Dump it Here

[Captain_Chaza]

@ducati916, while I accept the observation and remarks about dividends in the article, I concede that while share prices can indeed be volatile, dividends often exhibit a remarkable consistency. Let me make a few remarks of my own.

Stable Dividend
Large ASX companies that I have invested in, tend to have Stable Dividend. These five companies (ANZ, BHP, CBA, FMG and WDS) have a dividend policy to ensure their shareholder base (investors for dividends) receives a steady dividend stream every 6 months, regardless of market volatility. That's the first point I want to make for you to consider.

This is important
I do concede that the exact dollar amount of dividends paid every 6 months will vary depending on the company’s earnings and overall performance during the preceding fiscal period.

Why Stable Dividends Matter
Stable dividend policies attract investors and enhance a company’s standing in financial markets. Such companies have the potential to raise dividends over the long term and at times enhance their share price.

Comparing Apples with Oranges
When comparing American companies to large Australian companies it’s essential to recognise differences. Australian companies not only pay regular dividends but also offer franking credits, making dividends even more attractive.

From one of the hyperlinks, you posted

Do big companies cut dividends to grow?

We look at why successful companies almost never cut dividends, instead reducing them only in the face of low earnings or challenging economic conditions.

www.mckinsey.com

"Large, stable corporations almost 'never cut dividends' as a strategic choice".

In summary
While dividend cuts can occur, especially during exceptional circumstances, established companies tend to 'prioritise dividend stability'. So, when it comes to dividends, the beat goes on! (Sonny & Cher)

Skate.

In summary

"While dividend cuts can occur, especially during exceptional circumstances, established companies tend to 'prioritise dividend stability'. So, when it comes to dividends, the beat goes on! (Sonny & Cher)"

Skate.
And that is why Dividends are always calculated on "The UNDER"
Have you seen what happens to a share price when their Dividends are reduced
I am not joking but it is often like a "Black Swan Events"

tbc

 

[Captain_Chaza]

Dear Old Friend who Skates on Ice--

I daw your attention to the real world--ie Sailing the BHP this year
Please note 0n the 8th Jan '24 TWO moving Averages and TWO Trailing Stops signalled an Exit strategy
Since then she has ben in a DOWNTREND and now WELL BELOW the 200 day moving average

This is where the SCAM comes in
Have these Promise of BHP dividends enticed you to hold on through One of BHP's Greatest Falls

I never expected You of all people to FREEZE at the Helm

IE: How much have you LOST in BHP capital?
against
How much Money have you earned in Dividends so far since 8th Jan '24?





Do You Give Up Now?

 

[Chipp]

Dear Old Friend who Skates on Ice--

I daw your attention to the real world--ie Sailing the BHP this year
Please note 0n the 8th Jan '24 TWO moving Averages and TWO Trailing Stops signalled an Exit strategy
Since then she has ben in a DOWNTREND and now WELL BELOW the 200 day moving average

This is where the SCAM comes in
Have these Promise of BHP dividends enticed you to hold on through One of BHP's Greatest Falls

I never expected You of all people to FREEZE at the Helm

IE: How much have you LOST in BHP capital?
against
How much Money have you earned in Dividends so far since 8th Jan '24?


View attachment 172943


Do You Give Up Now?
View attachment 172944

I dont want to be on any teams about this but i do agree with captain here a bit , it is possible to beat buy and hold returns on most of the 'reliable ' div paying mega caps on the asx only being in the market for 25 - 30% of the year all whilst NEVER collecting a dividend . Is it easy for the average punter ? certainly not ! But for those who can quantify price action and know the logic of runup into reporting and exdiv its very possible . Once every maybe 4-5 years an opportunity arises to hold these companies for a entire year but that is the exception to the rule for me . Am i going to tell anyone how to do this ? Certainly not and i expect the flames but i wont bite and or play . I accept many will not fathom this as possible but i remind those of an old cliche . If you say it cant be done , you are only showing your limitations , not mine .

 

[Skate]

Have these Promise of BHP dividends enticed you to hold on through One of BHP's Greatest Falls

@Captain_Chaza, I am running a year-long live experiment (with real money) posting weekly results in this thread to evaluate the practicality of generating a consistent, passive income stream. The income is expected to be derived from dividends and franking credits, originating from a portfolio composed exclusively of five stocks. (BHP is one of those positions)

I never expected You of all people to FREEZE at the Helm

It’s important to note that the focus of this investment exercise is not on the capital gains or losses incurred during this timeframe. These fluctuations in the market are considered incidental and do not detract from the primary objective of the experiment, which is to assess the potential for sustainable income generation.

IE: How much have you LOST in BHP capital?

How much Money have you earned in Dividends so far since 8th Jan '24?

The first dividend is due on the 28th of March 2024 (not long now). The back-of-the-envelope calculations the dividend should be $14,497 plus franking credits.

Do You Give Up Now?

What, do you expect me to give up 15 weeks into this investment experiment? - No, "absolutely not".

Skate.

