Income investing

[hksomewhere]

I'm curious to know what people are doing to invest for income, aside from placing time deposits and buying treasuries. Something with low or moderate risk and better payout (trying to understand scenarios for 5%/6%/7%)

I have some income and bond funds, but the fees run at 1.25% and there's not a lot of information on other options for non-US investors. Would rather avoid managing my own bond ladder or owning individual dividend stocks. Thanks.

[muzzdang]

You can buy US treasuries directly from Interactive Brokers

[shri]

You can buy US treasuries directly from Interactive Brokers

Do you hold any? What is their handling like on direct issue UST?

[bdw]

Bonds and treasuries are "sheer stupidity", returning only 4.8% over 50 years, compared to equities returning 10.5% over 50 years, according to this guy below.

https://www.news.com.au/finance/mone...5616eec5df5c1d

[muzzdang]

I don't hold any

https://www.interactivebrokers.com/e...ions-bonds.php

United States - Treasuries (Bills, Notes, Bonds)
Trade Value Commissions Minimum Maximum
First USD 1,000,000 in Face Value 0.002%* Face Value (0.2 bps) 1 USD 5.00 None
Additional Face Value > USD 1,000,000 0.0001%* Face Value (0.01 bps) 1 USD 5.00 None

[Hkemail888]

Bonds and treasuries are "sheer stupidity", returning only 4.8% over 50 years, compared to equities returning 10.5% over 50 years, according to this guy below.

https://www.news.com.au/finance/mone...5616eec5df5c1d

but we need to buy treasuries, we need to show our support to the USA for promoting their vision of human rights everywhere forcefully and to support their multiple wars of terrors <3

[becomjapanHK]

Covered call dividend ETF's!

[Morrison]

I follow a list of companies and wait until the price drops to a dividend yield in the range of 6-10% after dividend withholding tax, if any.
The dividend yield I buy in depends on the company.
This takes preparation.

[mmbiker]

I have div paying ETFs but really hating the 30% withholding tax if bought from IBKR HK….

[shri]

Covered call dividend ETF's!

Irish based.

Do check and see if they derive income from ELNs (JP Morgan) or actual covered calls - minor optimization on tax. But this is out of the scope of this thread. There is a fair bit of equity risk.

OP - Other than exotic covered call funds (not for you if you don't understand how they work)....

Take a look at the iShares UK (and other ETFs providers too) website for ETF ideas. You can get pretty decent yield from dividend ETFs, specially in the emerging markets area and in the corporate, EM USD Govs and High Yield bond ETFs if you're willing to take the risk on the fixed income side. I have generally found iShares has more interesting diversification / slice & dice options.

While UCITS ETFs are more expensive than their US counterparts, you benefit from Irish tax treaties on incme producing ETFs AND lower costs than the shit (sorry, meant Blackrock funds) that the banks sell here in HK.

You now have a shit ton of material to research..