Merchants Share Discussion Threads

[ctrader3] 20/8/2021 09:13

I'm currently out of MRCH as I wanted to book my profits
and re-invest at a higher yield.
the current dividend is 27.2p so if the price
falls to 450p, it will, when is the question.
450p x 6% = 27p at that price I would start
to buyback the shares I sold.

[ctrader3] 20/8/2021 08:56

if u took your 21k and re-invested in a renewables yielding
7% e.g. NEX and re-invested your dividends for the next
ten years, your 21k would be worth 42k.
the dividends for renewables look fairly secure
the NAV looks fairly secure, they could trade at
a large premium, so u may not be able to add
shares at 7%, though u could take the capital
gain.
one thing to monitor would be that some renewable
assets have a life of around 25 years.
remember u would have started out with only
5k that u have compounded.
in ten years time your dividend take out
could be 2.8k pa.
Mr. Market will most probably give u the
chance to swing back into MRCH at plus 6% with
the chance of making a bigger capital gain.

[zac0_4] 18/8/2021 10:49

HL charge 0.45% per annum. For investments in funds you would pay this on the total value. However, for traded products ie shares, trusts, etfs it's capped at £45 a year.

[ctrader3] 18/8/2021 10:04

Best Invest

Value for money
Tiered service fees of 0.4% or less a year, no set-up fees and share dealing for just £7.50 per trade.

[ctrader3] 18/8/2021 10:02

Invest today and you'll thank yourself later
The award-winning HL Stocks and Shares ISA offers something for every investor. Whether you’re new to investing or already an expert, you can shelter up to £20,000 from UK tax in our ISA.

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............

is it capped as u have an existing ISA?

[zac0_4] 18/8/2021 09:14

My trading ISA is with Hargreaves Lansdown. Their charges, for holding shares or investment trusts within an ISA, are capped at £45 per year. So, for me it makes sense.

[ctrader3] 18/8/2021 08:52

now if u are fortunate enough to be taking out of the market
more than a 12.3k capital gain and 12.3k stake.
u could buy a share paying out a special dividend, sell
the share on the xd date and therefore generate a capital
loss by turning capital into dividends.

[ctrader3] 18/8/2021 08:42

Capital Gains Tax Allowance for the tax year, 2021/22 the allowances are:

£12,300 for individuals

so if u invested 20k last year and it doubled u could withdraw
12.3k of your stake and 12.3k of your capital gain.
if u invested 20k in ISA ten years ago and it doubled u would
have paid at 0.4% in charges, so £1.6k for the luxury of
an ISA u didn't really need.
now if u invest 20k and are lucky enough to double your
money withdraw 20k and put it in an ISA and let Mr. Market
pay your ISA charges.
obviously if u are a high flyer withdrawing more than 12.3k pa
u would be better off paying the ISA charges.

[jeffian] 17/8/2021 22:48

That's the point. Even if you don't think you need it now, in years to come when maybe you're wealthier, you'll be pleased about every penny you've stashed away in a tax-free wrapper. I'm retired now and whatever other sources of income we have - state pension, private pension or investment income - my wife and I have a good income stream from our ISA's which is 'invisible' to the taxman.

[tim 3] 17/8/2021 19:56

Yes wish I had realised the benefits of an ISA years ago.One of the few areas the tax man can't get his grubby little hands on ;)

[zac0_4] 17/8/2021 19:18

Total agree with the concept. My advice to young people starting to invest is before you do anything set up a direct debit and invest a set amount every month, month in month out, year in year out, into a global equity fund. If you can afford to increase the amount each year then do so. Never sell never panic just invest. Over the long term you'll build wealth.

And yes, for me do it in an ISA.

[jeffian] 17/8/2021 16:30

Re: the final comment about ISA's, the point is that there is an annual allowance (and every possibility that that will be reduced or stopped if the Government is looking to repair the Covid-shaped hole in UK balance sheet) and if you don't use it, you lose it. Once inside the tax-free 'wrapper' of an ISA, that money is untouchable for the Govt so build up as big an ISA pot as you can, while you can.

[ctrader3] 17/8/2021 15:21

Get rich slow – invest £50 a month in each of these five funds to retire in comfort
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You won't build your fortune overnight by doing this but that's actually a good thing. The safest way to build your wealth is by investing regular sums year after year, leaving you nicely set for your retirement.


‘Crypto crazy!’ More Brits invested in bitcoin last year than stocks
It's like the old fable about the tortoise and the hare. Slow and steady wins the race when it comes to investing, says Darius McDermott, managing director at FundCalibre.co.uk.

Too many investors go charging around, hoping to make short-term gains from volatile assets such as Bitcoin and foreign exchange trading.

In practice, they typically lose more often than they win, because trading in this way is too high risk for most people.

