Member Info for zac0_4

I'm ok with my investment here. But to say it has performed magnificently is a bit over the top!

I first bought into this in May-17. If I'd have put my money into SMT I'd have enjoyed much better returns.

Over the last 5 years this has delivered a total return of 8.7%, whilst SMT has returned 61% despite a decline of 33% over the past 12 months.

Or you could have invested here in 2022 and watched your capital decline by 16%! (offset by a 6.3% yield of course)

Remember, you don’t lose money unless you sell at a loss. As a long term investor I don’t class volatility as risk. For me risk is the likelihood of permanent loss of capital.

Andymilman

Out of interest I think the 2 areas for growth over the coming year are technology and small cap.

I’m invested in L&G global technology index. It declined 28% in 2022. The Nasdaq tech index has never declined on 2 consecutive since inception, so fingers crossed!

For global small caps I’m with Smithson Investment Trust. That was down 35% last year.

This ‘boring stock’ and others pays the dividends to invest in the above!!

As far as I'm concerned, as part of a wider portfolio, it can sit at £2.55 until year end.

That'll deliver a total return of close to 10% this year. I'll settle for that.

meoryou

I fear you may be a tad optimistic in expecting a 25% dividend increase!

Me? I think we’ll remain at the current level for at least the next 2 quarters. I hope to be proven wrong!!

One of my other dividend paying holdings in the energy has announced its 2023 dividend.

For the 10th consecutive year it is increasing its dividend in line with the retail price index at year end.

So, for 2023 that's a 13.1% increase.

Come on BP enough of the buy backs I originally invested here for dividends!

I just think it's one of the downsides to holding a high yielding share.

You're correct that the share price is down 8% over 5 years. However, during that period they have returned over 85p (31%) to shareholders in dividend payments.

I guess we can't have it both ways.

jayblu48

Many thanks for the link.

I'll continue to hold for the long term as one of my last individual share holdings. Down to just 3 now. That will be reduced to 2 by year end.

meoryou - you do! I just can't resist sometimes!!

meoryou - you're welcome :-)

Or, another day longer living with a 46% cut to our dividend!

I think in the main boring works over the longterm.

Set up a monthly direct debit into a global equity tracker fund. Increase your investment annually. Do it over the long term. Never panic. Never sell. You'll make a really good return.

Just remember 'most markets go up most of the time'

Boring? Here's the performance over the last 5 years: -1.4%, +25.4%, -3.7%, +19.4% and -8.9%. Total return. Dividends reinvested.

I wouldn't say that's boring.

For me, as a long term investor, it's an ideal holding. A growing dividend and enough volatility, which I don't class as risk, to enable me to lower my average buy price.

The biggest risk here for me is simply that it is a single share and a one off catastrophe could ruin my holding. That's the one reason why I've moved away from most individual shares into investment trusts for my dividend paying investments.

slickmongoose - the buy backs carried out in 2022 will result in an annualised saving in dividend payments this calendar year of approx $380m.

A small return for a large amount spent on buy backs.

2 more points - accept decimal point was in wrong place, and

I decide if I 'should' be posting here, not you!

slickmongoose - so they're spending all this money on buybacks (approx $7.5bn over last 12 months) to enable them to save $40m if they decide to increase the dividend by 11%?

I don't think so!

I'm not sure buybacks add any real value.

£47.5m will be removed from cash sitting on BP's balance sheet to fund today's purchase. So the company, in theory, reduces in value by that amount. But as the shares are cancelled the share price remains 'as-is'

Unless I'm missing something . . .

Spights - cheers. I mistakenly linked your 2 posts together.

So, on the basis of what you're saying, we're likely to see further downward pressure on BP sp tomorrow?

Charlie156 - where have BP stated that their dividend policy to 2025 is '$4.4bn divided by number of ordinary shares'?

Your link suggests a fall in the Dow of 270 points. Yet you state over 600 points. I'm confused.

Always accumulation version for me. If I want income from my funds I sell down capital.