My freetrade dividend journey on YouTube


(Leeroy ) #41

Haha that’s funny I shouldn’t laugh😂 Haven’t heard much about them anymore to be fair


(Chris) #42

I think this is really cool. Carry on with this @Emina1 !!!

Quick note on Blackstone by the way, their dividend will never be stable. Their dividend policy is to distribute a set % of cash flow and that varies a lot QoQ because of the nature of their business. So it will be up and down every Quarter and Year

I think you’re brave making this so public and I think you should be encouraged for doing so. i wouldn’t listen to anybody who tries to change your mind on your strategy (dividend) its a tried and tested methodology and over 30 years is no more or less successful than any other strategy that an average retail investor could implement.

Best of luck


(Louis emina) #43

Thanks means a lot. Makes sense what you said about Blackstone. Probably won’t plough any more money into them. I love portfolio transparency videos, I know people think it’s personal but we’re all in this together and I think the more people share their experiences the better for all of us.:facepunch:t4:


(Chris) #44

Well said. If I can help in anyway then let me know & feel free to reach out


#45

Not in comparison to going with capital investments.

https://www.ft.com/content/75eefe82-c4d4-11e8-ae3e-791a4e15cf9e
(not paywalled version)

  1. There’s the tax issue.
  2. You reinvest at the market price.

In his example, for every $1 in dividend you reinvest, you only gain $0.19 capital. Compared to a growth stock where your retained $1 is $1 of capital.

In short you’ll almost certainly be worse off with “income” focused equities.

If you need money in your pocket, just sell shares to get the desired income. You get more capital gains allowance per year than dividend allowance to boot.


(Chris) #46

As much as I love Smithy, a sample of 1 (Berkshire) is a terrible barometer to use. Suggesting that growth vs income is factors better based on Terry Smiths fund picking skills or Berkshire’s ability to allocate capital is a poor suggestion for anybody to make. Evidence mainly based on looking at Berkshire common stock portfolio is dominated by income bearing investments - the non public stock portfolio is also cash generating and simpy allows the business to plough more money back into their business or into new businesses.

I think its folly to suggest that growth vs income is better in any single case so I’d respectfully disagree. I think both are solid strategies as long as you understand the risks associated with both.


(Dave Smith) #47

He seems to be saying price to book ratio would be fixed and the share price would go up in proportion to it. There’s no reason to assume that would happen. Price to book is a function of the share price not the other way round.


#48

Thanks for this insight into how you are using the app. I eagerly await the android launch and your next video :grin:


#49

What happens if the Ex-Dividend date is on a non-working day? Presumably this will be the last working day before?


(JamieP) #50

Companies should make sure that ex-dates fall on a working day. :+1:

Mutual funds and bonds will often have an announced pay date that occurs on a certain day of the month and these sometime fall on weekends. In these instances, the payments are made either the on the Friday or the Monday depending on the Issuer / Fund Manager.


(Louis emina) #51

Hey guys here part 3 of my dividend portfolio


#52

Interesting vid. Personally having 20 is a good rule of thumb to diversity no more than 5% in a particular investment but with having trusts in there too you’re already diversified a bit more than others.

There’s no hard and fast rule though, whatever you feel comfortable with in your own investment strategy.


#53

There’s a study that shows to maximally reduce the unsystematic risk in a portfolio, you need 60. At that level, your remaining portfolio risk is systematic, that is, it will just go up and down with the market as a whole.


#54

If you’re doing that though why not just buy an ETF? :slight_smile:

Given that there are ETF’s also within the holding i personally wouldn’t go to 60 but that’s just me.


#55

(I haven’t watched the vid, just responding to you)

Yes, this is one of the reasons going with a broad index tracking ETF is a good idea.

But if you’re manually picking stocks (including an ETF at some small percentage of your portfolio, where it won’t help you that much due to its weight), then you should aim for 60 if you want to virtually eliminate your unsystematic risk (the purpose of diversification).


#56

Good observation. Each to their own.


(Louis emina) #57

#58

Awesome video! I’m also building a dividend portfolio!


(Chris) #59

Just out of curiosity, what makes you worried about the debt level at AT&T?


(Louis emina) #60

Am not so much worried it just that Verizon has much less dept and the more popular than the two. But Iam also buying AT&T,Iam just favouring Verizon.