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ziknik

Beaten down dividend paying shares that could be good for the long term

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You made a good call on SVT at the time, hope you didn't bottle it?

 

Held them myself as one of the few steady dividend payers in my ISA. Just occasionally i've had doubts and think of trading them in; usually too late in the day I look again and the price has dropped so i've ended up keeping them.

 

But they've remained a steady buy and hold for me, as commented on another thread.

 

http://www.greenenergyinvestors.com/index....st&p=158466

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You made a good call on SVT at the time, hope you didn't bottle it?

...

I'm currently 27.19% up on SVT :)

 

I'm happy to hold on for the dividends regardless of share price (though that may change later in the year).

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I'm currently 27.19% up on SVT :)

 

I'm happy to hold on for the dividends regardless of share price (though that may change later in the year).

 

Bear in mind there has been talk of a serious fall in dividends for as long as I can remember being invested, linked with regulatory reviews going against them. But who knows.

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Bear in mind there has been talk of a serious fall in dividends for as long as I can remember being invested, linked with regulatory reviews going against them. But who knows.

To my knowledge, reviews are carried out every 5 years (they take about 18 months to complete). The last review was in 2009. The next review will be in 2014.

 

http://www.ofwat.gov.uk/pricereview/

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To my knowledge, reviews are carried out every 5 years (they take about 18 months to complete). The last review was in 2009. The next review will be in 2014.

 

http://www.ofwat.gov.uk/pricereview/

 

You are quite correct of course. Just always seem to have read a story their dividend might come under pressure

 

Example from Moneyweek 2006 http://www.moneyweek.com/investment-advice...-invest-in.aspx

However, an element of regulatory risk has been introduced to the water sector. Ofwat recently published a consultation document on the provision of financial support through price rises, says analyst Verity Mitchell at broker HSBC. Higher customer bills and higher infrastructure spending have so far gone hand in hand, but Ofwat is currently looking at ways in which the water companies can manage their own spending and revenue raising, so that less help would be needed from the regulator in the future. They could issue more debt or equity securities, or even cut dividends, for instance.

 

The regulator might decide that the need for better infrastructure justifies handing over the public’s money, but if they do not, a major incentive for buying the shares will be removed.

 

Pretty sure if I googled searched i'd find one or two every year for the last 6 or 7 at least. So point being these journo's are yet to get it right :lol:

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Ziknik, cashed in 2/3 of my SVT at 1338 and 1336, thought despite defensive nature they were looking a bit toppy. Waited for the divi and plan being looking for a pullback to the 12's on market weakness. If it don't work, guess i've just gambled the divi.

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Ziknik, cashed in 2/3 of my SVT at 1338 and 1336, thought despite defensive nature they were looking a bit toppy. Waited for the divi and plan being looking for a pullback to the 12's on market weakness. If it don't work, guess i've just gambled the divi.

 

I’m looking very closely at my beaten down dividend players at the moment and deciding if I really really want to hold them for the long term.

 

I’ve decided I am going to offload Kazakhmy’s soon. All the others are on my ‘maybe list’.

 

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Ziknik, cashed in 2/3 of my SVT at 1338 and 1336, thought despite defensive nature they were looking a bit toppy. Waited for the divi and plan being looking for a pullback to the 12's on market weakness. If it don't work, guess i've just gambled the divi.

I got divi payment last week. Did you get yours?

 

EDIT: Just worked out that I am now 49% up on SVT after that dividend

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I thought the shares were at too good a discount to NOT buy!

Sadly I timed my first two purchases badly especially the second one. I was a bit naive and should have waited longer before purchasing after the rights issue was announced.

 

Overall, I am 4% down on NG. And I don't think I've had any dividends yet :(

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Sadly I timed my first two purchases badly especially the second one. I was a bit naive and should have waited longer before purchasing after the rights issue was announced.

 

Overall, I am 4% down on NG. And I don't think I've had any dividends yet :(

Dividend on Wednesday.

 

Including the rights issue, which averaged me down, I am down 7%. A month or so ago I think I was down about 15%. I don't really check to be honest with you. I've got a folder full of share certificates in the filing cabinet upstairs out of the way.

Why share certificates instead of electronic? So I'm not tempted to sell on every bit of bad news.

 

The high yield strategy is about income, not capital values and tinkering usually results in your broker becoming richer and you becoming poorer.

