Mr Bearbull 

Putting the Boot in

Mr Bearbull

Mr Bearbull

The message from two weeks ago (Bearbull, 12 July 2019) was that, actually, stocks with a dividend yield as low as 3.6 per cent offered enough income to be included in a high-yield portfolio. That might seem little compared with the FTSE All-Share index’s 4.1 per cent yield. Yet the bias of the All-Share’s 10 biggest components is so heavy as to make the market-weighted average yield unrealistic. Better to take the index’s median – mid-point – yield. This produces 3.6 per cent, which is plenty while inflation is subdued, and it offers the chance to net shares in better quality companies than those often found in income portfolios.

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