The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Gary59
You are clearly fond of talking down to people from behind a computer screen. I doubt you do it to there face.
SD if I knew your address I could send you a chill pill.
I mentioned PSN purely as an extreme example of a dividend available to investors, that's all.
None of my post was intended as snide or condescending & why this is topped with a lie as you put it is beyond me.
The post was aimed as those less experienced investors reading here & thinking of borrowing money to buy dividend paying shares, which is pure folly.
If your feeble brain cannot understand this post I suggest you do take a chill pill, that last bit was condescending but the way.
Garyto
"RE: L&G share price.Sun 15:33
You can get a personal loan at 2.8% & use it to buy PSN shares which will give you a 15% dividend.
If it were that simple many people would be doing it but it isn't guys, it's pure folly to borrow money to buy shares, buying shares is just gambling & this should never be forgotten, end of lecture."
Where have I said I invested in PSN?
I invested in 6 investment trusts with dividend reserves. Just like zaco_4 snide and condescending but you have topped up with a lie.
Garyto
"RE: L&G share price.Sun 15:33
You can get a personal loan at 2.8% & use it to buy PSN shares which will give you a 15% dividend.
If it were that simple many people would be doing it but it isn't guys, it's pure folly to borrow money to buy shares, buying shares is just gambling & this should never be forgotten, end of lecture."
Where have I said I invested in PSN?
I invested in 6 investment trusts with dividend reserves. Just like zaco_4 snide and condescending but you have topped up with a lie.
Robina, that sums it up very well i think, the best way i see of getting through this winter is keep collecting dividends, and I can't think of a more reliable one than lgen for that purpose
Good luck
Robleo I agree with you on the funds. It angers me that the fund managers - even the 'star' ones - seem to have just sat on declining shares and not done anything to protect the portfolio.
LGEN looks good value again. not sure how much the declining £ affects them and other domestic UK income stocks.
Zac, thanks for that information, that's a few more for me to look into, I have mixed feelings about funds, i used to have 11 of them that were all in profit, then since the start of the inflation fears, i was watching that profit being taken away from them week by week, at least with dividend shares, nobody can take the dividends back off you, so i sold up some of my funds and purchased more dividend shares, but still holding on to my 5 most profitable funds, L&G International Index being one of them, also have one investment trust smt which had a very good year in 2020 due to there investments in amazon and tesla, but has been on the decline the last 6 months, getting a good diversification i think is the best thing you can do, but nothing is doing particularly well right now, so trying to invest my dividends wisely at the moment
cheers and GLA
robleo - I'm in 5 at present. Henderson Far East Income (HFEL), Henderson High Income (HHI), Merchants Trust (MRCH), Greencoat UK Wind (UKW) and New City High Yield Fund Ltd (NCYF).
The Association of Investment Companies website is a useful resource for research purposes. (www.theaic.co.uk)
I re- invest the income from the dividends into Global Equity Funds, 3 at present, as this helps provide further diversification. Also, as the income is regular it helps in cost price averaging my purchases.
The 3 funds are: L&G International Index Acc, Blue Whale Equity Acc and Rathbone Global Opps Acc.
Good Luck.
zac, which investment trusts do you use for dividends if you don't mind me asking, have been thinking of moving more into trusts myself
I'd hardly call any of the comments I've made condescending or snide! They're just my opinion, and I'm entitled to that, even if we don't agree!
So both my house and shares would have to fail to rise by 2.35% per year over 21 years. Of course the assumption is I will be paying it back.
There is always someone like you and gary54 with condescending snide remarks on every forum. For future reference I am glad I know who you are
Zak0_4
"SD235 - You borrow money at 2.35% for a (non-guaranteed) 4.35% return with the risk of your capital depreciating! So a nett annual return of 2.00%. Not for me.
I prefer to invest regularly with un-borrowed money. If you view it differently then fine."
You appear to be struggling with facts. I don't have to pay anything back.
So there is no risk.
As an aside I would owe less than £50,000 in 21 years.
Gary59 - wise words. I've spent the last couple of years moving away from individual shares. I'm down to my last 3.
For dividends I now use investment trusts. For capital growth global equity funds. Invest on a 'little and often' basis over many, many years. Less risk and better returns to date.
You can get a personal loan at 2.8% & use it to buy PSN shares which will give you a 15% dividend.
If it were that simple many people would be doing it but it isn't guys, it's pure folly to borrow money to buy shares, buying shares is just gambling & this should never be forgotten, end of lecture.
SD235 - You borrow money at 2.35% for a (non-guaranteed) 4.35% return with the risk of your capital depreciating! So a nett annual return of 2.00%. Not for me.
I prefer to invest regularly with un-borrowed money. If you view it differently then fine.
Smithers61
Forgot if move I can take it with me with the same interest rate.
Zaco_4
Please feel free to explain the downside?
I may not have borrowed to invest as such, but I've deliberately run up my interest only mortgage (1.1% for 5 years) in order to afford to fully utilise my annual allowance on my SIPP (and latterly ISA). The tax relief on the SIPP makes the arithmetic even more compelling (though refinancing risk has to be taken into account). A boring high yielding share like LGEN has particular attractions for this kind of tomfoolery, but I think SD235 is wise to prefer a basket of income trusts.
Borrowing money to invest in the stock market . . . not for me, but good luck!
Smithers61
One repayment per year only. Upto 10% of owed money.
Can pay back with no charges after 10years anyway.
Used money to buy 6 investment trusts in the income equity sector.
Dividends (trailing) £1304. Interest £750.
@SD235 Interesting that lifetime rates are still low enough for a clunky carry trade - take an equity release from L&G for less than 3% then buy their shares and use the 7+% divs to repay the loan (presume they allow you to repay interest and some capital each year?)
Bang on SD235…I contacted ASA to point out that all these equity release ads were emphasizing how it was tax free money…doh..since when were you taxed on taking out a mortgage…didn’t hear anything back from ASA, but my point remains valid and the ads are misleading if they use that as a selling point.
Smithersyq
"LGEN feels like a very safe play - but occasionally I worry about all those lifetime mortgage adverts on youtube - in case we end up with thousands of perfectly intelligent people claiming that they didn't realise it wasn't free money - and a deluge of opportunistic mis-selling claims overcomes the shares."
I took out an equity release. £30,000 on house valued at £180,000.
2.36% I will owe less than £50,000 in 21 years. Sounds they are being very conservative with lending criteria.
velindre
Very likely that it will recover but it really shouldn't go down.
They have said inflation has minimal if any effect.
Higher interest rates are beneficial.
So it should be going up now.
Either way it will probably going up as soon as the market recognises this, which should be before April.
Unless economy really in the toilet then suspect it will def recover before the big final div