Member Info for zac0_4

. . . "go for quality stocks . . . from steady businesses like HBR and SQZ"

Would that be HBR who have delivered a negative return of -18% over the last 12 months? Or, would that be SQZ with a -14% negative return over the same period?

Neither, I'm afraid, fall in to the category of what I consider to be 'quality, steady stocks'

. . . and it's still 4% down year to date!!

Sidi - I learned many years ago that I cannot make money if I try too hard. To me that is trading. It doesn't work for me. I also came to the conclusion that the only reason I should actually be buying shares or funds etc is to try and beat the market. I define the market as the global economy. A large proportion of my investments haven't beaten the market on a regular basis. Accordingly I've been actively consolidating my investments so that my exposure to a simple global equity tracker fund / etf, as a proportion of my total portfolio, has been steadily increasing.

Here's my largest - Legal& General International Index Acc. If you prefer ETFs here's their equivalent - LGGG

Compare how your holdings have done over 1, 3 and 5 years to the above and come to your own conclusion. Good Luck!

Meoryou - time flies! I sold here around Feb time. I'll let you have an update as to how the portfolio i reinvested my bp capital in is doing on the 12 month anniversary.

Good luck with your investment here.

Probably more of a measure as to the effectiveness of their marketing/pr activity than anything else!

Simon1367 - an investment here 5 years ago with dividends reinvested would have delivered a total return of 27%.

However, to put that into context a similar investment in a global index tracker fund/etf would have delivered a return of 66% over the same timescale.

One reason why I limit my investment in dividend paying assets to around only 25% of my portfolio value

Robleo - I'm in a similar situation in that I have varying degrees of confidence with regards to future performance / recovery prospects of my dividend paying holdings.

Luckily my div holdings only represent around 25% of my portfolio. I shudder to think what my portfolio's performance would look like if I was 100% invested in dividend paying equities, as I have some absolute dogs presently.

Out of interest here's my list: MRCH, HHI, HFEL, EAT, UKW and LGEN.

Robleo - Warren Buffet's first 2 rules of investing are 1) don't lose money, and 2) see rule 1!

It seems to me your funds meet both rules whilst dividend paying shares don't (or at least aren't at the moment)

It always seems to be 'jam tomorrow' for my dividend paying holdings.

Global index funds will continue to be at the core of my portfolio. After all the UK is only 4% of the global economy.

Just compare the total return from the Legal & General International Index fund Acc (or LGGG ETF) to the return from LGEN share. I'm afraid the fund/etf wins hands down.

Unfortunately LGEN is one of my largest holdings!

Robleo - my portfolio is about flat. It's my uk listed dividend paying holdings that are a drag on performance.

On the basis that 80% of fund managers struggle to beat 'the market' I'm coming to the conclusion that I probably can't either! Hence my positions in global tracker equity etfs are continually being added to. Here's my main 3 - LGGG, IUQF & RSGL.

Dividends paying assets are fine providing you're not paying for the income through loss of capital!

MrMath - unfortunately experience tells me that no matter how much a share price falls it can always go lower!!!

Meconopsis - I totally agree on all points!

For me 4 individual shares is too risky when considering funding your retirement. A suspended dividend at 1 reduces your income by 25%. An alternative option is to invest in a global all cap index fund and sell units (shares if etf) as and when you reuire income.

However, if dividend income is what you've decided on then a safer option would be to look at an investment trust. As an example Merchants Trust. It's increased its dividend annually for the last 42 years, and although the yield is a lot less than here I just think it's a lot less risky.

None of the above is intended as advice just some ideas to consider . . .

Agree. I've been amazed at all the complaints regarding dividend payments. I'd change platform provider if I wasn't happy. I'm with HL, who certainly aren't the cheapest, but I'm happy to pay a bit more for great service and a great website!

" . . . I am at a stage of my life when all I want to do is hold some less risky stocks for dividends . . . "

Why? What's the attraction of dividends? I would suggest if you're looking to invest in single company shares then there is a fair degree of risk in that anyway.

If dividends are a must then how about HHI or MRCH. Both UK focussed dividend paying trusts.

I'm also at the stage of my life where all I want to do is hold some less risky investments. I'm moving away from dividend paying individual holdings into global equity etfs. I'm currently in the process of building positions in the following: LGGG, IUQF,RSGL and WLDS. Good luck!

" . . . The reason i'm not buy anything like the S&P 500 is because i think the U.S market is overvalued (as does Warren buffet). Should the U.S market crash/ pull back then i'll buy into it with conviction . . ."

It has 'crashed/pulled back' twice in the last 3 or so years. The S&P500 fell 32% in 5 weeks from mid-Feb 2020 and also 25% during the first 10 months of 2022. Did you buy into either fall with any conviction then? If you did, great. If not, what's going to be different next time?

'. . . and the risk of a dividend cut . . .' Really? On what basis?

Total return with dividends reinvested

I'm certainly no fan of the performance this fund has delivered over the last 5 years or so. However, some context needs to be provided. The MSCI Asia Pacific Index (ex Japan) is flat during the 5 year period. HFEL is 9% down over the same period. So, certainly an underperformance.

I sold 50% of my holding here at £2.43 to help reduce exposure to dividend paying holdings overall. I plan to keep the balance, take the dividends and review in 12 months time. I'm less worried than others seem to be here with regards to the security of the dividend!

" . . . taking the number to 176.8% of what it was at 31.8.18 (ie getting on for double) . . . HFEL had 121.13mn shares at 31.8.18, but the number was 154.95mn at 31.8.22 . . ."

By my calculations that's a 28% increase in shares in circulation not 177% increase. Am I not reading your statement correctly?

"We are in a once in a lifetime opportunity to buy cheap stocks . . ."

Such as?