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Even among those of us who invest for long-term income, we all have different choices and take different risks.
But there are a handful of stocks and sectors that I keep turning to.
A very long time
I will start City of London Investment Trust (LSE: CTY), as an example of a type of investment that many people overlook.
Investment trusts can hold cash in the best years to keep their payments going in the bad years. And that helps people who want to take regular money. Now, like any dividend, it still cannot be guaranteed. But it can reduce the risk.
In fact, the City of London leads the Association of Investment Companies' list of Dividend Heroes, after increasing its dividend for 58 consecutive years, currently at 4.7%.
That presents a potential pitfall, however. If it misses one year, I think the share price can take a downward turn.
Diversity
With this trust, we get a mix BAE Systems, A shell, HSBC Holdings share price, AstraZenecamany more. I would consider buying them all for the shares themselves, but the variety in one holding is a bonus.
Many other investment trusts exist, with their own investment strategies. I always grab at least one.
Two sectors
Next, I want to highlight two areas that have always ranked high among my passive incomes. I'm talking about banking and insurance.
I bought it Lloyds Banking Group again Aviva share some years ago, and I still love them both. From today, I will go to Lloyds again, with a forecast dividend yield of 5.1%.
Risk balance
Its exposure to the mortgage market adds some risk, and we could see volatility while interest rates are high. And I suspect that may be longer than we hoped.
But I prefer that China risk that comes with something like HSBC, with a leading yield of 7.5%.
And I choose my insurance today? Most likely Legal & General with its 9% yield. I would take the risk of a long term cash cow cycle like that.
Two champions
I'll finish with two income favorites that I've never bought, but I tend to do the right thing.
One is British American cigarsthe forecast is to produce 8.4% this year. It depends on the long-term future of tobacco, but some products can keep that going for decades.
And the moral concern is that individual investors decide for themselves.
Equity shock
National Grid another, with a 5.8% yield on the cards. Its unique positioning and limited income transparency mean that many long-term investors like it.
But confidence has been slightly shaken by this year's budget issue, which has reduced dividends slightly. After doing it once, the fear is that he might do it again.
Where to buy?
There will be wide differences in the stocks each of us will be comfortable holding in the coming decades. And I really think that's the time to think about it.
But I strongly believe that we can all benefit from considering the stocks that other inbound investors like and hold.
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