[*]Fine-tune your portfolio to smooth monthly income throughout the year, ensure there are no periods without dividend payments, or shape your income to meet your needs
Does anyone out there really care about this?
Choosing an IT because it happened to pay in particular months of the year strikes me as a very odd thing to do.
I would hope that most people wanting to invest in ITs were not living their lives in such a hand to mouth way that they cannot go a few months without a dividend payment!
I'd really hope not, although there does seem to be what might be called a small but steady-stream of investors to these boards, who consider dividend-payment dates as quite a high priority for some reason...
I'm with you, and I personally think that any robust
dividend-income strategy would probably work best if it incorporated a separate account
into which dividends are paid, and with that dividend-account holding enough of an income-buffer
for it to be able to pay out regular monthly 'dividend pay-packets' into what we might consider to be our day-to-day bank-account
If it all happened within the same account, it would be the same effect, but I personally like the idea of having all the background noise happening in a separate account, where I can also keep a good income-buffer ready at hand, thus keeping my day-to-day deposit account looking more or less like it looked whilst I was still working, with just a single regular packet of income to deal with...
That way, dividend-payment dates can be relegated in importance, to allow much more prominent
investment-considerations to influence the decisions that we make when we invest for dividend-income.
I've posted about this in the past, and the last time I did so I created a diagram to help explain the above possible process - https://www.lemonfool.co.uk/viewtopic.php?f=15&t=16546&p=205179#p205179
I know you've quoted me above, in your post, but I should point out that I was only quoting the AIC Virtual Portfolio Tool
description-page, and wasn't endorsing in any way the particular quote that you've highlighted. With that said, I'm grateful to you for raising this specific point, as it's given us both an opportunity to discuss it, and to point out why it might well not be a particularly good idea
to be influenced, at all, by dividend-payment dates...