Squeaky bum time!

MK62

NedS said:

Username999 said:

NedS said:

Personally I wouldn't go "all in" on anything.
10% tops for me.

Indeed, that is one of the risks being invested in a relatively concentrated fund holding ~100 stocks. But I'm not buying it for it's diversification, I'm buying it for it's reliable track history of dividend income and the potential of future share price growth given the relatively low entry point. And those risks don't seem any more risky to me that buying a much more globally diversified global index tracker that's heavily biased towards IMHO over-priced US tech companies and an over-priced US market in general. And I will have a substantial DB/fixed income stream, so my "all-in" SIPP portfolio is holistically only around 30% of my total income post 67.

Perhaps it's entirely coincidental, but CTY appears to have done a pretty good job of tracking the FTSE over the last few years, and it comes with a premium too.
As other posters have said, personally I wouldn't put my entire SIPP with a single manager, but each to their own I suppose.
Don't get me wrong, I'm not saying CTY is bad or don't invest or anything like that......more that there are other decent options too, which you could hold alongside.......

Audaxer

NedS said:

Username999 said:

NedS said:

LHW99 said:

Dipped a small toe in this morning with a limit buy (order not yet fulfilled), but plan to see how things continue before topping up anything else.

I'm with you, time to start filling your boots (slowly). I put some of my cash pile to work in equities this morning. I have no doubt the markets could drop further, but I'm happy at current prices for a long term investment for the dividend income investment trust (CTY, 5.4% trailing yield) I purchased.

Fantastic dividend history CTY.L have.
20+ years of dividend increases!

Sorcerer2018 said:

Username999 said:

NedS said:

LHW99 said:

Dipped a small toe in this morning with a limit buy (order not yet fulfilled), but plan to see how things continue before topping up anything else.

I'm with you, time to start filling your boots (slowly). I put some of my cash pile to work in equities this morning. I have no doubt the markets could drop further, but I'm happy at current prices for a long term investment for the dividend income investment trust (CTY, 5.4% trailing yield) I purchased.

Fantastic dividend history CTY.L have.
20+ years of dividend increases!

I believe CTY has had over 50 years of increased dividned.

I aim to retire in around 6 years, with DB/fixed income that should cover day to day spending, and a SIPP of hopefully around £300K to bridge the gap for 7-9 years from early retirement to DB/fixed income, and provide additional income post SRA. I have seriously been considering going "all in" on CTY for the SIPP. Couple reasons:

1. Invest in what you understand. I have a history of investing in CTY and feel I understand the product well. I feel the dividend is fairly safe, and reasonably well protected by income reserves.

2. That 5.4% dividend yield, with 50 years history of inflation beating growth, seems a lot more attractive that a 3.5% (variable) safe withdraw rate, and would allow me to only need to withdraw the natural yield.

I have CTY as well in my portfolio. The dividend yield at over 5% is good now for new or additional investments to it. However my original investments in CTY are currently yielding around 4.7% pa. If I had invested more yesterday at around a 7% price drop my yield on that new investment would be around 5.4%, but my overall yield on my total invested in CTY would probably still be under 5%.

Thrugelmir

Audaxer said:

NedS said:

Username999 said:

NedS said:

LHW99 said:

Dipped a small toe in this morning with a limit buy (order not yet fulfilled), but plan to see how things continue before topping up anything else.

I'm with you, time to start filling your boots (slowly). I put some of my cash pile to work in equities this morning. I have no doubt the markets could drop further, but I'm happy at current prices for a long term investment for the dividend income investment trust (CTY, 5.4% trailing yield) I purchased.

Fantastic dividend history CTY.L have.
20+ years of dividend increases!

Sorcerer2018 said:

Username999 said:

NedS said:

LHW99 said:

Dipped a small toe in this morning with a limit buy (order not yet fulfilled), but plan to see how things continue before topping up anything else.

I'm with you, time to start filling your boots (slowly). I put some of my cash pile to work in equities this morning. I have no doubt the markets could drop further, but I'm happy at current prices for a long term investment for the dividend income investment trust (CTY, 5.4% trailing yield) I purchased.

Fantastic dividend history CTY.L have.
20+ years of dividend increases!

I believe CTY has had over 50 years of increased dividned.

I aim to retire in around 6 years, with DB/fixed income that should cover day to day spending, and a SIPP of hopefully around £300K to bridge the gap for 7-9 years from early retirement to DB/fixed income, and provide additional income post SRA. I have seriously been considering going "all in" on CTY for the SIPP. Couple reasons:

1. Invest in what you understand. I have a history of investing in CTY and feel I understand the product well. I feel the dividend is fairly safe, and reasonably well protected by income reserves.

