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£3000 in stock market?


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13 minutes ago, Kman said:

Good on you, if any time was the time to gamble it's as these lows, much more fun too

Atm I'm probably going to put money IAG, Shell and BP for sure, I think that's where I will put the bulk of it 

Then look at some more speculative ones to put £100-£250 in for fun 

These are what I've written down so far to look into more and think about, are any of these dumb? @ everyone

IAG
Shell
McDonalds
J D Wetherspoon plc
BP
Starbucks
itv
William Hill
Cineworld Group
Aviva
coca cola 

 

 

Check out Phoenix Group Holdings (PHNX)

6% Dividends

565 at the moment, should get back to the high 700s

Apart from the apocalypse🤔

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2 minutes ago, stackspot said:

Check out Phoenix Group Holdings (PHNX)

6% Dividends

565 at the moment, should get back to the high 700s

Apart from the apocalypse🤔

I don't know anything about dividends

What are the factors in dividends? what kind of money can you make from them realistically 

How do you even get the money if you do get dividends 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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It depends who you have an account with

I have a Stocks and Shares ISA account with Interactive Investor.PHNX pay it out (into my account) twice yearly. So to put it simply last year I received £0.234 for each share twice

I think it is a bit more complicated with the likes of Etoro ie you won't get the full amount.I can't remember the details exactly but I think you get 80% British dividends and 70% American dividends

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35 minutes ago, Kman said:

I don't know anything about dividends

What are the factors in dividends? what kind of money can you make from them realistically 

How do you even get the money if you do get dividends 

Kman I am getting the impression you are just starting to invest in stocks, obviously you are experienced and have been involved with the metals for many years but please do not gamble your money because of the recent crash before reading something about stock investing, you should understand what the jargon means at least before investing any money into stocks, especially as half the stocks you pick have dividends. Dividend understanding matters before you buy Shell shares for example, do you want RDSA or RDSB shares. Obviously if it is gambling money you are putting in to learn the ropes through experience and mistakes like I did starting out, then its a different matter, but its a costly and harder way to learn.

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22 minutes ago, KDave said:

Kman I am getting the impression you are just starting to invest in stocks, obviously you are experienced and have been involved with the metals for many years but please do not gamble your money because of the recent crash before reading something about stock investing, you should understand what the jargon means at least before investing any money into stocks, especially as half the stocks you pick have dividends. Dividend understanding matters before you buy Shell shares for example, do you want RDSA or RDSB shares. Obviously if it is gambling money you are putting in to learn the ropes through experience and mistakes like I did starting out, then its a different matter, but its a costly and harder way to learn.

Oh yes I know zip zero

I just started watching "Clay Trader" videos on youtube and he seems good at explaining the basics

What do you personally expect to get from dividends per year? 

 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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11 minutes ago, Kman said:

Oh yes I know zip zero

I just started watching "Clay Trader" videos on youtube and he seems good at explaining the basics

What do you personally expect to get from dividends per year? 

 

I have laddered into RDSB bought quite a few around £10 which was around 14% dividend equivalent assuming they do not cut the dividend, which is possible, even a 50% cut would be 7% return per year from those particular shares. They may go lower than £10 yet, my next target is £8.50 if we ever see it, probably not, but I am prioritising the other oil majors now to diversify company wise. BP I did not do as well yet but 10% average yield assuming they do not cut dividend. 

RDSB as an example, bought at 14% yield held for this decade is a good nominal from dividends alone and I expect increasing nominal dividend payment over the later years. I am expecting perhaps 3 or 4 times return on investment by late 2020's including the dividends as a conservative estimate, it depends how much liquidity is needed over the coming months and in turn whether the industrial cycle I am expecting materialises. It will be capital growth that provides the main gains, the dividend will help and if I am wrong reduces the downside a bit, which is why I like the oil majors over the smaller plays that will return higher returns but at greater risk.

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4 minutes ago, KDave said:

I have laddered into RDSB bought quite a few around £10 which was around 14% dividend equivalent assuming they do not cut the dividend, which is possible, even a 50% cut would be 7% return per year from those particular shares. They may go lower than £10 yet, my next target is £8.50 if we ever see it, probably not, but I am prioritising the other oil majors now to diversify company wise. BP I did not do as well yet but 10% average yield assuming they do not cut dividend. 

