Member Info for driftking27

Views cemented in latest Morningside views

Should investors buy SSE for the upcoming dividend? It's looking like an unattractive opportunity, with its earnings per share declining, while, paying out an uncomfortably high percentage of both its profits (164%) and cash flow as dividends. Unless there are grounds to believe a turnaround is imminent, this is one of the least attractive dividend stocks under this analysis. Bottom line: SSE has some unfortunate characteristics that we think could lead to sub-optimal outcomes for dividend investors.

Found this positive article about SSE v sector

https://www.marketbeat.com/stocks/LON/NG/competitors-and-alternatives/

BP is still trading below 494p it hit in 2014.

So enough said.

It’s underperformed badly

Funds don’t even have this as a top Uk stiock in top 10 and side more with SHEL.

You clearly missed the point. BP has been run poorly . It’s nothing to do with your excuses, but board management decisions.

Do I need to remind you of BP’s & SHELS performance versus USA counterparts…historically both atrocious.

If we compare some gains here v UK stocks from 1994 to 2023 October 26th

XOM +750% plus dividends( USA) 

SHEL 144% plus dividends in that period 

BP. 320% plus dividends 

CVX. 700% plus dividend's (USA) 

OXY. 5800%! plus dividends ( USA) 

including 

BHP + 1,025% ! Plus dividends along the way!!

Diamondback Energy +780% (2012-2023) + dividends / special dividends (USA)

COP +950% plus dividends(USA)

The new year has begun and BP will finds itself bottom fishing once again. Is anyone surprised that they have not hired a permanent CEO? Who would want to lead this dumpster fire, it does nothing every year versus US compatriots.

Their leadership and board has destroyed this once well managed company and now they are one part dying oil and gas company and and one part mediocre renewable company.

Maybe GRETA could run it!

What should current investors do? Collect the upcoming dividend, sell all shares, park your money in short term gilds / treasuries and wait for the upcoming collapse when the Dow drops to 25,000 & FTSE 7000.

My vote is for the divided to be reduced to help give this train more steam to grow.

Watch and see any possitive movement around 2650p. That’s where I will be purchasing more, and hopefully others too.

The only trouble we have now, is the pubs / restaurants trend is not as flush as it were in 2021/22.

So, there may be more headwinds due to price pressure, along with the canal SUEZ, which they say effects could last the whole yr with delays in imports…

Not see this term used by a broker in years. What are peoples perception ?

I m presuming that broker sees a decline then a gradual uptick?

That’s what I see, but I wouldn’t put STAY in CASH as comments.

Best of luck with your investments in 2024

Out of my 25-28, I’m making AZN, ABBVIE , CVX, GS, ROCHE, AMD, HSBC, BMY & DGE as my top investments already in for 2024.

THE OBV is GLENCORE

My mistake. Dividend yield is 4.3% going forward.

Looking to the balance sheet, i read net debt was rising but still only equates to a fraction of cash profits.

That also supports a payout policy of 40% of profits.

But recently revised guidance means the 4.3% forward dividend yield may come under a little pressure. As ever no payouts to shareholders can be guaranteed.

Though if you want direction. I’d wait until Buffett spreads his $152bn worth of eggs before making a new position here.

There could be a jiggle, there could be a wiggle, or there could be a market correction.

HOLD is my plan

Can anyone see M&A here? This is dirt cheap.

What I will investors about is impending dividend cut.

Analysts for RIO & BHP have them looking at a small cut to there’s, so I believe there will be a BIG CUT here.

It’s currently sitting at 6.45% on this yrs payout at 2000p.

I do know the companies dividend policy is based on paying out 40%, abd even went a step further to say it might beef up the dividend after some disposals !

What are peoples views on the sustainability of divi ?

I hold RIO, BHP along with BP, SHEL, CVX, XOM, OXY in commodities

This is the one reason why DGE & co may continue to falter

‘…Magnificent Seven Loses Importance as Soft Landing Means Risk On’.

I still believe DGE will see a downtrend for some time .

2600-2650p is my buying area

most brokers SOCIET General, JPM, CITI, UBS, RBC have underperform around 2550-2750p targets for a bottom.

Don’t be fooled by BUFFETS purchase in January. It wasn’t BUFFETT buying but his management team. He is 93 remember.

His associate has gone too, Munger too 96!

He started a position of 292,000 shares in DGE a drop in Occean! He has $157bn still waiting to be spread. When it happens that’s the word. ## WAIT and hold until March. That’s where I de true #VALUE. Possibly a rerun of 2009

There is downward trend here, along with UTILITIES & TElecoms if the bill continues. I expect it to.

Therefore 2550 - 2650 is area where I have my watchlist to buy another 200.

watchlist

DGE 2600p

GS $325

GOOG $130

BMY $48

But those whom follow stats would I'm afraid differ with that statement at this time in the cycle.

2024 will be a choppy one, a volatile one for 1st half I believe, maybe similar to that of 2009.

I'm waiting until Feb-March to go shopping DGE, GS & MUT

Looking forward to 2024.

Well, there are growth issues with EPS & dividend yet again, something I mentioned November 2022 that would happen going forward.

Have a look at estimated financials

https://www.marketscreener.com/quote/stock/BHP-GROUP-PLC-47281658/finances/

The same applies in RIO too, which I also hold

Utilities and telecoms look a safe bet, BUT if we do get a continued rally these stocks along with pharma will undoubtedly underperform.

I held both SSE & NG, but sold SSE this week.

I'd side with GS or HSBC to watch than a wee bank like LLOY. Though we are talking about FTSE shares, the last 10-12yrs we have sadly underperformed against our peers.

Lloyds has a juicy divi, BUT what good is a juicy dividend when a shareprice can't sustain any growth at all. It's still stuck where it was in 2020.

I would steer away from LLOYDS. BARCS included.