Merchants Share Discussion Threads

[tim 3] 16/3/2021 10:15

Finally back at £5 good to see.

Only regret not taking the advice given on here of buying at £3 but could have been worse could have sold out!

[bluemango] 15/3/2021 17:38

Final results (and Q4 dividend declaration) due in next few weeks.

[panshanger1] 15/3/2021 17:24

New 52 week closing high

[ctrader3] 15/3/2021 08:32

if u look at SMT, if u re-invested the dividends from
MRCH u wouldn't have made a return of 8.5% in 2018 or 2019.
the share made up for the under performance last year
but there was no guarantee that would happen at the end
of 2019.
I agree a foot in each camp is the way to proceed once
your portfolio has a firm foundation.

[zac0_4] 14/3/2021 22:27

ctrader3 - I agree with your view regarding locking in a healthy dividend yield. Based on my cost I'm enjoying just over 7% here which I'm happy with as part of a balanced portfolio. Providing it continues at current levels of course!

I disagree with the risk you associate with searching out investments with compound returns of 8.5%+. How about a world index fund which has delivered 11.7% annual growth over the last 10 years? Compound!

Or how about Fundsmith equity fund? 17.8% annual growth over the last 10 years. Compound!!

I'm happy with my current returns here, but have an open mind, thankfully, as to other types of investments which deliver excellent overall returns but not via dividends.

For me balance is key.

[ctrader3] 14/3/2021 09:23

anyone buying the yield could have locked in a yield
of 8.5% when the market fell.
if u could compound at 8.5%, which isn't recommended
to try because of the risks involved, u would return your capital
in 8 years.
if u re-invested the dividends elsewhere or used
them as part of an annuity your capital would
be returned in 12 years.
less if MRCH increase their dividend over that period.
or u could re-invest here, if the yield stays around
the current mark and reduce the 12 years.

[mister md] 09/3/2021 11:32

Value is back. Dividends are back. Keep it simple.

[panshanger1] 09/3/2021 10:29

Pushing on nicely 52 week high today Value coming into its own !

[ctrader3] 08/3/2021 09:44

if u decided u wanted to trade the yield in the header
a dividend of 24p equates to 6%.

using the chart u could have bought or added
to your position below 400p.
u would have earned over 100p, a quarter of your entry
price which u could have invested elsewhere or
waited and bought more here.
5% is too low 7% is better but it all depends on
Mr Market.

estimated dividend 27.1p so new price to yield 6% below 450p.

[ctrader3] 07/3/2021 10:07

if u reference the FTSE chart above 10k invested
at the beginning of the chart and compounded would now be valued at £65,000.
if u took that 65k and re-invested in MRCH that
would equate to a dividend of £3,770.
a payback of your original investment every 2.7 years
which will decrease as the dividend is increased.
the price of MRCH counts for nothing as it's investing not
trading, as long as the dividend is maintained.

[ctrader3] 07/3/2021 08:51

it's all about timing and then time in.

[ctrader3] 07/3/2021 08:45

if u want to trade the gain, u would be
better off trading small caps.
of course the best trusts are never cheap.

[ctrader3] 07/3/2021 08:06

MRCH

u still having grasped the concept, concentrate on buying
the yield and u will be buying at a great price.


The difference 1% can make.

If u invest 50k for 20 years at a yield of 5% after charges
and re-invest the dividends thru thick and thin, your 50k
may be worth £132,500.

If u invest 50k for 20 years at a yield of 6% after charges
and re-invest the dividends thru thick and thin, your 50k
may be worth £160,500.

[bluemango] 06/3/2021 22:32

To try to break this impasse, I'd suggest there's no obvious route to assured success in this, and it's a question of individual investing style, the need for income versus preservation of capital, timescale, etc. All will be different for different people. It's not black and white; no one should pretend it is.

And the beauty of ITs not mentioned in all this discussion, particularly when taking a long term view, is that they are a great vehicle for spreading risk.