Member Info for zac0_4

Phyl - I'm similar in that LGEN is my last single dividend paying share. I've also been reducing my exposure to dividend paying assets as they all seem to underperform the rest of my portfolio.

I've sold out of Shell, BP and NCYF over the last 18 months. I've aslo reduced my holding by about 50% in - HHI, HFEL, and MRCH. Currently dividend payers are about 19% of my overall portfolio value. I plan to reduce my holding here at some point by around 30% which will further reduce my level of exposure to below 18%.

I'm sticking with my core funds, which include both Fundsmith and Blue Whale. As I've been releasing capital from my dividend payers I've been opening new positions in global tracker ETFs - LGGG, IUQF, RSGL and WLDS.

That's 'the plan'! Time will tell if it's the right one!!

So what happens to the 45% (ish) of profits not paid out in dividends? Isn't that redeployed to grow the value of the business and subsequently the share price?

" . . . as an investor I am really only interested in a good return . . ." - Define a good return. For the additional risk associated in investing in a single share in a single market I'd probably expect a better return than we seem to enjoy compared to a lower risk investment

" . . . What’s the point of a dividend if you are seeing your capital being eroded by more than the dividend payment . . . " - none!

" . . . you do understand the concept of compound interest? . . . " I do. An investment in LGEN has averaged an annual return of 5.20% pa over the last 10 years. A simple global index fund has returned 12.35% pa over the same period. You do the maths!

" . . 16p is my guess . . "

No 'guess' needed. They paid out 19.64p in 2023 and have committed to a 5% uplift. So, I'm expecting 20.62p this calendar year.

" . . . I for one am running out of patience . . . "

PANG, I did 12 months ago and I'm happy I did!!

" . . . There was strong talk of Buy Backs after the Full Year Results . . ."

Was there? They needn't bother as far as I'm concerned.

Tom78 - there's a lot to be said for simply investing in a low cost global equity tracker fund. My holding in Legal & General International Index has has delivered an average annualised return of 12.5% pa over the last 10 years!

What a lag on my portfolio my dividend paying assets are!

" . . . I'm confident it'll recover though. It always does"

Does it? It was around £3.20 in Feb 2020 and is showing no sign of a recovery back to that level!

Hi Mark - thanks for your response which, although I might not agree with, I respect.

You are correct. I sold out on 7th Feb last year at £5.14p per share. Had I waited a little longer I could have enjoyed another 10% or so. However, I've no complaints.

50% of the capital went into a simple global equity tracker fund, 25% into a small/medium cap trust and the balance was split 50/50 between 2 individual US tech stocks.

Had I stayed with BP I'd be sitting on a 2.6% loss over the last 12 months. However, the return from the portfolio listed above is in profit to the tune of 32.2%. So, it's outperformed BP by almost 35%.

I also sold my Shell holding a little later. Had I stayed with Shell I'd have at least seen a profit over the last 12 months of 5.4%. So, again an outperformance vs BP of 8.0%.

Good luck with your investment here, I hope your views come to fruition.

MarkGo - I'll answer your question but would ask that you answer my couple in return

" . . . What interest do you have in BP now. You sold out previously so why give a history lesson on the share price. . . . "

Simple. I'm coming up to the 12 month anniversary of my sale and like to review if my decision to sell and reinvest elsewhere was the correct one

And for you

" . . . I intend on holding until real value is obtained . . . " And when do you see that happening? And what is the catalyst that is likely to deliver real value? Today's share price is lower than it was 10 years ago!!

Just another 13% uplift from here and it'll be back to where it was 5 years ago!!!!

A few of you may know I'm a big fan of funds, for a number of reasons. As capital gains tax allowances continue to reduce they're very useful for realising profits.

If you take 2 global equity tracker funds, L&G International Index Trust and Fidelity Index World as examples, they are (almost) identical in their make up and produce (almost) identical results.

Accordingly if a profit is made outside of an ISA / SIPP you can sell your holding in the one you hold realising your capital gain within the allowance and reinvest in the alternative fund and start the process again. Really useful.

As for direct exposure to India, well I'm not that clued up to make a decision one way or another and so am happy to have a level of exposure that a global equity tracker fund allocates me! As the Indian economy grows I actually think it will be Western companies supplying goods into the Indian market that will benefit - Apple, Microsoft, Unilever etc etc etc

Robleo - " . . . I hope Zac is not going to be a wet blanket and tell you how much you could have made if you invested in lgen global technology fund . . . " - as if I would!

To comment on whether you consider Mr Math's return to be 'very nice' you'd need to know how much was invested and over what time scale.

However, at the end of the day it's not what you or I consider to be a good return it's up to Mr Math and if he's happy with his return then that's all that matters. I do agree with his strategy of 'buy and hold' though. It works for me in most cases.

Well something's needed. The sp is no higher than it was 25 years ago!!!!

" . . . 285p+ will be seen in 2024...IMHO-DYOR . . . "

Well that'll get the share price back to where it was 9 years ago!!!

" . . . it’s still a good price to sell at the moment most people bought around £2 to £2.20 so that double bubble without the dividends . . . "

Maybe. But as each year ticks by annualised returns reduce.

People need to be aware that over the last 10 years average annualised returns have been 3.75% pa

In my opinion it's vitally important to look at performance over the long term ie 10 years. I hold both L&G International Index Trust and LGEN. I've no idea what the next 10 years will bring but historcally . . .

L&G International Index has delivered an annualised average growth rate over the last 10 years of 11.96% pa

LGEN has delivered an annualised average growth rate over the last 10 years of 6.22% pa

The result is that the fund has delivered a return of 209% over that period whilst the individual share 83%

Presently I'm comfortable with both. Although I'll continue with my strategy this year to reduce exposure to dividend paying assets, including LGEN, and increase exposure to simple low cost global equity funds / etfs

NoloServileCapis

I've a couple of questions . . .

" . . . whilst the global tech performance is clearly better than LGEN itself I do wonder whether it has the potential to outperform to the extent that LGEN does . . . " - when you refer to LGEN's 'outperformance', what are you comparing it to and over what time period?

" . . . the international index hasn’t one too badly but am glad I didn’t buy more . . . " what were you expecting over a 5 month period? Give it 5 years and then make comparisons!

Good Luck

You can't transfer shares into your wife's isa.

Either you would have to sell them and transfer cash to her, or transfer shares to her for her to carry out a bed & isa transaction.

Either way profit on sale would count towards cgt allowance of person who sold