£3000 in stock market?

[HawkHybrid]

4 minutes ago, Kman said:

So why do Chevron and Exxon have very generous dividends? are they dodgy or good long term

 

some companies are expected to cut dividends when the

next report comes around. ie those dividends figures are

old data. dividend covered by earnings makes the picture

clearer what might happen.

 

HH

[Kman]

1 minute ago, HawkHybrid said:

 

some companies are expected to cut dividends when the

next report comes around. ie those dividends figures are

old data.

I watch watching this video below, he says on Exxon

"Debt can be raised to support that dividend short term, one of the cardinal rules of management is never cut the dividend, if you cut your dividend that is a crystal clear signal to your investors your company is in trouble, so management tries to avoid it at all costs and they will issue debt so support that dividend in the short term is they can and exxon has more than enough capability to raise their debt a little bit and be able to pay that dividend"

How do you feel about the above statement? 

 

 

 

[KDave]

Why they pay out dividends regardless of where they are in the cycle is due to the nature of the industry;

https://www.joshuakennon.com/lets-talk-about-investing-in-oil-stocks-and-the-oil-majors/

[Bullionaire]

35 minutes ago, Kman said:

I watch watching this video below, he says on Exxon

"Debt can be raised to support that dividend short term, one of the cardinal rules of management is never cut the dividend, if you cut your dividend that is a crystal clear signal to your investors your company is in trouble, so management tries to avoid it at all costs and they will issue debt so support that dividend in the short term is they can and exxon has more than enough capability to raise their debt a little bit and be able to pay that dividend"

How do you feel about the above statement? 

 

 

 

I would say a bigger sin is borrowing to pay a dividend. The whole point of a dividend is supposed to be that it's excess money that the company doesnt think it's worth reinvesting in itself. 

I haven't used it myself, but I've heard various people (mainly US based) use simply safe dividends to see how safe a dividend is. They have a 14 day free trial if you wanted to check it out: https://www.simplysafedividends.com/

[HawkHybrid]

6 hours ago, Kman said:

I watch watching this video below, he says on Exxon

"Debt can be raised to support that dividend short term, one of the cardinal rules of management is never cut the dividend, if you cut your dividend that is a crystal clear signal to your investors your company is in trouble, so management tries to avoid it at all costs and they will issue debt so support that dividend in the short term is they can and exxon has more than enough capability to raise their debt a little bit and be able to pay that dividend"

How do you feel about the above statement? 

 

 

 

 

imo using already accumulated resources to pay dividends is ok.

paying dividends now with future earnings(debt) is probably short

sighted. it's a indication of not so great management. companies

that do so are not so good bets for the longer term. the drop in

the oil price is not a big deal. cutting dividends correctly shows

prudent action from management. changing commodity prices

are a risk that many companies face. it's how management deals

with such risk that separate the better companies. anybody can

make money in a bull market, it's those that can make the right

decisions in a bear market that you want to invest in.

you want to work out how sustainable dividends are in the companies

that you are interested in. if they have a good cash buffer from past

profits then it's not so much of a problem.

 

HH

[Kman]

Thanks guys

I'm just reading what Warren Buffet has been doing

March 3rd: Berkshire said it bought more than 976,000 shares of Delta last week for about $45.3 million, for an average cost of about $46.40 per share.

Yesterday: The famed investor's conglomerate slashed its roughly 11% stake in Delta by nearly one-fifth, from 71.9 million shares to 58.9 million

If my maths is right they sold 13 million shares in Delta for $24 each.. after buying almost a million for $46 a month before; that's a pretty harsh loss

Do you think they see Delta dropping further and trying to buy back in around the bottom?

[Kman]

Well I've dipped my toe ever so slightly in the water, just wanted to get some skin in the game

I'm 100% going to buy ShellB shares so I got 17 for now and will see where the price goes 

 

 

 

[Martlet]

30 minutes ago, zhoutonged said:

Jim Slaters PEG ratio

I worked on data product that built upon that.  Underrated and bit forgotten now, could do with service to filter through all the data. 

[Kman]

46 minutes ago, zhoutonged said:

Bought some IAG this morning thanks to @Kman banging on about them. Im not a bull but they are cheap.

what platform did you use?

I want iag and delta shares  but they aren't on freetrade and I don't know about etoro because you have to pay currency conversion fees and a withdrawal fee 

 

[vand]

I'm impressed nobody is copping out with a tracker fund and going full blooded individual stock picking mode. Respect!

[Kman]

22 minutes ago, zhoutonged said:

Today I bought 🤣 BT, Anglo American, Barclays, Spoons (bit late ugg), and IAG. Hopefully I will get my money back before I retire. I still see this market going lower but I believe they are all relatively sound businesses. I still have enough dry powder for further falls but I know eventually fiat is going to dust so any assets are going to be better than monopoly money. Criticism of above picks with rational very very welcome.

