A Poor Way To Invest For Income

Published in Investing on 21 November 2012

The iShares UK Dividend Plus (LSE: IUKD) ETF comes under scrutiny from Maynard and Owain.

Owain Bennallack and Maynard Paton discuss the iShares UK Dividend Plus (LSE: IUKD), an exchange-traded fund that tracks 50 high-yielding shares within the FTSE 350. While this ETF may sound ideal for dividend investors, it does have one major drawback... Companies mentioned include Lloyds (LSE: LLOY), Taylor Wimpey (LSE: TW), AstraZeneca (LSE: AZN), Royal Dutch Shell (LSE: RDSB), United Utilities (LSE: UU) and MAN Group (LSE: EMG)...

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Click below to watch Maynard and Owain's video

Video

 

> Owain owns shares in AstraZeneca and Royal Dutch Shell. Neither he nor Maynard own any of the other shares mentioned.

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Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.

ANuvver 21 Nov 2012 , 4:51pm

Appalling sound quality. What did you record it on, a calculator?

TMFSamR 21 Nov 2012 , 5:05pm

Investigations into this are under way, and the quality of future videos will improve.

ANuvver 21 Nov 2012 , 7:07pm

Didn't mean to be too snarky.

If it would help with your investigations, a couple of pointers:

a) Talking heads style videos are largely static, so very efficient for video compression purposes.
b) Don't feel you have to compress the dickens out of the audio element during the recording or encoding process. Given point a, the benefit for streaming purposes is minimal. YouTube will just rerender audio in MP3 anyway, so don't stint the audio quality on what you upload.

Valid points about mechanical index investing, btw.

amsterdamgroove 21 Nov 2012 , 10:10pm

Interesting points raised. I found it quite educational.

And the cherry on top of the cake...
"Appalling sound quality. What did you record it on, a calculator?"

Laughter and endorphins... I think I will sleep better tonight...



Pinchthepennies 22 Nov 2012 , 3:14am

Where's the transcript for this video? Why is it not available at the same time?

Btw, this goes for nearly all videos on TMF, I'm afraid - transcripts should always be available at the same time as the video.

goodlifer 22 Nov 2012 , 6:40pm

"Transcripts should always be available at the same time as the video."

Hear hear, too right.

Midas007 02 Dec 2012 , 11:02am

Found this interview very helpful and tend to agree with the concerns conclusions reached.

Would be interested, however, to hear a similar interview on the SPDV US Dividend Aristocrats ETF, which I hold in my SIPP as a low-cost means of getting some US income at reasonable cost (TER 0.35%).

The approach is still mechanical, of course, but I was persuaded on the basis of the additional filter that only includes high-yielding stocks which have increased their dividends for 20 consecutive years.

Does this go some way to alleviating Owen and Maynard's concerns? It's early days, so far, of course, but performance over the short-term has been encouraging, 15.26% gain since inception in October 2011.

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