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"That's why HFEL is paying a dividend of 7.5% even though the CURRENT yield on many of its holdings is around 5%. They got into the shares long ago, as I did with CLIG."

The problem with this is that the NAV and thus the unit price always adjusts accordingly to the value of the shares within the fund.

Testing this with an example.

Imagine a fund that's comprised of shares the market always prices with an average yield of 5% and that's passed on to the unit holder.

Priced at £1 a unit I buy £1000 worth in 2001. 1000 units so in 2001 dividend payments are £50.

In 2016 the price is £4 a unit, I have 1000 unit, so my holding is worth £4000 and my dividend is £200 a year. Awesome.

In 2021 the price halves to £2. I still have a thousand units so my worth is £2000, and dividend is £100.

According to this sentence, because the fund has held its shares since 2001, in 2021 the fund is able to pay out a higher dividend return than the 5% average yield of the priced shares within it.

With the simple example above. Surely this is completely incorrect.

Hi Rogue. Here is the section within the Q/A transcript that IMO gave that hint I referred. Linked in a post below.
What do you make of what was said?

"Nikolay Sosnovskiy

I have three questions. First of all is on additional taxation that was introduced just recently. We know the numbers for the second half of this year, but maybe you could share your view on what could happen in January 2022. What would be the long-term implications, whether the state might introduce this excessive profit taxation in the longer run? Or if prices go down, this will solve the problem automatically? What's your view on this additional taxation potential?

Alexander Frolov

Well, I guess this answers this question. We don't know anything which would not be publicly known.

Nikolay Sosnovskiy

And just currently, the previous step was made out of the blue and the companies who are not aware, largely that these changes are coming, but these times around for these longer-term changes -- are these respective ministries working with companies? Or are they -- do they work kind of on their side and companies are not involved?

Alexander Frolov

Well, look, again, at least it's my understanding and just take this into consideration that currently, they do the internal work. We, of course, expect that there will be some discussions about potential changes. And the companies will be involved in that discussion. But we will see. I guess it will not happen before September, October.

Nikolay Sosnovskiy

Okay. My second question is also based on the first one. In case there is just -- hypothetically, once again, in case there is a mechanism introduced by the state, which urges companies to spend more in CapEx and making dividends less favorable, would EVRAZ be ready to materially increase CapEx and add more projects to its pipeline to avoid this additional taxation.

Alexander Frolov

Well, I guess it's a very hypothetical question. What I could say is that we always have a number of projects, which we are investigating as a potential investment opportunities. So in case it would be more favorable to deploy capital on the investment side, I guess we will be ready for that, at least in terms of that we don't have a lack of ideas.

On the other hand, again, I would rather prefer to wait and see whatever actually happen then and what kind of measures would be finally proposed.

Nikolay Sosnovskiy

But just hypothetically, do you have a long line of potential projects in addition to what is known to the market? Or not really -- that's a big work to produce these projects?

Alexander Frolov

No, for sure. We have some, again, in early stage. So that -- and again, no commitment. But again, as the list of ideas, we have quite expansive list to work on. Yes, for sure."

It will happen. PAF is notorious for being slow at reacting to the market in the dozen or so years I've been invested.
We still have to keep an eye on the political and coronavirus situation in SA, politically calmer from a month ago but the Delta variant is ripping through the unvaccinated world right now. Elsewhere in my portfolio, it's a bloodbath today.

A day the gap-ologists to say 'told you so'
Personally I did not see such an overnight drop and all my strategy is quickly on hold again.
Time to batten down, if still waiting in September, reinvest the divs.

Snowfall.. Many hours of fun to be had going through Investopedia.

https://www.investopedia.com/trading/support-and-resistance-basics/

Whole sector is being hammered
https://www.lse.co.uk/share-prices/sectors/industrial-metals/
BHP down 4.5% despite a bumper dividend.

Support has been broken and next supports are 538 and 524.
Is this a Delta variant issue in Russia ? Not looking good there
https://www.worldometers.info/coronavirus/country/russia/
Steel prices look OK.
https://www.lme.com/Metals/Ferrous/HRC-N-America#tabIndex=2
Evraz however, is for some reason losing it's parity with the SLX
https://tinyurl.com/4kwutx2p

Anyway.. My fault.. I bought more shares so of course the SP went down.

Share dilution is not a bad thing for shareholders if you get something for the dilution.
Issuing new shares to takeover a young company set to grow in value and has a good income will in turn increase our income and net worth.
Issuing shares to yourself and your mates then using the company's money to buy them back is not a good use of our money.
Providing billions in liquidity for ii's and pi's to sell our shares is also not the best use of our cash.

