Stockbrokers for Investment Clubs

PipneyJane

AnotherJoe said:

PipneyJane said:

AnotherJoe said:

No disrespect meant, but if £120 a year is "unsustainable" is it worth carrying on?

As I said, we’re no longer contributing, just reinvesting dividends.  We get about £1,000 of dividends a year.  Like most investors, our portfolio has taken a bit of a battering during 2020 so selling up now is not an option we want to consider.

- Pip

Really? I'm up. I suspect most are. Even my dull global equities funds are up even if oniy slightly. 

However if you are in dividend paying shares as a strategy maybe you need to address that. 

And after 17 years I'd have expected you'd have learned that waiting until shares you hold go up , simply because they have fallen, is not a strategy . 

Or at least, not a  good one.
Out of interest want to post the share club portfolio ? This seems like a bigger problem than £10 a month  charge 

DireEmblem said:

I think what AnotherJoe is trying to say, is that when investing, there is nothing wrong with high income/dividend stocks, you can get some crackers, but you are better looking at the bigger picture, otherwise known as “total return”.

A lot of dividend stocks are still in negative territory this year, and it’s all fair and well saying in hindsight, but diversification across asset classes is normally key for long term returns.

But companies that pay dividends usually have two things going for them:  they are profitable and they're not geared up to the hilt, which is what makes them good, long term investments.

The thing is:  2020 isn't a normal year.  Nobody expected half the planet to go into Lockdown over a pandemic.   While I'm not saying Lockdown was a bad response to the viral threat, it isn't sustainable and, sooner or later, we have to go back to a more open economy or the fall out will be far worse than the virus.   Virus-wise, one of three things always happens:  herd immunity from the majority of the population catching the virus; herd immunity from the uninfected population being vaccinated; or the virus dies out because it's quarantined to death.  It's far too late for the latter to happen.  The middle option is "under development" and, without mass antibody testing, nobody knows how many people have already been infected and recovered.  Also, it's an RNA virus, making it prone to mutation, so it will always be with us in one form or another.  We have to learn to live with it, like we live with the flu.

We've had good, long term gains on our portfolio but some things are struggling due to Covid-19. Rolls-Royce, for example. Their business model is a really good one for "normal times" but nothing about this year is normal;  planes aren't flying and royalties from engines aren't accruing.  

- Pip

Thrugelmir

PipneyJane said:

AnotherJoe said:

PipneyJane said:

AnotherJoe said:

No disrespect meant, but if £120 a year is "unsustainable" is it worth carrying on?

As I said, we’re no longer contributing, just reinvesting dividends.  We get about £1,000 of dividends a year.  Like most investors, our portfolio has taken a bit of a battering during 2020 so selling up now is not an option we want to consider.

- Pip

Really? I'm up. I suspect most are. Even my dull global equities funds are up even if oniy slightly. 

However if you are in dividend paying shares as a strategy maybe you need to address that. 

And after 17 years I'd have expected you'd have learned that waiting until shares you hold go up , simply because they have fallen, is not a strategy . 

Or at least, not a  good one.
Out of interest want to post the share club portfolio ? This seems like a bigger problem than £10 a month  charge 

DireEmblem said:

I think what AnotherJoe is trying to say, is that when investing, there is nothing wrong with high income/dividend stocks, you can get some crackers, but you are better looking at the bigger picture, otherwise known as “total return”.

A lot of dividend stocks are still in negative territory this year, and it’s all fair and well saying in hindsight, but diversification across asset classes is normally key for long term returns.

But companies that pay dividends usually have two things going for them:  they are profitable and they're not geared up to the hilt, which is what makes them good, long term investments.

That depends on the companies in question. Profit is not cash. As the old adage goes. Revenue is vanity, profit is sanity but cash is always king.  Care to name some of the holdings? 

coyrls

PipneyJane said:

AnotherJoe said:

PipneyJane said:

AnotherJoe said:

No disrespect meant, but if £120 a year is "unsustainable" is it worth carrying on?

As I said, we’re no longer contributing, just reinvesting dividends.  We get about £1,000 of dividends a year.  Like most investors, our portfolio has taken a bit of a battering during 2020 so selling up now is not an option we want to consider.

- Pip

Really? I'm up. I suspect most are. Even my dull global equities funds are up even if oniy slightly. 

