Income from unit and/or investment trusts

[John]

Yes, I hold a bigger investment in BP and I felt the (temporary) pain too.

I read somewhere that the Deepwater thingy had enabled Dudley to build a much stronger company. It was in the Daily Telegraph.

https://www.telegraph.co.uk/business/20 ... d-save-bp/

The share price is what I paid, give or take, up a bit I think and the dividend is okay too.

Shell hasn't cut its dividend in 70+ years, as I believe you probably know, so that 6.31% looks rather yummy. That's not any sort of argument of course, merely an observation.

[John]

My last (shortish) post has disappeared. Have I deleted by accident and it's gone forever or could I have put it into another folder somehow?

It's the middle of the night and I suffer from terrible insomnia at present, possibly from meds or dry January, but I'm really too tired to think properly now.

[John]

It's back (BP)!

[Itsallaguess]

Would buying £350,000 of RDSB and getting, at 6.31%, £22085, income nothing guaranteed, be the silliest investment decision ever?

Shell hasn't cut its dividend in 70+ years, as I believe you probably know, so that 6.31% looks rather yummy.

That's not any sort of argument of course, merely an observation.

Another observation is to note the following -



In the third quarter of 2019, the UK’s windfarms, solar panels, biomass and hydro plants generated more electricity than the combined output from power stations fired by coal, oil and gas, Carbon Brief analysis reveals.

During the three months of July, August and September, renewables generated an estimated total of 29.5 terawatt hours (TWh), compared with just 29.1TWh from fossil fuels, the analysis shows.

This is the first-ever quarter where renewables outpaced fossil fuels since the UK’s first public electricity generating station opened in 1882. It is another symbolic milestone in the stunning transformation of the UK’s electricity system over the past decade.

https://www.investopedia.com/articles/personal-finance/121815/buffetts-9010-asset-allocation-sound.asp

I should add that I own both RDSB and BP as part of my income-investment portfolio, but at a combined capital weighting of just 2.46%, I'm happy to allow their current high yields to provide some useful ballast to my other income investments, but the drive for alternative, cleaner energy sources looks to be a one-way ticket to me, and that includes the potential for safer, cleaner nuclear plants too, and I'd be extremely reluctant to invest £350,000 in a single stock that faces such fierce headwinds from a number of directions, be that ecologically, politically, or from a more technological perspective....

Cheers,

Itsallaguess

[TUK020]

Would buying £350,000 of RDSB and getting, at 6.31%, £22085, income nothing guaranteed, be the silliest investment decision ever?

Oh, and I'm engaged to be married. To a lady; one can never be sure theses days.

Silly in that you would be taking unnecessary risk. If you wanted to keep it that simple - investment, I would suggest City of London Investment Trust. CTY. 4.1% yield at moment. A basket of ITs would be safer.

Congratulations on your engagement

[monabri]

From https://en.m.wikipedia.org/wiki/Energy_ ... ed_Kingdom

"Energy use in the United Kingdom stood at 2,249 TWh (193.4 million tonnes of oil equivalent) in 2014."

In the text posted by IAAG;

"During the three months of July, August and September, renewables generated an estimated total of 29.5 terawatt hours (TWh), compared with just 29.1TWh from fossil fuels, the analysis shows."

Perhaps these 3 months were the best 3 months in terms of output (more research needed) but making a big assumption, then renewables might deliver 120 TWh over a year (caveat being a straightforward 4x multiple of the 29.1TWh Quarterly figure).

So, to put it into perspective, we have 120/2249 x 100% =5% (approx) from renewables of the UK's energy requirements in 2014.

I would contend that there is a long way to go before we can switch off oil in the UK. It's surely easier to be a leader in clean energy when you are not relying on it for heavy manufacturing ( Iceland, Sweden, Norway, UK).

In addition, we might have a parochial view of energy usage....we see what is going in in the UK and extrapolate to what is happening elsewhere.

( from one I prepared earlier!)

"We need new clean technologies that will replace 85% of our current energy generation"

viewtopic.php?p=274372#p274372

[OhNoNotimAgain]

I should have added that although I'm okay with a little risk and I posted about income, it seems to me that most equity markets are at, or near, all time highs so that (a small) short term capital loss seems likely and I can achieve that, in real terms, by leaving the money in the bank.

That's why I'm dithering and I would welcome alternative viewpoints.

Look at charts of the total return of the index and you will see that making new highs is the normal state of affairs simply because of dividend reinvestment.

[John]

I bought £30,000 of RDSB shares yesterday using the cash in my broker account which had accumulated from dividends. This will bring in c £35 per week.

I'm aware of the concept of compounding of course, but I can "feel" it here and it feels good.

£300K to go.

[gbjbaanb]

Bear in mind 1) the reports on renewables always has a slightly wonky aspect to them, in that they claim average power geenration, forgetting that they do not generate power at times. Like the headlines solar energy provided 50% of all demand one day in June. I guarantee it generated nothing that night. So fossil fuels will always be required (assuming nuclear remains vilified, and storage doesn't take off in eyewateringly massive amounts ).

2) RDSB has already been moving its focus to renewable generation, in a steady process for the long term. So its not a bad investment for energy, you get the oil revenue today and the increasing renewable ones as they become more prevalent.

I understand BP is remaining as a company solely focussed on oil, but no doubt they'll change to something like offshore wind eventually too.

[richfool]

I bought £30,000 of RDSB shares yesterday using the cash in my broker account which had accumulated from dividends. This will bring in c £35 per week.

I'm aware of the concept of compounding of course, but I can "feel" it here and it feels good.

£300K to go.

Noted that you are focused on income, and perhaps less worried, or not worried about the risk to your capital, but that's a lot of money to put into 1 specific stock. I would be hoping they don't have a GOM (Gulf of Mexico) moment.

[John]

My BP shares had a GOM moment but it was just a blip and now the capital is up a bit on purchase price and the dividend is pretty good.

I don't see much risk to capital from either of these companies in the long term.

[John]

I've decided on £320,000 in

https://www.ishares.com/uk/individual/e ... ts/251795/

which should bring in c£275pw.

Can I invest directly (I don't think so) or do I have to use an online broker?

I don't wish to use III and I can't use HL in IOM.

Any recommendations, bearing in mind minimising costs and annual charges?

[monabri]

Would this count as " foreign income" on the tax return....? ( country of share register being Republic of Ireland)

[mc2fool]

Would this count as " foreign income" on the tax return....? ( country of share register being Republic of Ireland)

John lives in the Isle of Man, so pretty much anything he invests in will be "foreign" ...

[ADrunkenMarcus]

Would this count as " foreign income" on the tax return....? ( country of share register being Republic of Ireland)

Yes.