Having a high share price would allow the company to do takeovers using cash and shares. Stop giving billions away to sellers through buybacks, stop issuing new shares and use the billions to increase the dividend so restoring the 2019 share price, pay off debt and expand the green energy business. Unfortunately we have Mr Looney Tunes who doesn't care that BP's peers are making sure dividends are being restored to prepandemic levels or his declared 4% growth is lower than USA inflation at 5.5%. Yes the buybacks offer something but investors want proper returns, not to be bamboozled by buybacks.

Going through the annual report.
Good Holdings include Fortescue, Rio Tinto, BHP, Taiwan Semiconductor, Kweichow, Taiwan Cement, Samsung, Macquarie
Losers include China Resources Cement, PT Bank Negara.
Index wise, ASX 21% up in the last year, China same level as a year ago, Taiwan up by 30%+, South Korea 35%+, Hong Kong same level as a year ago.
So where and what is causing the drop in value by 7%, when the worst performing parts of the fund seem to be level ? Has the yield gone down in these regions..
Looks like this is a hold but for me preserving capital is more important especially if the delta variant starts ripping through China and the unvaccinated and/or inflation takes yield lower.
Any thoughts?

Hi Rocket.
Something is up, as I tried to buy £15000 worth in one go at less than 16p with a straight quote and click, which has been perfectly possible in the past, but this time I was only able to to buy £5000 before without sending to brokers.
IMO PAF is a great buy at this price, the debt should be practically gone by Xmas, clearing the way for 2p per share dividends in 2022 and/or getting 1p dividend this xmas and/or the next move to be a larger producer with progress on Mogale and Mintails feasibility and financing studies.

Well.. the SP didn't sustain the 600s.
In fact all my ex-div shares last week sank lower than the dividend amount, from three different sectors.
C'est La Vie. I'll hold for the reinvestment uplift and end of holiday season, meanwhile the Steel price remains at very high levels. These may go down as they said in the conference call, but steel sales in tonnes will probably go up to counterbalance, as the balance swings back.
https://www.lme.com/Metals/Ferrous/HRC-N-America#tabIndex=0
A worry is the Delta variant looks like it could rip through the more unvaccinated countries like Russia and also the inflation that seems to have unaffected the USA yields so far. Good the yield here is high.
Cheers and GL.

Can't imagine our current CEO going through the life threatening ordeal that Bob Dudley went through to make sure we had high dividends.
Rosneft, good to see another oil company that sees the importance of keeping their shareholders happy maintaining the dividend level, thus returning the SP to pre-pandemic levels, even when the Delta variant has only just got going into Russia.

Our Looney tunes into buybacks instead, halving the dividend, what a muppet..

https://uk.investing.com/equities/rosneft_rts-dividends

https://qz.com/168263/that-time-bps-chief-executive-fled-russia-after-poison-was-found-in-his-blood/

Great Price you got !
Every one of my shares that went Ex-Div this week has dropped more than the div by a few %.

Inflation is running at 5.4% in the USA. The current dividend policy offers 5.1% return with the prospect of 4% growth per year.
Not even an open ended statement like a percentage of cashflow promised in dividends to spice the market . That's something to offer prospect of the SP going back to pre-pandemic levels.
IMO the USA will not be dancing to Looney's Tune.

I will always be amazed by the unscrupulous short term profiteering shown by investors in the UK.
Today is a win for Philip Morris. With some of these medicines and treatments bought and scrapped their customers can continue to be addicted for longer so making them more cash.
Most UK takeovers to foreign owned investors are bad judgement, this is morally corrupt as well.
https://www.thisismoney.co.uk/money/news/article-2129523/How-Britain-sold-half-companies-foreigners.html

Our dividend was about 39p or 6.5% of the SP, so a 35p drop is looking good right now.
Staying above 600p and the chart support.... Steel prices still riding high and all the promise of large scale infrastructure projects is good for Evraz. If the cash balance warrants then like 2018, we might get another dividend in November as well as the coal sale.
Cheers and GL.

The same is happening will all my other ex-divs today, all down but nit as far as the Div.
Early days yet though, we'll see in the coming few weeks.
cheers and GL

Hi HairyFuttret
IMO This is exactly why Looney should be upping the SP by increasing the divi and abandoning buybacks. get an SP back up to 450p to 500p to pre-pandemic levels like other oil companies. Stop issuing shares to mates and patting each other on the back in the board room, get busy and start taking over companies using cash but mainly shares. I mentioned SSE on here the day, the wind farm arm being the perfect company to embrace but already that's now got takeover rumours from big energy.
BP need to get their house in order or they'll start missing boats.
Im still hugely invested here but disagree with Looney's plan entirely so looking to sell out and just leave my free holdings with an SP >320.
The oil price is again past $71, so the ex-div drop could well be made up today.
We'll see. Cheers and GL.

Good luck See_it_done_it ))
We're both quids in right now, which is what counts.