Turning £250K into £1 million

StevieJ

As an example for a HYP look at Shell forward dividend yield 4.3% and a p/e ratio of 9.1% and a reserve replacement of 150% this year I know they have had problems with overstated reserves and the 'stand and deliver' over Sakhalin but I am fairly sure that these oil companies used to trade off a yield nearer to 2% and p/e of around 16%.

Chrismaths

As an example for a HYP look at Shell forward dividend yield 4.3% and a p/e ratio of 9.1% and a reserve replacement of 150% this year I know they have had problems with overstated reserves and the 'stand and deliver' over Sakhalin but I am fairly sure that these oil companies used to trade off a yield nearer to 2% and p/e of around 16%.

Which is typical for a company in a cyclical sector. Mining and oil companies look cheap (ie have low p/e) when what they produce is expensive (but is likely at a peak), and look dear when what they produce is cheap. But the "e" part of the p/e ratio can change very quickly.

Moonbeam

Chrismaths wrote:

Moonbeam - have you ever worked for the company whose shares you are selling? If you have, you might be able to cut the tax payable.

Yes I worked for them in 1995 for 3 years (fulltime) and again in 2003 - 2004.(part time)...Left them in 2004 to go and work for HBOS fulltime - the company has been owned and run by my dad for 20+ years and i've had the shares since 1990. - what are the other options with cutting tax?

EdInvestor

StevieJ wrote:

As an example for a HYP look at Shell forward dividend yield 4.3%

Yes, an excellent HYP share with a rising yield.The other indicators to look for are market cap(big) and debt levels (low).Each share needs to fit in with the diversification strategy, but it's basically pretty easy to set it all up - very little analysis is required.

Moonbeam

Bump for Chrismaths.....