Diverse Income Share Discussion Threads

[ramellous] 17/10/2022 10:51

Updated as of 17/10/22

I3 Energy plc Ord GBP0.0001. 3.61%
iEnergizer Limited Ord 1p 2.29%
Kenmare Resources plc Ordinary EUR 0.001 2.23%
CMC Markets Plc Ordinary 25p 2.20%
K3 Capital Group plc Ord GBP0.01 2.17%
Man Group plc ORD USD0.0342857142 1.84%
FRP Advisory Group plc ORD GBP0.001. 1.81%
TP ICAP Finance plc Ord 25p 1.75%
XPS Pensions Group Plc GBP0.0005 1.74%
Drax Group plc Ordinary 11 16/29p 1.73%

[ariane] 15/10/2022 16:02

i see presently at support level




Divi reinvestment might lead to an upward push

[ariane] 15/10/2022 14:18

wyn

that would take you further into his and the motely fool realm and i was just centred on BHP


FWIW
LINK BELOW

[wynterwilde] 15/10/2022 13:52

Ariane

Thank you for the interesting post. Sadly, he doesn't let us know what he would invest in........

I'm heavily in CSN and I (like many others) hope the new CEO isn't at all as cavalier as some have indicated he may be.

We, in general, are in for some heavy turbulence....please fasten your seat belt.........

[ariane] 15/10/2022 13:33

Here’s the BHP dividend forecast for 2022 to 2024

This mining giant has paid out some huge dividends recently. Here, Edward Sheldon looks at the BHP

Group dividend forecast for the years ahead.

Edward Sheldon, CFA❯

Published 15 October, 8:47 am BST



Mining powerhouse BHP Group (LSE: BHP) has been a bit of a cash cow for investors in recent years.

Last financial year, for example, it rewarded shareholders with total regular dividends of USD $3.25 per share, which translates to a yield of about 13% at the current share price.

Is the company set to continue paying out monster dividends going forward? Let’s take a look at the BHP dividend forecast for the years ahead.


BHP dividend forecasts

First, there are a couple of things to explain.

The first is that BHP’s financial year ends on 30 June. So, the year ending 30 June 2023 is ‘FY2023’. The following year is ‘FY2024’.




The second is that BHP reports its financials, and declares its dividends, in US dollars. So, all forecasts are in dollars. This is important to note because the GBP/USD exchange rate is quite volatile at the moment. In other words, the yield on offer today could be quite different to the yield when the dividends are actually paid if exchange rates fluctuate.

As for the forecasts, right now City analysts expect BHP to pay out $2.09 per share for FY2023 and $1.86 per share for FY2024.

These projected payouts are lower than the $3.25 paid last financial year. However, they still translate to very high yields.

At today’s share price and exchange rate, the projected payout for FY2023 equates to a prospective yield of 8.3% while the estimated payout for FY2024 translates to a prospective yield of 7.4%.

Assuming that these dividend forecasts are accurate (analysts’ estimates can be way off the mark at times), BHP looks set to continue being a cash cow for investors.


Are BHP shares worth buying for income?

Would I buy BHP shares for the big dividends on offer?

The answer to that question is actually no.

One reason I’d pass on BHP is that the stock is ‘cyclical̵7; (mining companies’ profits rise and fall depending on commodity prices) and, therefore, quite volatile. For example, between mid-2014 and early 2016, BHP’s share price fell from near 1,600p to near 500p.


I don’t see the point of collecting a 8% yield if the share price can potentially fall around 70% like it did here. I’d need many years of dividends to make up for that kind of capital loss.


I prefer dividend stocks that are a little more stable in nature.

Another issue for me is the fact that BHP tends to cut its dividend when business conditions are challenging.

This is not ideal from an income-investing perspective.

I prefer to invest in companies that consistently increase their dividend payouts year after year.

I can rely on these kinds of businesses to provide me with a certain level of income.

So, while the yield here does look very attractive, I won’t be buying the shares for my portfolio any time soon.




Ed Sheldon has no position in any of the shares mentioned. The Motley Fool UK

[my retirement fund] 31/8/2022 07:52

ABB is a hell of a company

[al101uk] 22/8/2022 20:46

I'm saying the BOE are between a rock and a hard place:

Tighten and the UK goes in to a deep recession.

Don't tighten and you get even more of the rampant inflation in energy prices and a destroyed currency. As we're net importers, those two things likely result in a deep recession.

Probably best to tighten imv, although not politically palatable hence the potential changes to the BOE remit floated by Truss.

[my retirement fund] 22/8/2022 19:08

Quite right, that's true, and more than that. Not only does it need to follow that lead, credible governance has to be shown, this includes a unified government that is demonstrating a wiliness to reduce public spending and public debt (by cutting public spending and raising revenue (taxes)to pay down debt quicker) and a central banking system that is robustly indicating and demonstrating a wiliness to increase interest rates dramatically ahead of the inflation curve.

