Legal & General Share Discussion Threads

[zac0_4] 23/3/2024 11:05

mrt - just remember when it comes to market timing there are only 2 types of individual . . . those who can't time the market and those who don't know they can't time the market!

I learnt many years ago that the harder I tried to make money the less I made. A globally balanced portfolio held over the (very) long term will beat messing around trying to 2nd guess what a share price will do from day to day.

If you're comfortable here then hold/add if not then sell and reinvest proceeds into something you are comfortable with.

[woodhawk] 23/3/2024 10:41

Another point to bear in mind if considering attempting to 'swap' divis for a (hopeful) capital gain is that divis are taxed at 8.75% while capital gains are taxed at 10 or 20% (obviously only on shares outside ISA or SIPP). Additionally, from April 6th, annual tax free allowances will drop to just £3K as regards cap gains and £500 for divis. A lot more smaller traders/investors are going to have to be declaring their trades - and divis - to the tax man.

[1knocker] 23/3/2024 10:06

So long as the dividend keeps rising, I am happy.
If that was flat, i would be concerned about the share price

[bargainsniper] 23/3/2024 09:59

Investors have got used to lowly valued Uk shares akin to past low interest rates. Time will prove neither lasts forever.

The savvy among us have and are accumulating.

[pierre oreilly] 23/3/2024 09:49

mrt, any share at any time 'could' go up 5%, or 10% or 100%. Also any share at any time could go down 5%, 10% or 100%. Not so sure what is so special in that regard with lgen atm.

Anyone who knew (as opposed to guess, or feel it in their bones, or says the tea leaves or charts say etc) would soon be a billionaire, and I get the impression there aren't may of those around advfn.

So guess the price direction like everyone else, or change tack and look upon a share as an income stream. Much less traumatic in my view. If I wanted to gamble, I'd go to Vegas where at least I'd get free drinks while I made and lost money (overall losing of course).

The chain of events for you to make money is like this ..

1 - buy the share
2 - it's got to go up in price (you are here)
3 - sell at the higher price
4 - the share then has to drop in price by a reasonable percentage to make it all worthwhile and cover costs including stamp
5 - buyback and lowered price
6 - the share has to then rise by a reasonable percentage to make it all worthwhile.
7 - presumably you then repeat.

Obviously, with luck that's possible. But you'd need a fair bit of luck, especially if your timescales are days or a couple of weeks. (And of course the divi ex date has to be taken into account - no use buying back 15p cheaper if you miss a divi of 15p!). After each sell, the price could continue rising, and after every buy the price could continue falling. So effectively you have to get 3 calls correct for one lot of profit.

I'd say sell at any time if you have a likely more profitable use for the invested cash.

[jubberjim] 23/3/2024 09:30

Don t think you can go to far wrong with lgen

Solid reliable share pays it's dividend regularly

Think it's been affected by phnx woes hence difficulty in getting through 257

Incidentally my amateur algo indicated 257 when Aviva was 444 but also indicated phnx to be fair value at 572 so long way to go but it has been an encouraging rise for both Aviva and Phoenix so expect Lgen to catch up sooner rather than later

Early days now but expect better times ahead with corresponding share price movements.

Will look to add as and when funds permit

Good luck

[netcurtains] 23/3/2024 09:23

MRThomas:
Suppose immediately after lGEN went ex-dividend LGEN announced it was going to do a share buyback with the proceeds of their last sale (they already said they MIGHT do a share buyback)....
So instead of the share continuing to fall MORE than 5% (the amount of the dividend) it bounces back (see NAT WEST graph - it bounced back almost immediately)..

So I see where you are coming from - do you take the money now and hope share falls around about 5% so you can buy back in....
Or do you stay invested, hoping it bounces back fast or does not fall as much as 5% post ex-dividend...

[mrthomas] 23/3/2024 09:08

I was fortunate to buy this share in November last year it’s possible the share could go to 280 that would be a 20% gain before the dividend date

My dilemma is do I sell and take profit and as someone else has said here the share here is a good chance it will go down again to 230 again and then buy in

This way I get my capital back quickly Sai this market cash is king

Thanks in advance for views on this

[bargainsniper] 22/3/2024 13:10

Https://www.thisismoney.co.uk/money/isainvesting/article-13204389/The-best-bargain-British-shares-funds-stick-Isa.html

[zac0_4] 22/3/2024 12:47

PO - " . . . It's not much skill (helps to be not stupid though), mainly time, and just the skill to understand exponential growth . . . "

Now, that I can agree on! Far too many people want instant success. Me, I've been regularly investing for probably 30+ years. I'm trying to instill into my 2 adult children the importance of regular investing now. Month in month out, year in year out over decades in order to allow compounding to do its magic.

