Megathread - 🔥 Dividend Fest 🔥

Yet you have started, albeit later and that’s an achievement.

The real fail would have been not starting at all (well, that’s what I tell myself!).

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I started this year…at 44

Yes in hindsight I’d of liked to have started sooner…but I can top up my retirement very nicely if I stick to my plan…you can do a lot in 10-15 years.

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Very true. Onwards and upwards.

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Exactly. I’m sick of all these ‘get rich quick schemes’ too.
What I really need is a scheme to get rich. And quick.

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Yes. There is a good thread Dividend Irrelevance on this. The title is provocative and that probably doesn’t help to get people to think about the topic in a considered way.

The good thing that some people talk about on this particular Megathread is regular and consistent investing - far far more important than pursuit of and/or glorification of dividends. But yes, looking at a companies dividend strategy often tells you a lot about the business - I have always paid attention to when a business cuts its dividend (it can suggest a lot of things about the market and sector beyond the company itself). Some businesses increase their dividends as time goes by - but this is not necessarily telling us anything positive about the business ( look at other parameters not just dividends).

On a personal note, all that I will say is that I did not invest in any dividend stocks for the first 15 or so years of investing - in fact I switched out of companies that decided to pay dividends. But I fully understand the psychological sure footing that some get out of dividends - and I suspect many who do opt for focusing on dividends possibly do OK even if not stellar.

The bottom line is that regular investing is good. Total return is critical.

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The title is just the name of the concept, which to be clear is firmly neutral - it’s not saying dividends predict poor performance.

I agree I don’t think it attracted a considered response, but I don’t think it’s a provocative title or that picking a less accurate title would help much, it’s just an emotional subject for many.

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When interest rates go down you then move your money into dividend paying investments.

Of course getting your timing right is useful!

Infrastructure particularly renewables and REITs are particularly cheap at the moment.
Some will probably remain cheap. I wouldn’t want to have been in shopping centres COVID and post covid. Retail parks are doing far better.
Social housing has taken a severe kicking from the fallout from home REIT.
Hence I have SOHO housing for the disabled on 9%+ dividend. I think I can wait for it to rerate.
TENT in the renewables (a little different from the norm) 8.5% dividend again I can wait for a rerating.
I think a lot of these will rise prior to an actual fall in interest rates.
Fill your boots!!!
Not advise.

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Cover for the dividend is well worth noting. LGEN cover is increasing.
Good to remember that a lot of companies and in particular insurance companies, oil companies, commodities in general took advantage of COVID to “rebase” their dividends lower.
Therefore increasing there cover.
Even LGEN did this eventhough they paid their full dividend while others cancelled, they reset their dividend for the following 5 year plan.
Instead of increasing dividends by 7% a year (previous 5 year plan) they held first year and will raise it by 5 % year for the following 5 years.
Dividends look a lot safer nowadays.

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Personally im not waiting for rates to pivot. Gotta keep that snowball rolling.
Besides, I have a cash position in easy access 5% but the interest is also taxed at 40% so its more like 3%.

So more than a £1,000 worth of interest?
I have a multiple savings accounts.
Just opened a 7% regular saver with Yorkshire building society.
Santander just started a 5.2% instant access.

For higher rate tax band its £500 then anything over 40% goes down the tubes

I recently moved to Santanders 5.2% account.