High Yielding Shares Again

[willair]

Haha I'm sorry if I came across as trying to be an umpire.

It's just because of the nature of stock investment, with all it's funny human irrationalities and the attached money on the line, I think one needs to be quite considerate of others. Definitely don't want people to stop posting about it though. Please keep the strong opinions coming!

That's the problem you are going to find out very quickly in the worldwide equities markets there are no umpires,"MrMarket"comes along every morning shows what she or he has for sale then leaves it up too the investor,to either jump on the bus pay the money and sit back and enjoy the up hill or down hill ride,or just stay at the bus stop and wait for the next investment bus to come along,if you have the time have a listen to this "MAN",it's a bit dated but some of the one-liners are pricless and free for all to see in which ever their mind works..

www.youtube.com/watch?v=9o30gNfPq_k&feature=player_embedded

 

[pinkboy]

Yesterday I purchased 729 units of SUN @ $13.71 (So lets call it $13.74 inclusive of brokerage).

Interim dividend is $0.38c. (38c / $13.74 = 2.76% yield). Also note that SUN pay a larger Final Dividend later in the year. For me, I expect it to yield around the 6.67% plus FF which is grossed up to almost 10% return.


pinkboy

 

[eyespy]

Aus shares going gangbusters lately.....boom times ! Most of shares I bought during november drop are doing well. And I also have dividends to add soon. Even the miners Are coming back from negative.

 

[willair]

Yes it's looking good for the day,maybe a lot of people have had enough of the low fixed term rates,and going down the equities road,ihope so because the volumes are starting to go up each day..good luck..

 

[MIW]

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

I do not perceive buying as a problem rather than protecting your capital or when to sell. Do you use stop loss strategy for exiting and protecting your capital, just a thought?
I would say with stocks you have liquidity but no control., whereas with property no liquidity but at least some of the control, right?

 

[china]

Even the miners Are coming back from negative.

Felt good today. Sharp rise accompanied by good volume.

 

[seismic]

I do not perceive buying as a problem rather than protecting your capital or when to sell. Do you use stop loss strategy for exiting and protecting your capital, just a thought?
I would say with stocks you have liquidity but no control., whereas with property no liquidity but at least some of the control, right?

I agree, protecting your capital is very important.
But I find it difficult to practice because of Greed and Fear


If the share falls 10% need 11% growth to recover to previous level.
It it falls 20% need 25% growth to recover to previous level.

It it falls 30% need 43% growth to recover to previous level.
If it falls 40% need 67% growth to recover to previous level.
If it falls 50% need 100% growth to recover to previous level.

 

[Intrigued again]

I agree, protecting your capital is very important.
But I find it difficult to practice because of Greed and Fear


If the share falls 10% need 11% growth to recover to previous level.
It it falls 20% need 25% growth to recover to previous level.

It it falls 30% need 43% growth to recover to previous level.
If it falls 40% need 67% growth to recover to previous level.
If it falls 50% need 100% growth to recover to previous level.

Brokers mantra

Since we are discussing High yielding Shares, another way of looking at could be, with a 5% dividend that year and reinvested
@ 10% fall would increase holdings by 5.5%
@ 20% fall would increase holdings by 6.2%
@ 30% fall would increase holdings by 7.1%
@ 40% fall would increase holdings by 8.3%
@ 50% fall would increase holdings by 10%
And if the dividends or earnings increased the next year by 8%
Your income would have increased by
13.95% @ 10% fall
14.70% @ 20% fall
15.67% @ 30% fall
16.95% @ 40% fall
18.80% @ 50% fall
the following year.
We believe it?s far more important to know how to value the company, you get to really enjoy the down days.

 

[seismic]

Brokers mantra

Since we are discussing High yielding Shares, another way of looking at could be, with a 5% dividend that year and reinvested
@ 10% fall would increase holdings by 5.5%
@ 20% fall would increase holdings by 6.2%
@ 30% fall would increase holdings by 7.1%
@ 40% fall would increase holdings by 8.3%
@ 50% fall would increase holdings by 10%
And if the dividends or earnings increased the next year by 8%
Your income would have increased by
13.95% @ 10% fall
14.70% @ 20% fall
15.67% @ 30% fall
16.95% @ 40% fall
18.80% @ 50% fall
the following year.
We believe it?s far more important to know how to value the company, you get to really enjoy the down days.

Interesting ...
Can you please share a few value shares worth holding after a 50% or atleast 25% fall ?

 

[Oscar]

Haven't read this thread for a while but I do so with interest.

Would be interesting to see over the next few years how my boring monthly DCA into VHY managed fund fares compared with all the intelligent stock picking going on here.

