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Thanks for the advice zac il look into them.... I am selling off a few covid stocks and iv put some into some nice quarterly paying divi stocks this morning!
Hi Both - Adv11 - who knows with Merchants Trust, or any share for that matter! I tend to have a buy and hold strategy so that's what I'll be doing with that one and only time will tell.
snudge1234 - I would strongly recommend diversification, but not necessarily in the way you might think. You say most of your holdings are in stocks 'bruised by Covid' (I like that!). You might want to add some dividend paying trusts to those. In addition I would also suggest you look at investing monthly into an equity investment fund. You could go with a tracker fund (L&G International Index / Vanguard Global All Cap Index) or a managed fund (Fundsmith / LF Blue Whale / Rathbone Global Opportunities). Go with the accumulation version , not the income version. Invest every month without fail, month in month out, year in year out and over the long term you'll do very well. Also, be careful what advice you take from unknow people on bulletin boards!!!!
Good talking to you both and good luck with your investments.
Hi advice... I noticed you've commented on honeycomb..I've been keeping tabs on that...you think it's a good one..? Plus with DGOC do you get taxed loads on the divi?
Sound plan... I'm not too clued up about merchants.. I know no need to bicker and Argue! So do you reckon its worth sticking some money in merchant after next divi on a little drop? So do you think buying into
Quarterly divi payers with a diverse pot is the way forward?As I would say that is how I'm looking to build my portfolio but currently have most of it in what I'd call stocks bruised by covid but will survive and get back to where they were at some point( hopefully Inc NRR)
Personally, I rake in the dividends and reinvest it a couple of times a month in whatever needs a top up. If I take profits, I tend to also take a smaller loss elsewhere, which stops me amassing losses.
As for Merchants Trust, I can see a fall coming after the next dividend. It has been very up and down over the years.
I first bought in there April 2019 at 510p. Four months later I topped up at 442p, January 2020 I topped up at 561p, then 440p and 339p as Covid struck. All that adds up to a small profit at the moment. If I had a large profit I would probably sell half and start topping up again in a while.
It's good to actually have a conversation with fellow investors without everyone falling out !
yeah who knows, I think its. worth having some in each... your right nothing with NRR is for sure so thats sound advice! the key is keep your eggs in many baskets.....
snudge1234 - The current annual yield, given today's buy price, of the 3 dividend paying trusts I hold is as follows: Merchants Trust 5.25% (7.15%), Henderson High Income 5.85% (5.64%) & Henderson Far East Income 7.0% (6.71%). All pay quarterly. My yield is in brackets.
So, no, nowhere near what NRR would yield if it got back to 5p per quarter payment given the current share price. However, I think you're many years away from 4 quarterly payments of 5p each. But that's only my opinion.
adv11 - interesting. I'm going the other way in that I'm consolidating. I currently hold 7 dividend paying shares / investment trusts. I hope to have this down to 4 by the year end.
Similarly, I hold 15 investment funds, not paying dividends, where I'm invested for capital growth. Again, I can only see this reducing over time. This element of my portfolio has far outperformed my dividend paying holdings for a number of years now. Good Luck.
Agree its more interesting quarterly, hard to get excited about a divi that only comes once or twice a month... this was quarterly divis and I'm sure it will be again?
And zac 100% agree with you in that but I feel buying in at this time will give a good mix of growth and divis... I think divi paying trusts are a great idea but do any pay the quarterly divi as much as this will say it gets back to 5p A Quarter it did before.( thats a genuine question as I'd definitely want to look into Them! ?) Or close to that.... Also I agree aim can stitch you up and alot of people waffle on these chats but I appreciate what seems to be nice honesty and opinion in this one( excuse my poor grammar I m typing on a tablet
Interesting conversation. Having lost a fortune on dodgy AIM oil/mining stocks, mainly due to believing a snake oil salesman and his many followers, I have rebuilt my portfolio and am currently in 68 quarterly dividend companies and IT's, out of 100 or so I identified. My portfolio has never looked as good, I find it a fascinating hobby tracking the dividend dates and making small adjustments to maximise the dividends. Like zac says, the whole key to great yields is getting in at the right time. I dumped quite a few companies last March when the stopped dividends. HSBC, XPP, British Land, Land Securities, Emperic, GCP Digs etc. With this money I topped up or invested in a few companies I wasn't in at the time, and all these are now paying a 10 percent plus yield (because I invested at the bottom) and they are all up 50 to 100 percent.
