Ever wondered how much you need to invest to pay for Christmas out of your dividends? Nope, us neither - but now the Association of Investment Companies (AIC) has answered the question no one was asking.
According to the AIC, an investment pot of £5,000 yielding three per cent would produce £37.50 per quarter, or £150 a year, assuming a quarterly dividend. Not exactly a king's ransom, but enough to pay for a few book tokens...
Meanwhile, a pot of £10,000 yielding three per cent would generate a quarterly income of £75, or £300 a year. If that yield was closer to five per cent, the income would be £500 a year. That's a couple of iPads.
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Annabel Brodie-Smith, communications director at the AIC, pointed out that the best long-term gains are made by reinvesting dividends.
"[But] many investors want the income from their shares to help with living expenses.
"Our research shows that you don’t have to have a huge portfolio to generate an income which could at the very least prove helpful at certain financially stressful times such as Christmas."