I was out at a old (literally) mate’s 50th Birthday Party last night and because I wasn’t driving I probably imbibed far too much lager than is perhaps wise and as a result I got up extremely late today and I have consequently been in a bad mood and chasing my tail all day. Lord only knows when I will finish this Blog but I suspect I will be uploading it in the wee small hours and looking at the list of stuff I want to cover, I am not actually sure which day that will be on !!
First up let me just mention in passing that I have finally completed the Full Series of the Income Portfolio Blogs - I am pleased with what I have produced here but I won’t be lying if I say I am happy to see it finished - I always start things with huge enthusiasm and then as time goes on it starts to bore me and I have new ideas I want to be working on (not forgetting a long abandoned piece on a New Stock which I really will focus on finishing as my next Blog to come out - it is in quite a good state and I might end up splitting it into 2 parts just to get things moving).
Example Stocks for use in an Income Portfolio
I have been thinking about how to lay out this Blog for a while and now I am actually making a start on it I am not totally sure I am going about it in the best way, but I will crack on and see how it plays out. I realise it is going to be a Blog that Readers are particularly interested in so I will try and do it in a logical and clear way.
The ScreenShot below is taken from the extremely flexible ShareScope software I subscribe to and it you look at the Column on the Far Left (oh no, Jezza Corbyn !!) it gives a list of the FTSE350 Sectors and my plan (unless it changes as I go through) is to go through each of these Sectors with regards to their suitability for an Income Portfolio and perhaps to name some Stocks which are of particular interest within the appropriate Sectors. Judging by the scale of the task ahead I expect to be splitting this task over 2 Final Blogs for the Income Portfolio Series (hopefully the Crowning Glory and not a dismal Damp Squid of an ending….too much Blue Planet 2?)
As always with these Blog Series, I have a rough idea of how they will pan out when I start on the early Blogs but as they develop I get to a point where I decide that it deserves some more Parts - hence you will note this is Part 5 of 7 and the next two will be looking at each of the Sector Classifications and highlighting particular Stocks that might be suitable for an Income Portfolio. This extension of the Series partly comes about from the size of each Part and the logical flow but it is also driven by my desire to ensure that at least 1 Part gets released each Week - I am sure this is what Readers want to see and also I am sure you appreciate that it takes me a while to bash them out.
How to Find Suitable Dividend Stocks
I guess there are several routes to actually finding the Stocks you want to shove in your Income Portfolio but I will just mention 2 basic methods here which are very much how I tend to go about finding them:
This probably isn’t a definitive or particularly detailed list and I’m sure you will find other tasks/actions you need to do to get up and running properly. Many of these will come from reading the Text in my Blog Series and also from your own particular requirements, but these are a rough set of Guidelines to give you some idea of what needs to be done to get going with your Income Portfolio:
1. If you are totally new to this then buy Naked Trader Book - chances are if you have already dabbled in Stocks you will have read Robbie Burn’s excellent book, but if this is entirely new to you, then I recommend you nip over to ‘Wheelie’s Bookshop’ and get a copy. It is pretty cheap really and would definitely be money well spent. Much of it will be more related to Small Stocks and an Approach focused on capturing Capital Gains rather than the Dividend Payments but it is still pretty much the clearest and most simple book on Investing/Trading and it covers a lot of important concepts in far more detail than I can in this Blog Series. There are also a lot of complementary bits like Robbie’s explanation of how he uses the ADVFN News feature to analyse Company Trading Updates etc. There is also quite a bit on the detailed process of how to Buy and Sell a Share and stuff like that.
If you haven’t read Parts 1 and 2 yet, then scroll back down my Blog Page a tiny bit and you should find them very easily.
Features of an ideal Dividend Stock
There are many aspects and features that make a particular Stock suitable for an Income Portfolio - the following spring to mind as things to consider:
If you haven’t read Part 1 yet, then scroll back down my Blog Page a tiny bit and you should find it very easily from about a Week ago. It includes a list of the Parts to come and what is hopefully going to be in them (if I actually get around to writing them !!).
Features of an Income Portfolio
It’s probably easiest for me to write this as Bullets:
If you glance over at the ‘Portfolios’ page on my Website, you will see at the top that I start off talking about my own Income Portfolio which I have been running for just a few years. There is a bit of spiel around it trying to explain the logic and principles behind my Income Portfolio but it only recently hit me that this barely even glances the surface of what is actually quite a lengthy subject; and I came to the realisation that my Archive of Information was sadly lacking the kind of detail needed to really do it justice. So this Blog Series is to correct that shortfall.
As you will see from the intro stuff below, this Blog was inspired as an alternative to Annuities and Drawdown upon Retirement but I can see far younger readers finding this useful as a concept for somewhere to stash their ill-gotten gains from Share Trading etc., in a home that is low maintenance, fairly low risk and yet gives a Return which by far exceeds anything that can be gained on Cash or with Bonds or suchlike.
Welcome to my Educational Blog Page - I have another 'Stocks & Markets' Blog Page which you can access via a Button on the top of the Homepage.
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