Fear and greed are you biggest enemies, McDermott says. Fear of missing out, and the greed that comes from trying to make quick money. “Shun both, and take the slow route to building the wealth you need to retire in comfort," he says.

Shares can be volatile in the short term but will outperform overtime
McDermott recommends setting up a direct debit to invest a regular monthly sum inside your tax-free Stocks and Shares Isa allowance. “It’s a good habit to start and you can increase the amount you invest every time you get a pay rise.”

If you begin right at the start of your working life you could end up saving for 40 years or more. "Over such a lengthy period, even small monthly amounts can add up to a good-sized retirement pot,” he says.

Shares should deliver a far superior return to cash over the longer run but are more volatile in the short term.

McDermott says for most people, investing in a spread of investment funds is a lot safer than buying individual stocks. "If markets crash don't panic, sit tight, leave your money invested and wait for the recovery," he says.

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McDermott says the following five investment funds could be a good place to start. You could invest £50 a month in each via an investment platform, putting away £250 in total.

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LF Montanaro Better World invests in small and medium-sized businesses whose products or services make a positive impact on the world.

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Diversify by investing overseas as well as in the UK
These fund ideas are worth considering but will not suit everybody and Svenja Keller, head of wealth planning at wealth manager Killik, said you can make your own “DIY” investment decisions using online trading platforms or investment apps.

“If you pick your investments yourself, conduct thorough research on all of the available options,” she says.

If you have strong values, ethical investments, also called environmental, social and governance (ESG), may suit you better.

However, if you lack the confidence to make your own financial decisions, consider paying for independent financial advice, Keller said. “It may be more expensive than using an investment app, but allows you to ask important questions.”


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many people reading this thread, will not need to pay ISA
charges for several years, a simple trading account and use
your capital gains allowance and dividend allowance, until
u can't.

[ctrader3] 17/8/2021 13:14

Dividends, TR.

JC said, not his real name, but that's a discussion
for a different day
" There are many paths to a top of a mountain "

GL whichever path u travel.

[ctrader3] 17/8/2021 10:44

'Investment trust dividends cannot defy gravity, but they do come with a very plump cushion. Not only do they keep cash in reserve, but they can also bank some of the big capital gains they have made over the last year and hand these out to shareholders too,' said Ian Stokes, managing director of Corporate Markets EMEA at Link Group.

'It is one of the most reassuring features of investment trusts that they can smooth out the peaks and troughs in dividend income caused by the economic cycle or big one-off shocks.

'The amazing stability of investment trust dividends through the pandemic is a testament to this flexibility. For investors, this regular, predictable income is very welcome indeed.'

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HFEL stated the dividend was covered, u can only believe the
management until u don't.

[zac0_4] 17/8/2021 10:27

I'm a huge fan of the Fundsmith equity fund. I built up a position over a period of time prior to taking early retirement. I invest directly with Fundsmith. There's no platform charge and they offer a drawdown facility which I use to take a quarterly payment. Currently I take 1.25% per quarter of my initial investment value. So, just like a 5% dividend payment per annum paid quarterly. I started to drawdown 2 years ago. To date I've taken 10% of the value of my initial investment, and my capital is currently 49% higher than when I started. So, total return to date of 59%.

I think it's a mistake to compare Smith with Woodford. Woodford was fine when under the control of Invesco. It's when he set up by himself that he went rogue, so to speak. Smith's been running his fund for 11 years and has stuck strictly to his strategy.

I'm also invested in his smaller companies investment trust. I invested when the fund launched in October 2018 at £10.00 per share. It's currently £18.70!

On another point keep your eye on Henderson Far East Income as I'm sure it's due to fall further. How do I know? Well I've just topped my holding up at £3.00 (7.8% yield) and generally when I top up any holding it falls further!!! I just hope it's not another value trap!

[ctrader3] 17/8/2021 09:05

the elephant in the room with TR is, a profit is not a profit
until u sell your investments, with dividend shares
even if u buy at the wrong time the dividends gives
u buying power at a lower price.

[tim 3] 17/8/2021 08:56

Terry Smith said this outperformance "tells its own story",

But will he says that if it underperforms?

Woodford never did.

[ctrader3] 16/8/2021 11:32

The conundrum Hussman is pointing out is that people are overpaying for unusually high profits based on government intervention in the economy, and they are willing to pay more per pound of profits because interest rates are low, but those low interest rates and government interventions are in place because of low economic growth, which means that profits won’t surge.

It’s a Catch-22 for investors. They are overpaying under the assumption that profits will continue to surge, but the motivation for and cause of this (low interest rates and stimulus) suggests profits won’t surge.

This, as Hussman sees it, is a mistake that will be exposed by a drop in the stock market. But, for now, stocks are pricing in a boom.