High Yielding Shares Again

QAN is indeed a bad buy IMO, but has been a great trade if you were in it.

You know what Warren Buffet says about having a 1800 number on hand 24/7 to talk him out of ever investing in airlines...

Similarly, I've been told by an investing friend who I really respect that woodside petroleum will be a good trade when the oil sector bounces. But for him it'll be a trade, not an investment. WPL is probably a good investment long term, just there is almost certainly a lot more volatility to come

Personally I don't think I have the stomach to make those sort of trades, which is why I have just been using index funds
 
redwing said:
Qantas share price movement year-to-date: is up 91.8%
Click to expand...

Fantastic if you managed to time the market and purchase at its low. You have done very well.

If you bought at the beginning of 2011, you would just be at break even (exc dividends).
If you purchased at any time during 2007 you would still be -ve 50%+.

QAN remains down $3 from its 10yr high.

Blacky
 
Curious who buys in Trust ??? I use Trust when purchasing property, however if I am buying fully franked shared I guess its not such as issue right??
 
Also was listening to ABC radio the other day, they have a show called "money man", where they had their so called expert on the show discussing providing information on various shares and the market.

I thought it was interesting as this person was promoting the importance of using a financial adviser of course seeing he is one.... cha ching... cha ching.

Then he proceeded to go on about how insurance shares are very dangerous and never, ever buy these shares due to the volatility.

I have wonder how many mum and dad investors really get caught up with the financial adviser spin and don't bother doing their own homework because its too hard, shame, thought most of what he was saying was self serving.

MTR:)
 
MTR said:
Also was listening to ABC radio the other day, they have a show called "money man", where they had their so called expert on the show discussing providing information on various shares and the market.

I thought it was interesting as this person was promoting the importance of using a financial adviser of course seeing he is one.... cha ching... cha ching.

Then he proceeded to go on about how insurance shares are very dangerous and never, ever buy these shares due to the volatility.

I have wonder how many mum and dad investors really get caught up with the financial adviser spin and don't bother doing their own homework because its too hard, shame, thought most of what he was saying was self serving.

MTR:)
Click to expand...

I am mum/dad investor (dad investor mainly) but I was considering getting a financial planner. So, not worth it at all if I just do more homework?
 
onesixseros said:
I am mum/dad investor (dad investor mainly) but I was considering getting a financial planner. So, not worth it at all if I just do more homework?
Click to expand...

I have never used a financial planner because from what I see most are aligned to a particular product therefore its clearly a conflict of interest.

However, in saying this I have read on SS that there are some that work for you and not aligned with any particular product, but perhaps this is more about strategizing?? Not sure

I guess financial adviser could be akin with someone using a Buyers Agent to purchase property, as they fear making a decision or confused etc. etc. The problem is one is dependent on this professional providing the correct advice, how do you know this?? one way is by doing your own homework and information would need to be verified. So the next question I would be asking myself is then why pay someone to do this when you actually need to the homework to reduce the risk because you never believe what anyone says unless you have the evidence and understand it????:confused:

Tools/information are available however one needs to be able to interpret the information. Research, research and more research.:) just my thoughts
 
What is every ones thoughts on BHP?

Quite cheap at the moment, paying almost 5% fully franked divided. New CEO stated he wants to increase dividends. Demerger looking likely which should give some gains.
 
OK I am a novice but surely BHP is not a buy as its in free fall and wrong time in the cycle it may take years to recover (no growth), especially with what is happening at the moment and the yields are shocking???
 
These dips are nice. Currently accumulating NAB, ANZ, WBC, BOQ and WES when I can.

NAB, ANZ, WBC, BOQ all have a predicted forward yield of 6%+ on current share price (WES slightly lower at 5.2%).

My other shares - CBA, SUN, BEN, IAG, ASX and TLS are all above my current PP, so they can wait to accumulte more when they dip.

BHP, RIO, WOW, AGL, ARG, AFI, MLT are all on my radar, but I just cant pull the trigger on any yet. Not a fan of the miners, not a huge fan of Masters (WOW), the 3 LIC's yield slightly lower so no interest yet and I know nothing of AGL - it just fits my top 100 FF 5%+ div strategy.


pinkboy
 
MTR said:
OK I am a novice but surely BHP is not a buy as its in free fall and wrong time in the cycle it may take years to recover (no growth), especially with what is happening at the moment and the yields are shocking???
Click to expand...

Or it could be an over reaction by the market allowing for shares in a blue chip company to be purchased cheaply?

5% fully franked dividend isn't too bad. Dividend Is declared in USD so dropping AUD will help yield. BHP has a low dividend payout ratio, giving it a bit of leeway to maintain dividends in times of lower profits.
 
BHP is a cyclical stock, it has been dropping for three and a half years.

Resources have been dropping.

If resources keep dropping why would BHP rebound?

The yeild is irrelevant unless it is sustainable.

Earlier in ythe thread someone suggested BCI as a yield play, look at the price since that suggestion was made.
 
My DCA plan has an automatic buy on the 20th of each month. Watch for the rally to start a couple days before this and peak when I buy :(

If the market falls below 5,000 I will probably trigger a large buy.
 
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