My income portfolio

[tjh290633]

Strong sterling impacts March distributions

Jan-22	7.7945	4.4536
Feb-22	7.6415	4.3473
Mar-22	8.2402	4.6367
Apr-22	8.5496	4.7892
May-22	8.1831	4.5437
Jun-22	8.3380	4.6186
Jul-22	8.4397	4.6685
Aug-22	8.4724	4.6339
Sep-22	7.9252	4.3058
Oct-22	7.9618	4.3215
Nov-22	8.3345	4.5138
Dec-22	8.3048	4.4882
Jan-23	8.0193	4.3272
Feb-23	8.1115	4.3616
Mar-23	7.7138	4.099

What do the columns. Indicate?

TJH

[AJC5001]

Strong sterling impacts March distributions

Jan-22	7.7945	4.4536
Feb-22	7.6415	4.3473
Mar-22	8.2402	4.6367
Apr-22	8.5496	4.7892
May-22	8.1831	4.5437
Jun-22	8.3380	4.6186
Jul-22	8.4397	4.6685
Aug-22	8.4724	4.6339
Sep-22	7.9252	4.3058
Oct-22	7.9618	4.3215
Nov-22	8.3345	4.5138
Dec-22	8.3048	4.4882
Jan-23	8.0193	4.3272
Feb-23	8.1115	4.3616
Mar-23	7.7138	4.099

What do the columns. Indicate?

TJH

Based on previous post in thread viewtopic.php?p=579752#p579752 it's Trailing 12 month dividends and the columns are
Year to Acc Inc

Adrian

[Dod101]

I am up (just!) in each of the first three months of this year so my income is looking OK for he moment, although of course against 10% inflation it is quite dismal. These are ‘thin’ months for me anyway so are not a very good guide.

Dod

[yieldhog]

Like you dod101, dividends are slightly ahead (+3.2%) in the first quarter compared to last year. April and May look okay but June/July could be down months.
Overall, I'm forecasting the dividend income on my SIPP to be 0.5% down this year. With inflation over 10% that's a hefty drop in real income from this source. With any luck we'll see an increase capital to make up for the dividends but at the moment that's not looking too promising. The only saving grace is that dividend income is well ahead of my SIPP drawdown and a 10% increase would not get close to requiring me to deplete capital. Fortunately, most other income sources are keeping up with inflation.

Y

[OhNoNotimAgain]

In real terms all prices, commodities, manufactured goods and services tend to decline because of competition so margins are always under pressure.
Unless companies can increase volumes cashflow, and hence dividends, will suffer.
But, one company's increase in volume, and probably market share is another company's loss of that market so, in aggregate, all companies cannot increase volume unless they invent a new product. But that too will have negative impacts on the products rendered obsolete.

In essence then what I am saying is that it is unreasonable to expect ever rising income investing across the whole market, in real terms, unless companies expand overseas. Which, fortunately, UK companies have been very good at. As we all know trying to pick stocks that beat the market in income terms is difficult and is probably not worth the effort.

Only 200 stocks pay dividends in the UK markets and the top 15 account for 60% of the income.

One other point. Anyone looking at distributions from collectives especially from ITs, needs to be aware of the lag from the fund receiving them to then paying them out. At least OEICS distribute as soon as they can.

The huge advantage of equities over fixed income is that the income is inflation proofed to some extent.

[XFool]

One other point. Anyone looking at distributions from collectives especially from ITs, needs to be aware of the lag from the fund receiving them to then paying them out. At least OEICS distribute as soon as they can.

Why does one need to be aware of this? As ITs are collective funds they will be receiving dividends from many different investments at many different times. The IT will pay out their dividend (such as it is) typically once, twice or four times a year. What is surprising or important about this?

[OhNoNotimAgain]

One other point. Anyone looking at distributions from collectives especially from ITs, needs to be aware of the lag from the fund receiving them to then paying them out. At least OEICS distribute as soon as they can.

Why does one need to be aware of this? As ITs are collective funds they will be receiving dividends from many different investments at many different times. The IT will pay out their dividend (such as it is) typically once, twice or four times a year. What is surprising or important about this?

Because some people are comparing incomes from portfolios containing collectives with some that only contain direct equities. The income from collectives could be reflecting dividends they received nearly a year ago and are only now distributing.

[Alaric]

At least OEICS distribute as soon as they can.

There will still be a lag because most only distribute once or twice a year. Anyone needing smooth monthly income can just hold a cash buffer regardless of the underlying assets.

[Dod101]

Why does one need to be aware of this? As ITs are collective funds they will be receiving dividends from many different investments at many different times. The IT will pay out their dividend (such as it is) typically once, twice or four times a year. What is surprising or important about this?

Because some people are comparing incomes from portfolios containing collectives with some that only contain direct equities. The income from collectives could be reflecting dividends they received nearly a year ago and are only now distributing.

That I think is a spurious point. ITs are not receptacles to hold dividends from underlying investments only to dish them out at some future point. They accumulate income in their Revenue Account and decide on their own dividends after considering the accumulated revenue and costs and expenses for the year. The link with each underlying dividend is tenuous to say the least, but in any case this is well off topic

Dod

[tjh290633]

Only 200 stocks pay dividends in the UK markets and the top 15 account for 60% of the income.
.

