Diversified Energy Share Discussion Threads

[doubleorquits] 26/5/2021 12:47

Thanks, Gary1966 - point noted as Neilyb675 is on my filter list I have not looked at that comment at all. Even so my point for remains - and you state they are in your Sipp so the 15% tax is an irrelevance for you as well.

[gary1966] 26/5/2021 12:39

poleaxe was responding to Neilyb675 posts.

[doubleorquits] 26/5/2021 12:34

Exactly FB!

poleaxe: If the tax was 50% the yield would be even lower - but it's not! In a SIPP it's nothing so the yield is over 10%. End of.
What's the point you are making?

[fardels bear] 26/5/2021 12:20

So don't buy them. We don't care.

[gary1966] 26/5/2021 12:04

Picked up a load more at 111.2p this morning and I am now dangerously overweight in these but just feel that they are worth it at these levels and at the start of a rapid expansion in production.

GLA

[poleaxe] 26/5/2021 11:49

If the tax is 30% then the yield is 7% its not rocket science.

[neilyb675] 26/5/2021 11:00

Perhaps I dont want them in a SIPP, perhaps I want them with my other "normal" divi yielders, but perhaps I dont want 30% ripped off my dividend.

IMO there should be an asterisk agsinst the yield where it is displayed on forums and financial info sites due to the fact that you don't get what is advertised.

.

[fardels bear] 26/5/2021 10:47

Yeah. You posted that yesterday. What's the beef? Put them in a sipp. No tax.

[neilyb675] 26/5/2021 10:29

If you get -30% what is the yield ? Bit of a misleading investment IMO.

[poleaxe] 26/5/2021 09:34

After 15% tax the yield is approx. 8.5%.

[cassini] 25/5/2021 15:54

Added a few more at 112.37p.

Yield at that price is 10.06%.

[cassini] 25/5/2021 15:13

Brucie5,

That's the thing about high dividend shares, they tend to be low-to-no growth.

DEC is a bit of an oddball compared to most high dividend stocks in my view - instead of being large, old players in a saturated market, they're fairly new and are actually growing by acquisition, but they're in a sort of lowish-risk 'dead-end' business where they milk the last gas out of old wells.

That and the hedging strategy I think means there won't be much share price growth, but I think some, enough to outpace inflation. Price growth comes with higher risks and DEC seems to try and hedge out as much risk as possible. It's true that companies that have dividends exceeding 10% are at a much higher risk of failure normally, but I believe (hope) that DEC's unusual business model means that doesn't apply here. Don't they have a policy of not paying out more than 40% of income?

I believe that 'Stockopedia screen' suggesting risk of bankruptcy isn't based on an analysis of DEC itself, it's just a general observation on companies which reach double-digit dividend returns based on when a share price crashes due to poor company performance yet the dividend used to calculate yield is the historical dividend - which usually gets cut or eliminated when divi time comes around again.

Since I'm buying DEC for baseload income like you, low growth is fine by me. I need some level of reasonably predictable income from my SIPP. In a world where the 1% return on premium bonds is considered good for a cash account, getting 10% looks very attractive.

I'm just about to buy some more. Since I sold at 123p before the dividend (yes, I missed the top) and bought back in at 115p afterwards, I'm not too fazed by the latest price drop.

[neilyb675] 25/5/2021 15:03

Its only 10% if you get the full dividend. If you get -15% what is the yield ? If you get -30% what is the yield ? Bit of a misleading investment IMO.

[brucie5] 25/5/2021 14:06

Now over 10% dividend, according to Stocko. But also a negative screen and 'bankruptcy risk'. I hold in two different folios for baseload income. Director skin in the game is always assuring. I'm not expecting much capital growth however. Are you?

[gary1966] 25/5/2021 08:34

Maybe he thought that wouldn’t sit well with shareholders scooping up shares at quite a discount in the placing.

[kibes] 25/5/2021 08:32

Mr Turner does not strike me as very bright, he could have had his shares for 112p in the placing and saved himself nearly £2000.

[bountyhunter] 25/5/2021 07:15

and another director purchase notified this morning..

on 24 May 2021, David Turner, Senior Independent Non- Executive Director, acquired 124,500 ordinary shares of 1p each in the Company ("Ordinary Shares") through the market at an average price of 113.51 pence per Ordinary Share. Following this purchase, Mr. Turner is now interested in 371,500 Ordinary Shares

[pro_s2009] 25/5/2021 01:17

Header updated

[bountyhunter] 24/5/2021 20:36

Director purchase notified just before the close at 16:23 today..

Diversified Energy Company PLC (LSE: DEC) announces that on 21 May 2021, Martin Thomas, Non- Executive Vice Chair of the Company's Board of Directors, acquired 15,000 ordinary shares of 1p each in the Company ("Ordinary Shares") through the market at an average price of 111.60 pence per Ordinary Share. Following this purchase, Mr. Thomas is now interested in 2,165,000 Ordinary Shares, which will represent approximately 0.255% of the Company's enlarged issued share capital following admission of the Fundraising Shares, which is expected to occur on 25 May 2021.

[gary1966] 24/5/2021 19:41

Yes it was a positive observation.

[fardels bear] 24/5/2021 19:27

Surely a gap at 120p is only a problem if the current price is above 120. Since it's comfortably below 120 then it will just fill on the way back up, won't it?

[poleaxe] 24/5/2021 17:45

Gary1966 - still no luck with IG, tried to buy twice today but would not offer a quote, had to go to EQI and pay the duty.

[voci] 24/5/2021 17:37

voci:-
Can you say which broker you are using, please?

EQI (formerly Selftrade and about to be taken over by iii)


iii have informed me the W-8BEN form I have will be be transferred to them.

[gary1966] 24/5/2021 14:28

Mustn't forget that we now have a gap on the chart at 120p and they always get filled in time.

[poleaxe] 24/5/2021 11:52

Enron here we come.