Merchants Share Discussion Threads

[ctrader3] 26/4/2021 16:43

I recently put some rainy day money into SLI, mainly because
previously I have bought the dips and made decent returns.

[ctrader3] 26/4/2021 16:42

no advice offered but Property looks reasonable risk versus
reward and a decent yield whilst u wait.

[tim 3] 26/4/2021 16:24

Yeah I had some in p2p lending thinking it a good option if the market crashed how wrong could I be only just been able to access it again!

[ctrader3] 26/4/2021 16:22

I had my rainy day money in 24 Income but they fell
as fast as the market.
RICA was a better option but they yield diddly squat
at the moment.
Yes, money earning nothing makes for an uncomfortable
position but there are no other alternatives that
I know of.

[tim 3] 26/4/2021 15:59

Ctrader3Absolutely spot on you talk a lot of sense and that's more or less how I am split.I also have quite a lot in cash ready to buy if we drop but will admit am not sure about this strategy as it's earning nothing.

[ctrader3] 26/4/2021 13:46

yep, but it's a great story when the market falls out of
bed and u have cash to re-invest.
I would hazard a guess that depending on your age
your portfolio should look like
50% total return
50% shares that pay a dividend like MRCH but
invest in share of other companies.
buy more dividend shares if u increase your
capital with TR.
as u approach retirement, remembering what happened
to the market last year, buy annuity type
shares like Renwables, bonds 24 Income etc.
the table I set up but is updated by my Sharescope
programme.

[tim 3] 26/4/2021 12:51

Agree getting all your money back in a little over a decade plus whatever your capital is worth while not the whole story has to be a strong argument for dividend re investment.

[north sea boy] 26/4/2021 12:48

CT3, that was actually quite a simple and useful table in 1498 above; did you create and maintain that yourself, or have you managed to pull that from somewhere?

Genuine question by the way, I currently hold 5 IT's myself, and have 3 or 4 other targets that I am tracking?

Best wishes

NSB

[ctrader3] 26/4/2021 09:09

if u had bought at 320p your yield would be 8.5%, gently
increasing over time.
of course if u buy and hold forever, Trusts only, if
they pay dividends from capital of no concern.

[ctrader3] 26/4/2021 09:03

the market doesn't give u the chance very often to buy the yield above
7%, so u should avail yourself when u can instead about worrying
about what or won't happen in the future.
With a 7% yield u return your capital in fourteen years, that still
gives u lots of time to worry about the future.
If u can buy above 7% and the dividend increases u can
shorten the time, u could even re-invest the dividends in
another high yielder and do it all again, then again.

[ctrader3] 26/4/2021 08:56

let me help u Spare. u still are majoring on the price
when u should be buying the yield.

[superiorshares] 25/4/2021 04:11

I see some of the Financial Wizards on squawk box , using the phrase " I want to hold the stock forever ,".. it implies to the masses , buy buy buy .
I watched the governor of that Airbnb thing say it , just before Corona.
Folks you can't hold anything forever , because at some point you die .
I am not negative in the slightest !.. I just take in the reality of the situation..
All I am saying is I can't see the dividend being maintained and at some point I see an overall collapse of the markets ?.
I am not worried about it , sad about it , concerned etc . Just my view .
I will have s look at the top ten and see which stocks have a higher dividend prior to Corona .
Regards all

[zac0_4] 24/4/2021 22:32

Mister MD - tend to agree with you. I've tried to move away from individual dividend paying shares over the last couple of years into dividend paying investment trusts. I think it reduces risk. Currently all dividends received are topping up my holding in Henderson Far East Income. At todays price it yields 7%. So, HFEL, HHI and Merchants are 'forever' holdings at the moment for their yield.

Nobody knows what the future holds for markets but at the moment I'm happy to be mainly invested.

[mister md] 24/4/2021 20:22

Superior: as for investing at lowest point in the charts, the low was about 300p which I missed, it hovered around 350p for around 7 months so it wasn't that much of an achievement for me to get that price! This is one of my buy and hold forever stocks, top up on big dips and collect the juicy dividends.

Yes some sectors incredibly hard hit like the airlines. Yes some bubble-like investments inc bitcoin and the gamestop-type shares which the newest generation of investors seem to be piling into. But the boring old UK market should do just fine as we move out of this pandemic.

Happy to collect 5-6% dividends as a minimum return in the event the market stays flat for a few years as the economy catches up. US markets could retrace a bit, but overall don't see things as gloomy as you do

[superiorshares] 24/4/2021 16:56

my comments are not about this Trust being a poor performer . Its performance is the opposite.
I just don`t think this is related to the prospects of the economy merely stimulus .
The Corona is only just starting in my opinion . We have at least another three years of this .
Mister MD .. like CTtrader 3 you invest at all the lowest points on the chart , Well done !

A couple of examples for you that caught my eye
Tesco . A beneficiary of Corona . Improved profits , maintained its dividend but took a 1 billion corona charge . That`s 1000 millions isn`t it ?
completley different... American Airlines . It has reduced its losses and is now only losing 18 million dollars a day :-).. thats just over 500 million dollars a month isn`t it ?

Blinkered , Insular people will say well " Good Job MRCH isn`t invested in those "
What it shows you is the damage Corona is doing
The huge surge in spending I don`t think is going too happen ?. I think there will be a huge surge in prices on reduced sales .
Also I think certain things may collapse the market .. digital currencies , Tesla , Spacs , the Game stop types etc
if you can stomach Biden ?????? :-). He is starting to creep in the Socialist Taxing , companies will be able to pay that , but they will take it off your dividend .
Just some thoughts .

[jeffian] 23/4/2021 20:21

Me too! I've been watching all these comments about being such a poor performer but it's been fine for me!

[mister md] 23/4/2021 14:51

Indeed, it felt good adding around the 350p mark a few months ago, lol.
Accuracy of predictions to be reviewed in the year 2024 assuming we remember to ;-)

[tim 3] 23/4/2021 11:49

SuperiorWill give you credit unlike many bears you have put a timescale and a price to your prediction but I think you are wrong.While it's obvious the fed stimulus has driven at least some of this rise there are few signs of it ending and Biden will do everything in his power to prevent a drop.Also most think the trend is for dividends to recover and there is evidence of a move into value.Time will tell but I am happy to hold and will be happy to add if we get anywhere near your prediction!

[mister md] 23/4/2021 11:20

Superior - the price is still about 10% below what it was prior to corona. It's also about the same as it was 4 years ago ! Your price target is £3.00 over next 2/3 years, mine is £5 - £6. Yes, there will be some serious shareprice declines over that period, but more in the tech bubble/ growth stocks imho. The value stocks here should do ok, imho of course.

[joe say] 23/4/2021 07:35

If you've not read the annual report I'd encourage you to do so - very well put together and useful insight into the way this trust is run