Decided to diversify my ISA portfolio and having read a very positive artiicle in the Investor Chronicle a few weeks ago made a small investment of 1009 shares. A 6% dividend paid in quarterly payments was a major influence. Now up to 64 dividend payment days.... and counting.
This share price is only going one way and that is down, ROO is a loss making company operating in a cut throat market with no discernible USP. I can see the hat being passed round to shareholders in the not to distant future!
PJM negative press didn't kill this IPO the fact is Deliveroo has never made a profit, this companies big opportunity to make a profit was last year and it failed to the tune of millions of pounds. It doesn't matter how many people use the app if a company can't make a profit on a gross margin of 38% than something is fundamentally wrong with the business and not worth investing in. Deliveroo was sold to investors as a tech company when in actual fact it is a delivery company with a fancy app!
Why would anyone want to buy into a company which trades in an extremely competitive market where it is almost in possible to make money. Deliveroo lost money last year on a record turnover and a captive audience. The directors will within the next couple of years come back to the shareholders with their cap in hand! Personally I would not put a single penny into ROO but then that's my honest opinion for what it's worth?
RE: Good dividend prospects and growth25 Mar 2021 11:27
I bought some of these for my ISA a few weeks ago and as soon as the 2021/22 ISA is open I will be buying more, a 6% plus dividend is in my view a license to print money! Like baf3 I also like the quarterly dividends as it makes the value of my shares grow faster.
I bought mine back in 2015 for £19 since then including the dividend I have quadrupled my investment. I also at the same time bought into BHP and that to has quadrupled as well. All the shares are in my ISA, happy days!
I too sucked at day trading which is why I became an investor of good companies back in 2015 in which I could sleep at nights without worrying if my stocks were going up or down. When the market crashed last year I didn't sell a single share, I just took advantage of the bargain prices add added more shares! Result 100% up on previous year with a lot more to come. Reinvesting dividends makes me really happy especially Rio's £2.88 coming in April!
One problem you can't transfer shares from a dealing account to an ISA. You have to sell the shares out of the dealing account and then transfer the cash. I recently sold my RR. shares from my dealing account at a loss and then bought them back plus a few more at 0.9290 in my ISA
Tarthtrader I wish I was young but I am 67! Upto 2015 I did try & day trade and made some money but I would have made a hell of a lot more by holding. I also lost 20k believing the hype around the crooks at Quindel. In the last 4 years my investment in Rio is +316% BHP +338% GLEN 130% & 4 others over 100% Even at 67 I am a long term investor as I want to bat to a 100 at least!
78% of PI's lose money day trading and listening to other people's hype! My advice to anyone who wants to seriously invest in stocks is to read Benjamin Graham's book How to Trade Stocks. Over the last 4yrs I have made more money by investing in good companies, holding & reinvesting the dividends. RR. is a good company and I add to my shares when my new ISA kicks in in April.