Dod101 wrote:Charlottesquare wrote:Dod101 wrote:The problem with income producing ITs is that often you just get more HYP shares with the same outcome, or something like HFEL, all dividend and a negative share price growth so you need to be very careful.
Nearly all ITs will produce income, but very often at a much lower yield than a HYP portfolio. I am on the whole happy with that and so I hold Murray International and Murray Income for instance. I like to see a half decent yield but also the potential for some growth in the share price.
Infrastructure ITs or at least those with the same benefits, are good but mostly on premiums to NAV and so the yields can be quite modest. I do not see ITs as a real answer to the dilemma but at least we get wider diversity in the holdings and they have the ability to increase their dividends by distributing some capital in the form of their realised capital gains.
Dod
HFEL is not always negative price movement, my holding is up 4.06% (purchases 23/3/20, 25/3/20, 4/5/21,1/2/22 and 1/3/22) Now appreciate not stellar given 1/2 bought in 2020,1/6th in 2021 and 1/3 in 2022, but given dividends received over the period not woeful)
As always it depends on the timescale and the period we are discussing. I could of course counter what you are claiming (over a different period) but there is no gainsaying that the income sort of makes up for the poor capital showing.
Dod
Even with its yield I have never viewed it as a star performer, that laurel (used to be SMT) currently rest with JPM Growth and Income, yield currently 3% (was higher when I bought) and up 50.51% from March 2020/Nov 2020 purchases. Murray International is neck and neck, maybe actually better, yield over 4%, gain just over 50% (purchases March and May 2020 plus small top up March 2022)
I have found that outlier dividend yields re ITs may do fine but those with div yields nearer 2-4% tend to do a bit better on an I & G basis.