Is the Time to Invest in Banks approaching?

sabretoothtigger

13% yield is unbelievable when they just doubled in price. I wonder how they do that, a managed etf
American Finance pref shares? I've stuck them on my list for further investigations but I guess its high risk, sounds a better prospect then actual shares though



http://www.investopedia.com/terms/y/yield.asp


Yield is retro which means they might pay out nothing for the next 5 years but previously they have returned 13% annually of the current price.





I stuck it on my 'lil yahoo portfolio and it came back with an interesting article on overbought vs oversold. I dont think its that simple, the valuation might be correct on some but the risk is there and PGF must be risky.

GLD is listed as the opposite and its a two week old article, of course its recovered now


http://seekingalpha.com/article/135807-most-overbought-and-oversold-non-leveraged-etfs?source=yahoo

welshmoneylover

Lokolo wrote: »

Its the % of the overall.

So if dividend yeild is 5%. It means the dividend is 5% of the share prices. So if share price is 100p, dividend yield is 5p (5% of 100p)

Thanks Lokolo

So am I right in thinking the higher the yield the better the divi for us shareholders?

Lokolo

welshmoneylover wrote: »

Thanks Lokolo

So am I right in thinking the higher the yield the better the divi for us shareholders?

Yes exactly.

welshmoneylover

Lokolo - you're a darling, I'll send you a virtual drink on me!!

sabretoothtigger

High yield should signal high risk first most then consider the case for an oversold asset.
The banks were all great yield last year, we now know which of the above was true

the higher the yield the better the divi for was shareholders

Its a fallacy, an old dividend shown against todays moving price. Check dividend cover also, not perfect but better


http://www.businessdictionary.com/definition/dividend-cover.html

Lokolo

Not necessairly. A constant good yield could mean good profits but not share growth.

A lot of established companies, such as Vodafone until recently, would give out good dividends but were not in as so much trouble.

But if a company tends to give out 4-5% but then gives out 15% suddenly it will raise some eyebrows.

tradetime

sabretoothtigger wrote: »

13% yield is unbelievable when they just doubled in price. I wonder how they do that, a managed etf
American Finance pref shares? I've stuck them on my list for further investigations but I guess its high risk, sounds a better prospect then actual shares though



http://www.investopedia.com/terms/y/yield.asp


Yield is retro which means they might pay out nothing for the next 5 years but previously they have returned 13% annually of the current price.





I stuck it on my 'lil yahoo portfolio and it came back with an interesting article on overbought vs oversold. I dont think its that simple, the valuation might be correct on some but the risk is there and PGF must be risky.

GLD is listed as the opposite and its a two week old article, of course its recovered now


http://seekingalpha.com/article/135807-most-overbought-and-oversold-non-leveraged-etfs?source=yahoo

It would show as overbought since many banking shares have gone up double, triple, etc think Barclays, Citi, BOA, over the last few months. The fund is comprised of preference shares and the average of the coupon price works out to around 12%
http://www.invescopowershares.com/products/overview.aspx?ticker=pgf

Seems an interesting fund if you are interested in holding banks for the long run. Fair disclosure, I do not hold this

sabretoothtigger

Its a great one, just wish they had one for uk banks as well. But I always state the worst case especially when it looks so easy

Stumbled across another interesting fund yesterday, sp500 hedged to the Canadian dollar which is xsp.to. I like that because the dollar has been falling against a rising market recently and this could be true long term also (doesnt show any advantage on the charts, maybe Im wrong on that)

I would not want to hold dollar anything much at the moment


Also saw bric.l which is top 50 bric shares.

Chinese tracker I think

XX25.L

tradetime

sabretoothtigger wrote: »

Stumbled across another interesting fund yesterday, sp500 hedged to the Canadian dollar which is xsp.to. I like that because the dollar has been falling against a rising market recently and this could be true long term also (doesnt show any advantage on the charts, maybe Im wrong on that)

I would not want to hold dollar anything much at the moment


Also saw bric.l which is top 50 bric shares.

Chinese tracker I think

XX25.L

Interesting find, will have a look at those later thanx. :beer:

Buddy195

Has anyone been studying RBS over the last few weeks. Am considering buying a few thousand shares and seeing how they go, they seem very stable at the 40p ish mark recently....