Member Info for Thomo1968

I meant to include the following information in my last post. I am not ramping here but again just emphasising the potential return. In the last year, from a performance point of view, BP is currently sitting 98th out of the 100 FTSE 100 companies for past year performance. Only RR and IAG have performed worse but they are both linked to the Aviation sector, which has experienced a hell of a year.
RDSB is sitting at 91st position.
If any person were to invest in BP today compared to a year ago, they are getting a bargain as the recovery has still to happen.
It just confirms that the OIL sector has still to show recovery. Mining Companies have incresed heavily over the same time and some have increased by at least 70% so the growth perspective MAY not be as good going forward.
I created a watchlist of 33 companies at the end of April last year that I was considering investing in when I received my lump sum when I retired.
Since that date, BP are still 2% down as of today compared to that time, the share price was 308.6.
So if you were still thinking of getting in, do it now. DYOR into the fundamentals.
Once the world opens up again and people are flying etc, I am sure this will show on the returns of the OIL companies.

For any newbie investor or long term investor, we should see the share price rise in 2021, patience is required and it can be tempting to sell when one becomes frustrated.
Back in August last year when I received my pension lump sum, I looked at a lot of options and noticed that two of the sectors that had been whacked by COVID were the banking and oil sectors. I decided to buy bank shares in LLOYD, NWG, BARC, STAN, HSBA and BNC and I also bought IMB along with RDSB and BP. The shares prices in the banks were nearly -50% of their pre covid levels and oil was less than 40%. I then read more into IMB and found this share to best for income rather than growth so sold this on. This share has improved by 8% since August so confirms that growth is not as good as the others but income is good with a current 10% div yield.
During October, oil fell further and as we all know , the prices were touching the 25 year low. I decided to sell all my shares in the banks and IMB and I now hold approx. 50/50 of my entire holding in both RDSB and BP. I have held and recently bought more BP between November and February at an average of 256.
I kept a watchlist of my original purchases of shares and my oil purchases.
Looking this morning at this list, the banks have all recovered, NWG +73%, BARC +62%, BNC +52%, LLOYD +49%, HSBA +28% and STAN +27%.
In the same time frame, BP has recovered by 7.45% and RDSB has recovered by 22%.
This just shows that OIL is taking a bit more time to recover but it also shows that by buying the shares, holding and re-investing the dividends can pay.
As I purchased the OIL in October, my investment in BP has gained 33% and RDSB has recovered by 42%.
I don't intend to trade as I am frightened that I mess up. I will re-invest the dividends this month and will continue to hold until the price reaches a level that shows the global recovery. I am also picking up a DIV of 6.9% for BP and 5% for RDSB.
What I am saying is the price will recover.
I appreciate the knowledge shared on this board regarding support and resistanc, gaps being filled etc, which is good to know.
For a further comparison, I also looked at investing my pension in funds - spreading the risk so I selected 8 funds and over the same time frame, the funds have gained 20% so again risk/reward in shares.
I am just posting this so that if any person is thinking about jumping ship to buy others, just think of the fundamentals, oil pricces are increasing, the world is opening up and patience shows.

That was a sore one. I am confident that you will get your losses cancelled out by just sitting back and reinvesting the dividends. It may take longer than you are hoping but both are currently sitting at a lower price than what they were valued a year ago and if they give back to those levels, you will be in profit. I think patience is required here. Warren Buffet has the strategy of buying and holding for a while then selling at a profit so I am going to do what the guru of share dealing does. Good luck with your investment and stay positive.

Thanks Baffled. I was given a second chance when I got access to my pension lump sum in August last year. I lost thousands of pounds when my shares in NMC Health were suspended at the beginning of 2020. I had a large amount of NMC Health shares in my ISA and SIPP that were suspended when the billion pound corporate fraud was identified. I vowed never to put my money in one company again. I have given myself a 5 year window to hopefully make gains on Big Oil that would cancel out my losses with NMC. I also sat down one day and went through all my trading since I started buying shares way back in 2011 and I looked at all my buys and sells and I have now identified what I need to gain in Big Oil that will wipe out all my errors in losses that I have made over the years in buying into Thomas Cook, where again I initially made a gain but lost a lot. I think now compared to when I started investing, I have now read up more on the fundamentals of both BP and RDSB and I am aware that the big changes will not be in the next 5 year period but the time I have given myself by buying and holding and re-investing the dividends in both that I should eventually get back the money I lost in NMC plus the other losses I have made previously on other shares. The other thing I am also aware of was the timing. For me this Pandemic has given me a chance to get shares at a knock down price. Both were hitting their all time lows when I bought them at a time when the oil industry was struggling.
I will continue to buy BP when I have the funds available to top up what I have and hopefully reap the rewards for my retirement by giving myself the money I thought that I had lost... my NMC shares are still suspended but I don't think I shall get anything back as the banks are due millions of pounds and the share holders are at the back of the queue.

