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Agree with ex div policy CSDI. Bought a bunch of Rio today at 58.63 following big sell off on ex div day. Tomorrow we shall see! Glad to hear you are holding your own. It is a bruising sport but great fun. Key word in last sentence was 'sport'. We tend to confuse games wit reality!
Hi Baffled Your p/f sounds tricky too. My overall p/f loss is not too bad all things considered at around 6% from commencement. Also I do not have a great sum involved. I have 25 batches in total in my p/f - with 6 in GSK, 3 in IMB, 3 in CEY, 3 in PFC, 3 in RDSB, 2 in ASEI, 1 in BATS,NG,SSE,SLA&SUPR. Where I have more than 1 batch I am happy to sell in parts esp if that batch is in profit. I have sold other earlier batches of GSK, IMB and RDSB picking up small profits on those. I have found it can be profitable to sell just before ex-div and buy back afterwards too, having done that recently with GSK and IMB. This helps reduce average costs if successful. I am avoiding banks for now, but maybe missing out there, as believe big problems to come with write-offs when we have to pay back the Covid finances. I bought HSBC at £7 in 2018, but sold out at £5 last year - pleased I did. I am allergic to LLOY after the 2008 crash as I bought some in 2007 at approx 550p in an old/closed SIPP. with all the RIs and Govt interference those shares would have lost >90% if still held. Today i've just sold AV for 18% profit after 3 months, and have bought back into SLA with the proceeds as the SLA divi is beter than AV for now - with chance SLA may be cutting on the cards Cheers
CSDI that is a real tale of woe. I wouldn't want your lottery numbers! That said, I am in much the same boat nursing losses on Lloyds, BP, BT, MKS, RDSB, GSK, VOD, IMB and BAT so I have no room to sound smug. Your description felt like deja vu! It is particularly galling to have a dividend confirmed then snatched away (AKA suspended) at the last minute only for it to reappear a year or so later at a much reduced level.....Lloyds you know what I am referring to. The gamblers option is to double down if you trust your own valuation thesis. I have done this with some success. However, I feel that the tide is turning for value stocks at last and I am even in profit on Aviva and my mining shares. Stick with it old boy and your luck is bound to change eventually!
My answer from GSK on Dividend 12 minutes ago. No forecast on what cut in Dividend is, may not be , no decision made and wont be this year.
Dividend payment remains same at 80p per share, which is 7.28% yield.
I have to laugh at these projected cuts, as no decision as be made and its all BS until GSK make statement to the market in a RNS. Cuts in Dividend know about are IAG no dividend for next 3 years. TUI no Dividend. Rolls Royce no dividend this century
Hi Guitar My plan is to target divis of 5% p.a I first bought GSK @ £16 back in July, when it was forecast as 5%. The problem with high divis is that the market thinks the business in not as sound as we would like. Hence GSK down 25% (ish) to recent £12. No point in 80p p.a divi if you lose £4 on the SP ! My p/f is 90% High yield - with a plan to reinvest the divis. however my p/f is down over 3 yrs as SPs fallen and many a big cut in divi. RDSB was £28 when I bought in July 2018, now around £14 - a 50% drop in value AND the divi been decimated from 188USc to 66 USc p.a. Double whammy or what - and then the GBPUSD exchange rate has gone from 1.25 in Q1 2020 to 1.4 in Q1 2021 causing another 10% reduction in divi. So all in all, not been a good time with my HY shares over 3 yrs. Factor in bank and insurance shares have been cancelled, although now back on tap. And IMB down over 50% since I bought in Jan 2018, and another divi cut from 206p to 137p, and still looks far too high !!
As for GSK, we are at multi year lows - so what are you waiting for. Of course the SP could go lower - it's always possible - that is the risk/reward element of investing. I would be very disappointed if GSK is not much higher at some point over next 5 years. If you have funds available it might be worth drip feeding into GSK. I have batches bought at 1613, 1528, 1479, 1420, 1388 and 1215 which is probably twice as many as I would like for each share/sector. You could of course look at funds with GSK included like HHI, IUKD or ASEI but they have numerous other shares in their fund/trust. Cheers & GL - CSDI
Many thanks Caitlin, CDSI, Pokerchips et al! You've answered my initial query which was whether the projected divi cut is real, it is! Of course there may well be good reason for it that benefits the long term. I would just need to factor that in to my thinking. If I bought in it would be as a long term investor (5 year horizon) so would be to benefit from the rebased then rising dividend if the money was reinvested wisely by GSK etc. CDSI, I already have IMB, NCYF, VOD, most of the insurers etc - a good chunk of the high yield market! I don't presently have any pharma so should for balance. But I would probably want 6% yield with the 67p rebased dividend - so need to buy at 1120p! That might be a bit greedy, but you never know. And of course I wouldn't want that to happen to existing shareholders, but would jump on board if it did! We will have to see how it pans out. Guitarsolo
Reducing the divi is a double edged sword but at the current yield it really is too high for a FTSE100 company in the Pharma space where R&D investment is crucial. I don't think a cut in half to a 40p dividend (around 3.5% yield at current prices) is going to put off value investors who recognise the current depressed MCap. Maintaining such a high dividend relative to current prices is only keeping the share price low. As markets adjust to fears of inflation, money will flow form speculative stocks to value stocks, and GSK is prime for that inflow.