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My average was 500, Sold this evening at 552, hoping to buy back in again. Time will tell if I’ve made the right call.
Hairydavey - Snap on the age. But no where near what you have in one stock. Of course if it represents 10% of your portfolio, then the risk is well spread. But still don't have that much in absolute terms.
Looking to get into PHNX and hoping it'll drop by an annual divi this Thursday. MNG dropped 11pc compared to the day before ex-div....so more than a year's worth.
But nothing is a guarantee and have to admit, their recent rsults were received very well.
Currently hold MNG and LGEN in an ISA. If PHNX drops by 10pc, then I'll throw my dry powder into that, otherwise double my MNG holding.
Have a spread of funds and individual yield stocks. Can't complain over the last year.....moved up 10pc (mix of fund price rise and income paid in).
Whilst i understand the compounding.....I had that approach a while back and whilst the number of share rose, meaning you bagged more dividend, which went to buy more shares, you never saw the income to spend it. That stock crashed at on point and the dividend was slashed. In the end, I ended up after 10years with the same amount I put in. Hence I keep the dividend...store it and then either use the money to pay for stuff or buy other stocks to broaden the portfolio.
No right or wrong answer.
Thanks Trek much appreciated. Im 46, but like you winding it down now aiming for a 55 years old retirement. Compounding now as much as I can in the next 9 years.
Hi hairdavey,
You are doing it smart reinvesting the divi’s mate. Compounding from 5:13 at an escalating divi will give you a significant pot.
I have one third of my pension paid by Phnx. So a lot of shares. I dont reinvest divi as I retired at 51, self funded, enabled by some lucky trades! All in an ISA! So I need the income and there’s none better than Phnx imo.
It’s not for everyone as I have to manage my own pf dynamically and that takes time. Having made money on ‘hot stocks’ the majority of which are way down now I tipped the profits into income. I only step outside of income now for rare opportunities and even then with less risk than I used to.
Hence TRR had to be convincing. I posted an expo on Tecan. They will pay a divi in a year or so. If you are young it’s a good small cap addition to your pf. I look at loads of stocks and now only buy perhaps 1 in 20 and keep even less. I usually turn down trading unless I am 95% sure as I have to protect my capitol.
Rule one of investing is protect your capitol!
Rule two, see rule one!
Especially as I can’t earn money now.
Anyways doing ok and at 59 now and it beats working!
Trek
From The Times part 2 ‘ So far, Phoenix has set aside £70 million to cover a possible charge, which is only 0.6 per cent of its long-term free cash.
Investors should also beware that while payouts have stolen the limelight, shareholder equity has suffered. Although Phoenix has consistently delivered operating profits, non-operating costs (such as amortising intangible costs from mergers and acquisitions) mean the company has a basic loss per share of 13.8p. Shareholders’ equity has dropped from £5.8 billion in 2021 to £2.5 billion in 2023, and is expected to fall further, although management has maintained that it will remain positive.
But Phoenix’s investment case is its status as a cash machine, and the market prices it as such. The shares trade at a forward price to earnings ratio of 12, higher than the other London-listed insurers Legal & General and Prudential, both at around 10. Analysts now forecast a 9.8 per cent forward dividend yield, and with new, higher cash targets and a commitment to deleveraging the balance sheet, this looks enticing.
Advice Buy
Why Well-supported generous dividends, with aims to improve balance sheet’
From The Times part 1. ‘The insurer Phoenix Holdings has the third highest dividend yield in the FTSE 100 at 9.5 per cent, behind only Vodafone and British American Tobacco. It is little wonder that it has come to be a favourite among retail investors, now a fixture in brokers’ most popular buys. The company spent £530 million on shareholder payouts last year alone, which represents around a tenth of its market value. This is a huge sum, and investors would be right to approach with caution.
Phoenix manages the pensions, savings and investments of about 12 million people in Britain and Europe. It has four businesses: the first is “pensions and savings”, which manages defined contribution workplace pension schemes. The second is “retirement solutions”, which is its defined benefit pension scheme and annuity division. Then there is “Europe and other”, which covers operations in Ireland and Germany. Finally, there is “with-profits”, which is the management of legacy pensions and savings policies. This is closed to new business.
