Have a look at the yield on M&G(9.2% Yield with cover of 2.44) over L&G, and consider dropping Imperial. It depends how ESG you want to go.
Can you tell me more about M&G (dm’s are fine) I looked into them a while ago but passed over.
I don’t recall them yielding 9% back then. Probably just my bad memory.
The extra compounding is much smaller than you believe, i think.
Say you manage to get an average 5% annual yield on that many companies.
On a monthly schedule, the extra compounding makes it an effective 5.12% yield (5.116).
On a weekly schedule, it becomes 5.12% (5.124).
Very minor difference, and most likely not worthwhile at all when factoring the taxman and potentially lower quality companies to reach that objective.
Now, about the taxman; it is true you do not have a dividend tax, but not because it is reinvested; Netherlands just doesn’t have a dividend tax, only box 3.
That being said, most of your foreign dividends will have a withholding tax, and the more often you collect a dividend, the more often you invite the taxman to the party, and the more often he will reduce your compounding factor.
That extra 0.0084% effective APR does not overcome that.
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With these small amounts dont pretend a large dividend amounts. You dont buy stock for dividends.
some people do. that is their choice.
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Hey, I actually do!!!
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