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Every share has its peaks and troughs but reinvesting the divi every year makes a huge difference over the long term. It doesn’t take much to spook the markets at the moment but as AASea says you will either be purchasing a bargain in May or hopefully the markets will have settled and the sp recovered somewhat. You are compounding earnings. One of the most significant advantages of dividend reinvestment is that it allows you to buy more shares and build wealth over time. I am fortunate in that my entire holding is in an Isa and no worries about paying tax on the substantial Divi but everyone is different and some have been lucky if they sold before the Divi and repurchased now. All about the timing.. gl all
If like me you held on for the dividend, it will be paid in May. Then, if the stock continues to be a bargain, as it is now, you can reinvest your divi and get more shares than you would if it hadn't dipped. Or maybe the price will have recovered...
As usual it is impossible to forecast.
Tinker, that's a very good point, unfortunately theirs a lot of bad things going on in World right now that we have very little control of, so let's hope it gets better soon
Robleo, Yeah, it’s always a dilemma. Sometimes I’ve sold shares before xd and done well and sometimes it hasn’t paid off. This time, the people who sold in the 490s and are now buying back at 450 have obviously done the right thing. My main point to Caddy, though, was that if you are content to hold and bring in 8% a year then you’re not doing too badly.
GLA,
T
TinkerT, not sure if the ones that sold for around £5 needed the cash, they probably didn't want to lose their capital gain
with hindsight if i sold my aviva/mng and Lloyds shares before exdiv it would have been more rewarding than taking the dividends, when you think about it your not going to get anymore income from those shares until the next exdiv, maybe selling up and holding the profits in cash until they all drop back would be more profitable, unlike my funds that keep growing dividend shares just go up and down
Caddy,
I think the question you have to ask yourself is “Was I going to sell at £5 ish?” If the answer is “Yes” and you are still going to sell (because you need the cash) then you have reason to feel disappointed. But, if (like me) you are here for the 8% divi and are going to hold long term then you haven’t lost anything.
T
How can anyone know the reason for something that is untrue
AV. have been and are a great share, but anyone know how the NAV has dropped from £5 plus to £2 plus?
Was looking forward to my May dividend but the fact that it has now gone down over double what I will get back has taken the shine off it.
Guitar…You can copy & paste, Well done your parents must be very proud..!
Well all my so called “Negativity” or as I call it 43 years experience (excuse my smugness) has in this instance kinda proved my point to the Fanboys on this site..!
Please enjoy your filtering, as who needs knowledge nowadays when you can just follow the sheeple..
£5.50 right….🤪 Nice Buying opportunity for some today… my cup doth runneth over.
I sold two large holdings. One lot the day before the results and the second lot on the day of results. I couldn't not take my over £20K profit. Of course I immediately regretted my decision when they headed toward the £5 mark. If I had waited there was another £9k to be had. Lots of people decided to wait until before they went ex-div, knowing that they would fall back on the ex-div date by the dividend amount plus more. This has happened. I have put them back on my radar but only if they drop below £4.40. My plan would be to try and make 20p per share and then get out. At the moment my funds are in Taylor Wimpey and Haleon.....hoping for a 10p profit per share.
I was feeling really confident that this would pass the 5p mark before the dividend qualifying date. The results were excellent and the outlook even better. The share price was riding the crest of a wave, kept up momentum to 499p. But it fell a bit before the ex dividend date and again after it. Seems to be struggling to climb right now.
Where do you see this heading short/medium term? I’m apprehensive to be honest. It seems to be kicking off in the Middle East which will no doubt hurt the markets. The FTSE is very high right now, I can’t see it rising much further. There are no dividends for a while now, I’m thinking maybe to exit for the time being and jump back in when things seem a bit calmer. What are others doing?
Im adding monday before its back to 5 pounds
NICK1234
It's almost like people have different risk tolerances and investment timescales. It's his money, he can invest it entirely how he wants.