I have patiently held BP and RDSB since August last year when I received my pension lump Sum. At the beginning of August 2020, I bought my first lot of BP shares at an average of 284.7 so they have only increased value of 4.99% since that date. I also bought RDSB for an average of 1171.45 and in thesame time, they have increased in value to an amount of 21.86%. I managed to buy more RDSB and BP in October 2020 after selling my UK bank shares and I have bought further BP shares since December.
I too have never traded due to being inexperienced and I have made mistakes in the past.
My average with BP at the moment is 224 so I have made a 33% profit uptill now with BP and my RDSB average is 996.31 and I am sitting at 43.25% profit. I have been tempted to sell the original holding of RDSB that I bought in August and reinvest in BP. I was watching the last couple of days but BP's gain was better than RDSB so I am waiting at the minute.
My initial goal is to sell BP if it reaches 448 as I would have made a 100% gain and RDSbBat 1992, again this is well within the values of both prior to the COVID breakout. I am tempted to sell a small amoutn of BP if the upward trend goes and then buy when there is a retrace. Like a lot of investors on this board, we are all hoping that by the end of 2021, the share price will be a lot higher.

Tom - have a look at the following link, which shows a list of the FTSE companies paying a dividend. Are you aware of the £2000 allowance for dividends. Unless your funds are within an ISA or a SIPP, you have to pay 7.5% tax on declared dividends over your allowance . Your yield on £150K would be 9.8% if you purchased the shares at today's price, (yield is 1.37/14). If you are not aware, open an ISA and put £20K into it and then your dividends are sheltered from tax. You can tramsfer over £20k every financial year.

https://www.dividenddata.co.uk/dividendyield.py?market=ftse100

I am thinking about doing the same as you. I currently hold BP and RDSB and I am waiting on the global recovery to take place and maybe by the end of the year or next year, my intention ws to sell and then purchase shares in companies that pay the dividend., which I can use as an income to supplement my pension.

My plan B was to purchase Funds and then top slice every year on any profit made over the course of the year.

I have a list of about 10 companies that I may invest in at a later date that will pay an average of 7% yield. As long as the companies don't cut the Dividend, you will be okay. DYOR of course but as mentioned by other posters, there are other companies paying regular dividends that may grow.

Thanks for the information.

I have Shares in both an ISA but my funds in my wife and my ISA are at the limit for the tax year. The shares in question are in our share account out with the ISAs

I have been totalling up the dividend payments received this tax year and have been looking at the HMRC notes on allowances. I recently opened a joint share account with the broker I am with and transferred over my funds from my individual share account to take advantage of the allowances. When reading the HMRC notes it mentions about the individual £2000 Dividend Allowance. When I started receiving dividends from the earlier trading quarters, I had an individual account but when I receive the final dividend payment next month, the received payment will be in my joint account.
From reading over the HMRC Tax Return form, in relation to declaring dividends, I have to declare all dividends received for the tax year. The question I am asking is - how do I tell HMRC that I have a joint account to make them aware that I have the joint dividend allowance so that I get the £4000 dividend allowance. Do I mention this in the "Any Other Information" section of the Tax Return, which appears to be a blank page. I have never completed a Tax Return for Dividend payments although I have completed a tax return form previously when I was claiming for being self employed.
I hold shares in both BP and RDSB.
Any information would be appreciated as this will be underatken now on an annual basis.

Thanks in advance.

I hold heavily on both RDSB and BP. My intention is to hold for a 5 year period or until both SP recover to pre-pandemic levels. Due to my age, I don't intend holding for a huge length of time. My intention was to hold for 5 years maximum and then drip feed off the investment for my retirement for the next 15 years, giving me a 20 year time frame, fingers crossed my health lasts for this lenght of time. I invested in both when I retired in August last year and I initially bought in both along with other shares. I sold the other shares in October last year and bought both RDSB and BP when they were at their 25 year lows. As RDSB made a more recent gain compared to BP, I am sitting with a higher gain in RDSB than BP. My overall holding in both are very similar. I don't intend doing anything with the shares apart from re-investing the quarterly dividend to buy more shares in each. I am tempted to sell some of my RDSB and purchase more BP. I have read over information on both and the long term changes both companies are taking on board. Over the between 2021 and 2025, if any investor were given a choice to invest in either, what would they do. The dividend at the moment is more attractive to BP. Both are stating that the shareholders will benefit in the future when the debt has been reduced. My RDSB holding is sitting at a gain of 27% and my BP is sitting at a gain of 13% as I type. I don't have any more spare cash to purchase any more shares so my only oprtion would be to top slice RDSB and use the gains to purchase more BP. Any thoughts from other investors. My RDSB div yiels is 5% and my BP div yield is currently 6.98% due to my average share price purchase.

