Question for UK based income investors

5th Apr '22 by shamusj

1 comment 279 reads

I'm currently setting up an income portfolio of around 70 UK stocks which (with luck) will out perform the FTSE index over time. I initially thought to avoid US dividend stocks due to the 15% withholding tax, but it occurred to me that there may be a significant opportunity cost in doing so.

My question to fellow PIs is whether any of you invest in US div stocks for income that are still compelling to you in spite of the 15% haircut to your income. Please share your ideas and I will look into them further.

Here's some of my initial high yield ideas with a good track record (I need to delve deeper into these):

$IEP

$MPLX

$OKE

$CQP

Cheers,

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JohnEustace

7th Apr '22

I hold OKE in a HL SIPP which gets around the withholding tax issue but I'm of an age where I can draw from the SIPP.

I have £MLPX in an ISA which is an ETF tracking an index of MLP's and energy infrastructure corporations in the US.

I also hold Diversified Energy (LON:DEC) which a US company with a UK listing yielding 11%. That one is a bit more complex to understand because they manage it for reliable cashflow. So they hedge their output a year or so ahead. When the market prices go up those hedges show a loss, and a profit when prices fall, which looks counterintuitive. As always DYOR.

Question for UK based income investors

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Shamusj

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