High Yielding Shares Again

[pinkboy]

Yep I did pick the "other two" as BGA and AGI, that's why I thought you were discussing "these" as CBA and IAG since you said you "can't comment on the other two"

Was that right or did you mean BGA and AGI are the unstable ones?

Also please help understand the instability part, I'm not experienced in shares for a long time so would appreciate the input.

Cheers

I cant give hugely valueable imput because I dont know enough about it all myself. I am only an accumulator myself.

I just think if one knows very little about shares, then $100k dumped straight into the market is bold on 4x shares. CBA and IAG I understand, but the other 2 not so much. I also thought that if you were reading Buffett and Montgomery, how did the SP stack up from what you learnt from these guys?

Personally I am probably more conservative, and would dip in the lows to keep the average PP down and just accumulate when the right time comes.

Keep us posted on any further buys. It is good to see how others think.

This is a great thread all around.


pinkboy

 

[J_aco]

Hi danwatto,

Are you diversifying into shares? From what I've read you've got a very large portfolio of properties

Are your share purchases for long term or short term profit? (you might have said somewhere but sorry if I overlooked)

 

[MTR]

Very curious... who is making money in this market, seems like hit and miss, but for the experienced what are you doing??? are you sitting back and taking the loses.... and holding your nerve...

 

[new]

The guys who are in with Vanguard, what sort of returns are you getting?

Looking at their website, they advertise very nice looking growth but when you look at the dividends they're paying it's only in the realm of 1-2% gross yield. And the price per unit moves sideways so where does the return come from?

 

[danwatto]

I just think if one knows very little about shares, then $100k dumped straight into the market is bold on 4x shares.

To put it in perspective, first home buyers or first time property investors dump $600k straight into a single investment (even if deposit is only 10%, they are still fully exposed to the market with leverage).

Whereas my share investment I've only done some $25k purchases, with zero leverage. $25k each is very small risk in comparison, I don't feel bold at all, quite the opposite in fact

Just a different way of looking at things

 

[danwatto]

Hi danwatto,

Are you diversifying into shares? From what I've read you've got a very large portfolio of properties

Are your share purchases for long term or short term profit? (you might have said somewhere but sorry if I overlooked)

Just switching to an SMSF instead of paying fees to a fund and losing money at the same time.

Not buying property in SMSF since I think it's better to buy property outside of super, so I'm just going to hold shares. Can't do worse than the funds have done for me... The dividend yields are normally good these days and any growth will be nice too. If I build up enough contributions I may get a commercial property in super since I think it's more suited than residential, but I want at least $200k deposit before considering that.

 

[HiEquity]

The guys who are in with Vanguard, what sort of returns are you getting?

Looking at their website, they advertise very nice looking growth but when you look at the dividends they're paying it's only in the realm of 1-2% gross yield. And the price per unit moves sideways so where does the return come from?

????

The price per unit and dividends roughly match the relevant index, minus the (relatively small) management fee. Are you referring to VTI? I don't go there personally because I can't work out a long term way to manage the currency risk. The dividends on VAS are significantly higher than VTI and VHY higher again, for obvious reasons.

Discussions about returns from index funds need to specify the index you are referring to - and whether we are talking about CG or dividends...???

 

[Arnoldus]

Very curious... who is making money in this market, seems like hit and miss, but for the experienced what are you doing??? are you sitting back and taking the loses.... and holding your nerve...

Not experienced by a long way, but I've got more than half my available funds in Ramsay Health Care, Sirtex, and CSL. They're been going gangbusters for a while now. They've offset many times over the losses I had in my other large holding (Challenger). Don't own any banks, miners, or energy-related shares, so avoided most of the current turmoil.

 

[topcropper]

Not experienced by a long way, but I've got more than half my available funds in Ramsay Health Care, Sirtex, and CSL. They're been going gangbusters for a while now. .

Well done there. Those 3 have been amazing.


See ya's.

 

[The Falcon]

Very curious... who is making money in this market, seems like hit and miss, but for the experienced what are you doing??? are you sitting back and taking the loses.... and holding your nerve...

