Share Investment, Discussion & Tips

[BlasterBates]

You have to be careful just focusing on dividends. I bought the main Brazilian Telecoms company and although I didn't buy for the dividends, it payed well. After a few years the shares lost most of their value and the company now pays virtually no dividends.

Ford and AT&T are probably paying sustainable dividends.

Dividend yields go up and down and often can not be relied on. It's better to buy a stock with an increasing dividend yield of 3% than one paying an unsustainable dividend of 7%.

[SimonMac]

You have to be careful just focusing on dividends. I bought the main Brazilian Telecoms company and although I didn't buy for the dividends, it payed well. After a few years the shares lost most of their value and the company now pays virtually no dividends.

Ford and AT&T are probably paying sustainable dividends.

Dividend yields go up and down and often can not be relied on. It's better to buy a stock with an increasing dividend yield of 3% than one paying an unsustainable dividend of 7%.

Yeah it's a risk, but a portfolio of 31 shares, if one is wiped out at most I lose 5% of my portfolio.

[Fred Bloggs]

Yeah it's a risk, but a portfolio of 31 shares, if one is wiped out at most I lose 5% of my portfolio.

And your dividend income for the year immediately disappears to cover that 5% capital loss.

[SimonMac]

And your dividend income for the year immediately disappears to cover that 5% capital loss.

Isn't that the same risk with any investment? Whether you go for income or value the risk is always there

[Fred Bloggs]

Isn't that the same risk with any investment? Whether you go for income or value the risk is always there

Yes and no. If you purposely draw down to live on the income, then you're depleting your pot faster if you continue to withdraw the same level of income regardless. However, I will agree, I realise that all money is the same. I invest for total return and care not a jot whether the growing pot of money is income or growth. It's simply money.

[SimonMac]

Yes and no. If you purposely draw down to live on the income, then you're depleting your pot faster if you continue to withdraw the same level of income regardless. However, I will agree, I realise that all money is the same. I invest for total return and care not a jot whether the growing pot of money is income or growth. It's simply money.

But, IMHO, growth is only ever realised when you sell the holding. I have one stock that is up over 100% of it's original purchase price, but at the moment it's just a number and can go down as well as up. Income is hard cash in your (virtual) pocket that I can leave as cash, reinvest in the original stock for "free money" or put it elsewhere if I am overweight in that stock already.

I guess it can also depend on where you are int he cycle, I am still 20 years away from retiring so plan to take any drawdown, and it it gives me plenty of time to recover any of the negative growth (as long as they keep paying a dividend in the meantime)

[Fred Bloggs]

But, IMHO, growth is only ever realised when you sell the holding. I have one stock that is up over 100% of it's original purchase price, but at the moment it's just a number and can go down as well as up. Income is hard cash in your (virtual) pocket that I can leave as cash, reinvest in the original stock for "free money" or put it elsewhere if I am overweight in that stock already.

I guess it can also depend on where you are int he cycle, I am still 20 years away from retiring so plan to take any drawdown, and it it gives me plenty of time to recover any of the negative growth (as long as they keep paying a dividend in the meantime)

Well, yes and no. As I said before, to me it's simply money. I'm somewhat fortunate that I can leave my SIPP growing while in drawdown without drawing anything from it. When I/if I need to, then very likely I'll just pull out some money once per year. Probably in late March. So, it would be "income" by name, but simply just money accrued in the SIPP along the way.

[northernladuk]

Can someone explain this to me?

So I'm in to Polar Capital Global Tech and it's taken a bad hit when all the other tech's are up.

Polar Capital Global Technology (Class I GBP) Income Fund Price & Information

Is a funds growth an accumulation of all the stocks it owns or is there some other factor?

Their top 10 holdings making 32% of their portfolio are on the whole up so where has the 3.26% slide come from? None of the other Tech funds I'm tracking seem affected and are returning upwards of 1.75% today. Can't be a single stock can it?

Microsoft Corp. 7.29%
Alibaba Group Holding ADS (N Shares) 3.85%
Alphabet Class C 3.74%
Alphabet Class A 3.73%
Tencent Holdings (P Chip) 3.03%
Advanced Micro Devices 2.75%
Amazon.com 2.31%
Adobe 2.14%
Zendesk 2.06%
Apple 2.05%

[greenlake]

Can someone explain this to me?

So I'm in to Polar Capital Global Tech and it's taken a bad hit when all the other tech's are up.

Polar Capital Global Technology (Class I GBP) Income Fund Price & Information

Is a funds growth an accumulation of all the stocks it owns or is there some other factor?

Their top 10 holdings making 32% of their portfolio are on the whole up so where has the 3.26% slide come from? None of the other Tech funds I'm tracking seem affected and are returning upwards of 1.75% today. Can't be a single stock can it?

The 3.26% decline is between the closing prices on Thursday 21/3 and Friday 22/3.

Friday was a bad day for markets everywhere.

[northernladuk]

The 3.26% decline is between the closing prices on Thursday 21/3 and Friday 22/3.

Friday was a bad day for markets everywhere.

Hmm goog spot. Just checked again and some other tech funds that were showing up are now around 3.5% down as of today. The Polar one hasn't updated so I'm bracing for another big drop.

Very odd with the timings of the prices.