Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I see blackfriars has flamed me as I stated the incorrect pension company having issues. Both Standard Life and Equitable Life have had issues. I stated the wrong one in this case. I apologise. I have been suitably chastised. 🙄 However the point still stands. Banks and pensions companies can not be allowed to fail and the government will more likely sort out any extreme issues with them. Mobile phone companies are unlikely to experience the same concern. Phoenix is a major pensions company.
Vodaphone is a mobile phone company. Phoenix is a major pensions and finance company. There's a big difference. We've had one pensions company going under, Standard Life, and the rescuing of that went up to government level. Vodaphone would just fail. There are many mobile phone companies. Pensions companies are rather more important. Many have to rely on them for their pensions. I do. They are also financial experts. Vodaphone purport to be experts in mobile phones. Some may disagree.
If you are looking for income switching from Barclays and Nat West to Phoenix looks like a good idea. I've not been monitoring Barclays or Nat West but I don't think they pay as well as Phoenix dividends. The lower the price you pay the higher the return. Seems obvious to me but then I'm not you.
Interesting how underweight from Barclays and shorting from others act to force the price down. It's almost like they are looking for a cheaper price to but back in at. Last September Barclays were overweight and very happy with Phoenix. Nothing has changed with the company. 🤔 Meantime the dividend is well covered and very good at this price.
Just watched an interview with John Cleese. He remarked at how he's now realised how important 'luck' is in our lives. People think they are a financial wizz when they've just been lucky. So many times I've made decisions which were right for the circumstances at the time but then changed when circumstances changed. Covid, war in Ukraine, Gaza. All change the investing climate and you're just lucky if you benefit from any of them.
Dividends coverage is based on the ability of a company to pay the dividend. The SP has no bearing on it. The only connection is if the SP falls because the company's finances are in difficulty. Then the dividend coverage can become difficult. That's not the case with PHNX, according to their CEO.
Institutions follow their company policy and will often automatically reinvest as PHNX is a high dividend return investment and institutions will manage funds for income or capital gain. PHNX will fall into the income group.
For Porsche's information the current SP is entirely down to the geopolitics. He and Toff seem to appear to deride us all for our stupidity when the SP drops. They disappear when the SP recovers. Sad cases. Who would go on to a forum to abuse others of their investment? Obviously them.
Government Gilts are the usual safe haven. Gold is just another example where money can be placed, not gain, but not lose.
My point is that all have risk. Even the 2008 banking collapse shows money in the bank isn't actually safe. Relying on the government to guarantee an amount in an account isn't much when the government runs out of money.
A well run pensions and insurance company has to be a good bet when they provide a dividend well within their means.
So I'm not sure why the recent crisis in Gaza should mean everyone pulling their money out of a company like PHNX. But that is how the market seems to work.
It will recover within weeks or days.
There's nothing wrong with the fundamentals. At times of crisis money moves into safe investments. Maybe government gilts? What if governments have issues for those gilts? Gold? Is it really all that safe? Maybe a share with a 12% annual return is a pretty safe bet?