfolio of shares showed good growth of income each year, ahead and growing further ahead of inflation over time but better growth of capital such that a decade or so down the line was now of average or even below average yield I don't think I'd be inclined to sell up. But it's an interesting premise to ponder on further. It'd free up a few years of income from capital, would obviously increase the income and if I was lucky (clever?) enough to have selected such good shares previously I might be just as lucky running it again. Except I like the do nothing but spend dividends bit of HYPing.
I think you are wrong about a lowering of yield isn't a lowering of income. This is only true if the income stays the same and the share price increases. In the case of Haleon/GSK it is a real lowering of income, which was indicated before the share split in July 2022.
It is also true if you keep cutters in your portfolio, the real income received is reduced, it is not just a question of yield, although too many 0% yields are never a good look for any HYP.
I have been thinking about this again and the reason I see see things a little differently is probably age. I am retired and fortunately do not have to live on my HYP as I have other sources of income. However, I do take some income from my HYP, most of which is given away. Therefore, the time horizon is fairly short and I am keen on a rising source of income. I haven't got 30 yrs for things to sort themselves out. I would suggest that how exactly you run your HYP depends partly on age and if you are drawing income.