The dividend is calculated on the price theshare was purchased. Any holder of BP shares that purchased them prior to the Covid Pandemic will have seen the dividend reduce by 50%. If you look at the charts for BP share price at the beginning of 2020, it was about 475 a share. The dividend back then was approximately 32p per share, doing the 32/475 calculation, the dividend paid out at the beginning of 2020 would have been approx 6.7% back then. Now that the dividend has been reduced to 16, the same calculation of 16/475 would only give long term holders a yield of just over 3%.
If any person has only recently purchased the BP shares, they would have purchased them at a discount compared to the beginning of the year. Current price of 260 is at a discount of about 46% so although the dividend has been reduced by 50%, the share price has also seen a reduction of 46% so the dividend is about the same yield.

Have a look at the following link

https://www.dividenddata.co.uk/dividendyield.py?market=ftse100

This site will detail all the FTSE companies which pay dividends and will show the current yield. click on the dividend yield for BP and this will confirm what I have explained.

Cashy - the total dividend for BP is approximatley 0.16 annually, 0.04 every quarter. To work out the dividend yield, divide the dividend paid by the share price. Currently the share price today as I type is 264.55. The total dividend is 0.16 so if you divide 16 by 264.55 it will give you the yield. Currently 6.04%. For every share you own, you get 16p approximatley every year. The higher the share price paid for each share, the lower the dividend yield. For example if the share price was 300 when the shares were bought, the dividend yiled would be 16/300, 5.33%. I f you own shares bought at different prices, work out your average and then use this price. Always divide the dividend by the share price.

From reading posts on this board, alot of members discuss the dividend yield. I am of the opinion that this share is one to hold if you are an older person, wanting the most out of their pension lump sum. The share does not currently have growth on its side. As mentioned by another poster, holding this share for about 7 years should double your money if you buy it at todays rates. I am intending purchasing shares in IMB once my BP and RDSB shares hopefully grow when the world comes out of the pandemic. I am hoping to get a load of both IMB and BATS to get the dividend income. I initially bought IMB in August last year but sold to buy BP. I will continue to monitor the stock and read the posts on the two bulletin boards. From also reading the Motley Fool, this share is mentioned frequently as a good income paying stock.

Dividend - just work it out that the dividend is 4 x 0.04 approximately per year. 0.16 in total. Divide this number by the share price. Currently the share price is 252.05. The annual dividend is 0.16 so 0.16 / 2.5205 is 0.0635 or 6.35%. When the share price increases, the dividend reduces as a percentage and vice versa. The cheaper the share price, the larger the dividend is until there is a change in the dividend price set by the company.
When you llok back the share price, when the share price was a lot higher, the dividend yield was similar if not less than today. I managed to get a lot of my shares in BP during October last year and I average around 237 so the dividend yield I get is higher as it is 0.16/2.37. which is 6.75%. currently but if I add more shares, the price is now going to be higher so my dividend yield will reduce accordingly.

http://www.differencebetween.net/business/difference-between-rdsa-and-rdsb/

Look at the following link that explains the differance between RDSA and RDSB

I hold both BP and RDSB, having bought heavily in October last year, when the share price of both were at their low. I was in a fortunate position when I was able to invest. Having read posts on this forum for months, I am like a few LTH and will Hold both and reinvest the Dividends. My average for BP is 224 and RDSB is 996 so the current dividends for me are a good 7% for BP and 5% for RDSB. I topped up a small amount this week on BP but my funds are now tied up in both. I see alot of people on this site either panicking or falling out with others regardingthe price. Having made mistakes in the past and lost out , I am going to sit back, read all the financial information available.
As someone said on this site previously, buy in the dips, hold long term and re-invest any dividends and buy more shares. Not too difficult to do. Wait on the vaccine roll out and the world economy coming back. It may take a year at least but better having money invested in BP than sitting in a savings account earning 0.1% interest at today's rates.

https://www.dividenddata.co.uk/dividendyield.py?market=ftse100

Above is a link to a website that details all the FTSE companies paying dividends. Just click on the top of the screen to get it in order regarding largest to smallest etc. IMB and BATS, tobacco offer good yields, SLA, MNG, LGEN, PHNX, GSK and VOD also offer dividends of over 6%. DYOR into them for further information.

The big buy was the Uncrossing Trade, indicated by the UT - that is a summary of the traded shares today added together

Thanks for this advice from Mr Math and Spikey J, which I was not aware of and I appreciate the comments given to me.

Good morning. Have a look at this website, It has the list of FTSE 100 and FTSE 250 dividend paying companies

https://www.dividenddata.co.uk/dividendyield.py?market=ftse100