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Dividend on Wednesday.

 

Including the rights issue, which averaged me down, I am down 7%. A month or so ago I think I was down about 15%. I don't really check to be honest with you. I've got a folder full of share certificates in the filing cabinet upstairs out of the way.

Why share certificates instead of electronic? So I'm not tempted to sell on every bit of bad news.

 

The high yield strategy is about income, not capital values and tinkering usually results in your broker becoming richer and you becoming poorer.

I'm doing surprisingly well out of buy and hold. The dividends make a big difference.

 

I've had a good review of my shares this weekend and decided not to sell any of them except Kazakhmys (which wasn't a dividend payer in the first place).

 

This is what I am holding on to

 

SVT.L 49%

GSK.L 28%

NG.L -4%

BP.L -11%

MRW.L 1%

VOD.L 23%

 

EDIT: The percentages are %up or %down (not % of portfolio)

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I'm doing surprisingly well out of buy and hold. The dividends make a big difference.

 

I've had a good review of my shares this weekend and decided not to sell any of them except Kazakhmys (which wasn't a dividend payer in the first place).

 

This is what I am holding on to

 

SVT.L 49%

GSK.L 28%

NG.L -4%

BP.L -11%

MRW.L 1%

VOD.L 23%

 

EDIT: The percentages are %up or %down (not % of portfolio)

I've got (I think) 23 different companies and I invested £500 in each. I even have Lloyds (bought at about 50p despite the 0% dividend) on the grounds it'll eventually start coughing up divis again. Or maybe not. Either way it's £500. If it coughs then great, if not meh!

 

I'll never sell a single one of them. Just hold. Your BP only down 11%?! :lol: Mine's something like -30%! Not bothered. It'll rise back up again and likely cough up divis next year.

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I got divi payment last week. Did you get yours?

 

EDIT: Just worked out that I am now 49% up on SVT after that dividend

 

Got mine credited on the 30th. Nice whatever the climate these have been very solid factoring in all the divi's, no idea without going over all my statements how much i'm up % wise, as I do vary the size of my stake at times.

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...

Your BP only down 11%?! :lol: Mine's something like -30%! Not bothered. It'll rise back up again and likely cough up divis next year.

I had a lot of dry powder in my account so I was able to keep buying while the price was dropping.

 

BP is my biggest holding by a mile. 3 times bigger than my next biggest holding (Kaz) and 4.5 times bigger than the next one (NG).

 

I will lighten up on BP when the price climbs as my holding is disproportionately large in comparison to my other holdings. I plan to buy Shell or Exxon with the proceeds.

 

EDIT: Scottish & Southern Energy is another one I will look at later

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I had a lot of dry powder in my account so I was able to keep buying while the price was dropping.

 

BP is my biggest holding by a mile. 3 times bigger than my next biggest holding (Kaz) and 4.5 times bigger than the next one (NG).

 

I will lighten up on BP when the price climbs as my holding is disproportionately large in comparison to my other holdings. I plan to buy Shell or Exxon with the proceeds.

 

EDIT: Scottish & Southern Energy is another one I will look at later

I'm the opposite. Recently bought several shares. (RSA, HSBC, McBride and British American Tobacco).

Now need to build up the cash again.

 

I hold SSE. Very good dividend share IMO.

I also hold Shell.

 

I'm very careful not to overload on any one stock. I tend to buy similar values each month. In my case roughly £500 ±£50.

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I will lighten up on BP when the price climbs as my holding is disproportionately large in comparison to my other holdings. I plan to buy Shell or Exxon with the proceeds.

 

EDIT: Scottish & Southern Energy is another one I will look at later

Are you using stops (on BP)?

Since there is no divi, why not use options?

 

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Are you using stops (on BP)?

Since there is no divi, why not use options?

 

I’m not using any stops on these BP shares. I’m genuinely intending to hold them for decades so I can cash in on the dividends.

 

It may not be the best investment strategy in the world but it is working for me. I’ve made some really good gains so far by buying when the prices are depressed and then holding on for the dividends.

 

This is part of a wider investment portfolio for me. I divide my money in to different pots and I am trying a different strategy with each. In this pot, I buy and hold and wait for dividends.

 

I am also holding BP shares in my Buying a Mansion pot of money too. I am intending to sell them around 480 (if we get there) I’m going to do a mixture of trading and buy&hold in my Mansion pot. I’m not really sure of the split between buy&hold and trading yet as I’ve only recently created the pot.

