Today started off with more purchases of companies I’ve already taken positions in this week, but with the market continuing to fall I’ve taken advantage of picking up “cheaper” shares.
Is this a good idea? I’m reminded of the phrase “catching a falling knife”.
Bye, bye cash ISA, it’s been nice knowing you
I also made the decision today to close one of my older cash ISA accounts (getting probably only about 2.5% interest) and invest the proceeds into high yielding shares instead. Surely some well chosen high dividend payers can produce more than 2.5%?
My decision was partly made after I read a great series of posts on the Monevator website:
Grow your income with dividends from high yield shares: HYP Part I
How to choose a good high yield share for the long haul: HYP Part 2
Diversifying your high yield portfolio: HYP Part 3
Selecting the shares for your high yield portfolio: HYP part 4
The posts are quite old now, but they are well worth reading as the general information is still relevant.
My High Yield Portfolio
I created a new share dealing account with The Share Centre, in which to put these “high yield” shares so that I can keep an eye on them, and separate them out from the chaos that is my main portfolio. I’ve called the new share account HYP (High Yield Portfolio).
As the new dealing account was opened under the same customer number with The Share Centre, this new account also enjoys free commission courtesy of my Premium trading option.
So into the HYP goes:
IUKD, AV., RDSB, VOD, ISCF, LGEN, RSA, AZN and SSE
There’s some cash left over, which I intend to use to purchase more shares over the coming days.
Finally, today I also topped up my shares ISA (held with Fidelity). Purchased further HTBC FTSE Retail Acc, Fidelity Moneybuilder Income Fund (Gross) and MArlborough High Yield Fixed Interest