Dividend/Yield focused portfolio

Discussion in 'Shares & Funds' started by eggnog, 5th Aug, 2019.

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  1. eggnog

    eggnog Well-Known Member

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    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?
     
  2. MarkW

    MarkW Well-Known Member

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  3. Snowball

    Snowball Well-Known Member

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    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) :D
     
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