 

I have looked at options a few times but I’m not familiar with the setup/prices etc and I am concerned about getting fleeced. Whenever I look at options, I only see the opportunity to get fleeced by more experienced traders. I don’t see the opportunity to make a little extra cash. I find spreadbetting very easy and the costs associated with each trade are low.

 

 

 

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I’m not using any stops on these BP shares. I’m genuinely intending to hold them for decades so I can cash in on the dividends.

 

It may not be the best investment strategy in the world but it is working for me. I’ve made some really good gains so far by buying when the prices are depressed and then holding on for the dividends.

 

This is part of a wider investment portfolio for me. I divide my money in to different pots and I am trying a different strategy with each. In this pot, I buy and hold and wait for dividends.

 

I am also holding BP shares in my Buying a Mansion pot of money too. I am intending to sell them around 480 (if we get there) I’m going to do a mixture of trading and buy&hold in my Mansion pot. I’m not really sure of the split between buy&hold and trading yet as I’ve only recently created the pot.

 

I have looked at options a few times but I’m not familiar with the setup/prices etc and I am concerned about getting fleeced. Whenever I look at options, I only see the opportunity to get fleeced by more experienced traders. I don’t see the opportunity to make a little extra cash. I find spreadbetting very easy and the costs associated with each trade are low.

I bet*, long term, you make more from buy and hold than you do from trading.

 

*Nominal sum, say £10.

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Hi Ziknik,

 

Here's one not so much beaten down, but showing steady progression of s.p and dividend growth. Intertek(ITRK) went firmly on my watchlist at the last results. Should have bought sooner, but didn't have the appetite for steady long punts, now waiting a pullback and will use FTSE short profits to go in here with.

 

Perhaps a growth play as much as anything with aquisitive nature, but dividends grown year on year and have edged past 2%. You may consider this low and No director buys for a little while, but steady profits growth last 5 years.

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I bet*, long term, you make more from buy and hold than you do from trading.

 

*Nominal sum, say £10.

I'm certainly doing better with buy & hold at the moment but I've been holding through a massive bull run. I bet* the difference between my trading account and my buy&holds will even out over time.

 

 

* no money

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I'm certainly doing better with buy & hold at the moment but I've been holding through a massive bull run. I bet* the difference between my trading account and my buy&holds will even out over time.

 

 

* no money

I still maintain, that for most investors, trading and tinkering loses money rather than makes it and the only person who gets richer is your broker.

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Hi Ziknik,

 

Here's one not so much beaten down, but showing steady progression of s.p and dividend growth. Intertek(ITRK) went firmly on my watchlist at the last results. Should have bought sooner, but didn't have the appetite for steady long punts, now waiting a pullback and will use FTSE short profits to go in here with.

 

Perhaps a growth play as much as anything with aquisitive nature, but dividends grown year on year and have edged past 2%. You may consider this low and No director buys for a little while, but steady profits growth last 5 years.

I was thinking about my portfolio of dividend payers last weekend and wondering if I have picked a bag full of the most indebted companies in the FTSE. National Grid for example has a market cap of £18.5bn and they owe £20.5bn before taking pensions in to account.

 

ITRK could easily out perform National Grid over the long term... BUT, I can't help noticing the fat dividends NG are putting on the table today.

 

I wish I had enough money to buy a small stake in all companies.

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I still maintain, that for most investors, trading and tinkering loses money rather than makes it and the only person who gets richer is your broker.

But there's plenty of people who don't even look at their portfolio's until it's time to retire and find they've got a lot less than they expected.

 

Buy & hold isn't an easy option IMO, I review my holdings regularly and I will sell if I feel the need to.

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I was thinking about my portfolio of dividend payers last weekend and wondering if I have picked a bag full of the most indebted companies in the FTSE. National Grid for example has a market cap of £18.5bn and they owe £20.5bn before taking pensions in to account.

 

ITRK could easily out perform National Grid over the long term... BUT, I can't help noticing the fat dividends NG are putting on the table today.

Utilities are well known for having large debt.

The debt is a trade off for the high yield and utilities sold, safe, regulated, almost monopolistic status.

I wish I had enough money to buy a small stake in all companies.

You do. That's called an Index Tracker.

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