moorfield wrote:https://www.ii.co.uk/analysis-commentary/how-beat-market-low-risk-dividends-and-how-find-them-ii530048
An interesting read (flogging a book, but interesting nonetheless).
Very high dividend yields are often associated with such situations but can also simply reflect a business in a state of demise.
... we knew that
Perhaps it
is time for a
LYP Practical (See Group Guidelines) board!
I have advocated for a LYP strategy here in the past. (Not for a LYP board, but for the strategy itself).
It is particularly suitable for a taxable portfolio, especially with the recent freezing or reducing of allowances. And for US shares to mitigate the 15% withholding.
It could include Berkshire Hathaway, which is very tax efficient to hold. Or shares like Apple and MicroSoft, which are of course great growth companies, but both of which pay out dividends that are very secure and are regularly increased. Although only yielding 0.5% or so, their market caps are so large that their dividends still amount to $10-15 billion a year each!
Other prominent non-yielders I hold are Salesforce, Nvidia, Google, Amazon, Crowdstrike and Snowflake. And there are a number of UK ITs that have a low or zero yield.