Ask Colin

Do you provide education for investors seeking income primarily?

The full question was:

I enjoyed your presentation at the recent AIA conference. I am more interested in income than growth. Do you cater for this in your membership?

My approach is focussed on generating an income stream (dividends, franking credits and capital gains) that will stay ahead of inflation, so that my capital will last as long as I do. As this objective requires both income and capital growth, I use the stock market to do this. I am aiming for a dividend yield better than the market average across the portfolio. The other part of return from stocks is the undistributed profits of companies that are reinvested in the business. This will result in higher dividends, but also capital growth from the increase in intrinsic value of the companies that has not been distributed as dividends.

 

However, if you are focussed only on income from stocks (dividends plus franking credits) and trying to safely maximise the return, you may be better to seek other education. For stocks, I would point you to Stock Doctor, who generate a list of safe star income stocks. They are based in Melbourne not far from you. Why not pop in and have a chat with them? Tell them that I recommended you.

 

For income investments other than stocks, I can’t suggest anything; it is not my area of expertise.

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