Does this matter? I only invest in shares paying dividends and which when bought have yields above that of the FTSE 100, and don't weight by market cap. I am nominally equally weighted. Where they get their income does not concern me. I am happy with oils and miners and am not worried by their country of domicile not being the UK as long as they have a London quote.

By chance I have holdings in BHP, South32 and Woodside, all domiciled in Australia and getting income from many countries. Does this offend your sense of purity of investment?

TJH

[OhNoNotimAgain]

Only 200 stocks pay dividends in the UK markets and the top 15 account for 60% of the income.
.

Does this matter? I only invest in shares paying dividends and which when bought have yields above that of the FTSE 100, and don't weight by market cap. I am nominally equally weighted. Where they get their income does not concern me. I am happy with oils and miners and am not worried by their country of domicile not being the UK as long as they have a London quote.

By chance I have holdings in BHP, South32 and Woodside, all domiciled in Australia and getting income from many countries. Does this offend your sense of purity of investment?

TJH

Not at all, it's just a shame BHP delisted from London and lets hope Shell and Unilever resist pressure to do the same.

I was just making the point that good income is now quite hard to find and is a rarity.

[IanTHughes]

Does this matter? I only invest in shares paying dividends and which when bought have yields above that of the FTSE 100, and don't weight by market cap. I am nominally equally weighted. Where they get their income does not concern me. I am happy with oils and miners and am not worried by their country of domicile not being the UK as long as they have a London quote.

By chance I have holdings in BHP, South32 and Woodside, all domiciled in Australia and getting income from many countries. Does this offend your sense of purity of investment?

Not at all, it's just a shame BHP delisted from London and lets hope Shell and Unilever resist pressure to do the same.

I was just making the point that good income is now quite hard to find and is a rarity.

BHP is still listed in London, available from the London Stock Exchange.

https://www.londonstockexchange.com/sto ... mpany-page

Enjoy!


Ian

[OhNoNotimAgain]

Not at all, it's just a shame BHP delisted from London and lets hope Shell and Unilever resist pressure to do the same.

I was just making the point that good income is now quite hard to find and is a rarity.

BHP is still listed in London, available from the London Stock Exchange.

https://www.londonstockexchange.com/sto ... mpany-page

Enjoy!


Ian

But not in the index.

[IanTHughes]

BHP is still listed in London, available from the London Stock Exchange.

https://www.londonstockexchange.com/sto ... mpany-page

But not in the index.

So what? Not being in a made up index, does not mean not being listed.

More seriously, what difference is there between an equity within an index with one that is not? The investment potrential, good or bad, is surely not affected.

Enjoy!


Ian

[ADrunkenMarcus]

Not at all, it's just a shame BHP delisted from London and lets hope Shell and Unilever resist pressure to do the same.

After Unilever's attempt to go Dutch in 2018, I would be surprised if they delisted from the London Stock Exchange.

Best wishes


Mark.

[taken2often]

Late to the party as usual. Do not unitise, may be a good idea for those with a small portfolio. Me I am too simple minded to even attempt it. I am 77 and I am past caring about growth, only interested in income. I have accepted that I will have capital losses. As the interest rates rise Capiital Profits I had will be reduced or disappear. So on paper I have some big lossess. Keep in mind a loss is only a a loss when you sell. To me reduced prices means a buying opportunity. For the past twenty odd years I buy income. I have created my own Annuity. This is my holdings at present.
17 Pibs, 15 Prefs, 62 Investment Trusts, 28 UK Shares, 11 US shares and funds. Current situation past LTA so sipp keeps growing I will never touch it. ISA producing an ever growing income, reinvested unlikely to touch it. Taxable account producing enough income, although reducung as it is funding ths ISA
The Taxable account should see me out.

Twenty odd years ago I thought I would be drawing a pension, supplimented by the ISA. Investing for income, getting smaller growth has worked for me. The market swings but the income grows.

Bob

[taken2often]

I forgot to mention the Warren Buffet effect of dividends. He loves getting them but does not pay any out. Why does it matter, it helps tio covers up the invewstment mistakes over the year. His principal is that the fund should appear to stand still or better increase each year regardless of markets. Dividend flow helps this big time.
Bob

[MrFoolish]

I forgot to mention the Warren Buffet effect of dividends. He loves getting them but does not pay any out. Why does it matter, it helps tio covers up the invewstment mistakes over the year. His principal is that the fund should appear to stand still or better increase each year regardless of markets. Dividend flow helps this big time.
Bob

I think Buffett's long term success speaks for itself and I doubt he has to massage his ego with such stunts.

[monabri]

I forgot to mention the Warren Buffet effect of dividends. He loves getting them but does not pay any out. Why does it matter, it helps tio covers up the invewstment mistakes over the year. His principal is that the fund should appear to stand still or better increase each year regardless of markets. Dividend flow helps this big time.
Bob

I think Buffett's long term success speaks for itself and I doubt he has to massage his ego with such stunts.

I thought that cash is being held & accumulated to hoover up bargains when there is next "blood on the streets"?

[dealtn]

Keep in mind a loss is only a a loss when you sell.

Keep in mind this isn't true.