I've ended up using Etoro

On there and FreeTrade.io I got between £200-250 of

Chevron, Exxon, Shellb, Carnival, Royal Caribbean, Boeing, Delta

Will leave it there for now and see where prices go, only invested a small part of what I could 

 

 

 

[AuricGoldfinger]

@vand funds all the way 😂

[HawkHybrid]

https://www.youtube.com/watch?v=ijQIgUkv1dc

5:30, 27:50 exxon mobil

 

HH

[AuricGoldfinger]

Just put £5k in Scottish Mortgage Trust and £5k in Witan Investment Trust. Wish I’d done it on Friday but I’m sure there are plenty more ups and downs to come!

[Bullionaire]

16 minutes ago, AuricGoldfinger said:

Just put £5k in Scottish Mortgage Trust and £5k in Witan Investment Trust. Wish I’d done it on Friday but I’m sure there are plenty more ups and downs to come!

I do like SMT. Much lower fees than investment trusts of a similar performance. I put some more in recently when it was knocked down. 

I'm sure it won't just be up from here in the short term. I hope not anyway, I want some more buying opportunities at cheap prices!

[Kman]

I was second guessing myself why I bothered with cruises, I'm a genius 😛 

[Kman]

everything is going up

"Today it was reported that Saudi Arabia's sovereign wealth fund has purchased an 8.2% stake in Carnival Corp. The fact that at least one investor doesn't think cruise lines are doomed -- at least not this one -- appears to be spilling over to benefit other stocks in the industry, and so while Carnival is naturally the stock benefiting most from this headline, shares of rival cruise operators Royal Caribbean and Norwegian Cruise are enjoying strong gains as well. "

https://www.fool.com/investing/2020/04/06/why-carnival-corp-royal-caribbean-and-norwegian-cr.aspx

 

[RichmondStacker]

19 hours ago, Kman said:

what platform did you use?

I want iag and delta shares  but they aren't on freetrade and I don't know about etoro because you have to pay currency conversion fees and a withdrawal fee 

 

I use trading 212 for now.

[HawkHybrid]

https://www.youtube.com/watch?v=aF2L_G49eIA

3:00 retest lows?

 

HH

[Cornishfarmer]

@Kman are you buying in $ if so won’t you lose out when divs are paid or when you sell converting back into £?

[Kman]

1 hour ago, Cornishfarmer said:

@Kman are you buying in $ if so won’t you lose out when divs are paid or when you sell converting back into £?

You tell me lol I don't know? I will look if I can find out 

Edit> I will put dividends, should i get much out of them, back into stocks and I will lose a little bit to conversion when I take money out yeah,but it's  0.5%  so $5 on every $1000 and $5 fee per withdrawal so it's nothing too severe 

 

[Martlet]

Joining in the fun, I've dug around the biggest fallers of the FTSE100 and 250 for those solid companies with good prospect of doing a V shape recover and doubling value this year. 

Glencore, Melrose, Marston's, Elementis, IAG.

Couldn't back the cruise liners, despite the 3-4x potential because their road to recovery is going to be a couple years.  Banks and oil are unlikely to make much revenue this year, watch them for more medium term. 

[RichmondStacker]

10 hours ago, Martlet said:

Joining in the fun, I've dug around the biggest fallers of the FTSE100 and 250 for those solid companies with good prospect of doing a V shape recover and doubling value this year. 

Glencore, Melrose, Marston's, Elementis, IAG.

Couldn't back the cruise liners, despite the 3-4x potential because their road to recovery is going to be a couple years.  Banks and oil are unlikely to make much revenue this year, watch them for more medium term. 

I have money in Premier oil (1000 shares) and Tullow (4000) Both were targeted by short sellers and the events with oil and the flu. Both are moving back up and my average is around 16p a share. Hopefully the oil cuts will be agreed soon. 

[vand]

4 minutes ago, RichmondStacker said:

I have money in Premier oil (1000 shares) and Tullow (4000) Both were targeted by short sellers and the events with oil and the flu. Both are moving back up and my average is around 16p a share. Hopefully the oil cuts will be agreed soon. 

Been watching TLW and JKX as a couple of the favourites back in the days of $100 oil.

Incredible to see how they have fallen on hard times. TLW used to be 1400p, so lost over 99% of its market cap!

[RichmondStacker]

8 minutes ago, vand said:

Been watching TLW and JKX as a couple of the favourites back in the days of $100 oil.

Incredible to see how they have fallen on hard times. TLW used to be 1400p, so lost over 99% of its market cap!

Tullow hit 7p while being attacked by Odey and his fellow short sellers. The year is looking good for them as they are hedged at the current low price of oil, upcoming asset sales, rebates from Ugandan government and some profitable grounds.