Merchants Share Discussion Threads

[zac0_4] 15/7/2023 18:01

For me I'm happy to have a foot in both camps presently.
Don't forget your example was based on a total return (ie no dividends taken / all reinvested) over the long term from MRCH.
Most of my data indicates a better long term return can be had through investing in companies, via funds, that pay no, or little, in the way of dividends. I suspect that is the direction I will move in over the coming years.

[ctrader3] 15/7/2023 12:36

I would guess the choice is between the certainty of a dividend
stream or the gamble of TR. Maybe both ?




At 300p the dividend was 27.10p a yield of 9% which u should receive,
gently increasing, for the rest of your natural.
Of course u would have hesitated to buy the price as it could have gone lower
but the yield of 9% was a once in a lifetime chance.
A yield of 9% returns your stake in 8 years.
What will the yield be on a share that costs u nothing, zilch.
Everything crossed for another market crash ?

[zac0_4] 14/7/2023 14:51

It certainly is. I've rerun the numbers for the last 10 year period and £10,000 invested on 01.01.13 would have turned into £22,835 by the end of 2022. A similar investment in the Legal & General International Index Trust would have delivered an end result of £32,640.
In my opinion it's good to diversify and the L&G Trust excludes UK listed companies.

[ctrader3] 14/7/2023 13:41

yep, it's always easier in the rear view mirror.
The current yield is 5.17% If the value was 62.2k = a dividend of £3,215.00
so your calculations are not that far out.
GL

[zac0_4] 14/7/2023 11:41

ctrader3 - well, I must admit, I thought even your latest figures were wildly optomistic.
However, I've run my own figures and come pretty close to yours.
I took a £10,000 initial investment on 1st Jan, 2003, and simply reinvested the annual dividend on day 1 of the following year.
My figures equate as following: £10,000 01.01.03 / £62,200 01.01.23
Annual dividend of £672 in 2003 / annual dividend of £2,846 in 2022
Unfortunately, time is not on my side so, at the moment, I'll have to settle with taking my dividends as income!

[ctrader3] 14/7/2023 10:18

or try Warren Buffet and the snowball for the same message.

[mancman1] 14/7/2023 08:38

Don't think Einstein said that. Urban legend.

[ctrader3] 14/7/2023 07:32

I've roughed the figures out, when u would have re-invested the
earned dividends will change the final totals slightly.
U would have very approximately 10,694 shares worth £57k
The last earned dividend would equal £2,951.00.
The eight wonder of the world, compound interest, would
equate to a yield on the buying price of 29%.
Current dividends > 59k x 5.2% £3,068.00.

[ctrader3] 14/7/2023 06:49

Sharescope

[zac0_4] 13/7/2023 20:57

ctrader3 - "yep 1k should have been 10k . . ."

I'm not sure where you're getting your figures from. The total (capital and dividends reinvested) annualised returns for the last 10 years has been 6.47%. Applying this figure over a 20 year period turns your £1,000 into £3,290. To acheive the 10x return you suggest over 20 years requires an annualised growth rate of 12.9%, something I'm confident MRCH hasn't achieved.

[ctrader3] 13/7/2023 14:31

Mister MD10 Jul '23 - 13:05 - 2204 of 2206
0 0 0
Yeah that doesn't sound right. 1k invested 20 years ago would be worth approx 2k now excluding dividends of approx 1.5k over that period - if those were indeed re-invested then maybe 5 K current total value ?

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

yep 1k should have been 10k.

[superiorshares] 12/7/2023 21:24

I'm still around .
Don't forget £3 by the end of 2024

[mister md] 10/7/2023 13:05

Yeah that doesn't sound right. 1k invested 20 years ago would be worth approx 2k now excluding dividends of approx 1.5k over that period - if those were indeed re-invested then maybe 5 K current total value ?

[zac0_4] 06/7/2023 12:20

"If u had invested 1k in MRCH twenty years ago and did
nothing other then re-invested your dividends, you
would own shares to the value of 51k . . ." - Not in your wildest dreams!!!

[jeffian] 06/7/2023 10:10

The entire market is down on the threat of further US interest rate rises. Not specific to MRCH

[janeann] 06/7/2023 09:21

Ta - been away not caught up yet!!

[thamestrader] 06/7/2023 08:57

ex-div today

[janeann] 06/7/2023 08:55

why such a fall this am....

[ctrader3] 30/6/2023 10:28

The current yield is 5.2% so u would receive dividends
in the next year of £2,652.00

[ctrader3] 30/6/2023 10:24

If u had invested 1k in MRCH twenty years ago and did
nothing other then re-invested your dividends, you
would own shares to the value of 51k.
The power of the market as gains are unlimited
and the losses are a maximum of 100% as long as u
never CPA.

[richtea2517] 11/4/2023 19:21

Heading back to 600

[ramellous] 15/3/2023 09:23

I got paid the divi first thing this morning with ii