City Lon Inv Share Price (CLIG)

Guitarsolo

While I appreciate your comments are not advice, they seemed reasonable based on your experience. I haven't increased my holding of 3567 shares, but did hold. I may well add more to bring my average down in the event they fall below around the £3.3. If they don't go that low I will be happy to hold and take the dividend. ATB

Clig has been a rock solid dividend payer for me for over 10 years. Unfortunately capital decline has offset the dividends, so we wait for lower interest rates to boost high yielding shares.

As an asset manager, this is by no means the worst in my portfolio. All asset managers have taken fairly substantial hits over the last few years, as money left equities and moved into bonds and gilts. The hope of course is that trade might unwind somewhat as rates fall but that may be a fairly slow process. Still, the div is nice while we wait.

Guitarsolo

Thank you for your response, its nice to get anothers views.

I have only held CLIG since August 2022, so not long.

I tend to think I bought the right company at the wrong time, hence including dividends thus far I'm still £2.4k down.

Unfortunately my average including taxes etc. is £4.0165.

I suspect once the base rate has dropped a couple of times my loss will narrow.

ATB

Hi Paul,

CLIG is definitely one of those shares where your buying price matters more than most. I first invested over 10 years ago (I think) at 240p when it was paying 24p dividends. That tranche has done well.

I've also added at what, in hindsight, was way too high in the 430s.

My take on CLIG is that it is a reasonable asset manager that won't set the world on fire but will pay a high dividend. I don't expect the dividend to increase until EPS is improving (and that depends on AUM).

Personally, I will now only add when the yield is over 10% (i.e. share price under 330p). I think if you do that you've got some protection against capital erosion, hopefully a chance at capital gain (at times), and a high dividend while you wait.

Just my thoughts of course!

Guitarsolo

I already hold these and have averaged down a couple of times. Its starting to feel like I am just chasing the price down.

The dividend is nice but not if it fails to compensate for capital lost.

Any insights shared would be appreciated.