In my previous article about investing for income, I explored a brief checklist of ideas for selecting income stocks and building an income-focussed portfolio. In today’s article, I’ve assumed that you’ve gone ahead and selected a few shares that fit these criteria and are now wondering how to manage them. I’ve written multiple articles before […]
What is investing for income? A few weeks ago, I was talking to an investor about my approach and described myself as “primarily a value investor with a dash of income investor on the side”. Over the course of the following conversation, I went on to talk through my approach to investing for income, which
If you’ve followed this blog for a few years, you’ll remember the early articles I wrote about investing for income and an introduction to dividends and today I want to continue that theme with another article about the importance of dividends. I was recently discussing this topic with a friend who told me that they
In an article I wrote earlier this month, I examined portfolio construction and some of the different assets I use to create a diversified stream of income. In today’s article, I’m looking at high yield bonds (sometimes called junk bonds), which are an asset class I use to boost the yield of my portfolio above
I’ve written before to advocate the acquisition of income-producing assets. With the collapse in interest rates around the world, yields have fallen, creating artificially inflated demand for dividend-paying stocks over bonds and cash savings. Investors have a range of passive income vehicles to choose from. This diversity can make choosing the right one a daunting
Why quality of income is as important as quantity Read More »
How much was your first passive income? I’m not talking about the first investment you made, but about the return it generated for you. How much was it? I was asked this question by a reader this week, and the answer is a simple one. £1.67 I was 18 years old, and had recently started
Reader Question: How much was your first passive income? Read More »
I received an email from a reader last week, asking about shares and the reader’s concerns about the growing risk of a share market collapse due to record high stock market valuations. This reader had primarily invested in dividend focussed funds and investment trusts, rather than individual shares, thinking that these provide sufficient diversification to
Reader Question: Are my dividends sufficiently diversified? Read More »
The ability to acquire income generating assets is an essential part of achieving financial independence. If you can generate enough income from your savings, investments and business ventures, you can effectively ‘retire’ from the 9-5 grind of every day employment. For many people, this might seem like a pipe-dream, but it’s a serious goal of
There are many criteria I consider when making an investment in a stock. Among them is the price relative to historical value; does it look cheap, or is it at an ‘all-time high’? In theory, if I believe a company to be solid, short-term fluctuations in price are meaningless, so a falling value only encourages