As you have probably noted, we have none of those in place, which mostly explains why our currency is sick and our wealth is evaporating as the currency diminishes into a gradual oblivion.

[al101uk] 22/8/2022 18:44

I've posted this numerous times before and never really had a comment on it, but as we're on the topic I'll try here...

Energy costs are denominated in $'s and have hugely inflationary effects on an economy when they rise.

The US continues to tighten aggressively which stregnthens the $ and as a result increases the price of energy for encomies that are not ratcheting up interest rates.

Surely, in order to keep inflation under control from a currency point of view the BOE has to follow the US's lead, almost despite what would be good for the UK economy excluding energy prices.

[aleman] 22/8/2022 14:10

topvest
19 Aug '22 - 14:54 - 550 of 556

Hi Aleman - if you don't mind me asking...what are your thoughts on the forthcoming recession and inflation?

Tough one. Recessions are a natural part of a stock building and reduction cycle, and we've just had a post Covid surge so some slight weakness from that should be expected, but central banks distort interest rate curves with interventions and often make the (upturns and) downturns steeper. Inflation has already peaked in numerous countries around the world - Brasil peaked in April - and most of Europe seems to be peaking with fairly steep downward forecasts, despite its more specific problems. Many central banks are talking up inflation and rate rises despite commodities falling for a few months, and even UK input prices easing despite the weak £. It's only really the gas price still rising and that is not general inflation. Should the B of E keep lifting rates in reaction to this specific supply disruption in Europe and create a recession when the general gas market supply outside Europe is nothing like as severe and it should all very likely recover within a couple of years on its own (as suggested by common sense and futures markets)? I think no more rate rises are needed but I might be in a minority.

So how much will central banks continue to (over)tighten? I can only guess. All inflation forecasts around the globe have it falling back to normal in about a year so there does not seem to be a need to drive a global recession to further kill inflation. It's already falling in many places and likely to fall in the rest. However, I think overtightening looks more likely with every central banker comment. Others might think differently.

[wynterwilde] 22/8/2022 09:04

PHP
NG

Thank you for your replies, most appreciated.

Wc104, I'm glad to see you are a long time investor in PHP... I can't find a shareholders list to see if management has enough skin in the game......

[williamcooper104] 21/8/2022 18:35

A good example of REITs that usually trade at a premium to NAV to better than those that often trade at a discount

[williamcooper104] 21/8/2022 18:33

Yep PHP is pretty safe/reliable dividend I've held it for about 20 years; total return IRRs been around 13-15 percent - far far better than LAND/BLND Debts fixed for 8 years (IIRC) Rental uplifts are mostly market based, so may not be as much as inflation - but still some growth

[waldron] 21/8/2022 17:48

According to above links, more than reasonable


You might ask those on the NG thread





Upcoming events on NATIONAL GRID PLC


November /10/2022 Interim 2023 Earnings Release (Projected)

[waldron] 21/8/2022 17:44

According to above links seems ok

Suggest you ask those on the PHP Thread




Upcoming events on PRIMARY HEALTH PROPERTIES PLC


February/16/2023 FY 2022 Earnings Release (Projected)

[wynterwilde] 21/8/2022 12:43

Does anyone here have an opinion on PHP and NG as safe, steady stock with reasonable divi's..?

[topvest] 19/8/2022 14:54

Hi Aleman - if you don't mind me asking...what are your thoughts on the forthcoming recession and inflation? I seem to remember you had some really good posts previously, which I found a good read.

[wynterwilde] 19/8/2022 14:11

Aleman, thanks for your thoughts.

[aleman] 19/8/2022 12:42

Note that I'm not a trader so just making an observation.

CSN hit 350p or so in 2014 and stayed there 5 years, reaching over 400p for a while. The dividend has risen 30% since 2014 and looks set to keep rising. The yield then was about 5%. It's now running at 7% or so and seems to be rerating as interest rates rise. Could the yield trend be reverting to a previous slightly lower level from one that has become a bit too high since the shares fell back some in 2019?

[wynterwilde] 19/8/2022 10:31

CSN looking strong. Does anyone here trade the 280/320 range..? If so,how do you time your re-entry if 280 looks un-achievable?

[aleman] 15/8/2022 10:48

Seemingly strong results from steady plodder, PHNX. Forward yield looks to be a touch over 7.5%.

[aleman] 11/8/2022 14:12

Just bought a few ALAI on a 6.7% yield. I paid 51.9p versus NAV of 61.46p. 16% discount is a few % higher than rypical of recent years.

[norry2] 02/8/2022 09:22

Yep, grabbed a few more today.