Member Info for zac0_4

Over the last 5 calendar year period (2018 - 2022) this has produced an average annualised return of around 5%. I wouldn’t say that was sound performance. I’d probably say it was mediocre at best. And this calendar year isn’t shaping up particularly well so far, is it?

". . . In ten years time it will be 580 or 680 whatever . . ."

Well, I admire your optimism, or should that be wishful thinking!

In the last 10 years the share price has risen by 29%. On that basis in 10 years time we'll be looking at a share price of around £2.95!! A long way off £6 or £7!!

GMAN12 - " . . . maybe investing isn't for you. Give it to a fund manager to do it for you . . ."

Isn't that considered investing? Some of my best returns have come from fund 'investing'!

Deutscher - funnily enough I carry out an analysis of my portfolio at each month end. I hold 23 investments. Some funds, some trusts and some individual shares. Out of my 23 holdings at the end of April Legal & General was ranked 23rd ytd!!!

There's nothing random about my analysis.

"Are we really arguing over what YOC is?"

No. I just prefer to measure dividend, as a yield, against the value of my capital invested on an annual basis. That's all.

I tend to analyse my holdings annually.

So, this year we started with a share price of c. £2.49. Assuming a dividend of 19.4p this would equate to a yield of around 7.8% this coming year. Let's assume the share price remains static at its current level of £2.33 until the year end. Anyone holding on the 1st Jan will have enjoyed a dividend yield of 7.8% plus a capital loss of -6.4% so a total return during 2023 of 1.4%. The same as everybody else during this time period.

I take your point that you're measuring yield differently, and that's fine. However, it doesn't make my method wrong as you've stated!

SD235

You measure your way and I'll measure using mine. I believe my method delivers a far more accurate picture of total return achieved on an annual basis.

Well, I certainly don't agree that everybody's yield is different. To me everyone enjoys the same level of yield on their capital.

Somebody that bought LGEN at £2.59 is currently sitting on a capital loss of 10%. The value of their capital, however, will provide them with a yield over the next 12 months (assuming sp remains static) of 8.4%

Somebody that bought LGEN at £2.12 is currently enjoying a capital gain of 10%. The value of their capital, however, will still only provide them with a yield over the next 12 months of 8.4%

That's how I view it and I'm sticking with my view.

ade2a - I guess we'll never see eye to eye over some of the points you raise. That's fine. We're all entitled to our own opinion.

Here's my view, as requested, to some of the points you raise.

"the managers report says the earnings are 24p . . ." - the last set of audited full year accounts, Aug-22, clearly show eps of 24.14p against dividend per share of 23.80p

"I am afraid the outsized yield is connected to the poor capital performance . . ." - of course it is as a percentage only. The yield on paper will increase as the share price decreases

"Not only that but as capital is wittled away the dividend or 24p of earnings will be at risk . . ." - I don't see the correlation. The amount paid out per share, 23.80p (24.00p now), remains static

My view is that, unless I read otherwise, the dividend remains safe. My issue is the continuing capital decline. I first bought in here in May-17 and have added at various points along the way. To date I'm sitting on a 25% decline in capital offset by dividends received to date of 25% of my investment value (roughly). It's certainly a frustrating hold!

MrTC - who knows! I first bought into this in May 2017 and have added ever since. Unfortunately, it was my 2nd largest holding with an average buy price of £3.41 per share. The only saving grace is that whilst my capital is down about 26% this is offset by a 25% return on my investment via dividends.

I keep looking at this and probably know I should sell but can't help feeling that at some point the capital depreciation has to stop and at that point my annual dividend income would generate a decent annual return.

Probably that's just wishful thinking!

"Buying(investing) here earns an 8 % pa return over 12 months . . . "

Well it hasn't for the last 2 years. The last 12 months delivered a total return of 3.4%, the 12 months prior to that a loss of -2.7%! You're clearly looking at different figures to me.

"The LGEN in my isa will still give me a 11% plus dividend . . ."

No it won't. It will give you, as of today, around 8.25% the same as everyone else!

anon3 - well said!

Roofer61 - 1) what's the point unless you're dealing in a very large sum, and 2) that sounds more like gambling than investing!

Andymilman- it's about expectations. I'm looking for an annualised return here of somewhere around 8%.

That's what the annualised return has been over the last 10 years (probably longer)

If you're expecting more you're likely to be disappointed and should invest elsewhere.

Pompeyboy11 - I've always understood the diierent fund classes to relate to the type of investor / value of investment. So retail investors will be offered a class type with higher charges than institutional investors.

Good luck with your decision.

So, a 270% return over 17 years. That equates to an annualised return of around 8% pa. Nothing too spectacular but steady.

Meconopsis

“600% return, dividends reinvested, since 2012 . . . “

Nigel Wilson joined in 2009 so the figure is nearer 14 years than 10. The stated return also needs to have some further context added.

When he joined the share price was sitting at 80p. It was down 40% from the previous year due to the financial crisis.

The reality, over a 10 year period, is an annualised growth rate of c. 8.9%.

Their International Index tracker delivered c. 11.4% pa over the same 10 year period. I’m happy to own both.

or what about the following?

L&G Global Technology Index at +133%, or L&G Global Health and Pharmaceutical Index at +79%

I'm a big fan of L&G and thankfully I spread my investments with them in a number of areas.

The data for the last 5 years is readily available on HL. With dividends re-invested the total return over the last 5 year period for the Legal & General share is 29%.

A global tracker equity fund, say Legal & General International Index, has returned 66% over the same period!

You do the maths!!