Yes of course we are all different, this is not a one size fits all
for anyone wanting to sell they will want to share price to rise now, for myself i am quite happy to see this drop until i have reinvested the dividends, and should it drop back to under £4 will add more
quite happy to be holding this one in my sipp along with lgen and mng, some other shares i hold i will be glad to get rid of
just my personal opinion of course
gla
Excellent move, me too.
gla.
Added, small.
My Grandfather was a rest hoot.He used to back small amounts everyday for years with his morning ritual of expert perusing of the nags column in his daily mirror.
Grandad would now and then ( very rare occasions) gloat of a fiver winnings.
He never disclosed his many losers.
Bless the feller.
Probably a few like him on here.
Two points,
The ex-dividend date, or ex-div. date, marks the cut off point for shareholders to be credited a pending dividend. To receive the dividend, shareholders must have bought the stock before the ex-dividend date.
If you sell the day before the ex-div. you do not get the dividend.
If you sell ex-div. the day when the share normally drops you get the dividend.
To buy back shares one has to pay the 0.5% stamp duty (except for AIM stocks) plus buy/sell margin plus a trade cost(?). For 1000 Aviva shares this could be approximately 4 to 5pence depending on your 'trade cost'. Shares do not always drop the amount of the dividend plus 5p.
If you intend to keep the share why bother, you are only giving money to the brokers and the UK Government. You might win but you might lose!
CHAT
Oiled-up today: "I sold at 498p".
Oiled-up on 22nd March: "NO ONE IS INTERESTED IN WHAT STOCK YOU HAVE SOLD TODAY !"
Oiled-up re Amanda Blanc: "...Amanda the man hater....."
Another knob-ette on the bullet-in board. I bet he thought he was always the best person for the job!
It's almost like people have different risk tolerances and investment timescales. It's his money, he can invest it entirely how he wants.
This place is like FB, full or morons. Who cares , how you make your money, no one right or wrong. If you trade or take dividends, it your investment. own it. Oiled-up, stfu, filtered.
Tinker..
No on the contrary, my glass is overflowing…
I sold @498 and not in a rush to buy back in.
Why o why would I be feeling negative ..?
I completely understand not everyone wants to trade the share , but it’s difficult to understand a “Dude’s” perspective and a fools reasoning..!
Aviva is a great trading stock and quite predictable, each ex dividend it drops more than the value of the dividend, so it makes sense “to me “to trade and make more profit trading from the isa account …
Is that glass half empty..?
You clueless fool,
You have just lost nearly a whole year’s dividend in one day, and you're spouting BS saying the share price will be back to £5 in no time…!
Well done, your line is the preferred way to not make the most of YOUR money… !
If that’s the goal, you win…
Ftse up 67 pips, Aviva up 1.5 pence, so almost at £5 already…🤣😂🤩🤣😊….Fool.
Interesting to see the market reaction to XD day for a variety of traditional income shares.
Think the evidence is all there that at present share prices for traditional dividend payers doesn't move much (in fact most have fallen over the last 5 years).
More and more investors seem to think that the best way to make money is no longer hold and wait for the dividends but to get a bit more active with the buys and sells.
As an example, I missed out on a 22p Aviva dividend but sold at 496 a week or so ago and bought back in yesterday at 460 - so 50% more than the dividend alone. See my post of 10 April so it's not hindsight trading.
Think this explains why the price immediately before XD day no longer rises as much as it used to (lots of sellers in the run up to XD).
Is buy and hold dead? I think with FTSE now only back at levels from 5 years ago it might be (I know we've had COVID, Ukraine and high interest rates on savings). You might need to think / deal accordingly!
Oiled-up,
I think you must be of the “glass half-empty” frame of mind. I tend to think the other way. I think of the SP growing over the year in anticipation of the divi payouts, 22p in May and 11p in September. I have no problem with SP dropping back by those amounts each time.
I don’t expect capital growth AND high divis. As it is, my average is about 380 so 33p a year is over 8%. What’s not to like?
T