RDSB as an example, bought at 14% yield held for this decade is a good nominal from dividends alone and I expect increasing nominal dividend payment over the later years. I am expecting perhaps 3 or 4 times return on investment by late 2020's including the dividends as a conservative estimate, it depends how much liquidity is needed over the coming months and in turn whether the industrial cycle I am expecting materialises. It will be capital growth that provides the main gains, the dividend will help and if I am wrong reduces the downside a bit, which is why I like the oil majors over the smaller plays that will return higher returns but at greater risk.

Alright let me just google 50% of what you just said and I will get back to you 😛

Starting with "laddered" lol 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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17 minutes ago, Kman said:

Alright let me just google 50% of what you just said and I will get back to you 😛

Starting with "laddered" lol 

Replace laddered with bought as I have not yet sold the bottom ladder yet despite the gain. 

The rest of it makes sense to me but then I have spent a lot of time in isolation recently, which I am sure as have we all :P

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55 minutes ago, Kman said:

Oh yes I know zip zero

I just started watching "Clay Trader" videos on youtube and he seems good at explaining the basics

What do you personally expect to get from dividends per year? 

 

If you are buying dividend stocks and looking for long term growth, it's sensible to reinvest your dividends, rather than taking them as cash. Reinvesting will get your money compounding far better. 

Also. Be very careful going after very high divi shares (e.g 8% +). They're often high divi because they're about to go t**s up and your capital loss will far outstrip your dividend gains.

When you've built up a big portfolio, then you could live off the dividends in retirement if you wanted. E.g if you had £500,000 portfolio paying a 4% divi (as the ftse all share does currently),  that would give you £20k a year to live off

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Yes the warning about high dividends is true more often than not high yield means something is wrong and it is time to expect a cut in dividends. That is the likely outcome, as ever the reasons as to why the share price is so low is not always related to the company balance sheet but more the related commodity or market. A company may continue to pay dividends throughout the bad times if it has sufficient cash or credit reserves to do so. 

There are several companies that have never cut dividends I believe these are known as dividend kings or aristocrats there are several such companies and some are cyclical. Exxon mobile for example I believe has been paying a dividend for over 100 years but past performance is not indicative of future returns etc.

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16 hours ago, Kman said:

What about online betting companies? like William Hill are pretty low atm 

Before the Chinese flu hit the government were looking at capping the amount of money per spin on online gambling sites.  You can do £100 a spin if you want to currently and they want it to be like the shops, £2 max stake,  that hit William Hills share price.  

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PepsiCo shares give just over 3% dividends, they seem like a pretty safe bet long term? they don't just own pepsi  but stuff like doritos, walkers, mountain dew and all sorts

What do you think @KDave @Bullionaire 

Probably missed the best time to buy but still 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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8 minutes ago, Kman said:

PepsiCo shares give just over 3% dividends, they seem like a pretty safe bet long term? they don't just own pepsi  but stuff like doritos, walkers, mountain dew and all sorts

What do you think @KDave @Bullionaire 

Probably missed the best time to buy but still 

Certainly not a bad company. PE ratio bit high for my liking though at ~22 for a company that I wouldn't have thought would grow a huge amount in terms of profit or revenue in future

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4 hours ago, RichmondStacker said:

Before the Chinese flu hit the government were looking at capping the amount of money per spin on online gambling sites.  You can do £100 a spin if you want to currently and they want it to be like the shops, £2 max stake,  that hit William Hills share price.  

Also a ban has come in on them accepting credit cards.

Gambling on credit is illegal in the UK and they got around it with their websites as they were based offshore.  That loophole is now closed.

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12 minutes ago, Bullionaire said:

Certainly not a bad company. PE ratio bit high for my liking though at ~22 for a company that I wouldn't have thought would grow a huge amount in terms of profit or revenue in future

How important is PE ratio?

IAG has a PE ratio of 2.64 but that can't mean it's a bad buy surely? if the share price was 60% higher last month 

 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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Just now, Kman said:

How important is PE ratio?

