How to invest £10,000 for income

If you are lucky enough to have a lump sum to invest into the stock market then there are a number of options to choose from.

But perhaps the first question you need to ask yourself is “why am I investing in the stock market”?

You could be investing for long-term capital growth, you could be investing to generate income or you could be doing a little of both.

Investing for growing dividend income

In this article we will concentrate on investing for income.

With interest rates at all-time lows, putting your £10,000 in the bank is likely to yield less than 0.5% in interest, unless you are willing to lock up your capital for a year or more – but even then you will have to search hard to find any institution paying much over 1%.

So, putting your money in the bank could generate less that £50 in interest over the year.
Inflation dropped to 0.5% in August, down from 1.1% in July, so your interest income would be wiped out by inflation meaning the spending power of your £10,000 after one year is…. £10,000!

So where else can we look for a higher level of return?

Continue reading “How to invest £10,000 for income”

Reinvesting a couple of dividend income payments

The A.I. portfolio cash balance has been boosted by payments from Low & Bonar and National Westminster Bank Plc 9%, so the funds were used to make a couple more purchases.

First purchase was Vectura (VEC) which was tipped on Shares magazine today. Bought in at 58p.

Second was a topping up of office2office (OFF) shares bought earlier in the week. Today’s purchase at 148.5p reduced the average buying price from 162p to 153p.