However if you are in dividend paying shares as a strategy maybe you need to address that. 

And after 17 years I'd have expected you'd have learned that waiting until shares you hold go up , simply because they have fallen, is not a strategy . 

Or at least, not a  good one.
Out of interest want to post the share club portfolio ? This seems like a bigger problem than £10 a month  charge 

DireEmblem said:

I think what AnotherJoe is trying to say, is that when investing, there is nothing wrong with high income/dividend stocks, you can get some crackers, but you are better looking at the bigger picture, otherwise known as “total return”.

A lot of dividend stocks are still in negative territory this year, and it’s all fair and well saying in hindsight, but diversification across asset classes is normally key for long term returns.

But companies that pay dividends usually have two things going for them:  they are profitable and they're not geared up to the hilt, which is what makes them good, long term investments.

Another way of looking at it is that companies who pay dividends don't have confidence in their ability to grow profitably, otherwise they would re-invest the cash into the company to generate better returns.

AnotherJoe

PipneyJane said:

AnotherJoe said:

PipneyJane said:

AnotherJoe said:

No disrespect meant, but if £120 a year is "unsustainable" is it worth carrying on?

As I said, we’re no longer contributing, just reinvesting dividends.  We get about £1,000 of dividends a year.  Like most investors, our portfolio has taken a bit of a battering during 2020 so selling up now is not an option we want to consider.

- Pip

Really? I'm up. I suspect most are. Even my dull global equities funds are up even if oniy slightly. 

However if you are in dividend paying shares as a strategy maybe you need to address that. 

And after 17 years I'd have expected you'd have learned that waiting until shares you hold go up , simply because they have fallen, is not a strategy . 

Or at least, not a  good one.
Out of interest want to post the share club portfolio ? This seems like a bigger problem than £10 a month  charge 

DireEmblem said:

I think what AnotherJoe is trying to say, is that when investing, there is nothing wrong with high income/dividend stocks, you can get some crackers, but you are better looking at the bigger picture, otherwise known as “total return”.

A lot of dividend stocks are still in negative territory this year, and it’s all fair and well saying in hindsight, but diversification across asset classes is normally key for long term returns.

But companies that pay dividends usually have two things going for them:  they are profitable and they're not geared up to the hilt, which is what makes them good, long term investments.

The thing is:  2020 isn't a normal year.  Nobody expected half the planet to go into Lockdown over a pandemic.   While I'm not saying Lockdown was a bad response to the viral threat, it isn't sustainable and, sooner or later, we have to go back to a more open economy or the fall out will be far worse than the virus.   Virus-wise, one of three things always happens:  herd immunity from the majority of the population catching the virus; herd immunity from the uninfected population being vaccinated; or the virus dies out because it's quarantined to death.  It's far too late for the latter to happen.  The middle option is "under development" and, without mass antibody testing, nobody knows how many people have already been infected and recovered.  Also, it's an RNA virus, making it prone to mutation, so it will always be with us in one form or another.  We have to learn to live with it, like we live with the flu.

We've had good, long term gains on our portfolio but some things are struggling due to Covid-19. Rolls-Royce, for example. Their business model is a really good one for "normal times" but nothing about this year is normal;  planes aren't flying and royalties from engines aren't accruing.  

- Pip

Maybe one-upon-a-time they did. Now they are either companies paying out more dividends than their profits can tolerate to keep a high share price (that can't last) or companies that can't grow so they give money back to investors (and that will continue until a new technology or product or service appears and then "pop" they've gone) or they are old industries milking past glory until some new tech takes them out behind the woodshed.

The virus has in many cases merely brought forward trends that were already there - home working, replacement of bricks and morta by on line shopping, replacement of oil by renewables. Mayeb brought it forward five years.

We wont be going back to the "old normal" and if your investments are predicated on that picture, my bet is, they are at the highest point right now they ever will be will be going forward.

PotentialEnergy

We used TimeToTrade but it just shut down. NO THOUGHT put in that a specialist IC broker closing would flood the market with clubs seeking brokers. Too joined up thinking 🤔 Hence shutters came crashing down!!

Anyway, came across Pilling who when I rang said they'd still accept. But we're yet to try formally as reaction is luke warm due to leave I.e. ex-members on holiday