Phoenix’s model is based on acquiring old portfolios of life policies, then optimising the cost and capital requirements for running them. The closed portfolios shed cash as their policies mature, so they naturally shrink. This has historically meant that business needs to be replaced through mergers and acquisitions. Phoenix has been particularly successful at this, and is most well-known for its £3.3 billion purchase of Standard Life Aberdeen’s insurance division in 2018. At the end of last year Phoenix completed the Part VII transfer of this business, the final step in its integration, which boosted its cash generation by £400 million It is by this metric that the market judges whether Phoenix’s dividend is sustainable. Happily for investors, cash generation has been very high. It surpassed £2 billion last year, and management recently updated its target range to between £1.4 billion and £1.5 billion in 2024, and a cumulative £4.4 billion from 2024 to 2026. Phoenix’s Solvency II coverage ratio, which is the key gauge of an insurer’s balance sheet, also stands at a healthy 176 per cent. Meanwhile, cash turned out by new business was £1.5 billion in 2023, an increase from £1.2 billion the year before.
Overall then, the dividend looks well covered. There has been some concern around Phoenix’s balance sheet, as leverage is relatively high compared with peers. But last month the company revealed a plan to reduce leverage by at least £500 million, and has set out a target for a Solvency II ratio under 30 per cent by the end of 2026, down from its current 36 per cent.
Investors should note that there is some risk around the financial regulator’s new “consumer duty” framework, which could impact heritage policies in its portfolio, as some older clients may find they do not have good transparency on how much they are paying in management fees on their retirement savings.’
Cant read..paywall
(for what it’s worth)
https://www.thetimes.co.uk/article/887c517f-bef8-4365-83dc-e482d2f9fcf0?shareToken=780c1edc83106e0e1a6035f29fef3e3c
Will people sell later today or tomorrow and foregoo the divi to lock in their profits or take the divi and their chances with how far it drops. last year divi was 26p it drops nearly 38p. dilema indeed..
How many have you got Trek out of interest? I have put £60k in here now at average of £5.13 so I'm happy with that. Should give me £6k of divis every year that at the moment I am re-investing, but will eventually use as extra dosh per year for my retirement. At the moment, trying to make the most of the compound interest.
I sold some yesterday. Only because I found TRR and needed some funds to build a position there. Still got majority in here though.
I will be riding the divi here. With an average just below 500p after adding on the last dip I figure I can ride the drop. It also goes xd again in sept so black swans aside the sp should return to +550 of its own accord. Phnx then usually has a good Christmas run.
My divi is significant enough to fill that gap. If I try trading at this level I may get it wrong. I would only sell some to buy MNG, which I sold after the divi, if mng does a silly drop to 170’s so the yield nets out in favour to mng. Else I will hold.
Remember Phnx is 50/50 divi mng is 2/3 1/3.
Usual caveats
Trek
Well let’s hope they are catching the cycle at the right time with rates coming down.
https://www.proactiveinvestors.com/companies/news/1044748/uk-focused-pension-superfund-proposed-by-standard-life-owner-report-1044748.html
Trek
Bought more pre results purely to top slice of which I did yesterday keeping the remaining for Divs, right or wrong , I will live with the consequences but I also dont like to have my eggs all in one basket
Guessing that short term change isn’t worth it. Just load up. These are cheap either way
B w f high yielding shares often overshoot at div time and it is possible to gain by selling and rebuying but here's the kicker......... they don't always and guessing which one's will and by how much is pure speculation
Besides I love the fizz (aka James May) when a high yielder div drops into my account 😂
I'm expecting a c27p drop on Thursday and then we could get a modest bounce back on Friday if the "Gross domestic product (GDP) monthly estimate" figures are any good.
and then next week we have a plethora of figures being released that could move the SP one way or another -
UK labour market - 16 April
Consumer Price Index, March - 17 April
Retail sales, March - 19 April
I'm here for the dividends so I'll sit tight and enjoy the ride.
I bed and isa my 2300 shares this morning
Would anyone like to speculate what SP will be on Friday?
Looking at M&G share price pre and post latest Ex-Div. The dividend was 13.2p or 5.6% of the share price but 2 trading days later the share price had dropped 22p or 9.4% so thinking it might be wise to sell here before Ex-Div.
Does anybody understand the rational why M&G share price fell so much and will PHNX fare any better?
Sorry but I hope you're wrong Abject - For obvious selfish reasons but also to keep the serial nutter Porch quiet
Wouldn’t mind seeing this go down so I can get more shares in my bed and isa and reinvest my divi cheaper
I fear you spoke too soon.
The market will be nervous until the US job figures are released later today and may not believe Powell when he indicated 3 rate cuts in 2024 yesterday.
These are all relatively minor swings and shouldn’t distract from the bigger picture if you are already invested. This is a solid, cash generative company that is seriously undervalued by the market that has a good and secure progressive yield underpinned by the prospect of a bid from outside the UK. What is not to like?
GLA DYOR etc
Good recovery from the lows of the day of 546p touch wood it maintains this till close price action suggests short covering is going on
It’s high over a month. Low over a couple years.
Bought in this morning. It's high, but then so was the stock I sold to finance my deal and I had too much invested in them. Diversify and win.