Your last investment?

Thrugelmir

economic wrote: »

when is it a good time to sell off my remaining value/dividends stocks? i feel rate hikes will really cause these stocks to underperform the market.

Surely value stocks will outperform the market in such circumstances?

economic

Thrugelmir wrote: »

Surely value stocks will outperform the market in such circumstances?

no

value stocks are stocks bought on high dividend yield usually and investors have bought these for income, as rates rise there is less need for them and so they sell off. there is a strong correlation.

masonic

economic wrote: »

no

value stocks are stocks bought on high dividend yield usually and investors have bought these for income, as rates rise there is less need for them and so they sell off. there is a strong correlation.

The higher the yield, the less effect a 0.25% increase in base rate would have on the price, assuming as you say the stock is bought for yield.

EdGasket

lr1277 wrote: »

based on a recommendation by Simon Thompson in Investors Chronicle.

Don't follow that idiot. He recommended both naibu Global and CamKids which both turned out to be worthless Chinese scams that went bust and lost investors all their money!

My most recent BRSN @ 735p. Looks over-sold. Recent director buy (£198K) @ 785p. Dividend raised so yield around 5%. Not especially affected by Brexit.

Pincher

george4064 wrote: »

That special dividend is humungous! I guess the share price will drop by about the same amount when it goes XD?

London 24 March 2017 The Board of Electra Private Equity PLC ("Electra") is pleased to announce that it is today declaring a special dividend* of £1.0 billion, representing 2,612p per share, to be paid on 5 May 2017 to shareholders on the register of members at the close of business on 7 April 2017.
...

As indicated in the first phase of our strategic review in October 2016, the Board believes that it is best practice to return excess capital to shareholders and will continue to monitor the Company's capital needs as part of the second phase of the strategic review.


So it looks like they are winding down operations.

£26.12 dividend from a share price of £49.51.
So if you buy con dividend at £49.51, it will drop to £23.39 when it goes ex-dividend.

This is an interesting opportunity to create a capital loss to offset gains.

The problem is, the dividend is so large, it will push me into 37.5% dividend tax, and even Additional rate, so the Higher rate 20% capital gains tax pale into insignificance.

For people who have not used their £5,000 dividend tax allowance, it is possible to convert 20% CGT gain into 0% (!) dividend.

bowlhead99

Pincher wrote: »

£26.12 dividend from a share price of £49.51.
So if you buy con dividend at £49.51, it will drop to £23.39 when it goes ex-dividend.

This is an interesting opportunity to create a capital loss to offset gains.

The problem is, the dividend is so large, it will push me into 37.5% dividend tax, and even Additional rate, so the Higher rate 20% capital gains tax pale into insignificance.

For people who have not used their £5,000 dividend tax allowance, it is possible to convert 20% CGT gain into 0% (!) dividend.

Even for people who do not have any capital gains this year because they do most of their investing in tax wrappers, or simply haven't sold anything, it can still be worth considering if they have the space in their dividend allowance.

For example, say the dividend is half the share price to make the it simple. Invest £10k early next week. Sell for (hopefully) £5k on Thursday or Friday and then later receive £5k dividend which fits inside your £5k div allowance and attracts no income tax.

You end up broadly cash neutral. But you can tell HMRC that you have made aggregate capital losses of £5000.

Those losses can be carried forward to future years in which you actually have some taxable capital gains - the available losses will reduce those gains saving you £500 to £1400 depending on your marginal rate of tax and type of gain.

Obviously there's a risk that the share price ex-div drops by more than the div due to some people specifically holding it for the div and other market factors etc.

Marine_life wrote: »

Second, Impact Healthcare REIT

Why
1. I quite like property as an asset class for the stable returns
2. Yield is good (6%)
3. Old age is a growing sector!

Out of curiosity why did you select it over something like Target Healthcare REIT which has grown through further fundraisings since their own IPO to have a larger portfolio in the same sector, with more operating history as a public entity, rather than Impact which is a new IPO with only the prospectus to go on?

I say this as an investor in Target but not as someone who's looked at Impact's prospectus in great detail yet.

JohnRo

I might just sell out altogether if the price goes up a chunk this next week, dividend be damned.

lr1277

EdGasket wrote: »

Don't follow that idiot. He recommended both naibu Global and CamKids which both turned out to be worthless Chinese scams that went bust and lost investors all their money!

Thanks for that advice, but I don't buy everything he suggests. I do my own analysis.

On his advice, I bought Burford in October. It is up 74% since then.

I admit it is riskier with smaller companies, but I keep a close eye on the companies after I have bought.

Marine_life

bowlhead99 wrote: »

Out of curiosity why did you select it over something like Target Healthcare REIT which has grown through further fundraisings since their own IPO to have a larger portfolio in the same sector, with more operating history as a public entity, rather than Impact which is a new IPO with only the prospectus to go on?

I say this as an investor in Target but not as someone who's looked at Impact's prospectus in great detail yet.

I quite like impact because their portfolio is a little more...quirky...shall we say. A few older properties which have the potential for capital growth with a bit of judicious investment. That's not to say I want jump in to Target at some point (as someone who already owns MedicX).

bigadaj

Murray international and premier energy and water ITs.

The former to gain international exposure and reduce relative uk and us exposure, decent dividend and on a discount which I always enjoy, however small.

Latter to gain some infrastructure exposure which is typically expensive, again discount and dividend payer.

Slight drawback is I see the pound slightly strengthening in the near future which will hit overseas returns.

Looking forward to the new Isa season, potentially looking at more investment trusts, on the basis they may not be as overvalued and has the ability to smooth returns to an extent, and maybe some reits as its a sector that does look relatively under valued, though I am bearish on property in general.

Looking to increase p2p exposure in the coming months, though loan availability is an issue in many platforms.