A lot of people rely on investment income to fund their life.
It could be retirees who have worked hard and now want to enjoy the fruits of their labour. It could be someone who was injured and received a large payout. It could be a lucky person who inherited a lot of money. It could a regular person who’s building wealth and wants an income stream.
You won’t get decent income from bank accounts or bonds these days. The best place to find good income is the share market. Here are two dividend ideas:
WAM Capital Limited (ASX: WAM)
This is the flagship listed investment company (LIC) run by Wilson Asset Management. It has been operating since 1999 and since then its portfolio has generated an average return per annum of 17.5% before fees and taxes.
It uses that return to pay a steadily growing dividend which has been increased every year since the GFC. I really like the philosophy of sticking to investing in undervalued small and mid-cap growth shares if there’s a catalyst, otherwise WAM Capital will stick to cash.
It currently offers a trailing grossed-up dividend yield of 8.9%.
National Storage REIT (ASX: NSR)
National Storage is the largest self-storage business in Australia and New Zealand.
Over the long-term I believe property businesses that own buildings with little improved land value have an advantage over office buildings and shopping malls. The value of land goes up, but buildings depreciate over time – they require significant maintenance.
The price of property in Australia remains high, so National Storage is able to charge an attractive price for its properties.
It currently offers a trailing distribution yield of 5.6%.
With interest rates currently rising I’m more drawn to the idea of WAM Capital because I think the investment team have the skill and strategy to navigate the market volatility. National Storage may offer a more appealing yield in a year or two.
Want more dividend ideas? This top income idea is very defensive and just grew its dividend by 30%.
You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!
Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.