- Balance yields for the long and short term
- Different sectors diversify risk
Our screens suggest shares that could be worth a place in a UK investor’s income portfolio. They each have risks – and a sensible portfolio should be multi-asset anyway – but for the equities allocation, these companies aren’t too similar in their bear points.
The opportunity cost of a high dividend payment is the money that could be reinvested in the business to help generate even greater returns for investors in the future when they need to cash them in. For those of a shorter time horizon, for example in the drawdown phase of managing a self-invested personal pension (Sipp), then high cash pay-outs today are extremely welcome.
