Saturday 23 July 2011

Investing in Commercial Property: 8% Yield and 20% Discount!

Commercial property is in the doldrums in the UK. But in time this is sure to change, as the economy recovers. OK, this won't be tomorrow but could this be a medium-term opportunity for the DIY Income Investor?
Now, I'm not suggesting buying property - that would be too much like hard work, as well as being risky. But is there another way to buy in to property - and one route currently offers an 8% yield and a 20% discount. Interested?

Wednesday 20 July 2011

HYP Watch List: Beazley (BEZ)

I'm always on the lookout for good new dividend-paying shares for my HYP portfolio (Level 6 on the DIY Income Investor Income Pyramid). 

Beazley is a non-life insurer that last year put in a strong underwriting performance and was able to pay a special dividend on top of its full year dividend. The dividend yield (historic and forecast, in late July 2010) is over 6%, according to Morning Star.

Wednesday 13 July 2011

Guaranteed 9% Yield!

Don't you hate those ads! They couldn't possibly be true, could they?

Well, I might be exaggerating ever-so-slightly here, but - yes dear reader, it is shockingly true. Here are not just one but several securities that have a yield-to-maturity of around 9% in an institution that is effectively owned by the British tax-payer. How safe can you get, and how could you find a bigger return? Is this buried treasure or Fool's Gold?

Monday 11 July 2011

Discovering Preference Shares

I don't yet hold any preference shares in the DIY Income Investor porfolio but the high yields on offer mean that this is a type of security that might be worth considering.
Preference shares (or 'prefs') are a bit obscure but are quoted on the LSE (and on other exchanges as well) and are within reach of ordinary investors. Let's find out more...

Sunday 10 July 2011

10 'Rules' of DIY Income Investing

Are there 10 'rules' to follow to become a DIY Income Investor? Are there even any 'rules' at all?

Well, maybe - this is my best shot at boiling it down to the essentials: feel free to challenge my list!

Thursday 7 July 2011

More Evidence for Income Investing

This blog obviously has a pretty big bias towards income investing. Am I playing my cards right? Or building a house of cards?

In previous posts I have provided some supporting evidence, particularly in relation to investing in high dividend shares.

Here's some more...

High Yield or Dividend Growth?

As a DIY Income Investor, should you buy a security that yields a flat 6% (such as a commercial bond or preference share) or should you buy a dividend-growth share that yields 3% but with a dividend growing at 7.5% a year?

Jam today or jam tomorrow?

Monday 4 July 2011

Financial Freedom is Measured in Years

Occasionally, you read an article that sums up an idea so effectively that you can only marvel at the craftmanship of the writer. Such a post is "Financial Wealth - It's Time Not Money" by Alan Roth, which I encourage you to look at.

His proposition successfully combines several of the underlying principles that underlay the DIY Income Investor approach: