The Dividend Letter
Comments
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Oh dear - looks like we will be moving the long standing argument on Motley Fool over to here!
Not really. I think it is a valid strategy. However, I do think the MF application of it using just a small number of shares and having no lower risk, higher yielding investments makes it riskier than it needs to be.I suggest anyone who is interested goes through the posts on the MF site.
Unfortunately, there isn't a lot of balance there. (although I will admit I haven't visited recently).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Here's a recent update of the original HY portfolio bought at the top of the market in 2000.
Note that an investor would still have more than the original capital invested and would have received almost half that amount in income over the period. This trounces the performance of an annuity, and it is this kind of investor that the strategy is aimed at.
Note also the comparative performance of the FTSE, -32% and a much lower dividend return..
http://boards.fool.co.uk/Message.asp?mid=11438816&sort=whole#11439524Trying to keep it simple...0 -
I have a (painful) experience of Fleet Street Publications/MoneyWeek (all part of the same company) and I avoid their myriad of publications like the plague.
Hmmm..., I have had experience of Fleet Street Pubs many years ago - and it wasn't that good - I'm wondering whether or not to keep my subscription to Moneyweek going - I thinks its for the chop.
Cheers
fj0 -
opinions4u wrote: »Not if paying a dividend out of profits that haven't actually been made affects the underlying value of the shares.
In a low inflation environment where profits in real terms are falling across the board, what use is this?
And if the value of those companies halved again but they were stupid enough to maintain their dividends you'd have a 14% income to shout about.
Doesn't make it a winner though.
Feelings seem mixed on the HYP method tho' so I'm just going to keep an eye on this for now.
Thanks to all that replied.
fj0 -
EdInvestor, has it managed to catch up with the Invesco Perpetual equity invcome funds yet or is it lagging even further behind than it was before?
The HYP is a nice concept but when you can beat it easily just by buying one of the most popular funds in the UK and get lower risk as well as the greater returns it seems pointless.0 -
EdInvestor, has it managed to catch up with the Invesco Perpetual equity invcome funds yet or is it lagging even further behind than it was before?
The HYP is a nice concept but when you can beat it easily just by buying one of the most popular funds in the UK and get lower risk as well as the greater returns it seems pointless.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
EdInvestor wrote: »Note that an investor would still have more than the original capital invested and would have received almost half that amount in income over the period. This trounces the performance of an annuity, and it is this kind of investor that the strategy is aimed at.0
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