City Of London Investment Share Discussion Threads

[zac0_4] 10/7/2020 12:12

panshanger1 - pretty much all of my dividend paying shares / trusts have performed appallingly throughout this crisis. However, most of my investments in global growth funds have delivered a good return over the last 6 months. Strategy now is to move away from individual dividend paying shares into investment trusts for income. Longer term I think global growth funds are probably the way to go for me and drawdown capital for income as and when required. Currently hold the following trusts: MRCH, HHI & HFEL. Good luck.

[panshanger1] 10/7/2020 11:21

3000 Looking to add though as switching some of my investments from growth and wealth preservation to incomeDiv looks safe - and hero status obviously but if things get really tricky they may have to cut Sold some PNL to fund this Also added MRCH yesterday GLA

[damanko] 10/7/2020 10:27

Interesting post... on a very underused thread.

Pan, what's your definition of a few? Nobody knows your real name/identity, so if you're up for it, be honest...

Over the years I've sold most of my investments once they achieved a certain profit margin, and put the proceeds into the bank & CTY, more or less 50/50.

In fact CTY is now the only holding in my SIPP.

Always reinvested, since the 80's. Good luck with your investment, it won't shock or amaze you on any given day, but should gently rise over the months and years. In my opinion it's one of the best barometers of the UK's financial health.

Long may that continue, I need only to look at the share price to see how the FTSE 100 & 250 have performed any weekday of the year.

Regards.

d.

[panshanger1] 10/7/2020 09:57

Picked up a few

[damanko] 14/3/2020 20:28

Quite possibly. Though having been an investor in CTY for 25+ years, and always reinvesting the dividends I'm not overly worried.

Sure, bad things happen, they always will. Though having survived '87, the late 90's currency crisis, the dot com boom a couple of years later, the Gulf Wars of '91 and 2003, the credit crisis of 2008/9 etc etc…

My opinion is that your money is reasonably safe Chris. If I was a young buck I'd consider putting some money into City of London right now.

However I ain't a young buck any longer, plus my yield on my original is well north of 20%.

Go well, none of us should panic at this time.

d

[chrissmith2] 13/3/2020 09:47

Crazy market. 50 years of dividend increase and now paying 5.80%.
Will still fall further?

[johnwig] 23/1/2020 14:56

CTY ex dividend today

[tim 3] 16/12/2017 18:51

Hi killing time.

Thanks for the reply interesting about Hargreaves. I think its popularity currently is probably partly because there are many cautious investors who would normally invest in fixed interest savings bonds ect but are being forced to look for something with more risk due to the shocking returns available there.

Yes and certainly wish I had been in a position to buy when we had Brexit!

Hope EDIN comes good for you.

[killing_time] 15/12/2017 20:44

Hi Tim 3.

When we had brexit about a year and a half ago I bought a lot of funds that got hammered that day. I bought two funds to make my core holding, CTY and Edinburgh trust.
Today I am about 15% up on CTY and only about 3% up on EDIN not including dividends which CTY are greater.

I view CTY as solid with a good dividend but over the last 6 months EDIN has been shocking.

CTY is very popular with Hargreaves Lansdown customers drip feeding money in as its always near the top of the favourite funds customers buy, which im guessing is because of the good dividend and steady performance which is why its now my biggest fund. KT.

PS: don't talk to me about EDIN. :-(

[tim 3] 15/12/2017 20:39

Thanks North SeaBoy.

More or less confirms my own views.

Its encouraging that they were able to grow the dividend even during the financial crisis as I do fear that in the next few years there could well be some sort of correction and I think some of thee defensive investments could see substantial falls.

[north sea boy] 15/12/2017 19:02

Hi Tim 3.

I bought my holding in November 2016 as part of a portfolio I created from my 25% tax free pension drawdown. So essentially I bought these primarily for income to supplement my private pension.

So far these have been a steady performer that has delivered me 4.375% annual income from my initial purchase price, and circa 10% in capital growth on top of that, although I have absolutely no intention on selling them for foreseeable future.

The price does not increase as dramatically as other investment trusts (e.g FRCL or EIT) as it pays out a higher proportion of profit as a regular (as so far dependable) dividend.

Hope this helps?

North Sea Boy

[tim 3] 15/12/2017 11:51

Thanks damanko Yes I must admit am surprised there is not more interest here with such a consistent record.What I particularly like is they try to smooth things out so you get a steady performance in the good and bad times and of course the dividend remains consistent so you get the advantage of a steady yield and the potential for growth.Although they look high they have not grown anything like some of the others like Edinburgh trust which I think is more vulnerable if things get ugly.

[damanko] 15/12/2017 10:38

Tim,

You're right - it is a little toppy, with good reason.

I.E. because it has an excellent long term record, and always pays a decent dividend. Unless the market goes into freefall like 2008/9, CTY's performance is likely to remain on a gentle upward trend, with steady dividend uplifts.

Thinking long term?

Here's an example: I bought CTY in 1994, and still hold. By always reinvesting the dividend, my 'buying price' is now a little under 60 pence per share.

If you do go ahead and buy now, happen you can post in 2040 and let us know how your investment has performed...

Good luck & regards

D

[tim 3] 15/12/2017 10:10

Hi guys.

Thinking of buying here as a long term income investment.

Have done a fair amount of research and these seem to fit very well with my needs which is basically a medium-lower risk investment which while not giving anything spectacular should give a consistent,if boring performance!

Do you think it is a little toppy here I notice it trades at a premium nav currently might it be best to wait a while?.

TIA.

[damanko] 03/11/2017 22:13

Remarkable, a post on this thread. Money I put into this & Witan in the 80's & 90's has increased several fold, and the dividend received (still reinvested until such time as I go on a spending spree) is well over 20% on the original investments. As I mentioned a few years ago, it's a funny old world.

[sharesoc] 03/11/2017 17:05

There is a detailed blog post on On-Line AGMs and City of London IT available here:

[brahmsnliszt] 09/9/2015 16:11

Snapped up some here on the pull back last week. Let's see.

[rrr] 20/3/2015 21:27

Bought these for the first time today, seems a good income and growth prospect.

rrr

[bigwilly1986] 19/12/2014 17:16

Good choices. If I had a child I would buy the same trusts as you!

[rech] 19/12/2013 16:59

I filled my youngest child's first year Junior ISA allowance with CTY. His second year saw me buy AAS, which has been poor timing. I suspect that the third purchase will be targeted towards USA - perhaps F&C US Smaller Companies.

Sorry, OT post!

[gregmorg] 13/12/2013 13:23

Problem is the asset value grows so so slowly! Really this year it has been tedious. Also they keep issuing equity on which a dividend then has to be paid and on a quarterly basis this can be costly to the established shareholders in the near term but constantly!

I have held this Trust for ten years or so now. The dividend keeps going up although the actual increase in Dividend in recent years is seriously minuscule. Seems to me this Trust just keeps under performing the overall market and needs a bit of a shake up.

[damanko] 28/11/2013 20:22

Quite rightly.

Your children will benefit - eventually. Things of course go up and down, and CTY has had many bad periods, but the income has been paid throughout, and as your kids probably don't need the cash right now, one day their (increased) holding will reflect your intelligence in stock picking.

I guess you're 55 ish, though I'm often way off base when picking someone's age...

Regards,

D