Q: Hello Peter,
I hold CSU debentures in my income portfolio at a cost of 133 which are trading about 10% below my cost.
Would you prefer to hold them over the top 10 equities in the income portfolio? I generally prefer to have income investments with at least 3% dividend and a 3% growth above and over inflation.
Your comments are appreciated.
Regards
Rajiv
I hold CSU debentures in my income portfolio at a cost of 133 which are trading about 10% below my cost.
Would you prefer to hold them over the top 10 equities in the income portfolio? I generally prefer to have income investments with at least 3% dividend and a 3% growth above and over inflation.
Your comments are appreciated.
Regards
Rajiv
5i Research Answer:
We have nothing against the CSU debentures, but their return is closely tied to inflation moves, and of course interest is taxed differently than dividends. For an investor seeking tax-advantaged income and some upside potential, we would be fine with a reallocation as outlined in the question.