NRR is the only company I have stuck with that isn't paying a dividend at the moment. I made this choice because I believe NRR is one of a few companies who do care about their investors as well as their investments. I just wish I had topped up more at the lows because NRR is my biggest loser at the moment.
I never thought investing in dividend paying shares would be as interesting as the AIM companies. How wrong I was. I choose to only invest in the quarterly payers because they keep my interest so much better. There is always something happening. Having a wide ranging portfolio means there are always a few well in profit and a few way down.
The only downside I see is that there are a growing number of traders playing the quarterly dividends. It's easy in a rising market but impossible in a falling one.
As I've said my strategy with dividend paying holdings is to move away from individual shares into dividend paying trusts. For the reasons stated below. So, for me, reinvesting here is a no. I'm down to my last 4 individual dividend paying shares and by the end of this year I expect to have got this down to 1 (L&G).
As this stock is still in its recovery phase there's probably some capital growth still to be had.
But to reinforce my very initial post that this was a poor performing stock prior to Covid. Look at the numbers. If you'd have invested here at the start of January 2017 by December 2019 you'd have received dividends to the value of 19% of your initial investment. However, that 19% would have cost you 40% of your capital. So a total loss of 21%. I don't consider this to be a quality stock based on historical data but others may differ in their views and I respect that. Good Luck in your investments.
Hi, thanks, some good ideas il look into... sounds a good sound plan...... but at this price is NRR not worth a go considering the quarterly divi here when returns also and some growth....? but funds do seem a safer bet
In addition to my holding in MRCH I also have positions in 2 other dividend paying investment trusts - Henderson High Income and Henderson Far East Income.
snudge1234 - my portfolio is split into 2 distinct categories (i) investment funds for capital growth, and (ii) individual dividend paying shares for income
My investment funds (global equity) have performed very well during this period. As for my dividend paying holdings well that's a different story!
Throughout 2019 I was moving away from dividend paying individual shares into dividend paying investment trusts. The covid situation has forced me to accelerate that process. Hence my sale of NRR.
So, in answer to your question, I sold here and used the proceeds to buy Merchants Trust (MRCH). I have an average buy price of £3.80. Today it is £5.19. My buy price delivers a dividend yield of 7.15%. It's paid quarterly. It's increased its dividend every year for the last 38 years. Whether that remains this year we'll have to wait and see. Using an investment trust means that I'm not exposed to one company as it invests in a wide range of businesses, and they keep back profits each year to support dividend payments in poor years. I'm waiting to see if that works this year.
Who if you don't mind me asking?
No, Mike. No intention to re-enter here. I wasn't aware that I was 'moaning'. I was simply pointing out that this share had been in a 2 year decline prior to covid, so not all good news here leading up to the pandemic.
I sold out at around 80p on the way down. I held here primarily for the dividend. I've re-invested the proceeds in a share which I consider to be a more reliable dividend payer. So, far I haven't been disappointed.
Are you sure intending on getting back in or are you just here to have a moan.
I wasn't aware I needed to justify myself before I could post here!
I held a large position here for many years so have a view on how this share has performed over the longterm. A balanced view is required from time to time!
HaHa. Could you pop over to REI Mike and ask the guy on there why he spends years of his life running down a company he isn't invested in ?
If you are out why are you here. It too late to get in here IMO. Try Lar Espana real estate down in Spain. The ticker is LRES
No i didn't see it coming. If I had I'd have sold my holding here a lot earlier than I did!
That is a reflection of the changes in the uk property market which has effected the entire retail sector.
If anything the managements diversification into Pubs was a good move. Unfortunately NOBODY saw Covid coming. Unless you did in which case you must be a genius. Well done.
Just look at the share price performance in the 2 to 3 years prior to Covid before you heap too much praise onto the management team!
As we move into whatever the new world will be I am reflecting on a few of my investments and the board of those companies.
NRR has been what i consider to be pragmatic opportunistic, realistic and cautious all at the same time.
This commodity in business operation is not something that has ever really had to be tested in recent decades in such a way. Personally this response to covid and communication and actions over the period is something i will be trying to gauge in future investment eleswhere. If this has not been a trial by fire, especially for certain industries i dont know what is.
I am very happy with my NRR investment to date and loook forward to being a VLTH rather than a LTH.....
Bring on the dividends! Hazar!
Ballio