Hiya all. Been a long time since my last post. I'm looking to build a dividend portfolio to start supplementing my income but don't want to compromise on capital growth as well. No point drawing on dividends if your equity base is shrinking. All of this is new to me so want to draw on peoples experiences and wisdom. Are there any recommended products out there - ETF, LICs, Funds....? What kind of growth and yield should I expect?
In case you're not already familiar with it, this blog contains lots of good stuff: Strong Money Australia - BUILDING FINANCIAL STRENGTH AND A LIFE OF FREEDOM
Think in terms of broader returns first. So if we can expect something like 7% per annum long term return from shares, how much dividends vs growth are you after? With diversified Aussie shares (index/old LICs) you’ll get around 4% yield (plus franking) and growth of perhaps 3% per annum. With International shares you’ll get around 2.5% yield plus around 4-5% growth per annum. These are guesses at best. And of course you can sell shares to boost your income from the higher growth international shares. (though some of us just prefer dividends because they make us feel all warm and fuzzy)