Hi @pelim, Yes I quite understand your problem, investments that don’t pay a dividend are a problem for anyone investing for income for all of the reasons that you have outlined. That’s why people investing for income naturally gravitate towards dividend paying investments where you don’t need to sell to extract the income (however small).
Not sure about your 20 year requirement though, are you really going to hold the same investment for 20 years ?. I buy and hold but I’m pretty sure that there will be very few that I’d expect to be around for that long. And if they cut their dividend or share price dropped significantly (presenting a threat to the capital) then personally I would sell and invest elsewhere.
Investment Trusts paying regular dividends are a popular choice for income seekers as I am sure that you are aware. But are you aware of the AIC (Association of Investment Companies) ?. They specialise in Investment Trusts and provide a lot of useful tools for finding and comparing them.
A recent addition to the AICs toolset is an Income Finder tool that allows people with an IT based portfolio to plan out their dividend payments so that they are evenly spread over the year. There is a whole thread over on the Lemon Fool about this tool, see link below:-
Hope you find this useful.