2024 Dividend Income

[yieldhog]

This is the SIPP portfolio I started with in 2024.
AEI, BATS, CAML, NCYF, FORT, HFEL, HINT, IMB, IAT, JEGI, JGGI, LGEN, NAIT, PHNX, SHRS, SMIF, VOD, VSL
Keep in mind this is for a SIPP for a 76-year old and it has been in draw down for about 15-years.
The SIPP provides a supplemental income for my wife and me. It will be passed on to my wife when I die. My wife currently has a much longer life expectancy than me and hence it may become a more important income source for her in the years after I am gone. When she dies, the SIPP will pass to our two sons.
The objective of the SIPP is to provide a dividend income in excess of the drawdown amount with any excess being reinvested to improve the income/growth of the fund.
A shorter-term objective is to reduce the number of holdings in the SIPP to make management simpler ahead of the handover to my wife. I would also like to eliminate all single company exposures such as BATS, CAML, FORT, IMB, LGEN, PHNX and VOD. These will be replaced by collective funds such as ITs and ETFs.
To begin with, CAML and FORT will be sold.
VSL is liquidating and hence should provide new money to invest in addition to about 2% of the SIPP that has built up in cash so far this year.
My spreadsheet predicts a dividend yield of around 7.5% for the whole of this year, roughly the same as last year.
For Q1 of 2024 dividends have come in around 20% up on the same period last year but this is probably more a factor of the distribution of dividends rather than a trend for the whole year. However. I do expect to see a small increase in the overall yield for the year.
Any suggestions for how I might move out of some of the high yield single name investments and into collective funds, without losing too much yield, would be welcome.
Y

[BullDog]

I'm thinking of taking some profits off JGGI and LWDB and buy some BRWM. BRWM's just gone ex dividend so a chunky dividend has been missed but it's down nearly to 500p and I exited it around 650p from memory last time. Might be a decent time to buy and rachet up the yield a bit with some BRWM?

[richfool]

Besides the usual suspects like JGGI (which I note you hold) and MYI, an IT you could look at switching some funds into for income is: IVPG. (Invesco Perpetual Global Growth & Equity Portfolio). When the revamp has completed IVPG will be targetting a dividend yield minimum of 4.00%. Its holdings currently avoid the "Magnificent Seven".

I recently took some profits by selling MATE (the holdings of which mirror JGGI, - so in effect top slicing and reducing exposure to the holdings within JGGI), and I also reduced SAIN (poor performance of late). The proceeds I then split between: IVPG (new holding) and top ups of BERI (Blackrock energy and resources income) and BUT (global growth).

Of Yieldhog's IT holdings, I am currently well stocked up on JGGI and JEGI and hold NCYF.

Shires (SHRS) is also a thought, offering a yield of c 6.5%.

Summary of IVPG action: viewtopic.php?p=653257#p653257

[yieldhog]

Might be a decent time to buy and rachet up the yield a bit with some BRWM?

Besides the usual suspects like JGGI (which I note you hold) and MYI, an IT you could look at switching some funds into for income is: IVPG. (Invesco Perpetual Global Growth & Equity Portfolio). When the revamp has completed IVPG will be targetting a dividend yield minimum of 4.00%. Its holdings currently avoid the "Magnificent Seven".

I recently took some profits by selling MATE (the holdings of which mirror JGGI, - so in effect top slicing and reducing exposure to the holdings within JGGI), and I also reduced SAIN (poor performance of late). The proceeds I then split between: IVPG (new holding) and top ups of BERI (Blackrock energy and resources income) and BUT (global growth).

Of Yieldhog's IT holdings, I am currently well stocked up on JGGI and JEGI and hold NCYF.

Shires (SHRS) is also a thought, offering a yield of c 6.5%.

Summary of IVPG action: viewtopic.php?p=653257#p653257

Thank you both. All good feedback.

I did recently buy back some BRWM for my wife's ISA after taking some excellent profits from both BRWM and BERI when they reached record highs. They now look a good buy with decent yield and growth prospects. I usually try to keep at least 20% of my portfolios in natural resource shares but that has slipped recently although I have added a few single company shares like CAML and YCA. However, this type of cherry picking is too time consuming and I will probably abandon the attempt.

IVPG and BUT sound interesting and I will take a closer look at them.

Y

[tacpot12]

I've been pleased with my investment in the iShares UK Dividend ETF (IUKD). While not an IT, and hence the income is slightly more volatile, it has low charges and the average yield over the last five years has been 5.8%.

I hold mostly ITs in my retirement portfolio. I've retired and am drawing down on my pension.

[ukmtk]

tacpot12 wrote:
I've been pleased with my investment in the iShares UK Dividend ETF (IUKD)

I too enjoy the IUKD income.
I just don't like the fact that I paid an average of £8.92 for my large holding.

Also hold: AEI, HFEL, HHI (from HDIV), VHYL + VUKE.
Some property (API/RGL!) + corporate bonds.

[ukmtk]

I have discovered that IUKD actually changed how they choose components of the fund.
It is no longer the top 50 dividend payers in the FTSE 350.

Unfortunately the iShares (ultimately BlackRock) IUKD page references a non-extistent RNS (too old).

I tried to reach out to various people (including Larry Fink!) - all to no avail.

I have since opened a formal complaint requesting the RNS to be added to the IUKD page.