Whisper it, but dividend investing may be getting sexy again – even for young (ish) investors like me.
But to make income investing work for you, a fundamental rethink may be needed. Instead of seeking companies with the highest dividend yield, look for those that can grow their dividends year after year.
My self-managed pension portfolio is mainly in funds and investment trusts, but I want to get to a point where about 20 per cent of my money is held directly in company stocks. Dividends can be important when choosing which companies to invest in, but I’m worried that looking for eye-catching yields will be disastrous for my pot.
Before I go any further, let’s go back to basics. When you invest in a