Legal & General Share Discussion Threads

[zac0_4] 30/6/2020 11:36

EJ - your example, Halma and Four, as 2 companies who pay dividends and have grown their share price considerably is correct. However, look at the level of dividends they pay. Considerably less than L&G. Consequently, I might argue, they are re-investing more back into their businesses and as a consequence are enjoying a greater return. I hope your comment about all doubling share prices over the last 6 years wasn't meant to include L&G?

[atlantic57] 30/6/2020 11:13

I just put this though out for discussion.

Given the huge government borrowings do any of you feel , that Governments may suddenly change the terms of gilts without warning.

For example if they suddenly said the repayment date has been extended and you cant cash it in before the new date, it would give them a breathing space.

just a thought !

[skinny] 30/6/2020 10:54

Pierre - thanks for post 6400 and of course 6401 :-)

[zac0_4] 30/6/2020 10:53

PO - interesting comments re tr21 gilt. As you say it's guaranteed and if you're happy with the maths then that's all good. I have retired, just over 2 years ago, and have a pension pot, funnily enough managed by L&G. I set monthly payments and they arrive automatically. So far so good in as much as the capital has been maintained to date and I've had 27 monthly payments. I do pretty much the same with Fundsmith, in that I invest directly with them and they pay me automatically a set amount each month. Again, to date that's working well. My other funds I simply take what I think I'll need from them for a 12month period, sell once to that value and bank the money to use monthly over the coming 12months. I must admit that I'm really wrestling with dividends at present. It's probably that due to the market turmoil it's made me somewhat impatient. Anyway, good luck with your investments.

[jbarker5555] 30/6/2020 09:24

"My tr21 maturing soon locks in a six figure capital loss for me, but it was the best thing I ever invested in."

Hi Pierre, any chance you could elaborate? Was the income stream taxable? Does the capital loss suit your personnal circumstances in that you have a large capital gain to set it against?

Re funds, Vanguard run some interesting funds which seem to have quite low fees. I think their selections are computer based so the platform is cheap to run for them, but whether you trust this over Terry Smith or simply a cheap index tracker fund is probably down to the individual.:)

[pierre oreilly] 30/6/2020 08:42

If you want to give up work before you're too old to enjoy your retirement, then how do you pay for food, holidays, or anything if you don't generate an income stream? Much better if you sit back and let the divis arrive rather than have to decide what to sell a little of every month. It may sound odd, but what makes great sense for income is to buy products with a guaranteed large capital loss but a relatively large guaranteed income. My tr21 maturing soon locks in a six figure capital loss for me, but it was the best thing I ever invested in.

[zac0_4] 29/6/2020 23:02

I have recently read an article containing a staggering fact. Amazon and Apple combined are now worth more than the entire UK stock market! The reason given for the UK poor performance was that UK companies were too generous in their dividend payouts and didn't reinvest enough of their profits back into their businesses for growth.

It sort of backs up my thoughts that dividend paying companies generally deliver overall underperformance to their shareholders from a total return point of view.

All my dividend paying investments fall into the underperformance category!

[pierre oreilly] 29/6/2020 22:09

Thy confirm all divis just before the bank transfer/cheques sent out, as all companies do. It's confirmed when the money's paid by default, it can be withdrawn anytime up to that point. Recently, one company declared and went xd, with the usual divi price drop, then cancelled the payment. Shisters if you ask me. The price didn't reverse the xd price drop, can't remember which company it was.

It's all academic anyhow - the gov put pressure on lgen not to pay the last divi, and lgen told them to pee off, unlike lloy and bt.

A bit premature talking about the next divi when we've only recently got the last one, especially when it hasn't been declared yet, so no one knows what it will be.

[skinny] 29/6/2020 13:59

Probably on 5th August.

.

[adelwire2] 29/6/2020 13:36

Hi. Thanks. Yes I know the dates but my question was at what stage are they going to confirm whether they pay it.

[br1an] 29/6/2020 13:15

DividendMax showing interim divi at 5.3p.
Ex divi date 13th August, payable 24th Sept.

I have not checked if this has been confirmed by L&G, or is an estimate?

[adelwire2] 29/6/2020 12:40

Got that! On about next one payable in Sept

[kilobyte2] 29/6/2020 11:59

Adel

The Final dividend was paid out on the 4th June (12.64p)

[adelwire2] 29/6/2020 11:39

Have we heard anything about the upcoming dividend and if it is to be paid? Personally, I'd have thought it should be OK. Any thoughts?

[pierre oreilly] 28/6/2020 23:14

Financial advisors are great at suggesting where to put your money, all the time up to the point you've got none left.

[atlantic57] 28/6/2020 23:08

I agree with you zac I use hl myself.
As you say people use financial advisors to invest in funds.

[zac0_4] 28/6/2020 22:53

atlantic57 - I do think people shy away from funds because they think they need to use a financial advisor to invest. They don't have to. I use the Hargreaves Lansdown platform for both shares and funds. There's almost no difference in investing in each, other than a slight time lag when you place an order to buy into a fund.

[atlantic57] 28/6/2020 22:34

Zac I had an accountancy business and represented a number of financial advisors.
All of them only advised clients by as you say charging a fee up front for the advice.
None of them provided advice in purchasing shares in companies directly.

All of them chose various platforms ,they also received an annual % based on fund value.
This meant that each year that had a substantial and recurring fee income Before any new business was undertaken.

I agree with your logic but it would appear many clients do not.

[qvg] 28/6/2020 22:31

FG , yes, I am aware they are Fund Managers. And Financial Advisors predominantly advise people to advise in Funds ...

[zac0_4] 28/6/2020 22:17

atlantic57 - if you invest via a financial advisor you will pay an initial fee (eg 3 to 5%) which, I assume, covers their advice. However, do you take advice from a financial advisor before buying shares? If the answer is no, then why do you need financial advice to invest in a fund? If you buy into the fund yourself via numerous platforms there is no initial fee. I would also argue that it's safer investing in a diversified global growth fund than in a single UK share. Only my opinion!

[zac0_4] 28/6/2020 22:09

PO - there are additional, hidden charges, and you are correct that these need to be investigated prior to investing. However, they need to be taken in context. As an example my largest holding is in the Fundsmith Equity Acc Fund. The ongoing charge figure (OCF) is 1.05%. In addition their dealing costs in 2019 were £893k. As this is a £18bn fund that only equates to 0.005%. I'm more than happy to pay these costs as the nett 1, 3 & 5 year performance is +9%, +44% & +144%.

[atlantic57] 28/6/2020 21:53

There must be numerous charges given that most financial advisors do not provide any advice.They simply recommend funds and usually the fund manager gives them a rake off each year for funds under management.