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I want to use the share portion of my ISA Allowance to capacity before April 6th. 1. What happens to dividends in shares held in an ISA, can the be re-invested ? and 2. Which are the best dividend yeilding shares ?
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804The share allowance is whatever of the £7,200 total hasn't been used for a Cash ISA.
Dividends stay in the ISA unless you withdraw them as cash. They can be reinvested without affecting the current year's allowance, as long as they remain in the ISA.
If you are re-investing, the highest dividend shares will not necessarily be the best performing shares overall. Because they pay out a higher proportion of their profits, the capital gains would not be so high.
Unless you want the income, it is the best combination of Dividend and capital growth that you want.
The highest dividend shares tend to be Utility and Oil companies.
Mike
Posted on 14 March 2010 |
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410Useful resource if you are interested in investing in blue chip shares paying dividends: http://boards.fool.co.uk/high-yield-hyp-practical-51676.aspx?mid=11860596
Posted on 15 March 2010 | Love 0 loves
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