High Yielding Shares Again

Discussion in 'Coffee Lounge' started by MTR, 15th Jun, 2014.

  1. MTR

    MTR Bling Bling

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    Hi All

    Am looking at parking my money/profits into some high yielding shares, purely looking at income.

    Have been told that the market is too high at the moment, happy to sit and watch. Would be interested in comments on those who are also buying for yield.

    I was told that some property listed funds are returning as much as 9%. Very attractive.

    I will be drip feeding around $700K, and would like to generate 8% is this possible? BTW have not been researching shares for years, so I will start to research further but this is a starting point.

    Any help would be appreciated.

    Cheers
    MTR:)
     
  2. china

    china Member

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    I have dripped some into the four major banks, BHP and woolworths -essentially asx 20 blue chips with a reasonable dividend yield / franking and a degree of capital safety.

    No one knows how the stock market will go but aim to drip in on the days when the newspaper has headlines such as "market in the red", " biggest fall in 3 months" ,etc.
     
    VYBerlinaV8 likes this.
  3. MTR

    MTR Bling Bling

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    Thanks China
    That is a good tip. :)
     
  4. Blacky

    Blacky Member

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    MTR
    I dont have the cash atm but Im considering a similar thing.
    Given I wont need the income for a while I was looking at anything which has a dividend re-investment.

    Similar lines to China. Big 4 banks and ASX top 100/200. I was also looking at a Vangard product which is essentially the US 'market'. It has shares nearly across the board. The US product pays a dividend and you can dividend re-invest. It looks interesting - though I havent figured out if/how to buy in as an Australian.
    There is a similar Australian product - but I dont think you can re-invest. Plus it is in Aud (I would prefer USD).

    Blacky
     
  5. westminster

    westminster P Plate Developer

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    I'm dead scared of shares :eek:

    Too much whim in the market and too fast for me.

    I know there are millions who have made money from the stock market and that there are levels of safety but for me it's like a double up of risk - ie I risked the money to play in the resi market then risk it again on the share market.

    I might get into it one day but not now. For now I have some shares but it's money I'm ok to lose.
     
  6. MTR

    MTR Bling Bling

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    Hi WM
    My first love is property of course, but I don't want a sh#t load of resi properties and all the associated down side to this, ie maintenance issues, tenants etc etc. I have had my fair share of issues. I see property as a great vehicle to make money, but looking at spreading it around and making life very simple.

    I think a balance would be great, so what I would like to do is open up a Comsec account and look at blue chip shares which historically are winners, CBA, Woolworths, Wesfarmers, etc.

    I am pretty conservative, but by diversifying I have a mix. I will still own property but I personally want other income streams from other asset classes. The other option is CIP, however I like the liquidity of shares, but will not exclude this either.

    Cheers
    MTR:)
     
  7. MTR

    MTR Bling Bling

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    OK, will look at this.
    I am very wary of any of these types of products, fees, lack of control etc. If I just set up a Comsec account and buy when certain markets dip, ie CBA, Woollies etc. at least I am in control somewhat.

    Thanks
    :)
     
  8. Blacky

    Blacky Member

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    Yeah, Im very wary of these kinds of products too - I was stung by a Macquarie product a few years ago. But I like the look of this one.

    You should note that I dont really own any shares, and are pretty clueless about the stock market. So dont take anything I say with any conviction. Youll need to do your own research. Im just letting you know of something I found.
    Id hate for you to lose money and then say "Blacky said it was a good idea". :p

    Im an ideas man... not always a good ideas man, but an ideas man all the same!

    Blacky
     
  9. S.T

    S.T Member

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    Am looking at something similar, but I will trickle feed money to it over time and build up a portfolio. I was looking to buy shares in companies that don't have anything to do with residential property as a way to diversify, so no banks, insurance etc
     
  10. MTR

    MTR Bling Bling

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    Just had a thought with regards to what Westminster mentioned, shares..... risk, too fast.
    However, property also has its own risk, blue chip property in Perth fell back at least 20% some areas more and still has not gone back to prices of 2007. Last bank valuation my primary residence, I am $200K down. My point is there is risk in any asset class. Perhaps it comes down to what one is comfortable with???
     
  11. MTR

    MTR Bling Bling

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    Talking about insurance shares, I recall the Twin Tower, New York terrorist attack, QBE fell back by around $3.00, and I know some investors that purchased a bucket load of these, I am sure they are worth much more now.
     
  12. starter

    starter Member

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    I'll be looking to do the same over the next year. Will post when I think the blue chips are getting to a decent buy price.
     
  13. Crabnet

    Crabnet Member

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    I own a few QBE shares. I initially bought them with a view that they would be a hedge against the US dollar Aussie dollar exchange rate. I bought at a time when the Aussie dollar was high with the expectation that it would fall much sooner than it looks like doing. QBE earns much of it's income offshore.

    Knowing that the QBE share price has declined on the back of numerous profit reports that failed to meet forecasts i thought I would check what you wrote.
    Pre Nine Eleven the sp was circa $11.00 in 2001 money.
    Currently the sp is circa $11.00 in 2014 money.
    The sp did reach a peak of circa $35 in 2007 pre GFC money.

    QBE had a big expansion program buying up companies that failed to live up to expectations and carrying large liabilities. Lots of write downs of their North American acquisitions.
    The expectation is that they will have to confess to similar mis steps with their Europen acquisitions in the future so the sp is depressed.
    Consistently over promise and under deliver is what they have done.

    One downside of some stocks that pay out a lot their income as dividends is that they need to borrow to grow. i.e they borrow to pay dividends. Something that Telstra has done in the past.

    Interesting Investing not speculating video.

    http://www.youtube.com/watch?feature=player_embedded&v=7VgvYJURq0A
     
  14. Bantam Roosta

    Bantam Roosta Member

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    For diversification, look at something like this. Buy a broad market with one purchase. Plenty of brands, plenty of choices (choose by sector, market cap, international, fixed income etc).

    BR
     
  15. D.T.

    D.T. Property Lookerafterer

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  16. MTR

    MTR Bling Bling

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    Thanks, will be watching your posts.
    MTR:)
     
  17. TPI

    TPI Member

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    How long are you looking to park the money for?
     
  18. MTR

    MTR Bling Bling

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    Thanks
    Just finished viewing link.
    So basically a matter of identifying companies with a track record, strong profits, lots of equity. I get this, makes sense, I also know that some share investors will continually state a particular company is overpriced, paying too much.
    I don't have the knowledge/tools to understand if a company is overpriced? How do the experts work this one out. I am sure I will work this out along the way, but would be interesting to find this one out.

    Cheers
    MTR:)
     
  19. MTR

    MTR Bling Bling

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  20. MTR

    MTR Bling Bling

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    Hi TPI
    Wont be accessing this capital, purely income play/stream.

    MTR:)