RE: divi4 Mar 2021 14:52
Hi Guitar
My plan is to target divis of 5% p.a
I first bought GSK @ £16 back in July, when it was forecast as 5%.
The problem with high divis is that the market thinks the business in not as sound as we would like.
Hence GSK down 25% (ish) to recent £12. No point in 80p p.a divi if you lose £4 on the SP !
My p/f is 90% High yield - with a plan to reinvest the divis.
however my p/f is down over 3 yrs as SPs fallen and many a big cut in divi.
RDSB was £28 when I bought in July 2018, now around £14 - a 50% drop in value AND the divi been decimated from 188USc to 66 USc p.a. Double whammy or what - and then the GBPUSD exchange rate has gone from 1.25 in Q1 2020 to 1.4 in Q1 2021 causing another 10% reduction in divi.
So all in all, not been a good time with my HY shares over 3 yrs.
Factor in bank and insurance shares have been cancelled, although now back on tap.
And IMB down over 50% since I bought in Jan 2018, and another divi cut from 206p to 137p, and still looks far too high !!
As for GSK, we are at multi year lows - so what are you waiting for.
Of course the SP could go lower - it's always possible - that is the risk/reward element of investing.
I would be very disappointed if GSK is not much higher at some point over next 5 years.
If you have funds available it might be worth drip feeding into GSK. I have batches bought at 1613, 1528, 1479, 1420, 1388 and 1215 which is probably twice as many as I would like for each share/sector.
You could of course look at funds with GSK included like HHI, IUKD or ASEI but they have numerous other shares in their fund/trust.
Cheers & GL - CSDI
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