We (you and me) might not agree in our approach but as long as we're happy with our results then that's all that matters. Good luck.

[pierre oreilly] 22/3/2024 11:13

Zac, that's great if you're happy. But I think your timescales are much shorter than mine.

[jubberjim] 22/3/2024 11:12

Think break above 257 brings chance of 282 in short order.

I am still looking for 307 before completely satisfied

[pierre oreilly] 22/3/2024 10:54

Woodh, After quite a few years, especially if isad, the income seems to take on a life of its own, and there's a realisation that divis are coming in faster than you can reasonably spend them. It's mainly a function of time. I was fortunate to get awarded free shares in a company senior exec scheme - that was its name, although all professionals got it, not just senior execs.That's when I was 22, inbetween unis. I didn't know anything about shares until a divi of 5 quid landed on my doorstep. Free money for no work always interested me (I thought about writing a book for royalties, but that never happened). So that's when I started investing (and not paying into any pension). I 'valued' in my own mind divis at 5 times their value, to reflect I didn't have to get up at 7, or have a boss, or do anything at all to get them (because initially divis are very low). So a few decades later, the divi income is i'd say very high and all tax free, put the max into peps/isas from the first year they came out. I guess i started a few years before you and get on average a bit more than you - it's just time. I also retired at 49 once the income was enough to bring up a family in a reasonable lifestyle - something not available to those pumping everything into pensions. It's not much skill (helps to be not stupid though), mainly time, and just the skill to understand exponential growth. Btw, we've never inherited and ironically, we're about to receive a big inheritance, which will now make no difference to us but will do to our kids.

[zac0_4] 22/3/2024 10:42

PO - " . . . selling requires a lot of monitoring and some costs . . . "

Most platforms have a means of setting up an automatic monthly / quarterley withdrawal. So, no effort required.

Also, there are no trading costs in selling / buying units in most funds.

" . . . and once the portfolio grows after some years you can arrange things to get more or less a monthly (variable) income . . . "

That's my point, very few dividend payers are growing their share price. If you're reinvesting your dividend I would argue that you're not investing for income you're investing for growth at that stage and dividend payers don't come near a simple global equity tracker fund in that respect

[mancman1] 22/3/2024 10:13

IUKD is quite a useful investment. It tracks a lot of high yielding companies without the need to keep checking them.

[woodhawk] 22/3/2024 10:08

My thoughts exactly Pierre. I receive dividends currently in 11 out of 12 months - average div income is now above £3K per month. 90% (and increasing) tax free as ISA'd. My two largest investments, good solid divi payers LGEN and PHNX. Unfortunately, doesn't seem like I'll be able to buy too many more of these on the cheap in the near future!! Luckily I've been filling my boots in recent months.

[pierre oreilly] 22/3/2024 07:44

zac 5090

One reason for divis over gains then selling a bit is that divis require zero effort while cap gains plus selling requires a lot of monitoring and some costs (plus quite a bit of praying if you want cash 2 or 4 times per year per shareholding).

The income of course is much more predictable from divis and once the portfolio grows after some years you can arrange things to get more or less a monthly (variable) income. If you are forced to sell something each month, then I'd expect there'd be many months when cap gains simply weren't available.

[jubberjim] 22/3/2024 00:34

These don't go ex dividend until 25/04 so only pressure is if you want to get them in this years tax ISA wrapper.

Fairly relaxed about it all as think not to many funds sloshing about able to take advantage

Think that might change in new tax year
Have a good night looking forward to Phnx tomorrow

[cardinal3] 22/3/2024 00:09

PaulBoz you could look at Land Securities (LAND) for a decent div but with possibilities of gains too as interest rates fall.

Britvic (BVIC) and Inchape (INCH) also have good dividends and have growth prospects.

Energy infrastructure Inv Trusts eg TRIG or JLEN have good divs and have been in the doldrums as interest rates have gone up.

I'm in all the above except Trig.

[paulboz] 21/3/2024 23:34

At my age I need income not growth. I could buy an annuity but the rates are low IMO. I would rather buy shares with decent divis to top up my state pension.

[zac0_4] 21/3/2024 23:27

paulboz - why dividend payers? Why not invest for growth and simply sell units/shares as and when you need capital? Don't lose sight of total return!

[paulboz] 21/3/2024 22:17

Woodhawk: could you suggest some examples of undervalued companies I could research please? I'm looking for some good divis. I've already identified and bought Aviva, LGEN, MGN and PHP and view them as fairly reliable dividend payers. Thanks

[adejuk] 21/3/2024 15:36

i hold 55k so not a fly by night

[adejuk] 21/3/2024 15:35

i like his apparent plan
focus on basics - no distractions
if it works he deserves all he gets - and so do we

[adejuk] 21/3/2024 15:32

share award
quite a good golden hello