Let us know your suggestions for enhancements & feedback about the Snapshot of High Dividend Yields on the Freetrade App post here
Good work, this will be useful.
Out of interest why not add this to the Freetrade Securities Universe Google Sheet?
Worth double checking this, I have it around 4.5%
I’d double check this too. Think this would be less than 1%.
A great guide, but the investor needs to double check. Acacia Minings last dividend was 2017, for example.
I know this is available elsewhere but I suggest adding dividend cover to the data would make the table more useful. If a dividend is well covered by earnings then it should be pretty safe and may increase over time, if a dividend is not safely covered by earnings then it may be at risk or being reduced or suspended in the future.
Thanks for catching this! If you see anything else can you send me a DM so I can update the master grid?
Excellent I have received dividends from some of these companies all be it 0.01 of a pence would be good to have the dividend info in the app when you click on the company your interested in.
However, note that a few of these have announced cuts in dividend, eg SSE, Vodafone, Marks & Spencer and Antofagasta, so perhaps a note should be added to the spreadsheet.
I think this is a great idea. It would be awesome if you can have them automatically updating using external sources. Perhaps LSE data if available. Good work! Updates like these definitely make it more accessible for everyone to try and get involved in investing.
This would be great to see in the app - a list with good dividend cover and good dividends - it would make a nice filter button even before it is dynamic, but eventually it’d be nice to be able to filter on several criteria like this and share lists.
Can’t wait to see what freetrade can produce once you have better data within the app and more sophisticated filters.
I received my first freetrade dividend the other day from Aviva.
Antofagasta’s dividend isn’t a fixed percentage. they pay out 35% of earnings so it varies. so even though it’s less than last time I don’t think that really qualifies as a cut
Edit: I actually like that policy, it’s better than blindly paying a high percentage when time are lean, and rewards investors when times are good
6 posts were merged into an existing topic: Is Freetrade recommending companies in Stock Take etc?
I admit that I don’t know how Antofagasta’s dividend is calculated, I just got my info from https://www.dividenddata.co.uk/dividendyield.py?market=ftse100 which showed:
GVC Holdings are currently paying an annual dividend of 32p which at the current £6.25 share price represents a dividend yield of around 5%. The dividend is also due to increase by 10% a year.
Nice, but it looks like someone already made a (dare I say it!) better looking version already…
Wish it wasn’t grey text on a white background. My eyes. My eyes. My eyes. That aside it’s cool
P.S. some of the yields are +/- a few percent on the site like IBM. Worth looking at IEX Cloud’s for US Stocks, I think their free tier might support this use case.
Yeah, I noticed that. I put that down the fact they say the data was taken at 04-06-2019… and there’s been a bit of a tech share price rollercoaster in the last few days. It states it’s not dynamic at the moment - but should be again in the future. I’ve used it for a while. It’s usually dynamic but the weight of Freetraders calls has broken their system! D’oh! I don’t know the source of their data, but agree a lot of people use IEX as it’s pretty good, free and easy to use.
And maybe the % daily … maybe more filters settings… you right;) …let’s see the great future… hehee
An update to @stephkendall’s post - Snapshot of High Dividend Yields on the Freetrade App - from Morningstar:
How We Select Companies
Morningstar.co.uk has filtered 20 income shares using a range of criteria. Each income stock must have an “economic moat”, which means that the company has a sustainable competitive advantage. Stocks with a “narrow” or “wide” moat make the cut. We then add in the star-rating, which indicates whether the company’s shares are trading below or above their fair value.
We also look at the historic yield (trailing 12 months) and compare that with the forward yield.
Another filter is then added to screen for those companies whose five-year dividend yield is less than 15%. This adds an element of consistency – for example, a one-off special dividend would skew the yield in one year to an artificially high level – and remove companies whose share price plunge has pushed the yield up significantly.
This is not an investment recommendation
This is interesting - UK corporate profits under pressure, may affect dividends:
UK Dividends soared to an all-time high in the second quarter of the year as companies paid out £37.8 billion. But special dividends and a weaker pound are masking underlying weakness in the market, warns the Link Group Dividend Monitor.
On the surface, dividends climbed 14.5% to an all-time high in the second quarter of 2019, beating the previous record, set two years ago, by some £4.4 billion. But, in its latest quarterly report on the state of the UK dividend market Link says the quality of this growth was poor and a number of exceptionally large special dividends from the likes of Rio Tinto (RIO), Micro Focus International (MCRO) and RBS (RBS) have skewed the picture. Special dividends totalled £5.4 billion in the quarter – 147% higher than a year ago.
He warns that corporate profits are under pressure, which will limit the scope for companies to increase their pay outs over the coming months. Overall, Link expects pay outs to climb by just 2.9% this year, about two-thirds of which is likely to come from gains made through exchange rates.
Earnings growth in the UK is among the lowest globally and economic growth has also been disappointing. Link says: “Our underlying forecast [for dividends] has dropped by £500 million to £98.7 billion. This means that the true picture for dividends this year is significantly weaker than a first glance might suggest.”
The top five dividend payers for the quarter were Rio Tinto, HSBC, Royal Dutch Shell (RDSA), BP (BP) and Micro Focus International, accounting for 29% of the total pay outs in the period. Of these, BP is the only stock to feature in the Morningstar UK Sustainability Dividend Yield Focus Index, which focuses on the 25 FTSE firms with the most sustainable pay outs. BP, which has a four-star Morningstar rating, has a high uncertainty rating and a narrow economic moat.
Also this interview is quite interesting - about the implied risk premium in dividend yields in relation to the UK govt bond yields:
Mould : … Because if you think about it, what are you getting in the bank from the best possible cash ISA right now? Couple of percent? If you lock it, and you’re locking up your money for quite a long time to get that, right? The UK 10-year gilt yield, the bond yield on 10-year government loans is known as the risk-free rate, okay? Because the government is always – whenever you’ve loaned money to the UK Government, it’s paid it back since 1672. So, our record isn’t bad. But that is currently offering you 0.65%, okay? So, if something’s offering you 12% and the risk-free rate is 0.65%, how much risk are you taking to get the 12%, A, the income could be too high, but B, just think of the share price, the capital risk, and that’s what Royal Mail, Vodafone, M&S and Centrica, have told you, because their share prices all collapsed. So, the risk that you’re taking will be very, very – I’m not saying don’t do it. But I’m saying be very aware of the risk that you will be taking.
This is also not an investment recommendation