Income
Oct 27, 2026
16 min read
De-risking a portfolio with gilts, dividend stocks and bonds for a modelled 6.6% a year
After five months of near-zero returns in US equities, this plan moves half a portfolio into assets that pay on schedule. Bucket 1 holds two short gilts to fund two years of spending. Bucket 2 holds four UK investment-grade retail bonds and eight dividend stocks with strong free cash flow and whose dividend rose YoY. Bucket 3 holds two Premium Income and High Dividend ETFs. Modelled return: 6.6% a year, of which 5.9% is in cash. The trade-off: to be rebalanced if the AI rally resumes.