IAG has a PE ratio of 2.64 but that can't mean it's a bad buy surely? if it was 60% higher last month 

 

From fundamentals point of view P/E is an important number, avoids having to look at lots of other numbers.  Price/earnings is ratio of share value to amount of profit company generates. (If the company doesn't make a profit, interesting substitutes can be used).  A lowish P/E signifies a steady earner, nothing flash unlikely rise in price. Higher P/E signifies growth, the market believes future will return more earnings and they are pricing that in.  When a company doesn't match those (crude) profiles it gives a guide to under or over-priced.  If a company should be growing, good future prospects with sound earnings, but a low P/E, thats a good buy indicator. A high P/E is bit more tricky but similar in reverse.  Comparing P/E of companies in same sector or wider market average is good way to spot value, then you have to read behind to understand why the market hasn't adjusted.  

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8 hours ago, Kman said:

How important is PE ratio?

IAG has a PE ratio of 2.64 but that can't mean it's a bad buy surely? if the share price was 60% higher last month 

 

Pretty much what Martlet said. There are always exceptions though - Some companies like Amazon have perpetually high PE's. But seem to continue to grow in price at some rate. This growth may or may not stop at some point soon. 

 

It's a useful metric, but you shouldn't invest solely based on the PE. Because The PE is made up of two metrics (the price of the share and the earnings per share) the PE ratio can be low for two reasons, either the price you pay for a share has gone down, or the earnings has gone up (Or a combination of the two).

Also remember, the PE looks backwards (with regards to the earnings). It uses today's price with the previous years earnings. So they won't take into account any hits to earnings from Covid19 I don't think.

You can look at the future PE ratio, which is the price of the share divided by people's estimates of what the earnings will be over the future year. But these are just estimates and may or may not have taken covid into account

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I have another pretty basic question

etoro lets you get fractional shares

If you own a fractional share do you still get the same dividends? is it better to buy full shares if you can? or does it not really matter 

 

 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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14 minutes ago, Kman said:

I have another pretty basic question

etoro lets you get fractional shares

If you own a fractional share do you still get the same dividends? is it better to buy full shares if you can? or does it not really matter 

 

 

If you buy 1/10 of a share you get 1/10 of the dividend. Depending on your strategy you can either buy stocks with accumulation or distribution. 

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25 minutes ago, eppteink said:

If you buy 1/10 of a share you get 1/10 of the dividend. Depending on your strategy you can either buy stocks with accumulation or distribution. 

Ok so if you're getting 3% and the share is £1000 but you only bought £100 worth you are still getting the 3%  = £3

And class A and B shares pay the same dividends in the same way?

 

 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

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1 hour ago, Kman said:

Ok so if you're getting 3% and the share is £1000 but you only bought £100 worth you are still getting the 3%  = £3

And class A and B shares pay the same dividends in the same way?

 

 

Yes exactly,

You would have to check the company dividend structure (they dont pay all the same) and the brooker (most take a fix fee + % of the dividende for ea share you have).  

Check https://www.reddit.com/r/investing/, some very helpfull info in there.

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8 hours ago, Kman said:

 

And class A and B shares pay the same dividends in the same way?

 

 

If talking about shell, RDSA are netherland listed and RSDB are london listed (LSE) - RDSA shares you have no shareholder vote and pay dividend withholding tax to the dutch government, but have first dibs on assets if the company goes into bankruptcy, similar to bond holder status but not quite as good.

RDSB you do not pay tax on dividend so its a higher yield share, and you have voting power but are back of the queue in the case of bankruptcy which is like most shareholders anyway. As a UK resident I buy RDSB you should probably do the same but have a look into it. 

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Central banks are not doing any where near enough to prevent systemic collapse, what they are doing now is what was needed back in December when the FED started printing, it is not enough to offset the additional deflationary pressures the virus has introduced. I expect further falls in asset prices think 2008 but over a longer time frame unless they up the liquidity significantly. I think there will be another chance at cheap stocks, but bear in mind many companies are not going to survive especially consumer related businesses given the impact of the virus. 

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