Calcs.. This is so so rare but also risky.5 Mar 2022 19:23
It goes without saying we all want the war to stop and no human I have ever met wants war. Psychopathic meglamaniac leaders do. I pray for anyone caught up in this type of madness and send wishes to all affected.
The below is some fundamentals, It also goes without saying none of the dividend payments may pan out as planned and the company could be affected by the political goings on.
Aside from the £1.88 debate. Lets just have a look at current fundamentals. Was it 60p close, 68p?
I'm not sure about day traders, but I'm here for the long term compounding.
Lets say you bought 10,000 shares at 68p close of pay Friday.
Cost basis £6,800 or change to whatever your average is..
Currently the estimated dividend for 2022 is £1.43 or 143% of the current share price (split over several, this week see's an interim of 37p)
Interim return £3700 (cost basis for shares now £3,100 for 10,000)
Assuming all planned dividends paid (war would need to end i think) £9724 returned (cost basis for shares now 2,924 paid to you to own 10,000)
Estimated dividends for 2023 are smaller at £0.57 as is turnover and profits etc (year 2 £5,700 returned in dividends. Cost basis, you've now been paid £8,624 to own 10,000 shares)
Over the last three years however the dividend per share has grown at compounded annual growth rate (CAGR) of over 7%
Current value of business
Price to Book 0.56
Price to Tang. Book 0.79
Price to Free Cashflow 0.6
Price to Sales 0.09
EV to EBITDA 0.76
Current performance of business
Return on Capital 72.4%
Return on Equity 242.6%
Operating Margin 33.91%
Source - Stockopedia
Only put in what you can afford to lose (you never know with politics, you could still lose this all, (never ever go all in unless you are 100% certain and even then, leave a bit for safety) and then never ever sell these, no matter how tempted you are, if the company is still going and paying divi's, never sell, just let compounding work its magic. 5 years down the line, you will be amazed. 10 years down the line, you will view this as one of the best investments of your lifetime. Unless of course you bought 100 Bitcoin for £10 a decade ago. Personally as long as I don't kick the bucket, I have a 20 year window to collect these divi's for.
For fun, and these are hypothetical completely. It’s just to show how powerful compounding from a low cost basis is.
lets say the 7% 3 year av compounded dividend carried on..
Yr1 - 6,800 plus 143% = £9724
Yr2 - 6,800 plus 150% = £10,200
Yr3 - 6,800 plus 157% = £10,676
Yr4 - 6,800 plus 164% = £11,152
Yr5 - 6,800 plus 171% = £11,628
Yr6 - 6,800 plus 178% = £12,104
Yr7 - 6,800 plus 185% = £12,580
Yr8 - 6,800 plus 192% = £13,056
Yr9 - 6,800 plus 199% = £13,532
Yr10-6,800 plus 206% = £14,008
Total received dividends over ten years = £118,660 or 1745% gain on original cost basis.
Reinvest those divi's every year and its even bigger numbers come yr ten on divi payments, trul