Member Info for OWLS

Sorry, should have said administer rather than manage. I printed out a list of the top dividend paying shares in the FTSE100 and he picked the 4 he liked, he has made about 30% over 3 years so he's happy. It's only a small amount of his assets, most are in premium bonds and savings accounts.
I suspect he'll never spend it so we will inherit the money anyway, although chances are he'll outlive me!

Making 20% + per annum doesn't seem too bad ! Do you make more with your strategy?

FLECCY,
The shares that I have sold after they have fallen in value have generally continued to fall and performed worse than those that I have replaced them with.
If a share falls in value by 50% then a 5% dividend is not much of a safety net.
I hold on to my investments for 12 months so my dealing costs are not too excessive.
Good luck with your investment strategy. I manage my father in law's £20k ISA and because he is risk averse this is invested in big companies with good dividends (BP,BATS,HSBC and AZN) and to be fair he has done well both from a capital and dividend perspective.

I'm not trying to persuade anybody to buy or sell shares.

Following your logic, if you bought BT 3 years ago at £5.00 then at today's price of £2.49 you haven't lost any money?

I assume you sell your shares at some stage?

One of the best lessons I have learned is to cut my losses on shares that have fallen in value and invest in something better.

DOFE,

I have invested in shares for many years and generally the ones I have made profits on have been those that pay little or no dividends.

On average I make 20% per annum but some years I have lost over 30%, other years I have made over 50%.

Those who believe dividends are the equivalent of risk free interest payments are deluded. If a share pays 5% dividend but the price falls 20% then you have lost 15%, end of.

You don't make much in a bank but it is risk free.

Nige,
Thanks for sharing the info on your system, I might have a look at builders and see if I can make any money out of them.
Just updated my momentum list and they have moved up a bit but still in the bottom half.
Top of the list this month is Acacia Mining, hope I have more success than last time when I lost 50% over 12 months.

My biggest success in the last 12 months has been Ocado with a profit of 155%. This was also a sell recommendation from the investors chronicle so I wouldn't place too much credence on their analysis.

I invest mostly on the basis of momentum and ACA is currently top of my list. I will be holding for 12 months.

I am a little nervous as last time I was in these I bought at £5.60 and sold 12 months later at £2.98.

NIGE,
All my investments are based on share price momentum. I will look at relative momentum at a sector and total level over a 1,2,3,6,12,24,36 and 60 month period. I review at the end of each month, pick the top share from my system and hold for 12 months. The system works well for me with an average annual return of over 20%. 67% of my investments have made money. I have had 3 investments in builders over the last 7 years and made profits of 108%, 36% and 12%.
My biggest profit made was Thomas Cook in 2013 (568%), my biggest loss was Capita this year (62%).
I will admit it can be quite a volatile strategy, there was a period where I lost over 30% of my capital.

I am trying to find a system that is less volatile based on high dividend stocks but without success so far. I welcome any advise.

Mark Bell,
Well done on making money on BDEV. Not sure how you have managed it when the share price 12 months ago was £6.59, it is now £5.30.

I may have missed the boat at 490, 500 etc. but fortunately I also missed it at 660, 650 etc.

If you had invested in the top 20 momentum shares (the biggest risers in the previous 12 months) you would have made a profit of 101% over the last 5 years.
If you had invested in the bottom 20 momentum shares (the biggest fallers in the previous 12 months) you would have made a loss of 22% over the last 5 years.

"Do not invest in a company that is in a downtrend". Probably the best advice I have read on this BB and those investing in builders would have benefitted over the last year or so by following it.

A 9% dividend is not much use given that the share price has fallen 27% during the last 12 months.

I will look at buying housebuilders again at some stage but like the funds you quote I will wait for a change in trend.

26 companies seems plenty to choose from rather than pick BDEV.

Generally I go for capital growth rather than dividend growth and have had most success with companies that pay little or no dividend.

Personally if I was buying a share for the dividend I would want a dividend cover of 2.5.

Any dividend that is more than twice the FTSE100 average I would treat with scepticism.

If the market believed this yield was sustainable they would pile in to it, they obviously are not, what is the reason for this?

I would trust the market rather than any comments on a BB, entertaining as they are.

Yield of 8.6%. Sounds too good to be true. And I've always been told, if it sounds too good to be true then it probably is.

People on here have been saying it's a bargain since it was over a £1. I will wait until there is a change in the momentum before buying any.

Having been a FD in a listed company, I can confirm that auditors are absolutely useless. Normally send in a load of juniors who don't have a clue whilst the partners are wining and dining the client. If by a rare chance they found anything they probably won't report it because they want the repeat business of the client plus all the lucrative consultancy work they get, again which very rarely creates value. The whole system is broken.

I bought this share due to it's steady upward momentum. Any idea why it has fallen 26% in less than a month?

Mr. Woodford is no mate of mine, also not of investors in Provident, AA etc.