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I'm looking at investing in a Stocks and Shares ISA over the winter, and my money will go mostly into equity shares.
My biggest problem is that there are so many attractive fruits out there, it's hard to choose.
If I had money today, half of it would go into a savings and investment manager IM&G (LSE: MNG).
M&G's share price has been low over the past few years, and that has helped push the forecast dividend yield down to 9.5%.
There is no free money
There is no such thing as risk-free money, and we can never guarantee a dividend. Sometimes, the income just isn't there to pay for it… which is exactly what happened to M&G two years ago.
It's still paying off, though. And forecasts show that dividends should be covered by earnings over the next few years. But only.
If they are right, earnings per share (EPS) should rebound this year, but then remain very low for the next two years. And EPS will cover estimated dividends at around 1.2 to 1.3 times.
So the dividend could come under pressure, and shares could suffer if we have a cut.
But the main reason I want to buy is that I think the UK stock market could be bullish for a long time. And if so, investment managers should do well.
It is sad
Next FTSE 100 The dividend is that I really like the look that leaves me sad, for ethical reasons. That's right British American cigars (LSE: BATS).
Despite the strong price run this year, forecasts still place the dividend yield at 8.5%.
Clearly, the future of tobacco spells real long-term danger. And I think smoking stuff will eventually die out.
I think it may take a very long time to convince billions of developing countries to start this practice, however. And British American excels in other ways to eat it.
There is a little guesswork on my part there, though. And we don't really know what kind of market those vape things will end up enjoying.
I probably won't buy, just because it's a cigarette. But I wish I could feel free to go to that fat gain.
Buy a grid
I really have to buy National Grid (LSE: NG.), with its forecast yield of 5.5%. I've been telling myself that for years, but I've never actually hit the button.
I'm not really sure why, but it's probably down to something that catches my eye each time I have money. High yield, maybe a growth stock, or a very cheap small cap.
Whatever it is, I've missed out on decades of what I think has been one of Footsie's best assignments.
This year's new budget issue, which reduced dividends slightly, shook confidence in National Grid. And now that it has, will the company need to get more money to expand again?
That can happen, and it can keep emotions low. But I have to buy one day.
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