Member Info for zac0_4

If I was you I think I'd be simply reallocating the dividend income myself. In that way you can pick and choose time and place to reinvest.

Arrived this afternoon in my HL account. Re-allocated as follows:

Fund & share account - taken as income

ISA - reinvested into one of my dividend paying investment trusts

SIPP drawdown - reinvested in Nvidia

Good luck with your dividends

Anon3 - I wouldn't say overly adventurous. As with most investments patience is required and a mind set that enables you not to panic during difficult periods.

You are correct that each of the funds has suffered during recent times (hasn't everything?!) and time is required. However, you might be surprised if you dig into the performance numbers in a bit more detail . . .

For the top3 funds on my list I've looked at the peak to trough fall during the last 3 years and how far from their peak each currently sits. Here's the stats:

L&G Global tech - peak to trough -30% / current price vs peak -5%

AXA Global tech - peak to trough -30% / current price vs peak -17%

Blue Whale - peak to trough -30% / current price vs peak -22%

And how about LGEN?

LGEN - peak to trough -34% / current price vs peak -23%

So, holding global equity funds, in this case with a tech bias, seems to offer no greater risk than holding Legal & General shares.

Robleo - for further clarity I hold 8 dividend paying investments (2 shares, 8 investment trusts). The balance of the portfolio is mainly investment funds.

Year to date total return from each category is as follows - dividend paying holdings -0.1%, balance of portfolio +9.5%

Cheers

Robleo - my top 5 performers year to date at the end of May are as follows:

L&G Global Tech Index Acc +34%

AXA Framlington Global Tech Acc +16%

LF Blue Whale Growth Fund +12%

Smithson Investment Trust +8%

Rathbone Global Opps S Acc +7%

I've been moving away from individual shares over the last couple of years into investment trusts for my dividend paying holdings. I'm down to my last 2 now, LGEN & Shell. Or should I say was down to my last 2! I sold my BP holding in February and reinvested a proportion of the capital into Microsoft and Nvidia. I wish I'd have been bolder . . . my Microsoft is up 28% and Nvidia 75%!! I consider it a lost opportunity!

"Sold for 234,20"

So much for your advice!!

Anon3 - isn't the interim dividend usually announced as part of the half year results issued in August?

I do expect L&G to move up the pecking order in my June figures as the 5.6% dividend yield is added on Monday.

As for my entire portfolio . . . well nothing to shout about! At the end of May it's c. 4.5% up year to date.

Comments taken from the half year report, dated 28th Feb 2023, which provides me with some confidence in the continuing growth of the dividend:

" . . . income from the portfolio has been solid"

"The year ahead will hold many challenges but, on balance, we believe the prospects for improved earnings growth and

dividend increases are positive"

"The outlook for dividends in the region remains robust"

Time will tell. I must admit I first invested here in May-17 and, on a total return basis, remain in a negative position. One day, Rodney . . . !!!

Legal and General remains my worst performing investment year to date. Firmly at the bottom of my 22 holding portfolio!!

Part of the stated investment objective of HFEL is ". . . capital appreciation". I wonder how long they expect shareholders to wait for this element to be fulfilled? The share price is now at, pretty much, a 10 year low and shows no sign of reversing that trend.

"Or yearly based on the purchase date?

The latter jumps out as an obvious choice . . ."

I agree. And it's on that basis that my figures are taken.

If, as you state, your purchase price was £1.66 then you would have bought around end of March / beginning of April 2020. So, April 20 to April 21 you enjoyed a total return of 80%+. April 21 to April 22 your total return was flat and April 22 to April 23 resulted in a negative return of -4%. I certainly wasn't saying you're making a loss overall. Simply that holding LGEN for the last 2 years, in the example given, have resulted in a slight loss during that 2 year period.

"As an aside do you buy/sell on discrete performance? . . ." No. Not in isolation. I use it, generally at the end of each calendar year, to judge whether I'm enjoying an acceptable return over a number of individual years.

"The profit and dividend increases . . ."

Hopefully. But the post was claiming, at worst, an annualised share price increase over the coming 7 years of around 11.5% pa. My point is that during the last 5 years the average annualised return has been around 3.5% pa, and that includes dividends. I just think that's a totally unrealistic expectation.

And what makes you think the next 7 years are going to be any different to the last 7 or 8? This was sitting at £2.90+ back in March 2015!!

"Your methodology isn't well supported by the investment community . . ."

Well it's a method (discrete calendar year performance) used on both platforms I use - Hargreaves Lansdown and Fidelity. I'd certainly say they were fairly major players within the investment community!

Thriller40 - it may be the way I've put it across. He/she certainly hasn't lost money over the 3 year period in question. What I was trying to get across is the following:

Year 1 - bought at £1.66. At the end of the first 12 month period the total return (capital & dividend) is 84%

Year 2 (ie next 12 month period) - starting with new capital value total return over this period is 0.3%

Year 3 - starting with latest capital value total return for this period is a loss of -4.2%

I just think it's vitally important to monitor annual performance rather than to keep looking back to your initial purchase price. But that's only my opinion!

"But not parting with my main purchase in isa. 166.06p 11% dividend. Throw in the 5% increase in dividends and I will have a better return than ftse all share index....overtime"

Overtime, maybe. I agree your £1.66 purchase produced a fabulous result for you in year 1. However, by my reckoning, in year 2 you will have just about broken even and year 3, well you will have lost money.

Just to add, I'll be happy if the sp reaches £2.56 by year end. As I measure my total return annually, on a calendar year basis, a £2.56 share price will deliver a double digit total return this year. That's fine with me!

"320p before covid 310p after . . ."

That's correct.

However we'll never know how long £3.00+ would have been sustained prior to covid simply because the pandemic put paid to it!

The post covid £3.00+ period only lasted around 2 weeks and since then the sp has been in a downward trend. A 30% increase is required from today's sp to get back to the £3.00 level. Is that likely this year? Who knows. My bet is, no!

Out of my 23 holdings, mainly trusts and funds, at the end of April this was my worst performer year to date. I've been moving away from individual shares and am now down to my last 4 - L&G, Shell, Nvidia and Microsoft. Too much risk at my time of life to be too heavily invested in single shares.

Or, if not a building society then, a global tracker fund! Over the last 5 years the total return here, with dividends reinvested, is 18%. The same investment in the L&G International Index fund would have returned 56%.

I own both and whilst I will remain invested here I'm not blinkered by the, so called, wonderful dividend! Total return is all that matters in my view.

" . . . good luck with your growth shares and hope you don't find out the hard way

that they don't always meet expectations . . . "

And this does meet expectations? It's lost almost 25% of its capital value since the start of 2020. From my viewpoint this isn't delivering against my expectations. Nothing too silly, simply a total annual gain of around 8%. It's certainly not doing that at the moment!