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Here is an article about fund managers being good at buying but not so good at knowing when to sell. I think many of us can relate to this.
https://moneyweek.com/investments/investment-strategy/603833/how-to-become-better-at-selling-stocks-and-shares
Shaun
While I would never regard IUKD as an investment for growth, if you can pick off the highs and lows instead of investing passively, it can be quite luctrative. Like the old addage, 'any investment can be a good investment, depending when you buy and when you sell.'
I sold at 7.20, just purchased again @ £6.50 ~ 10% less.
This years seem to be a fair bit off of last year, so looks like around 4.5-5% for 2022/2023 I'm expecting a drop to around 5.30 ish level again, thus have sold out for that.
A dividend record here and notification of future dividends for anyone who follows:
https://www.dividenddata.co.uk/ex-dividend-date-search.py?searchTerm=IUKD
Yes, I do that with 25% of my holdings usually. Good to have some cash on hand for the drops!
I originally bought this as a buy and hold income producing ETF but, given the volatility, I think the best strategy is to sell on strength and buy on weakness.
If this goes down to a fiver i will the house remortgage the house lol
I've been waiting for another opportunity to buy this sub £7. I sold my last lot at £8, if FUD prevails and it drops to £5 again I have cash waiting!
Hi Shaun.....this etf follows the best paying dividend companies due to the pandemic a lot of dividends were cut hence the drop here as the dividends rise it will follow suit this gives a nice passive income without any hassle....
Any ideas why this dividend is dropping?
Hi anyone who comes to this page....divi announcement this week thoughts? .looking for 10p a share my average is 634 so reckon 8% return and your not getting that in a savings account
I also sold out . For me, it was a bit of a stretch marketing this as a dividend fund when the divi went as low as it did. Even Investment trusts such as CTY managed a better payment. I moved into VUKE where the divi is not that much less at the moment and, apart from being a safe investment, it is volatile so I can make on the swings. Still, good luck to those who hold and I hope your patience is rewarded.
Yes but increased from a drastically low divi last March.
Over last 12 months divis = 26.99 approx 3.9%
I sold out of this a few months ago because of this cut back from previous year of over 50p.
So effectively a 50% cut in divi.
The SP has not recovered to the £8+ levels either, that it was at the end of 2019.
I moved to ASEI where the divi seems more secure, but likewise the SP not recovered from 2019 levels there either.
I did put something into HHI which has some of the IUKD and ASEI holdings, but put that into ASEI to consolidate as two very small holdings did not make much sense.
Just my thoughts but be warned of my acronym
CSDI = Crap Share Dealing Ideas LOL
PS. I am mainly a HY investor and not very good at it at all TBH !!
A nice increase to the dividend today. Not much fanfare but a positive sign. Expecting IUKD to be trading closer to £8 by summer
I've had IUKD a couple of times over the years and found it has lagged the FTSE quite siginificantly in those periods.
The current yield is the lowest it has been for many years - just 25p divi over last 12 months - with SP around 640p is around 4%. The full list of holdings is easy to access and copmare to other divi paying trusts.
Certainly this gives some diversification with its 50 holdings, but you get similar holdings in ASEI which is paying nearly 7% divi now. I would expect IUKD divi to recover in line with general Dividend reinstatements. I would expect ASEI's SP to match any increase in IUKD.
That's just my thoughts - but I am not called C S D I without good reason - Crap Share Dealing Ideas
Rare postings here on LSE - but good to read and get other PI knowledge/input.
So just going to say, why I personally came in and why! I will hold this investment for the next 2-3 years. I certainly do not discount any of the decisions that were previously stated.
I entered mid April at 532 for my own, and also my 2 lads SIPPs. Note SIPPs not ISAs.
As we all know, this ETF tracks the FTSE, taking the best dividends from the top 50! back then I think it was advertised at a near 10% dividend. We now know this sits at ruffly half! Is It a surprise? I think we would all agree - no!
So looking forward, this ETF remains attractive for 3 reasons:
1. Capital - even if you invested today, you should see a 20-30% capital rise in the the next 2/3 years (would say as aviation comes back online and the requirement of oil feeding that will make significant difference). Uncertainty of Brexit will be gone - note 'uncertainty'. Pandemic will no doubt continue, but 'UK plc' you'd like to think will have gripped vaccination/testing over this time.
2. The dividend - Respected some are departing, as chasing a higher dividend in different companies/funds! For me iShares negates a lot of risk! Hopefully not needing to explaining the magnitude of iShares! Unlike maybe, individual companies that you may need to watch consistently. this ETF is diverse throughout the FTSE. So maybe able to grab 1-2 % more else where! But my thinking is, as the economy recovers/capital rise, the dividend from the top 50 will do also! a little patience maybe! But I'd say 'risk' significantly reduced. Any single company can a have a shocker, such as a change of management overnight and lower/even ditch of dividend. This is why the balance of the top 50 is attractive.
