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I am not invested here. I am getting contradictory information on yield. Dividenddata tells me yield is about 11.6%. Dividendmax (which is normally my go-to site for such info.) tells me that the yield is 1.2%. Can anyone clarify? Thanks.
The questions here after every dividend payment date are predictable. I asked the same questions a bout 18 months ago. Can I be helpful and tell you in summary what I have found out since then about Dividend Withholding Tax (DWT):
1. If no protection is in place as at 2 and 3 below, then 30% DWT can be applied to your dividend payment.
2. If you have a form W8BEN on file with your broker, then under the double taxation agreement between the UK and USA then the DWT is reduced to 15%. This also applies to Irish residents who hold those shares. I mention this as I am resident in Ireland.
3. If your shares are held in a UK pension product then the applicable rate of tax is 0%. This is very clear in the double taxation agreement I refer to above. This does NOT apply to Ireland-USA double taxation treaty and as a result I have 15% withheld of my dividend.
I hope this summary is helpful to someone. For me this is a great dividend. I live in Ireland and have been at war with my pension provider over this issue . They eventually reduced the tax from 30% to 15%. Still very happy with my circa 10% net dividend. I'm also about 5% up on my average purchase price; I've increased my holding recently. Above based on my research only.
Sold all of my AAL today but holding RIO longer term. Rationale: Peace in Ukraine as a prospect seems to be correlated with lower commodity prices. Still holding BP and DEC. Also stuck with Evraz, suspended. Looking at POLY. Definitely LGEN top-up tomorrow based un upcoming divi.
Same happened in the last couple of hours with other miners; AAL, GLEN. Only macro news I see is positive vibes coming from Ukraine. Also crude oil has fallen 5%. I don't get the logic!
I simply cannot make sense of share price movements with DEC. 2% drop today; no correlation with any news event that I can see.
meoryou; wow 40% divi!!!
For the last year or so I naively believed that the BP share price would track the oil price or exhibit some positive correlation. Obviously that hasn't happened in any meaningful way. Accordingly I have reduced my holding gradually and substantially. since Jan. Especially as I can reap 10%+ dividends from DEC, RIO, IMB, MNG and the likes which seem to have similar SP growth prospects. BP has become for me = Boring Place. But I am holding relatively small and long as surely the market has to recognise the obvious value at some stage.
Interesting that JPM decreased their target price 3580p to 2830, yet their target price is still 30% above today's price and they rate PSN as 'overweight'!. And then as a consequence, the SP drops 3% today. How strange!
I have now half of my p0rtfolio in dividend paying shares and my intention is to continue to make further additions. Apart from some 'black swan event', does anyone see a problem with this that I may not have foreseen? The shares are held in a pension fund, so no tax is payable until I draw down.
Belated thanks Tom 78. Makes sense!
Sigma1, is it part of your strategy to buy cheaply and sell before the ex div date? Just curious and always interested in learning a bit. I've tried the opposite - dividend capture strategy and it never worked well for me.
I might add that the P/E ratio seems to be a solid indication of value. But even this fundamental measure of value varies widely between companies in the same or different sectors. So its back to subjectivity and perception. Enough philosophy. 10% dividend is a fact!!
MrG123, I've been investing for 30 years and the logic of the market is not in any way aligned with human common sense, it seems to me. Perception rather than value is the driver of the price of everything. In response to your observation re sells and buys, for every seller, there is a buyer. But yes, I am mystified also....actually value itself is subjective.
Yes well what on earth just happened? We were having a strong day when I looked this morning! AAL and GLEN charts following similar pattern this p.m. Any news behind this?
At end of March I will use dividends from elsewhere to top up here. I don't have auto scrip div in my account and that is a pain. I have another broker in Ireland who does auto-reinvest but my UK broker pays out in cash only. This means I lose in trading fees and stamp duty.
Apologies, second half of my question was stupid; I forgot the ex d date!
that the boards for RIO and GLEN are lit up and there is no activity on this board. Why is that, now? RIO up today, AAL down. Why, I wonder?
I'm surprised that the SP here has not increased based on recent gains in price of gas and prospects of supply constraints Obviously I have missed something fundamental! Of course, BP share price has also behaved like a dog over the last few months. Even before the war. I don't get it.
..is simply that Evraz will be traded again on the LSE. When that happens, I will simply hold; I can't see a flood of sellers in that event. I have the resources to hold for a couple of years.
Imdoing. You get the dividend based on today being the record date. The ex dividend date is the date on which the share begins to trade without the dividend. That means from 8 a.m. on the designated day; the SP automatically adjusts downward by the amount of the dividend. So you get the dividend but in theory lose the same amount on your shares. I can't see the point of that. Unless you have a reason for believing that market forces will make the SP rise tomorrow.