The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Correct, the mainstay of my portfolio has dividends yeilding double that of Tesco for at least the last five years. My son had some tsco for a while but I soon got him on the right track.
It's easy to get significantly better yields than this share is offering which has to mean that the current SP is the result of people buying who don't know what they are doing.
The reason why the US market is overvalued and the UK market is not is quite simple: There are many many more US investors than there are UK investors, they have to put their money somewhere and most of them stay out of foreign markets because they don't understand them. It's the same with the mighty USA dollar which in reality could collapse in a jiffy if some big holders were to unload, but they never do.
Yes and the ore price is still climbing this morning, just has to be good for RIo.
With the massive increase over the last couple of months, RIO must be laughing al the way to the bank but it seems not to be reflected in the SP. Does anyone know differently?
Aangus, There is a myth that cash and gold are safe but even gold has had it's ups and downs over the last thirty years. Cash of course is pretty well useless except for buying this week's groceries and petrol and Warren Buffet would be the first to say so. Inflation always chops chunks out of cash and especially so recently. Today's cash is only worth 80% approximately of what it was a year ago which means you would have needed to find someone who would give you 20% interest last year, impossible of course.
Hi Abject, It is perfectly possible to transfer your pot into another HMRC approved fund and 1% is a bit steep in this day and age. There are a number of outfits out there who will help you move your money into the SIPPS which they offer and 0.25 - 0.5 % annual charge is now common place. I know of at least one which will also give some cash back quite amazingly. They will also do what is necesary to help you to do it. Make sure that they are FCA regulated of course because unfortunately there are still cowboys out there.
Hi Gwm, You have to bear in mind that the people who sell annuities do so in order to make money out of you. So they take your money, decide what profit they would like to make from it over your likely life time then using an expert mathematician called an actuary, calculate what they will pay you each year. Although I am a retired financial professional I am not allowed to offer advice but I am sure that you could find some better ways to invest where you don't have to give a chunk of your money away to an annuity insurer.
Oh, touched a raw spot did I Maybe? I've been in this business for more years than I care to remember, now here is another demonstration of just how many dumbkopfs there are out there:- 2020 and Boris & Co start their covid panic, SP of Lloyds among others drops off the scale. No 1 son and I have a chat cos he's got some spare cash,"Do we really believe that the end of the world is here and Lloyds will collapse?" - Well no, so he does the opposite of all the dumbkopfs and buys a nice little packet at 30p, the rest is history.
Much of the up and down behaviour is caused by silly people who are financially clueless and we have all seen it over the years. This share has been a good example recently with a low point of 2.06 having been reached only a few weeks ago. Anyone with half a brain cell would know that such a price for this share simply does not make sense and yet there must have been a fair few dumkopfs selling it out there for it to happen.
This so called "resistence" business is a load of baloney invented a while ago by a so called fund manager hwo could not explain why a particular share price didn't go the way he predicted. In reality there is no such thing.
Mcco yes y not :- Direct Line, they have paid some good divs in the past but hit a bad patch in 22 as happens to all insurers occasionally in my experience. However, that is probably now history and if published results in a few weeks time show a profit then the current SP is really cheap and my £5k could become £6k or more overnight .
Let's make it really interesting. As it happens Rio has done me proud at the current market price because I paid £52 around a year ago. Since then I have had the divs mentioned £3.23 and if I sold I would get £57.70 at the time of writing so total gain and therefore true yield would be £57.70 + 3.23 - £52 = £8.93 or 8.93/52 = 17% near as spit. But I ain't selling because I reckon there is more to be had. Merry Christmas all.
Hey gwm, Never forget that div yields go up and down all the time and for you personally it will also vary depending on what you paid. I have no idea where this website gets it's 9.2 from but if you paid £49/share as was the case not so long ago, your yield based on the last year's divs would be 6.6% (£3.23/£49) But what if they pay £5 next year for the sake of argument, which is akways possible; then your yield would be 10.2
"It's amazing how, not only a number of managed funds underperform the market, but also dividend paying investments."
Absolutely zac0, I now regard them as abit like used car salemen, they sound great but you know that you are really taking pot luck. Thus my portfolio consists of companies which regularly pay decent dividends with just one "gamble" of £5k which should bear fruit in the new year.
Not many fund managers are worth the time of day. When I was a pension fund trustee many moons ago our fund manager was so useless (never once beat the index) that we dumped him and went for a tracker fund instead. Oddly enough we used L & G and I am today living comfortably off the pension it provided.
It's quite obvious that they will soon be back in profit and divs. The 2022 problem happens to all insurance businesses from time to time, it's the nature of the beast. Just bought a fresh trance meself and fully expecting a large jump in SP as soon as the less erudite understand this.