3. Charges - low - ETF. With one of the biggest investments companies doing all the work for you.
Not doing my own investment any favours here - but if I were to come in now, I would wait for the FTSE Christmas retail spike to be over and also take into consideration Brexit! Christmas and Brexit uncertainty done and with economy on an upturn - this ETF makes sense to add to any long term investment plan.
To finish I believe the capital will recover and more so! and whilst it takes it's time I am happy to take 5% of income (of course automatically reinvested building your stock). With an upside of 'potentially' 10% by 2024!
From my own research and happy to be corrected - generally companies with high dividends (not many out there greater then the 5% stated at this time) do not have the potential capital upside. In short will the FTSE recover? yes it will! But with time!
So with IUKD, we have the potential low risk capital upside, and a good dividend that represents 'current' economics.
My thoughts only, and of course welcome any feedback to my outlook. Merry Christmas all and GLA with your investments.
Hi Ian, glad to see somebody else looking at IUKD. Thanks for comments. GAW looks toppy to me and the div only 2% - so not fit my normal selection criteria. LGEN is a good play, but my sector coverage is with AV having just sold SLA last week. I just thought AV had more to gain/recover in its SP. I can't find Sch Inc Max, as the Sch growth funds yield around 5%.
Thanks for the ideas though - always good to exchange ideas.
Cheers - CSDI
CSDI1962 - I'm going to sell my stake here too. Didn't even realise the divident had dropped until I read your post, so thanks for that.
I don't want to be accused of ramping, but take a look at GAW for dividends. The comany just keeps throwing them out. Check their RNS's.
Or there's always LGEN at around 8%.
If you want to stick with funds, my holding in Schroder Income Maximiser still pays over 7%.
All the best.
Hi All
with the drop in divi to just over 4%p.a, I've sold out of here, making a small profit after divis covered the a small capital loss.
I've moved part of the proceeds into a higher yielding fund = HHI - with forecast divi of 6.5% p.a.
I've used part of the proceeds to top up RDSB, despite its lower yield, on the hopes of a long term recovery in SP.
Cheers - CSDI
Think I have found a similar alternative with HHI.
Both HHI and IUKD go ex div on Wed, with IUKDs 5.1p being 0.8% and HHIs 2.475p being 1.6%.
As both divi paid each qtr, I wil be looking to move from IUKD to HHI next week.
Had considered ASEI too but just missed the div on that one.
Cheers - CSDI
RNS today shows ex div 10/12 for 5.13p payable 23/12/20.
This was over 7p last year.
The total divi for last 4Qs = 26.59p a drop of about 50% from previous year.
The current yield is therefore is approx 4.1% and a significant amount lower than 12 months ago.
Think I will be looking for another fund. Was thinking about ASEI.
Anyone suggest a fund/trust that will pay around 5% p.a with a good spread of sectors.
Cheers - CSDI
Hi Folks
I hold IUKD as part of my SIPP and it accounts for almost 10% of my P/F. I bought my first batch in 2019 Q1 at 790p and 2nd batch in the next Q2 at 740p. The divi then was about 52p (6.8%). During mad March this year I added a 3rd batch at 501p, to reduce my average cost to 680p. This year the divi has been cut savagely (just 21.5 for 3 Qs) and assuming Q4 is maintained at last years amount would take the divi to approx 28.6p.
My normal target is at least 5% p.a from divis, with this income withdrawn each year and capital left intact subject to ongoing ups and downs - mainly downs in my case.
With the recent surge in SP with the vaccine news I am close to break even with the divis almost covering the capital loss.
So I am wondering should I sell IUKD now, take a small loss and put this money in another share or fund ? I do have a small holding in CTY but was thinking whether ASEI might be a better choice with its yield of approx 7% as it has a number of the same holdings (BATS, GSK, CMC, IMB, NG, RIO etc).
My current p/f is 22% IMB; 20% GSK; 12% BERI; 10% RDSB; 10% IUKD; 9% NCYF; 8% SLA; 5% CTY, with bal in cash.
I am also thinking of moving from SLA to AV.
CSDI - Crap Share Dealing Ideas - As I always seem to mess up. I have significant capital losses being carried on IMB (24%) , RDSB (25%), NCYF (20%), SLA (23%), but do have at least some healthy dividends 2-3 yrs worth to cut down those nasty losses.
Any constructive ideas would be welcome thanks
Realist, I agree with you about the Rolls, which is why I've learnt to ignore the brokers ratings completely (ALL of them). It's better to short it now than to buy it as the main trend is still down and airlines aren't in much of a good shape at the moment.
Does anyone know if the dividend of this fund has changed at all since Jan this year?
And what happens if say the top 5 holdings decides to scrap their divs tomorrow, will this fund cut their divs also?