I am hoping that the way I have restructured the DIY Income Investor portfolio will help me to weather the threatening coming storm.
My current strategy is to try to safeguard the great profits made from UK fixed-income securities by re-investing the sale proceeds in a more internationally-oriented range of investments, particularly income-generating ETFs.
The last of the current round of purchases was completed with top-ups of a further two of my Magnificent Seven international ETFs:
- Emerging Markets: EMDD: SPDR Barclays Emerging Markets Local Bond UCITS ETF
- Asia-Pacific: IAPD: iShares DJ Asia/Pacific Select Dividend 30
ETFs - both international and UK-based - now account for nearly one-quarter of the portfolio. Individual dividend shares still account for half the portfolio, and I will be taking profits when the opportunities arise (using my 5-years'-income signal, plus current yield, as a guide). Individual fixed-income securities now make up less than a quarter of the portfolio - down from making up half the portfolio a year or so ago.
Being almost fully invested also means that my portfolio income has reached a new high, with the overall current yield at 5.9%.
Hopefully the DIY Income Investor portfolio as now structured will be reasonably sea-worthy for the the coming headwinds.
[Purchase prices: IAPD £20.827; EMDD £57.49]
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.