Legal & General Share Discussion Threads

[ramellous] 14/4/2021 19:11

EPIC has just announced a 25% rise in dividends. Unusually it is a monthly payer.

[rcturner2] 14/4/2021 19:10

Mark, I think a target of 6% is overly rigid, you have to factor in some capital growth to get your total return. Yields over 6% tend to indicate a mature business that probably will struggle to grow the dividend over time. I'd rather take a yield around 5% that will grow. My total yield is between 5 and 5.5% depending on how you view some like TCAP for example who reduced the yield to fund an acquisiton. SOM I bought a while back and is up 60% so I am very happy with that which is a good example of my strategy. They pay a special dividend based on year end cash so again their "actual" yield can be viewed in different ways. AIF is in the sweet spot for me its my biggest holding, exposed to UK SME while paying a massive dividend through gearing and the fact that a % of the fund is in bonds. I love investment trusts like this. I probably bought it when the yield was 8% and the discount 20%. AV delayed their dividend back in the early days of COVID but now fully restored. I bought at 325p now over 400p and highly likely to appreciate from there.

[marktime1231] 14/4/2021 18:44

SUPR looks a good long term pick with a progressive yield, pity it is 5.something% rather than 6.something% Another one to grab / have grabbed when the price was a bargain

[marktime1231] 14/4/2021 18:31

OK I don't get it, someone explain SOM please.

Oh and explain AIF please, a trust thinly spread over a diverse portfolio of small caps ... not an obvious place for high yield, it also aims for growth ... so how does it cover a 6.2% dividend, where does the cash come from?

[williamcooper104] 14/4/2021 18:30

For income SUPR (not that exciting but very defensive) US BDCs (HTGC,ARCC,HRZN) - all yielding 8-9 (though with that a reasonable amount of leverage and risk)

[marktime1231] 14/4/2021 18:15

Just been looking at ebb's suggestion STCM, a Khazak cement company with a volatile share price history but gross yielding over 7% even at 40p near the top of range. The GBP-KZT (Tenge ... who knew) exchange rate not something familiar, nor do I know what taxes are applied before the dividend arrives. Pays out nearly all net income. So not a buy-and-forget retirement income stock, except perhaps a speculative minor stake, but what a heck of a buy it would have been at 20p a year ago.

Interesting selection RCT, I too hold EAT which is now returning well after a tough patch. What is your current yield, surely not over 6% didn't AV just cut? Why did you quit RGL which I am watching, the recovery is binary on whether we good back to the office and more likely in the regions? That is the second mention of SOM which is new to me, another one to research.

[rcturner2] 14/4/2021 16:37

I am an income investor. My portfolio is:

AIF, ASEI, AV, EAT, HHI, IGG, IPU, JUP, LGEN, MCT, POLR, SLP, SOM, TCAP.

I am up in all 14 shares. I also sold RGL for a decent profit earlier this week.

[marktime1231] 14/4/2021 15:23

I too have noticed that perversely CLIG the manager pays a better yield on its own stock than its does from CTY the dividend hero trust it manages, so why don't we all invest in the former, can't work it out?!

Apart from IMB which has previously cut dividends to an easily affordable level then LGEN is the standout reliable high yielder if you trust Nigel Wilson's plan and I do. PHNX and BAT also in the frame but I chose LGEN and IMB instead because they looked better value.

Some of those suggestions are new to me an I will take a closer look, AIF and ...

Some look expensive on the standard metrics like p/e. Some overseas miners in a demand bubble are throwing off cash via special payments, some subject to exchange rate and tax effects, so they do not automatically qualify for a long term income plan, nor do baskets with specialty and alternative lender in the title. Debt baskets and proerty income trusts may be due to reset, actually some have already indicated they need to (NCYF, IPE, SWEF). Some only show up as good yield because the risks they face have driven them to a discount (RGL ...) so could be falling knives. Some are too small, young and riding a wave to know if they will endure, I am looking for something which will outlive me.

Which leaves ... try me again with sold suggestions (UK regulated and taxed Sterling large caps) with 6% or better yield and a confident positive outlook and a progressive ordinary dividend plan?

[skinny] 14/4/2021 10:22

AEWU,SHED,RESI,VSL,WHT.

BBOX yield has dropped after a decent share price rise, but dividend increasing.

On edit - VSL goes Ex tomorrow @12.64p

[rcturner2] 14/4/2021 10:17

Acorn Income Fund AIF.

[eggbaconandbubble] 14/4/2021 09:35

EVR, SOM, RIO, STCM, CLIG,!

[dk37] 14/4/2021 08:14

The stock goes XD tomorrow 12.64p. Payment date 27th May.

[leadersoffice] 14/4/2021 08:08

I want that Divi lol

[actybod] 14/4/2021 07:57

Thought it was tmrw

[leadersoffice] 14/4/2021 07:53

I'm waiting to top up. It goes XD pretty soon. Is it the 18th?