 

[Skate]

I dont want to be on any teams about this but i do agree with captain here a bit , it is possible to beat buy and hold returns on most of the 'reliable ' div paying mega caps on the asx only being in the market for 25 - 30% of the year all whilst NEVER collecting a dividend . Is it easy for the average punter ? certainly not ! But for those who can quantify price action and know the logic of runup into reporting and exdiv its very possible . Once every maybe 4-5 years an opportunity arises to hold these companies for a entire year but that is the exception to the rule for me . Am i going to tell anyone how to do this ? Certainly not and i expect the flames but i wont bite and or play . I accept many will not fathom this as possible but i remind those of an old cliche . If you say it cant be done , you are only showing your limitations , not mine .

@Chipp, thank you for sharing this perspective. It’s interesting to hear different strategies and viewpoints on investment. Chipp's comment is a reminder that there isn’t a one-size-fits-all strategy when it comes to investing. Some investors may find success in timing the market and understanding price action dynamics, while others may prefer a more passive approach, focusing on dividends and long-term holdings as I'm doing.

Lastly, Chipp’s comment about limitations is a valuable life lesson. It’s a reminder that our beliefs can sometimes limit our potential. Being open to new ideas and strategies can lead to growth and new opportunities. Remember, the world of investing is vast and full of possibilities.

Skate.

 

[ducati916]

@ducati916, while I accept the observation and remarks about dividends in the article, I concede that while share prices can indeed be volatile, dividends often exhibit a remarkable consistency. Let me make a few remarks of my own.

Stable Dividend
Large ASX companies that I have invested in, tend to have Stable Dividend. These five companies (ANZ, BHP, CBA, FMG and WDS) have a dividend policy to ensure their shareholder base (investors for dividends) receives a steady dividend stream every 6 months, regardless of market volatility. That's the first point I want to make for you to consider.

This is important
I do concede that the exact dollar amount of dividends paid every 6 months will vary depending on the company’s earnings and overall performance during the preceding fiscal period.

Why Stable Dividends Matter
Stable dividend policies attract investors and enhance a company’s standing in financial markets. Such companies have the potential to raise dividends over the long term and at times enhance their share price.

Comparing Apples with Oranges
When comparing American companies to large Australian companies it’s essential to recognise differences. Australian companies not only pay regular dividends but also offer franking credits, making dividends even more attractive.

From one of the hyperlinks, you posted

Do big companies cut dividends to grow?

We look at why successful companies almost never cut dividends, instead reducing them only in the face of low earnings or challenging economic conditions.

www.mckinsey.com

"Large, stable corporations almost 'never cut dividends' as a strategic choice".

In summary
While dividend cuts can occur, especially during exceptional circumstances, established companies tend to 'prioritise dividend stability'. So, when it comes to dividends, the beat goes on! (Sonny & Cher)

Skate.

jog on
duc

 

[Skate]

i expect the flames but i wont bite and or play

@Chipp, welcome to the 'Dump it here' thread, where we encourage the exchange of ideas and foster a supportive community. This is a space where everyone can express their opinions without fear of judgment or ridicule. Our goal is to create a safe environment where diverse perspectives can be shared and discussed respectfully without fear of being ridiculed or belittled.

When expressing your views in this thread you will quickly notice that members can disagree without resorting to personal attacks or insults. From my experience, members are eager to engage in constructive dialogue and learn from each other's perspectives. Remember, we're all here to learn and grow together.

As wordsmiths, we have the power to shape our conversations and create a positive atmosphere in this thread for all. Together, we can create a space where diverse perspectives are valued and respected.

Skate.

 

[divs4ever]

What, do you expect me to give up 15 weeks into this investment experiment? - No, "absolutely not".

not me , but also want to warn others ( newcomers ) of the risks of relying on divs for income

mining for one has been in a 'super-cycle ' and that cycle is likely to wane soon

now companies like BHP are more likely to pay ( smaller ) divs in the next five years

but a company like FMG might consider with-holding divs to fund 'a bold new initiative ' ( say for two years )

a company can still keep ( most )share-holders on side by directing profits at new growth projects

 

[Skate]

View attachment 172951View attachment 172950

jog on
duc

@ducati916, the current dividend yield for FMG isn't too shabby at 11.5% with 100% franking credits attached. The first dividend is due on the 27th of March 2024 (not long now). The back-of-the-envelope calculations the dividend should be $16,701 plus franking credits.

Fluctuations in dividend yield are a normal part of this investment strategy, and they can be caused by various factors such as profitability, market conditions, business strategies, and capital expenditure. So, there is no need to worry.



Skate.

 

[Chipp]

@Chipp, welcome to the 'Dump it here' thread, where we encourage the exchange of ideas and foster a supportive community. This is a space where everyone can express their opinions without fear of judgment or ridicule. Our goal is to create a safe environment where diverse perspectives can be shared and discussed respectfully without fear of being ridiculed or belittled.

When expressing your views in this thread you will quickly notice that members can disagree without resorting to personal attacks or insults. From my experience, members are eager to engage in constructive dialogue and learn from each other's perspectives. Remember, we're all here to learn and grow together.