2. That 5.4% dividend yield, with 50 years history of inflation beating growth, seems a lot more attractive that a 3.5% (variable) safe withdraw rate, and would allow me to only need to withdraw the natural yield.

I have CTY as well in my portfolio. The dividend yield at over 5% is good now for new or additional investments to it. However my original investments in CTY are currently yielding around 4.7% pa. If I had invested more yesterday at around a 7% price drop my yield on that new investment would be around 5.4%, but my overall yield on my total invested in CTY would probably still be under 5%.

Keep an eye on CTY's major holdings. That will determine the sustainability of the dividend. 

[Deleted User]

Thrugelmir said:

Audaxer said:

NedS said:

Username999 said:

NedS said:

LHW99 said:

Dipped a small toe in this morning with a limit buy (order not yet fulfilled), but plan to see how things continue before topping up anything else.

I'm with you, time to start filling your boots (slowly). I put some of my cash pile to work in equities this morning. I have no doubt the markets could drop further, but I'm happy at current prices for a long term investment for the dividend income investment trust (CTY, 5.4% trailing yield) I purchased.

Fantastic dividend history CTY.L have.
20+ years of dividend increases!

Sorcerer2018 said:

Username999 said:

NedS said:

LHW99 said:

Dipped a small toe in this morning with a limit buy (order not yet fulfilled), but plan to see how things continue before topping up anything else.

I'm with you, time to start filling your boots (slowly). I put some of my cash pile to work in equities this morning. I have no doubt the markets could drop further, but I'm happy at current prices for a long term investment for the dividend income investment trust (CTY, 5.4% trailing yield) I purchased.

Fantastic dividend history CTY.L have.
20+ years of dividend increases!

I believe CTY has had over 50 years of increased dividned.

I aim to retire in around 6 years, with DB/fixed income that should cover day to day spending, and a SIPP of hopefully around £300K to bridge the gap for 7-9 years from early retirement to DB/fixed income, and provide additional income post SRA. I have seriously been considering going "all in" on CTY for the SIPP. Couple reasons:

1. Invest in what you understand. I have a history of investing in CTY and feel I understand the product well. I feel the dividend is fairly safe, and reasonably well protected by income reserves.

2. That 5.4% dividend yield, with 50 years history of inflation beating growth, seems a lot more attractive that a 3.5% (variable) safe withdraw rate, and would allow me to only need to withdraw the natural yield.

I have CTY as well in my portfolio. The dividend yield at over 5% is good now for new or additional investments to it. However my original investments in CTY are currently yielding around 4.7% pa. If I had invested more yesterday at around a 7% price drop my yield on that new investment would be around 5.4%, but my overall yield on my total invested in CTY would probably still be under 5%.

Keep an eye on CTY's major holdings. That will determine the sustainability of the dividend. 

Just had a peak - 93% UK - looks like the dividend big boys of the FTSE

Parking_Trouble

Maybe it's just the stockmarket jargon but not sure why it's called a Correction for those scenarios and a pandemic. It implies the price is wrong (market overheated) rather than being impacted by external events. 

Thrugelmir

Correction lasts for a duration of two months or less. Falls are around 10%. After which shares continue on an upward trend. Not a bear market until time has elapsed. 

westv

The FTSE 100 has fallen around 22% since it reached 7674 on 17/1.
I see that as a bit more than just a correction.

Thrugelmir

westv said:

The FTSE 100 has fallen around 22% since it reached 7674 on 17/1.
I see that as a bit more than just a correction.

That's not two months. Until the uncertainty is removed. Not possible to value company shares properly. Far too many unknowns. 

NedS

MK62 said:

Perhaps it's entirely coincidental, but CTY appears to have done a pretty good job of tracking the FTSE over the last few years, and it comes with a premium too.
As other posters have said, personally I wouldn't put my entire SIPP with a single manager, but each to their own I suppose.
Don't get me wrong, I'm not saying CTY is bad or don't invest or anything like that......more that there are other decent options too, which you could hold alongside.......

Yes, share price performance pretty much tracks the FTSE100, which is no surprise given the make up of the portfolio. What CTY gives you on top of a passive low cost FTSE100 tracker is a higher dividend yield that can be smoothed out over time to minimise the effects of varying dividend income. I'm more inclined to not be so concerned when the share price drops by 20% plus if I know my £10,000/pa dividend payments will not also reduce by 20%, so I do not need to manage my spending according to the swings of the stock market.

What other ITs / funds would you suggest to sit alongside CTY?

Username999

Have CTY.L ever done a share buy back?