[marktime1231] 13/4/2021 21:27

Wow, you have given me something to think about there. A credible outlook, and if LLOY hits 60p inside three years that is a return of 10% pa even before dividends. I was looking for a chance to offload all my LLOY at the first opportunity, but all of a sudden that sounds wasteful.

LGEN has stalled and unlikely to hit 315p this time round, but I refuse to sell at this bargain price while it is pumping out top yield. Wait for the next cycle.

[north sea boy] 13/4/2021 20:58

Duplicate deleted.....

[north sea boy] 13/4/2021 20:32

I do think that circa 310p-320p would be realistic price for LGEN, but it will have to break 300, and perhaps retest that level, to do so - and that IMHO is unlikely to happen this week in view of the large ex-d drop expected Thursday. I could be wrong about that though, and have been so in the past. As you know, I have built a reasonably large holding (for me) in LGEN over past 3 years, and 50% of that was in the past 12 months. I am VERY comfortable with that, and expect to hold that for next 5-10 years, barring any unexpected mishaps. I did not want to get caught with the further 40% enlarged holding (due to ISA transactions) for an extended period of time though. So happy to be out at very modest profit, and with no further tax to pay on that core ISA holding going forward.

I remain VERY overweight in LLOY, and whilst I might trim a little if we get to a 45p-50p range in next few months, I will not reduce or significantly rebalance the main LLOY overhang until we hit a 60p-70p level, and that of course may never happen; I think it is possible though in a 3-5 year timeframe.

IMB also overweight for now, but I do think the management strategy put in place last year will, and is starting to, work; touch wood, but I think the company has perhaps turned a corner. I don't ever see it sitting back at a £35 level (where I bought my first 500 shares), but if they maintain progress over next 3-5 years, then £20 could be achievable, and again at that level I would rebalance without capital loss.

Plans, plans and plans.....

Best wishes,

NSB

[marktime1231] 12/4/2021 20:45

Well done NSB, I am still hoping for a better LGEN price before Thursday or I might hold. Also still holding a large LLOY overhang, forcing myself not to jump too soon, the share price stirred this afternoon I think thanks to a broker upgrade.

IMB is a puzzle, the share price has steadily improved since February and may continue up, an interim report in May should be in line or positive. Which is a bit annoying, I would like to have added some more at 1400p not 1550p or higher ... feels like the last chance to load up on an real bargain so I might take a few more anyway, in the absence of anything better.

Rebought a few GSK yesterday, not because of a suddenly good story but because they have a fair yield and are at long-term low.

[north sea boy] 12/4/2021 18:45

Hi again Marktime; sold my original holding today at 2.982 I was holding on for the div later this week, with view to selling when price recovers after Ex-D drop, but thought price been looking a bit toppy. So took these off the table at a price that covered all of my dealing costs of the "Bed & Breakfast" transaction (for that was my key objective), and gave me an additional profit equivalent to half the dividend.

Thought it best not to be too greedy as didn't want to get holding these extra shares for an extended period of time. Might have been too hasty today, but essentially the in and out transaction has completed at zero cost to me, plus a modest 2.1% profit as well, so no real regrets.

Will now attempt a similar transaction over next few weeks to bring my final large chunk of IMB shares into my wife's ISA dealing account.

Best wishes

NSB

[marktime1231] 10/4/2021 20:57

Fair enough, and I agree this is a long term hold reliable income stock. I have trust in Nigel Wilson, although the ability of cash flow to cover dividends has been a close thing at times. It is also very sensitive to all sorts of macro outside its control, Brexit and covid19 the two most recent examples.

The conversation with NSB was not about a lack of faith in the future of LGEN but about derisking, to rebalance having spent the last year buying hard from the 170s upward including using some cash raided from a mortgage offset account. At some stage I need to take some gains, and to balance the sources of the next 10 years of income.

Even in a steady state I like to trade small slices using the rhythm between the peaks and troughs to enhance dividend income. In the space of a few months the LGEN share price can move up and down 50p while the yield is a third of that. It is productive and it gives me an interest, the challenge of timing the cycle. Often move too soon. That sort of light trading of LGEN is getting harder because there aren't so many reliable alternatives with well-set 6% yield to back-and-forth with. IMB and ... actually not too many in the 5-6% group either, SSE and NG and ... even BP would be a gamble on the dividend being increased again.

If actually when I trim some at 315p+ I will then be looking for a rebuy opportunity around 280p or better, and hoping the next upswing sees full value at 330p.

[chiefbrody] 10/4/2021 10:09

Average is mid 2's after just starting to accumulate here. Intend on selling some other holdings and adding here over the next few years. Even at £3 it's still a 6% yield with more to come..I'm warming to the fact that this is one of those stocks to just add over time and rest easy for 10 years. Then sit back and spend the divs on the beach (or mountains in my case).

[tornado12] 10/4/2021 09:13

Marktime, the answer is simple based on the new ISA opening since 6th April and ex Divi next week. I also strongly believe they will maintain their dividend and probably increase post Covid. My average is 182p so it only increased by a few pence.