Passive Income Portfolio

My goal is to create some passive income to cover monthly costs. Midterm I am aiming at a portfolio that would yield around 200-300€/month

I was thinking something along the lines of
Enbridge
Abbvie
Heinz
Realty Income
Tinto
Some bank maybe Canadian

Would love to hear (or rather read xD) your thoughts. A 30k portfolio should do the magic I assume. I wanted to add cineworld but if they keep spending tax money on managers they will go bust, this time for sure

Interested in your thoughts and ideas

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How much are you wanting to have to ‘monitor’ your portfolio.

I mean could you pick a monthly income ETF instead, or 3 quarterly income paying ETFs?

A 30k portfolio giving 300EUR a month, you would need a 12% yield. That seems quite high to me.

I would be looking at Income ETF’s and then forgetting about it, 5-6% is probably a more reasonable figure so you’ll need 60k EUR.

From your list of stocks, Rio Tinto has a 6.1% yield. So 300EUR x 12/6.1% is 59k.

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Thanks @Dougal1984

Yeah around 60k…

I am a bit sceptical about dividend etfs cause I dont want to invest in tobacco and similar stuff, somenof these large etfs invest in so many companies bit gets hard to keep track

Are there any good dividend etfs out there you would recommend? Cost should be low since I am not expecting any substantial increase in etf value

My two pennies’ worth: it’s important to be diversified across sectors with a high-yield portfolio, so I think you’d be better of with 10-15 companies and you could even double up in one or two industries. This post sums up my thinking on the subject:

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My personal choice would be some lower yield but companies that are growing dividend well each year and also the company is growing, examples are:

MSFT
SBUX
JPM
NEE

These 4 probably average out about a 2% yield ish.

Then some slower growth but solid dividend payers:

ULVR
JNJ

these two average around the 3% mark together.

Then an riskier move to some but one of my favourites since the crash has been BP, yielding around 5% (currently just under) but they will be looking to return capital to shareholders so they are starting buybacks and I would predict a modest dividend raise within a year or two

Another very cyclical choice is TW, right now its a dividend yielding about 4.6% based on 180p purchase price (2x 4.14p divs this year), but special dividend will return next year it seems, so could double or more the yield.

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Your choices are not bad. I’d add WPC, and STAG.

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What is TW @Hbomb?

20 useless characters

Taylor Wimpey, I’d imagine. Prob worth having a housebuilder in there, it would be my choice too.

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As @topher said its Taylor Wimpey. Lots of my thinking on it was outlined in this earnings roundup post here:

My main issue is when to add to TW, its down from highs mid april of 192p to 177p as it stands today. Normal dividend reinstated at 8.28p a year so about a 4.7% yield, then special dividend next year would be a big bonus on top of that. Risk is that will the UK housing market continue this crazy growth or at least stay steady at this higher level or will there be a crash in next year or two, thats really the only thing I see bringing TW down to below 140p level, pressure on their margins from cost of building goods going up with inflation right now but equally that I would think can only bring them down to 160p level before many buy in.

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EPD is a good shout too.

You don’t pay Withholding Tax as it is an MLP rather than the traditional Dividend (Income based).

Put it in an ISA and you benefit.

Just have to hope that Trading 212 improves their payment times though

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Some sources of info I use to get a list to do more research on is the AIC Dividend Heros and Dividend Data.

Both are UK focused so it will depend how much exposure you want to the UK.

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HONY just got added today. I wouldn’t say to go with a big holding, but an 8.3% quarterly yield is not bad if you are happy with the underlying debt.

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I just checked the factsheet you shared on another thread. 8.3% quarterly got my interest…
However, I think you mean yearly, don’t you? :smiley:

LOL

A Yield is quoted normally on an annualised basis. Its 8.3% a year, paid over four quarters.

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Not high yield, but with a growing dividend and a lower entry point I’ve piled into Abbott today

I know nothing about the company in question, but yields over say 6-7% used to worry me in my high-yield portfolio days. Safe to assume it’s a pretty volatile one?

I’m not sure. They charge a fairly high AMC and performance fee so I think the total OCF is about 2% but don’t quote me on that.

I think in return they are being highly selective in loaning out the funds at or around 10%. I dont however think there should be a ‘performance’ fee based on what should be fairly consistent returns.

The fact the total return NAV has been going up steadily hints they have not had any bad debt to date. This might be through a really good selection process or pot luck.

Safe to say I’ve not fully researched yet to open a position. I want to know why the sudden drop in premium September 2019 time.

If happy with that then I might add it to my long term income plays that I started last year when in the cheap.

Check out this portfolio: Pies & AutoInvest - Trading 212

Maybe youll find some interesting positions

For me atm, some interesting picks are:

MO
INTC
MRK
WBA
AVGO
SPTN
STAG
EPD
KMB
VZ
SPTN
BRMK