Sell or not Sell abrdn shares

plumb1_2

Hi all
i got free standard life shares when they changed from a mutual.
I opted for the Drip method when I receive the 6 monthly dividend. I have approximately 7700 shares and receive approximately £500 in annual dividends. They seem to be stable dividends.

My options either sell then now and receive approximately £7500 , less any cgt and pay the remainder into my sipp. Or keep hold and now receive the £500 annual dividend. Will be retiring in a few months, qualified for SP and expect to pay 20% tax in my retirement . 

Part of my brain thinks that this could be just like a small annuity , I know it’s not guaranteed and the shares could end up £0.00 and no dividends but they seem a solid company.

What are people’s opinions.
 

Old_Slaphead

I sold my 'freebies" and repurchased them in my SIPP..
They're going nowhere and are not terribly exciting but I've got a steady 7% dividends tax free over the years which I'm quite happy with.

TheBanker

The question is, if you had £7,500 cash, would you buy the shares or invest is something else?

plumb1_2

TheBanker said:

The question is, if you had £7,500 cash, would you buy the shares or invest is something else?

I’d most properly put in VLS 100 or a hsbc world index

Millyonare

For me, I'd cash them in and go on a retirement-celebration trip to the Maldives, Antarctica cruise, [insert your dream holiday]. Dull the pain of their plunging share performance.

jimjames

plumb1_2 said:

TheBanker said:

The question is, if you had £7,500 cash, would you buy the shares or invest is something else?

I’d most properly put in VLS 100 or a hsbc world index

I think you have your answer then!

dharm999

plumb1_2 said:

Hi all
i got free standard life shares when they changed from a mutual.
I opted for the Drip method when I receive the 6 monthly dividend. I have approximately 7700 shares and receive approximately £500 in annual dividends. They seem to be stable dividends.

My options either sell then now and receive approximately £7500 , less any cgt and pay the remainder into my sipp. Or keep hold and now receive the £500 annual dividend. Will be retiring in a few months, qualified for SP and expect to pay 20% tax in my retirement . 

Part of my brain thinks that this could be just like a small annuity , I know it’s not guaranteed and the shares could end up £0.00 and no dividends but they seem a solid company.

What are people’s opinions.
 

Aren’t they worth over £15k at the moment as the share price is around £2, which would make your yield around 3%?  I think you may have got your figures wrong as the dividends were around 14p/share, which would make your cash dividend over £1000 not £500, could you own around half the 7700 shares you say you have, as that would make your figures about right?

plumb1_2

Sorry my mistake shares 3735 value £7500, 2022 divided 14.06 p. So dividend £525.

plumb1_2

And I think I’ll have to make a post on cutting tax forum to get some info about cgt I would owe Mr hunt.

wmb194

Abrdn/Aberdeen has been a dud for a while now e.g., Investors' Chronicle has been rating it a sell - see attached picture with article headlines and bylines. Essentially, it's struggling with cheaper competition but apparently its recent purchase of Interactive Investor is going well and delivering profits so it *could* be a turnaround story but we need time to see whether its new strategy is working...

Its current prospective dividend yield looks to be about 7% and this level generally means that the market is sceptical that it can be maintained.

plumb1_2

 Finally managed to sell them and payment received today, going straight into sipp 
so the £8k can become £10k.