I have usd 500000 and interest I receive from my savings a/cs is not much. If I open a portfolio margin a/c with IB , IB will also lend me at 1.3%. I buy good shares with good dividend yield and hold it for long term . My return at least will be better than savings a/cs . Will this work? If yes how do I select good dividend US stocks? If no what else can I do where my capital is near enough safe and I have good reasonable income. If stock buying approach can work I can in future buy european or UK stocks as well. I am a UK citizen. I have not been able to get reasonable income from my ISA and some tractor funds. I donot mind investing in good funds which will give me good dividend yield or even good prospects for growth. Many people must be facing this dillema and what do they do? Please give advise. Thanks.
In continuation to the above post I can also consider selling covered calls or selling naked puts for the stocks I would consider buying anyway. I can consider ETFs as well.
In regard to finding good div stocks, this may be a good starting point. http://dividend.com/dividend-stocks/ http://www.cnanalyst.com/2011/05/to...rk-pfe-jnj-kft-pg-dd-intc-cvx-may-16-201.html Verizon(VZ) is one worth looking at
It sounds like your not a trader, just an investor looking for better returns. I think you should consider finding a good money manager that will manage your funds professionally. If you'd like to contact me directly and tell me a little more about you, I'll try to help you. I think if you do what you say above, and leverage your account to buy random dividend paying stocks, your returns might be very random too. BTW:I only know asset managers in the US. So, I'd have to make sure they can invest for UK investors.
Thanks I would like to do things myself because I am retired and I have so much time and my profession was accountancy.
Thanks. In UK atleast 80-90% of fund managers - or licensed advisors perorm very poorly . They recommend products which will give them better commissions. There was a book called something like "where is my yatch"
Yes -- Fund managers will generally track a broad index and charge a fee. Short term self directed traders mostly do even worse than this however. It's a question of relative underperformance & not losing an entire yacht. Edit: With interest rates so low, a secure investment that pays an income is hard to find -- yes. But losing capital outright is worse.
My aim is not to beat the market.I just want little bit better return than savings a/cs For US stocks there will be witholding tax and I am assuming I will not have to pay any tax in UK, UK gives about £20000 (joint a/cs) allowance for capital gains tax. At the end of every tax year I can sell some shares and take advantage of CGT allowance.