An obvious cautionary tale.

AnotherJoe

letspretendforaminute wrote: »

I sold 16,000 shares in SBRY this morning as I believe they've overpaid for ASDA by a county mile. I have £50k to split across three companies for dividend income and would welcome ideas. I'll add legal and general on a pull back so two more to pick.

I agree and ISTR reading an article sometime back that showed a solid inverse relationship between the size of a merger / takeover and its success. As this one is a biggie I do think its likely to be overdone.

Also, isn't there a good chance this will not be allowed to go though by mergers and monopolies or whatever they are called these days?

FWIW on your second question, suggestions include Persimmon, iShares PLC (which does the work of sorting out dividend payers for you), Lloyds, Vodafone, GSK. I own all these in my "income ISA".

atush

letspretendforaminute wrote: »

The nearly six year return on two SIPP pension funds is £49k to £140k and £8.5k to £20k respectively, not bad and all made possible by the freedoms within a SIPP. A few months back the largest portfolio was touching £170k and the smaller one bubbling along at £30k+ To get these gains I’ve for want of a better word gambled on the AIM and came unstuck this week when a copper miner i’d invested in failed to deliver on promises made (water ingress that hadn’t been properly addressed, more to to with the mines feasibility itself). While I had invested long before one internet tipster built a sizeable stake his confidence led me to hold as they climbed to a paper profit of £40k my gut was telling me to exit at 3p but didn’t and realised 0.214p

Well I’m going to steer well clear of AIM and look forward to the £2.5k (eSure loaded up at 212p selling down to 7,500 ex div at 228p) of dividends already in the pipeline from my refreshed portfolio.

This is how my portfolio looks now...
26000 Sainsbury's
2500 GSK
1250 SSE
7500 Esure
1250 Britvic
5000 Lloyd’s
325 Merlin

While the Sainsbury’s shares are a substantial allocation my weight purchase price is only £1.75 a share as I bought and sold when they were 2.25-2.55 range bound. I’ll soak up any volatility from here on by matching dividends with my own income and hope to grow this fund by 7% (yield plus 3.5%) for the next 18 years.

A mine is a whole in the ground with a liar on top.

Why gamble on single shares over a Fund or investment trust?

letspretendforaminute

Atush. Five years ago I!!!8217;d have been happy for my portfolio to hold 10-12 blue chips divi payers and back then the figure I had in mind was £7,500 in each. To my amazement I!!!8217;ve exceeded this with six figure sums in each holding bar two (merlins really just to get the share perks, 317 shares minimum). This is my fund so to speak and the collective 4% yield in theory should by me a position in a different stock every two years, so I won!!!8217;t be in a hurry to invest unwisely or spend too much time doing so. I!!!8217;ve grown-up a lot in those preceding years, taken far greater risks while enriching HL by frantically trading (frequent trader). I!!!8217;ve overachieved and my strategy has changed before I got beheaded. I do hold funds elsewhere so not averse to the idea.

Big headed got autocorrected to beheaded but I think I!!!8217;ll leave it there.

atush

Thats ok, fairly unreadable with all that gobbldygook in there

letspretendforaminute

Sorry I am not putting all this gobbledygook in there it is mse platform that struggles with punctuation. A full stop is okay though and maybe a comma, from my phone.

AnotherJoe

letspretendforaminute wrote: »

Sorry I am not putting all this gobbledygook in there it is mse platform that struggles with punctuation. A full stop is okay though and maybe a comma, from my phone.

If you are on an iPad or iPhone, go to Settings > General > Keyboards.

Slide "Smart Punctuation" to OFF.

letspretendforaminute

AnotherJoe, thank you. I can now only blame myself.

I set 5 buy limits this morning and have already picked up 1000 HSBA and still pending National Grid, Lloyds(top up), BAE and L&G to trigger. That leaves £12.5k to play with an average down should the need arise.

Thrugelmir

letspretendforaminute wrote: »

Well I’m going to steer well clear of AIM

I hold AIM stocks and none of mine are as exotic as a copper mine. Prefer more mundane investments where the business model is more predictable and the accounts meaningful.

letspretendforaminute

Thrugelmir wrote: »

I hold AIM stocks and none of mine are as exotic as a copper mine. Prefer more mundane investments where the business model is more predictable and the accounts meaningful.

I'll rephrase my original statement... I'm not going to put the farm on AIM listed stocks. Especially exotic mining entities. There's still a handful of them in my portfolio and I'll be more cautious on future selections and only invest with dividend income.

letspretendforaminute

letspretendforaminute wrote: »

The nearly six year return on two SIPP pension funds is £49k to £140k and £8.5k to £20k respectively, not bad and all made possible by the freedoms within a SIPP. A few months back the largest portfolio was touching £170k and the smaller one bubbling along at £30k+ To get these gains I!!!8217;ve for want of a better word gambled on the AIM and came unstuck this week when a copper miner i!!!8217;d invested in failed to deliver on promises made (water ingress that hadn!!!8217;t been properly addressed, more to to with the mines feasibility itself). While I had invested long before one internet tipster built a sizeable stake his confidence led me to hold as they climbed to a paper profit of £40k my gut was telling me to exit at 3p but didn!!!8217;t and realised 0.214p

Well I!!!8217;m going to steer well clear of AIM and look forward to the £2.5k (eSure loaded up at 212p selling down to 7,500 ex div at 228p) of dividends already in the pipeline from my refreshed portfolio.

This is how my portfolio looks now...
26000 Sainsbury's
2500 GSK
1250 SSE
7500 Esure
1250 Britvic
5000 Lloyd!!!8217;s
325 Merlin

While the Sainsbury!!!8217;s shares are a substantial allocation my weight purchase price is only £1.75 a share as I bought and sold when they were 2.25-2.55 range bound. I!!!8217;ll soak up any volatility from here on by matching dividends with my own income and hope to grow this fund by 7% (yield plus 3.5%) for the next 18 years.

A mine is a whole in the ground with a liar on top.

A big reshuffle within my dividend portfolio with new additions such as Standard Life Aberdeen and Dairy Crest. As of today it stands like this (£171,663 with £8,750 of annual dividends assuming they remain intact).

GSK 21.85%
DCG 11.98%
ESUR 10.58%
SSE 10.38%
SBRY 9.27%
BVIC 6%
SLA. 5.24%
NG. 5.13%
MARS 4.35%
HSBA 4.28%
CNA 4.22%
AGR 3.31%
LLOY 1.91%
BT.A 0.76%
MERL 0.7%

Apart from a few hundred quid for all intents and purposes fully invested. The BT shares were purchased with this months dividends (625 shares) and I'll increase this to 1,000 shares next month. Six years ago all of this was seeded from a collection of underperforming old company pensions worth £57,500 transfered into a SIPP and self-invested. I bought 4,000 DCG at £5.01 with a view to whittle this down to 1,000 after the dividend ex-date.