In 2 years I will have been invested in the fund for 10 years. I'll come back on the 10th anniversary of the fund and post the real gains in capital growth and return.

Will be interesting and a good lesson (not saying I will do better than anyone just interesting to understand the outcome). 10 years will be a good stretch of time and will have included a boom and a bust and who knows what over the next 2 years.

 

[redwing]

Hi MTR

In August last year I purchased some shares for my son so we could monitor, discuss etc, a year on and they are up nearly 14% plus dividends

Better than bank interest and more to talk about

These initial shares are now up 42.18% plus dividends and the next purchase, which is higher yielding is up 3.21% plus dividends

It has been a good talking point as the world economy goes through its cycles

 

[JohnMichael]

Haven't read this thread for a while but I do so with interest.

Would be interesting to see over the next few years how my boring monthly DCA into VHY managed fund fares compared with all the intelligent stock picking going on here.

In 2 years I will have been invested in the fund for 10 years. I'll come back on the 10th anniversary of the fund and post the real gains in capital growth and return.

Will be interesting and a good lesson (not saying I will do better than anyone just interesting to understand the outcome). 10 years will be a good stretch of time and will have included a boom and a bust and who knows what over the next 2 years.

VHY has outperformed Australian shares in general very nicely over the last few years. And it most likely will continue to do so very nicely, for as long as rates stay low.

However for the experiment, if you continued it on after interest rates rose again (not saying they will anytime soon), the result wouldn't be as great IMO

 

[MTR]

These initial shares are now up 42.18% plus dividends and the next purchase, which is higher yielding is up 3.21% plus dividends

It has been a good talking point as the world economy goes through its cycles

Nice not Aussie shares???

 

[The Falcon]

Solid bull run now, even the dogs like MTS (+7%) are barking today. BHP and WOW shorts hurting...our own China is getting some colour back!

 

[china]

I hope I can get my capital back. Hopefully it won't be a case of so close yet so far. Portfolio now just. 6.9 per cent down.

 

[Aaron Sice]

I agree, protecting your capital is very important.
But I find it difficult to practice because of Greed and Fear

you mean fear, and fear?

Greed = fear of missing out.

 

[seismic]

you mean fear, and fear?

Greed = fear of missing out.

Absolutely


It is not wise to hold on to shares if price falls sharply - in the hope that they will recover. Edwin Lefevre sums up the predicament in Reminiscences of a Stock Operator :

It was the same with all. They would not take a small loss at first but had held on, in the hope of a recovery that would "let them out even." And prices had sunk and sunk until the loss was so great it seemed only proper to hold on, if need be a year, for sooner or later prices must come back. But the break "shook them out," and prices just went so much lower because so many people had to sell, whether they would or not.

 

[Intrigued again]

Interesting ...
Can you please share a few value shares worth holding after a 50% or atleast 25% fall ?

Yeah sure
ASX
CBA
CCL
CSL
COH
LDW (Gone)
MQG
WBC
WES

I?m not interested in changing your mind, it works well for us.

Be right sit tight

 

[The Falcon]

Absolutely


It is not wise to hold on to shares if price falls sharply - in the hope that they will recover. Edwin Lefevre sums up the predicament in Reminiscences of a Stock Operator :

It was the same with all. They would not take a small loss at first but had held on, in the hope of a recovery that would "let them out even." And prices had sunk and sunk until the loss was so great it seemed only proper to hold on, if need be a year, for sooner or later prices must come back. But the break "shook them out," and prices just went so much lower because so many people had to sell, whether they would or not.

Just as a counter ;

Yep lefevre's Jesse Livermore stuff is great right? But no consideration of frictional costs, a pure trader/punter from 100 years ago. What kills here is tax most of all. If you have conviction on a stock, and it's fundamentals are unchanged, has a moat intact why would you churn stock just to follow the market? Take a CGT hit and reduce your capital base and then try to start again with a new entry point. Most traders don't bother to understand fundamentals so trend is all they have I suppose....and most don't have enough capital at stake to worry about things like tax in all seriousness though, this thread is a little frustrating as we really need multiple threads to discuss such a huge subject as ways to participate in equity markets....there are many ways to skin a cat, make your own decisions and live with them. Money can be made all kinds of ways.

 

[china]

Yeah sure
ASX
CBA
CCL
CSL
COH
LDW (Gone)
MQG
WBC
WES

I?m not interested in changing your mind, it works well for us.

Be right sit tight

My WOW and BHP had dropped about 20% in recent times now back to 7% drop. Is it time I got out?