RE: Dividend18 Apr 2022 22:52
Hi Robleo
There is no specific logic to the current SP. It's just at the whim of "Mr Market" as always.
All of the FTSE100 housebuilders are down between 1/4 and 3/8 from their 52 week highs.
Rising interest rates, the jump in inflation, make it harder for people to buy or get finance etc.
The UK housemarket seems to defy gravity, due to the ongoing high demand and tight supply.
No one knows where the SP is going to in the short term, but is safe to say, buying shares now is better than at most times over the last year. Can SPs fall from here - yes of course they can. Equally we might be near a bottom but in all honesty have no certainty.
I've topped up last week, (only very small amount) but happy to hold in expectation of super divi and chance of rising SP.
The divi at approx 11% may be unsustainable. But if the SP goes back to £30 or so, the divi drops to a more normal 7-8%, which is still fantastic. If the divi is axed in half, we are still getting over 5% at current SP.
All in all, it seems a good risk/reward to me as a long term investment, but WDIK.
For trading purposes (short term) I've no idea.
GLA - C