Member Info for Gate13Boy

Livestock

“I'm sure Charlie Nunn will abuse his position as the CEO and strongly recommend another buyback program to boost short term EPS and hitting bonus targets for the banking executives, the share price has had a nice rally over the last few days with shareholders reinvesting there dividend payments, if the bank scrap the buybacks and up the dividend just imagine all the new investors buying in and reinvesting the divi money share price would shoot up”

Astonishingly naive.

Fleccy,

A share consolidation would make zero difference. A 1 for 3 split would just mean the share price is 3 times higher for 1/3 of the number of shares.

Anyone else with an opinion on dividends ?

In fact just checking, my AJ Bell SIPP also uses “at best” or “limit.”

They certainly do LTI. My Barclays Smart Investor Stocks and Shares ISA has a “at best” option in the deal types. Yes, you’re right regarding dealing early in the day at best. People putting through trades before 8.30am take the risk that not all the market makers have opened and consequently don’t get the “best” price they could have. The real mugs were those that put orders in over the weekends having read newspaper share tips. Often, they put no limit price on their purchase and the market makers would fleece them at the open by marking the shares higher before any trading had started. By the end of the day the shares had invariable dropped back and the investors had already lost paper money.

Best meaning the best price your platform can get at the time of dealing. When I used to work in the business some clients used to say “not a limit please, I’d like the best price of the day.” The conversation took a familiar pattern of having to explain that I didn’t know what the best price of the day was going to be 😂

Some platforms can take a couple of days from complaints on here before. I don’t think there’s any conspiracy, just slow software or tardy timing of the dividend run.

The Bank of England is under pressure to leave interest rates unchanged at 5.25pc next week after official figures showed the economy suffered its worst slump in seven months.

Policymakers will gather on Thursday, September 21, to decide whether to raise interest rates to their highest level since 2007.

Catherine Mann, a member of the Monetary Policy Committee, said this week she would rather “err on the side of over-tightening” Britain’s money supply, while incoming deputy governor Sarah Breeden told MPs that the UK is still at risk of inflation becoming “embedded”.

However, economists have urged policymakers to hold rates steady amid fears another hike could strangle growth in the economy.

Kitty Ussher, chief economist at the Institute of Directors, said: “Today’s data supports our call for the Bank of England to keep interest rates steady next week to give time for its medicine to work rather than risking an overdose.”

Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales (ICAEW), said the Bank of England is at risk of “overshooting on rate hikes”.

Neil Birrell, chief investment officer at asset manager Premier Miton, said the fall in GDP “does suggest that higher interest rates and sticky inflation are having a more significant effect on the economy”.

James Smith, developed markets economist at ING, warned: “We think the economy is likely to more or less flatline over coming quarters - and a mild recession can’t be ruled out.”

Fair comment LTI.

The other option of course is to top slice from shares whose valuation is higher because they don’t pay out dividends…..

The SNP/nationalist lot are generally the ones who want to see England lose in my experience.

The UK economy shrank in July as wet weather hit the construction and retail industries, according to official figures.

Strike action by healthcare workers and teachers also led to the economy contracting by 0.5%, the Office for National Statistics (ONS) said.

The figures were worse than analysts had predicted and continue a trend of weak economic growth in the UK.

But the ONS said the "broader picture" for the country looked "more positive".

Darren Morgan, director of economic statistics at the ONS, said that while July saw the economy shrink, output across the services, production and construction sectors was growing in the three months to July.

He said despite the UK being hit by strike action and poor weather this summer, "a busy schedule of sporting events and increased theme park visits provided a slight boost" to the economy.

Read some articles recently about certain fund managers suggesting that the UK stock market is being held back by the obsession with dividends when the companies can use the distributable profits for buybacks or retain them for expansion.

It’s certainly true that growth stocks tend not to pay dividends or pay smallish ones so they can retain capital for growth. Mature companies tend to be more inclined to pay them to keep shareholders onside but do we really need them if we are get better capital growth instead without them ?

I’m ambivalent about it. I like dividends so I can use the cash to make new investments but it’s not difficult top slicing either to do that. I receive income from bonds in my ISA and SIPP which should form part of most portfolios (unless you are a risk seeker and gamble all in on equities). I personally use a 2/3 equity and 1/3 bond & cash mix.

The US market of course hardly pays dividends tending to favour buybacks or retention to grow the businesses. So do we really need equity dividends ? I’d be interested to know others thoughts.

This short article a few months back puts dividends into perspective.

https://www.morningstar.co.uk/uk/news/235109/is-it-time-to-ditch-the-dividend.aspx

I think there is certainly a valid argument for getting rid of them but also think the UK market is being held back by smaller economic growth rates when compared with the USA for instance.

I have invested quite heavily in India this year where the average age of the population is just 29 and I see growth is going to be prolific. Most of the funds I have bought (9 in total) do not pay dividends as they invest in companies that retain profits to grow their companies.

Be interested in what others think about dividends……

*update thread 🙄

I best go to bed 😂

Fatprofits has nailed it in the results thread…..

That makes sense 👍

I would imagine also that until this transaction goes through there is some uncertainty over expected revenues. Let’s hope it’s a formality……..

https://www.lse.co.uk/news/chemring-annual-target-depends-on-us-department-of-defense-approval-zj3266ecb1khtpg.html

I expect the update merely said results will be inline with expectations and not better. Crazy eh ? Let the buybacks mop any sellers. Nothing to be concerned about IMHO.

Likewise, September is a good dividend month to replenish the armoury for further investments. Bought another 20,000 SMIFs by the way LTI 👍

Nom,

Whether that money could have been deployed better is conjecture I guess and as you say we will never know.

Securing 4,000 UK skilled jobs should be a cause for celebration. I really don’t get some of you guys sometimes. Right, I’m turning in 💤

The EU have looked after their own as long as I can remember and we’ve been mugs in this country playing by the rules. In my profession as an airline pilot, I have sat besides countless French, Dutch and German pilots. I challenge you to find any English pilots given a job by Air France, KLM or Lufthansa. Payback time. Let’s look after our own for once.

Democracy sucks eh ? You’ll get over Brexit one day. Then again, maybe you won’t……night night

Https://www.reuters.com/markets/europe/eu-companies-can-get-much-eu-aid-us-subsidies-under-looser-rules-2023-03-09/