High Yielding Shares Again

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

  1. willair

    willair xx

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    fibro humpy..
    With the way the top asx 20 have been in the downtrend for several weeks now,i just hope investors can think up some new arguments to convince themselves to buy in a downward trend..
     
  2. redwing

    redwing Progress Not Perfection

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    It's never a smooth ride, but unless your retired or close to it, a falling or discounted market is a good thing for a buyer

    Her's an interesting article :D

    A 30-Year Stock Market Crash? Yes Please!
     
  3. willair

    willair xx

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    Thanks for the link,quote,

    But as long as the business environment continues to improve there is a lot of potential regardless of where the market mood swings may go in 30 days or 30 years.
     
  4. Oscar

    Oscar Member

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    For my DCA strategy to be successful the most important thing to do is to discount all the daily noise and keep buying monthly (it's cheaper now, why would I stop?) and stick with it.

    Like I said I'll let you know how it goes after 10 years of DCA.
     
  5. pinkboy

    pinkboy SS Lookerafterer

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    Current yield on Big 4 on past 2 dividends at today's pricing:

    NAB: 6.23%
    WBC: 5.95%
    ANZ: 5.83%
    CBA: 5.20%

    These are net. Include franking credit and you're up between 7.43% - 8.9%


    pinkboy
     
  6. HiEquity

    HiEquity Member

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    Given recent capital raisings it looks like these dividends are not sustainable. The payout ratios have been too high as investors have been chasing yield. Hence the expectation that these dividends will drop.

    Nevertheless, there are likely to be worse investments out there!
     
  7. Rixter

    Rixter $uper Investor (Retired)

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    How much have those banks just dropped in value in the last 3 months?
     
  8. HiEquity

    HiEquity Member

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    Let me Google that for you...

    To take the biggest example, CBA is down from a peak of $97 to $80 over the last three months... so just shy of 20%.
     
  9. pinkboy

    pinkboy SS Lookerafterer

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    WBC and NAB down from $40 to $31 at present.

    pinkboy
     
  10. redwing

    redwing Progress Not Perfection

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    Agreed WBC & NAB look to have fallen the most in the last 3 months
     
  11. The Falcon

    The Falcon Member

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    The recent rights issue affected NAB SP too. Same if you look at BHP and don't consider the S32 spin off.
     
  12. Burramys

    Burramys Member

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  13. redwing

    redwing Progress Not Perfection

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  14. Intrinsic_Value

    Intrinsic_Value Member

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    Buffett only 'dollar averages'
    where it makes sense to do so.

    That doesn't mean 'ohw the market is down 10% better start dollar averaging'.

    Buffet would have an idea on what the actual 'value' is against the current shareprice.

    So for those out there just spouting 'buy the dips', do you really know what the value is first.

    Without knowing the value, how can you know whether its time to dollar average.



    In Basic English if an onion is worth $5. It was trading for $10. Its now selling for $7. Is it now of value??????


    When looking at broad measures such as the ASX200, high yielding funds etc.
    Your job is more complicated. You need to calculate a weighted mean of value.

    Anyway, so many new commers to this forum. all with their ideas.

    IV will be taking a back seat.
     
  15. JohnMichael

    JohnMichael Member

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    ^ What you're describing doesn't sound like dollar cost averaging at all though
     
  16. eternit

    eternit Member

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    So how do you value your stock? pick any stock from the asx as an example and enlighten us how you value its share price?


     
  17. willair

    willair xx

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    It was still a good entry price for $28.50, 99c dividend fully franked and down in price from 39.150 on 13 Apr 15 too the low 32 range,money for nothing..imho..

    http://www.asx.com.au/prices/relative-strength-indicator.htm
     
    Last edited: 9th Jun, 2015
  18. pinkboy

    pinkboy SS Lookerafterer

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    You're confusing 'averaging down' with 'dollar cost averaging'.

    'Dollar cost averaging' is purchasing at regular intervals with regular amounts no matter price movement up or down. This is an accumulation strategy, and the dividends are all reinvested to accumulate as much of the stock/equity/fund over time. Value is not a factor in this strategy as the value is what the market is prepared to buy/sell at each interval triggered.

    'Averaging down' is purchasing more of the stock to lower the overall purchase price. Much like continuing to catch a falling knife (which you demonstrate in this thread IV with the likes of NWH, MCS etc).

    Confusing the 2 makes your argument above flawed and not easily followed and has nothing to do with 'High Yielding Shares'.


    pinkboy
     
    Last edited: 9th Jun, 2015
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  19. The Falcon

    The Falcon Member

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    Yep, IV is a dyed in the wool value investor and is talking at cross purposes.
     
  20. devank

    devank Why why why?

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    I don't remember seeing any post saying "IV will be taking a front seat".... Apologies if I have missed a post.
     
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