12% DIVI , will they pay it?2 Dec 2008 13:40
... well , what can one say , showing red on my initial buy for a safe 8%? dividend yield , now c.12%?... I very rarely hold any stock and when I start to buy to hold , they are well targeted and drip fed. Hedged this one well and I am buying in to hold again , my god , what is Mark doing. My thinking is that a significant percentage of raw dairy products were imported from Europe on the cheap through subsidies , etc , but these are likely to fall off with Euro Policy and increasing budget defo. With the GBP nose diving against the Euro , the likes of UK scourced products will become increasingly attractive. I also liken the TESCO 'we will buy out the RBS eliment'. A wayward lateral thought maybe , but if you cannot increase sales by significant margin , start to increase your profits by significant margin by buying out tested suppliers in the chain that you can easily absorb the majority of sales of at cost , thus giving you an increased return down the line. I am not saying jump in , I am simply saying that the most downward rating values DCG at c.40% more than current and that the divi of c.12% is , imo , as safe as can be.