Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Roofer and Sigma, would you share your respective predictions for the SP over the next few months. How can charts work when the outcome of the war is uncertain and other other global macroeconomic factors are in play? I'm curious as to what the charts predict.
In addition to changing my strategy recently from tech /growth domination of my portfolio to dividend paying shares, I have decided just now that I need to have about 10% cash in order to buy opportunities when shares are over-sold like this. Problem is that in order to maintain 10% cash AND achieve the above, I would need to trade rather than invest. I am averse to frequent trading. Perhaps it's a matter of balance between trading and staying invested. Maybe I need a trading algorithm!
Well done eccles. Why the 3%+ jump today? I don't know. Has Shanghai stopped sneezing? Naw, I'll hold RIO and reinvest my divis somewhere else. Maybe IMB or LGEN.
Naw I have scrip dividends only paid in my Davy account in Ireland whereas Stocktrade in the UK absorb dividends in cash only. The latter is a pain in the donkey because I have to pay fees and stamp duty to buy more shares from my cash dividend.
My understanding is that for 'dividend reinvestment', the answers below are correct; i.e. the cash dividend is used to buy more shares after it has been paid out.
However there is a big difference with 'scrip dividend' where the dividend is paid in shares, not cash and the value of the shares is determined by the SP on the ex dividend date. Or so I have been advised on another message board. Can someone confirm or correct me if I'm wrong?
Tn Jacobs. My pennyworth is that commodity prices are driven by perceived future demand rather than the actual dynamics of demand and supply. In particular, perception of Chinese economy, China being the big driver. I'm very cynical about applying actual economics of supply and demand to commodity prices. Oil price is a good example. Just my observations.
I think I will sell half tomorrow. Better late than never. Then buy back at a lower price! Great value now though.
robleo I would genuinely have added here today but no funds available yet! Seems to have bottomed but you never can tell.
Fair assessment. I'm down 15% on my capital in DLG since I bought in Jan. What saves me though is that I'm up 5 to 10% or so on my other high yielders, DEC, LGEN, IMB. RIO. I also took a haircut on PSN. Diversity is inportant. I have not taken dividends into account here, just capital gain / loss.
I also find it strange how the SP behaves; no predictability. But it seems to have broken the 1.20 resistance this time. We'll see if that holds. I will use dividends from elsewhere to add here.
AliveKicking, that was some rant. You live up to your name! I am using dividends to buy IMB, DEC, LGEN, BP.
Can anyone tell me how much in £ stg the total divi is (= final + special). It's not clear to me from DividendMax. I'm trying to figure out whether my dividend has been subject to withholding tax. Thank you.
Are you suggesting we bail out now so we can buy in at a lower price? I was tempted but Naw, I'll stay.
Lol 7300!!! We sure got hammered today!
AliveKicking, yes I take your point - it's an out of favour industry. BUT while it has been going out of favour, it has been hammered. for the last few years. Two things encourage me to hold and to add. Firstly, the 'hammering' has levelled off and the SP has held up well over the last 12 months. Secondly Blackrock / Morningstar see the stock as 42% undervalued and P/E ratio at 5.6. Bottom line is the share is now undervalued. Unless there is some major development, I continue to hold and to reinvest divis. I could be wrong!
Surely listing in the FTSE 100 is a positive thing. Big funds buy the index and so have a weighting in all of its constituents which implies DLG will see incremental buying on 1st June?
I'm curious to know at what price (on what date) the scrip dividend is calculated? Can't find a straight answer. Makes a difference to number of extra shares I get; hence the question!
Marcus, I'd agree with you that the SP net effect was a rise when dividend was accounted for. Around 270p ish over the last week was ball park average, now at 266p. Drop of around 4p, vs. dividend 13p. An observation: if a share continues to fall by the amount of the dividend every year, then it will eventually be worth nothing.
Yes, BouncyCat and I was tempted to sell at -2.5% today and then saw it recover and it's now at about -5%. I'm in profit still by about 8% and on top of that I have the dividends rolling in. My question to myself was; what would I do with the proceeds from the sale of RIO shares? The answer was: buy RIO. So I'm still here. There is a possibility I might sell tomorrow and hold cash for the summer period but I would still buy RIO going into August. Despite the bad news re Iron ore shipments, I'm staying, not trading. Above based on my humble experience and please do not consider this as advice!
Thanks Trek, you've made me have a re-think also. I do tend to avoid trading as I can never get it right but being in cash between divis is something for me to consider again.