I've got Santos and BHP on my watch list at the moment, have printed out a bunch of reports and research on the major Australian energy stocks for some light reading on an overseas flight tomorrow

Placed buy orders this morning for Elders on the ASX and Chicago Bridge & Iron on the NYSE for overnight.

Not selling a damn thing

 

[oracle]

Very curious... who is making money in this market, seems like hit and miss, but for the experienced what are you doing??? are you sitting back and taking the loses.... and holding your nerve...

Depends on your investment timeframe. For long term investors they don't need to measure returns on weekly or monthly basis. They measure on 5 year basis.

Shares are known to be very volatile and can move in either direction very quickly. Smart investors use this volatility to their advantage

Cheers,
Oracle.

 

[redwing]

Very curious... who is making money in this market, seems like hit and miss, but for the experienced what are you doing??? are you sitting back and taking the loses.... and holding your nerve...

Just had a quick look at the portfolio, as of now I have a stock that's down 0.06% or $1.32 from purchase price. That can all change quiet rapidly though as Oracle has said, so its normally a case of plugging along and investing more when cash, dividends etc come in, or parameters are breached

 

[new]

????

The price per unit and dividends roughly match the relevant index, minus the (relatively small) management fee. Are you referring to VTI? I don't go there personally because I can't work out a long term way to manage the currency risk. The dividends on VAS are significantly higher than VTI and VHY higher again, for obvious reasons.

Discussions about returns from index funds need to specify the index you are referring to - and whether we are talking about CG or dividends...???

Apologies, I was looking at some different numbers.

However VHY is currently showing a current shareholder return of 26.5% over the year. The dividend yield after tax is a bit under 4% and the share price is roughly what it was this time last year so where does the 26.5% shareholder return come from?

 

[MTR]

Depends on your investment timeframe. For long term investors they don't need to measure returns on weekly or monthly basis. They measure on 5 year basis.

Shares are known to be very volatile and can move in either direction very quickly. Smart investors use this volatility to their advantage

Cheers,
Oracle.

Yes, makes sense.
thanks

 

[The Falcon]

Apologies, I was looking at some different numbers.

However VHY is currently showing a current shareholder return of 26.5% over the year. The dividend yield after tax is a bit under 4% and the share price is roughly what it was this time last year so where does the 26.5% shareholder return come from?

Which year, got a link? Are you looking at jan-dec 2013 ? Run that chart and you'll see the numbers you are looking for.

 

[HiEquity]

Apologies, I was looking at some different numbers.

However VHY is currently showing a current shareholder return of 26.5% over the year. The dividend yield after tax is a bit under 4% and the share price is roughly what it was this time last year so where does the 26.5% shareholder return come from?

I haven't considered VHY in any detail (too narrowly focussed for me) but you are doing something wrong. Remember that dividends are paid quarterly and the share price has moved with its index.

 

[MaxwellSmart]

I haven't considered VHY in any detail (too narrowly focussed for me)..

That is interesting.

VHY uses the FTSE ASFA Australia High Dividend Yield Index as its benchmark, however, since VHY's inception, it has had strong correlation with the XJO.

"No more than 40% of the index can be invested in any one industry, and no more than 10% can be invested in any one company".

.. Each to their own.

 

[redwing]

However VHY is currently showing a current shareholder return of 26.5% over the year. The dividend yield after tax is a bit under 4% and the share price is roughly what it was this time last year so where does the 26.5% shareholder return come from?

Do you have a link?

 

[willair]

That is interesting.

VHY uses the FTSE ASFA Australia High Dividend Yield Index as its benchmark, however, since VHY's inception, it has had strong correlation with the XJO.

"No more than 40% of the index can be invested in any one industry, and no more than 10% can be invested in any one company".

.. Each to their own.

I have done several quick compare % charts on that one, most seems to track the equities I invest in up till a few weeks ago then they go in different directions like anything even "BHP",all come with explosive consequences both ways..imho..

 

[new]

These numbers I'm getting are off of the company's profile through my stock broker (Bell Direct) but they seem to add up with some quick math.