Suggestions for good income-producing ITs

[iambic]

My mom has a small pot of cash of around £6k that she'd like to invest. She's looking to retire soon, so income from dividends would be useful. What are your favourite income-producing IT's?

Her current S&S ISA contains:

City of London
Dunedin Income Growth
Merchants Trust
Murray International
BlackRock North American Income
Henderson Far East Income
TR Property REIT

Topping up her existing holdings is an option, I just wondered if there were any other IT's that would be worth considering. I had thought about Scottish Mortgage or Lindsell Train, but realised both are quite low-yield.

Thanks very much.

[88V8]

I have a basket biased towards those with a long history of no dividend cuts.

Discussed here https://lemonfool.co.uk/viewtopic.php?f=54&t=26503
I've since topped up some of them.

Mine is very much a UK-centric portfolio.
If you are happy with that, I would top up CTY or MRCH, or add ASEI Aberdeen Standard Equity Income, yield 6.8% with a twenty year record.

You can review the Dividend Heroes here https://www.theaic.co.uk/income-finder/dividend-heroes .... some of them have a very low yield.

For overseas diversification, none of my portfolio has a particularly long record of no cuts. HFEL with a 7% yield and a twelve year record are probably the pick of the bunch, so a top-up there would not be a bad idea.

Ideally I like to buy when prices are at a discount, but that isn't always easy. HFEL for example are at a slight premium today.

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[doug2500]

J P Morgan Global Growth & Income JGGI yields about 3.5 and had given good capital growth over the last few years. Downside is it's about 60% in US, as you'd expect, so is weighted to that market. Maybe most things are now anyway, it seems unlikely the UK markets wouldn't follow US down when it happens.

[Hariseldon58]

Looks pretty sensible for an income producing portfolio, Scottish American has a lowish yield around 2.5% , good growth record.

Scottish Mortgage and Lindsell train are very much flavour of the month, you could look at Finsbury Growth and Income, similar portfolio to Lindsell train except for the Lindsell bit, minus the high premium, reasonable yield, good record and a portfolio that may well shine.

[TUK020]

Law Debenture?
Middlefield Canadian?

[Urbandreamer]

Well I'm topping up my holding in Civitas Social Housing (CSH).

It's not got a bad yield and I see it as a good risk diversifier against my growth investments.

[flyer61]

Law Debenture
Middlefield Canadian
Murray International

If she doesn't have a REIT how about a monthly payer like Ediston (EPIC)

[GrahamPlatt]

viewtopic.php?f=31&p=382837#p382837

[Coobster]

A suggestion would be HICL, I've held this trust for a number of years. It's in the AIC Infrastructure sector. The share price is quite steady but at a premium of 13%. It provides a divi of 4.7%
This company provides a Public-Private Partnership to design, finance, build, operate and maintain public infrastructure also Regulated Infrastructure and Demand Infrastructure. The Labour Party were at one time looking to takeover the PPP's if they'd gained power.
I believe HICL has since reduced that part of their portfolio.
At this stage I don't think you'd get a lot of SP growth but the dividend is reliable.

Good luck
Coobster

[OldPlodder]

The OP already shows a decent income small portfolio. So just topping up might suffice.

However he asked for further suggestions.

In addition to the suggestions above, which are fine, I would add for consideration:

EAT, which I hold, still on a good discount and good yield, but SP not attractive as a few months ago of course.
Some others, which my wife holds, although she usually is into lower yields for the bulk of her portfolio, but does hold BPET(which has served her really well and would be a good diversifier for the OP's portfolio), SEQI and RECI, for example which spring to mind, or, more on the naughty step, but should come good eventually, she has a small holding in RGL.

There is a lot of others choice in the 'green energy' or debt backed with assets spaces too.

If lower yields are palatable, then IBT springs to mind, should perform really well longer term, among many.

Plodder

[88V8]

I hold Law Dab, and Middlefield, but I think of these and other low yielders as an embellishment, rather than a foundation of an income portfolio.

V8

[tramrider]

J P Morgan Global Growth & Income JGGI yields about 3.5 and had given good capital growth over the last few years. Downside is it's about 60% in US, as you'd expect, so is weighted to that market. Maybe most things are now anyway, it seems unlikely the UK markets wouldn't follow US down when it happens.

Several of the JP Morgan trusts aim to yield about 4% of NAV (from both revenue and capital) and to keep growing as well. Examples are:
JGGI JP Morgan Global Grow & Inc (as discussed above)
JSGI JP Morgan Japan Small Cos
JAGI JP Morgan Asian

A 4% yield seems fairly safe and allows the trust to grow as well. Also, these would give you some geographical diversification.

Tramrider

[tramrider]

J P Morgan Global Growth & Income JGGI yields about 3.5 and had given good capital growth over the last few years. Downside is it's about 60% in US, as you'd expect, so is weighted to that market. Maybe most things are now anyway, it seems unlikely the UK markets wouldn't follow US down when it happens.

Several of the JP Morgan trusts aim to yield about 4% of NAV (from both revenue and capital) and to keep growing as well. Examples are:
JGGI JP Morgan Global Grow & Inc (as discussed above)
JSGI JP Morgan Japan Small Cos
JAGI JP Morgan Asian

A 4% yield seems fairly safe and allows the trust to grow as well. Also, these would give you some geographical diversification.

Tramrider

I believe these ITs pay the dividend at least partly, if not wholly out of capital? Nothing wrong with that per se, but really they are total return investments rather than pure income investments?

According to AIC, these are the 5 year total returns and the recent yields.

.                               5 year TR%    Yield %
JGGI JP Morgan Global Grow & Inc     144.7     3.4
JSGI JP Morgan Japan Small Cos       125.9     3.6
JAGI JP Morgan Asian                 216.4     3.1
LWDB Law Debenture                    77.8     4.0

I am happy to take the JP Morgan yields (based on past dividends and current strongly rising prices) and total returns.

Tramrider

[88V8]

Indeed. And why not?

In this case because the OP is seeking income suggestions on behalf of someone who quite possibly just wants an income rather than a hobby.....

V8