Long term investment ideas

[Teocali]

Looking to start a monthly drip feed into some vanguard type account. First time for me doing this and plan to invest for long term.

Any suggestions on best tracker to look at?

Given weak pound and current uncertainty I was planning on choosing a bond tracker to ensure modest growth until things (eventually) settle.

Would welcome any thoughts.

[GT03ROB]

If you are going long term & monthly top ups, then nothing wrong with equities, short term volatility will not have a material impact on a long term drip fed investment.

[mcbook]

I did the same around a year ago. I'm in this fund: FTSE All-World High Dividend Yield UCITS ETF (VHYL).

They say:
"Vanguard FTSE All-World High Dividend Yield UCITS ETF seeks to track the performance of the index, a free float adjusted market-capitalisation-weighted index of common stocks of companies, excluding real estate trusts, in developed and emerging markets that pay dividends that are generally higher than average."

Have a look here if you're interested
https://www.vanguardinvestor.co.uk/investments/van...

[xeny]

Dare I ask why high dividend if you're accumulating ?

[crouchingpigeon]

xeny said:

Dare I ask why high dividend if you're accumulating ?

Dividends can be reinvested?

[mcbook]

xeny said:

Dare I ask why high dividend if you're accumulating ?

It's basically a defensive equity investment, i choose to reinvest the dividends automatically.

[xeny]

crouchingpigeon said:

xeny said:

Dare I ask why high dividend if you're accumulating ?

Dividends can be reinvested?

Dividends can be reinvested, however if you're after longer term capital growth, total return appears to be better with companies that reinvest internally rather than paying dividends which you then use to buy more of their shares.

Look at https://indeedably.com/shortcut/ , especially the table after the heading "Dividends + Capital Growth = Total Return"

[mcbook]

xeny said:

Dividends can be reinvested, however if you're after longer term capital growth, total return appears to be better with companies that reinvest internally rather than paying dividends which you then use to buy more of their shares.

Look at https://indeedably.com/shortcut/ , especially the table after the heading "Dividends + Capital Growth = Total Return"

That's a really good article. However, as some of the comments say, the data sets are rather limited. To me the high yield fund is interesting because of the underlying shares and how well (or how poorly!) they might perform in the medium term. Not specifically the fact that they pay good dividends.

[Ari]

Teocali said:

Looking to start a monthly drip feed into some vanguard type account. First time for me doing this and plan to invest for long term.

Any suggestions on best tracker to look at?

Given weak pound and current uncertainty I was planning on choosing a bond tracker to ensure modest growth until things (eventually) settle.

Would welcome any thoughts.

I did something similar - have a look here: https://www.pistonheads.com/gassing/topic.asp?h=0&...

[Derek Chevalier]

mcbook said:

xeny said:

Dividends can be reinvested, however if you're after longer term capital growth, total return appears to be better with companies that reinvest internally rather than paying dividends which you then use to buy more of their shares.

Look at https://indeedably.com/shortcut/ , especially the table after the heading "Dividends + Capital Growth = Total Return"

That's a really good article. However, as some of the comments say, the data sets are rather limited. To me the high yield fund is interesting because of the underlying shares and how well (or how poorly!) they might perform in the medium term. Not specifically the fact that they pay good dividends.

Would be good to see how high yield funds differ from traditional value investing strategies (I reckon not too different) which have underperformed over the last decade but should give outperformance over the very long time (at least according to historical data)