Income investing

Model Portfolios update: a value revival, but does it have legs?

Fears of a global recession and Brexit uncertainty gave investors lots to fret about and posed fierce headwinds for Money Observer’s model portfolios in the third quarter.

The US-China trade war stoked fears of an imminent recession. The latest raft of tariffs – 15% tax on $112 billion ( £91 billion) of Chinese imports, including clothing and consumer electronics, from 1 September – contributed to a volatile period for stockmarkets.

The world’s top 10 dividend-paying companies

Companies around the world handed out a collective $513.8 billion in the second quarter of 2019, marking a new record, according to Janus Henderson’s Global Dividend Index.

While a slowing global economy was a drag on the overall growth of dividend payments, underlying growth still came in at a 4.6%. At the same time, several countries and regions still managed to produce record payments

But, who are the world’s biggest dividend-paying businesses?

How our £10,000 income investment trust portfolio is faring

Each year for the past five years, we have put together a portfolio of income-producing trusts designed to provide a £10,000 income. We have always stressed that there is no guarantee that the portfolio will meet its objectives but so far it has always delivered over £10,000 income each year. Its capital value has been somewhat more volatile, rising in two years, and falling in two. This year so far the direction has been positive.

Purposeful Portfolio Higher Income: the fund winners and losers

Over the past four months, both the equity and bond markets have been on a tear. Thomas Becket, chief investment officer at Psigma and manager of the Higher Income portfolio, says: “It’s pretty obvious that the past six months have been a very easy time to be an investor.”

Over the four months between the end of February and the end of June, the portfolio returned 3.4%. Over the 12 months since its inception, it has yielded 3.5%. It is currently yielding 4.4%.

How to create a £10,000 income: three Rated Fund portfolios

The ability of investment funds and trusts to provide investors with a regular and growing income is often underrated. Many investors still regard them as a way of accumulating capital, rather than as a means by which they can use capital to supplement their income. Yet for many of the 2019 Money Observer Rated Funds, income generation is one of the primary objectives; and historically they have proved they can deliver.