Posts in income investing

Think of your country, don’t fixate on dividends

Having just written a series of blogs on income investing, I feel like I'm part of a movement. A growing band of investors, fund managers and journalists touting income as a safe and profitable way to invest in the current market. But there's something about this story that makes my contrarian flesh creep. It's not just a band its a bandwagon.

The deliberate income portfolio

Although my first two posts on income investing were likened to a dividend war, their purpose was more positive. To challenge the case for income investing, to better understand why people do it.

Profiting from income safely

Here's a chart that ought to get your attention. It shows the performance of SG's new Quality Income index backtested to December 1989. The index of quality income stocks is in blue, and a world index of stocks is in red. The quality index produced annualised net total returns of 11.6% compared to 5.6% for shares and 8.7% for government bonds.

Income investing: A postscript

A neat illustration of what can go wrong with income investing was provided by the Cable & Wireless Worldwide situation.

The time is right for income investing

In recent years I have had some good experiences with high-yield equities, both in the model income portfolio I previously ran for Interactive Investor, and in my own portfolio.