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No problem zac. I just re-read my posts and sorry if they sounded snotty to you or anyone else as I was only trying to be helpful. Seen too many people over the years on much lower incomes than they could be achieving as they aren't looking at the current/future picture and what else they could be doing. Of course total net returns are the only thing that matter when you're accumulating, and are important when you are drawing an income, although then you need to think about sustainability and managing volatility so your income can remain constant and go up each year with inflation whilst minimising pound cost ravaging. I agree over the longer term drawing down on a diversified portfolio of funds is an easier way of doing this whilst managing risk. Anyway, I'd better shut up now before I get told off for going off topic!!
Compound - thanks for the response. My overall key measure is total return ie income received and capital growth. Providing this meets my desired target each year then I'm happy. I measure growth against the value of each holding at the previous year end.
My best overall returns have been from investment funds. I always invest in the accumulation version of the fund and simply draw down on capital to provide myself income when required.
That's how I do it. If I buy more I work it out at my average. I also keep an eye on what the current yield is against my PF stocks and often buy the stocks which has a higher yield than my average menaing that I'm underwater in that stock but will be increasing my yield. I have further metrics to achieve than just that. There must not be any underlying concerns. Sometimes it's just timing of entry.
But yes. Always work out the yield on my buy price and retain the average.
@zac - it's not. Your personal goal of desired income / % yield on initial capital is is of course the only thing that matters, but it's very dangerous to use that calculation on a specific current asset. If you do that, then you end up confusing your personal goal and the historic gains of a specific share/asset with the current position of an asset. It doesn't matter whether you are accumulating ( not drawing any money from investments), or drawing some form of income from your investments, you should always be looking at the present and future position of an asset and comparing it on a like for like basis with other assets in order to achieve the best income or total returns.
If your goal is to reach 10% yield pa on initial capital (although don't forget inflation on that income), then thats what you should be focusing on. That's best achieved by investing in assets with the best total returns (capital growth and income reinvested) during accumulation, and switching to higher yielding assets in accumulation in order to maximise your income, although as I mentioned you should always consider the future potential of that income so that it at least keeps pace with inflation. That's why when looking at yield you must look at current income and prices, and the potential for future increases, otherwise you won't be doing a like for like analysis and will often either end up with a lower income, or have to wait longer to achieve your desired income.
Take the extreme example of someone who wants 10% pa income on their initial capital and is invested in Apple shares. They may only be up to 7% yield pa at present, so are only two thirds of the way there, but they are overlooking the fact that they've had 900% capital growth and if they switched to an asset with a current yield of 5% (which sounds lower) they would actually be getting a personal yield on initial capital of 50% which is far higher!
As I said you also always have to try and assess potential future income, and taking BP as an example, future income per share could be a lot higher if pre covid dividend levels resume. If they do, then buying at the current SP would get them close to the 10% pa personal yield on initial capital, and those who bought sub 200p would certainly have smashed it. That's a completely different calculation though as it's looking at potential future income per share, which again has nothing to do with your own purchase price.
If you bought in low £2's or upper £1.9's at the right time, tyour 2.5% dream could be a reality here long term. I always calculate my yeilds at the price I paid, anything else and you are kidding yourself. It doesn't matter what the current price is when I lookat my portfolio and dividends. Mt buy price is all that matters to me.
BP are a chameleon amongst oil companies in the way that they are rapidly turning to greeen energy and it bodes well for the future.
Just calculate that at the current Dividend gives you approximately 15p a year. Multiply this by the amount of shares you own. Does it matter a % either way. RDSB roughly gives you 50p per share. Once you work out the total amount received and divide it by the current amount. We are all in here for growth presumably. We all have a sell target. Just enjoy the dividends. Remeber you only get 0.1% in a savings account in a year. At the current share price, the dividend is 4.73%.
Totally agree with Caitlin - to those of us who sit back and take the dividends and live a relaxed life, the only thing that matters is the quarterly yield based on our buying price. 2% per quarter is the aim, 2.5% is the dream. But of course the traders will never understand that.
You'd surprised how many people work out yield based on their purchase price. I agree it's not the way to do the calculation, as you are mixing up your capital growth with the current income to give a personal, historic figure, and not an analysis of the current open market position. I see people do it with shares and property, and it can be very destructive, especially for income investors.
Only way you could get 8% yield at the current prices is if you were trading on margin and were either not doing the calculation properly, or had only set aside enough capital for the price to fall to around 290. Other than that or you bought shares at 190p and are calculating your yield based upon your original purchase price and not the current price.
if it does fall out of channel, below around 313 today and stays below it, another possible pivot fromn that upwards line and the higher top parallel downwards resistance line is 350 on mon 24th may, guessing either way would fall far days if touched
HSBC fell out of its rising channel, has now recovered and is massively back on the way up. VOD is the same. These things are not ordained and are due to market sentiment as much as any technical analysis. The fundamentals are sound and sentiment is very much shifting. As I’ve said before, the “tradey” nature of BP in my opinion Is coming to a close and we should be back to solid gains with the odd paper hands pullback every now and then Liz I won’t want to miss out on the big gains that are coming.
There are lot experts here who wants to penny pinch, they may get few pennies but will lose out on the big rally, energy stocks is where money should be in, 350 plus very very soon BP and RDS undervalued to its peers and are no brainers hold on to them
if it doesnt fall out of the rising channel today 310 low, it needs to rise 4 per day for 7 sessions on average and may touch the 346 pivot, intersecting line from march lows through two highs of recent weeks, with resistance of channel from precovid fall, the 326 high of weeks ago, both of us got out at 324 was the touch of the support of this downward channel, it might touch the resistance of the top of channel this time at 346p on fri 14 of mon 17 may, guessing will fall for days after if does