As wordsmiths, we have the power to shape our conversations and create a positive atmosphere in this thread for all. Together, we can create a space where diverse perspectives are valued and respected.

Skate.

I appreciate that Skate , ive just had some bad experiences on other forms of social media whilst expressing views that arent exactly mainstream , I am interested in what you are doing and will keep watching . There is always something to learn and thats a beautiful thing . Cheers

 

[Skate]

runups are caused by div chasers even if many have zero intention of receiving the div . Have a deep hard think about the mindset of those participating , can open up a whole new way of looking at markets .

@Chipp thanks for a stimulating thought-provoking post.

Exploring Dividend-Related Trading Strategies
Not to be confused with dividend stripping, this new approach is a captivating idea. Developing a unique system tailored to trade 'dividend events' is a novel approach, well it is for me.

But there’s more
Understanding investor behaviour and concealed patterns can lead to unexplored opportunities. The puzzle of market psychology awaits. The real challenge lies in timing entry and exit points effectively.

# Let the journey of unravelling this puzzle commence!

Skate.

 

[ducati916]

@ducati916, the current dividend yield for FMG isn't too shabby at 11.5% with 100% franking credits attached. The first dividend is due on the 27th of March 2024 (not long now). The back-of-the-envelope calculations the dividend should be $16,701 plus franking credits.

Fluctuations in dividend yield are a normal part of this investment strategy, and they can be caused by various factors such as profitability, market conditions, business strategies, and capital expenditure. So, there is no need to worry.

View attachment 172952

Skate.

jog on
duc

 

[farmerge]

@Captain_Chaza, I am running a year-long live experiment (with real money) posting weekly results in this thread to evaluate the practicality of generating a consistent, passive income stream. The income is expected to be derived from dividends and franking credits, originating from a portfolio composed exclusively of five stocks. (BHP is one of those positions)



It’s important to note that the focus of this investment exercise is not on the capital gains or losses incurred during this timeframe. These fluctuations in the market are considered incidental and do not detract from the primary objective of the experiment, which is to assess the potential for sustainable income generation.



View attachment 172945



The first dividend is due on the 28th of March 2024 (not long now). The back-of-the-envelope calculations the dividend should be $14,497 plus franking credits.

View attachment 172948




What, do you expect me to give up 15 weeks into this investment experiment? - No, "absolutely not".

Skate.

Professor, you are completely wasting your precious time even replying to the Mad Cap't.
I came to the conclusion after he banned me that he is only interested in one opinion, and that is his.

 

[Captain_Chaza]

Now that I am a Proud holder of BHP I am eligible for your beloved Dividends --

I call it " Money for Ropes"
Our Chef calls it "Money for Jam"

All I am saying is " Your Beloved Dividends are available to Everyone"
You don't have to lock yourself into Some Prehistoric Financial Plan
" LUCK is EVERYTHING when timing for these Carrots and Loyalty programs are executed"

NB: I refer to Prehistoric being before Windows '95
Before then we were all in the BLIND

Only the Penniless are Blind Nowadays




Salute and Stay Well

 

[Skate]

Now that I am a Proud holder of BHP I am eligible for your beloved Dividends --

I call it " Money for Ropes"
Our Chef calls it "Money for Jam"

All I am saying is " Your Beloved Dividends are available to Everyone"
You don't have to lock yourself into Some Prehistoric Financial Plan
" LUCK is EVERYTHING when timing for these Carrots and Loyalty programs are executed"

NB: I refer to Prehistoric being before Windows '95
Before then we were all in the BLIND

Only the Penniless are Blind Nowadays

View attachment 173011


Salute and Stay Well
View attachment 173012

@Captain_Chaza, congratulations on becoming a BHP shareholder and the dividends that come with it. While luck can play a role in market timing, a well-researched investment strategy tends to yield more consistent results.

Your 'Money for Ropes' term is a funny reminder of how far we've come in terms of technology and access to information. In today’s digital age, anyone with an internet connection can educate themselves about the financial market and make informed investment decisions. Ultimately, the key is to align your financial choices with your individual goals and risk tolerance.

Skate.

 

[Chipp]

@Captain_Chaza, congratulations on becoming a BHP shareholder and the dividends that come with it. While luck can play a role in market timing, a well-researched investment strategy tends to yield more consistent results.

Your 'Money for Ropes' term is a funny reminder of how far we've come in terms of technology and access to information. In today’s digital age, anyone with an internet connection can educate themselves about the financial market and make informed investment decisions. Ultimately, the key is to align your financial choices with your individual goals and risk tolerance.

Skate.

Got a feeling the captain will not be holding for divs tbh , i know i wont be . I think the market timing by the captain is decent .. I have entered this week myself fwiw See BHP thread

Edit .. Skate surious to know do you ever write OTM covered call to add a little more income ?

 

[Skate]

Edit .. Skate surious to know do you ever write OTM covered call to add a little more income ?

No, I never have.

Skate.

 

[Chipp]

No, I never do.

Skate.

Fair enough but you can certainly add to those div returns if not double them with a good strategy . Of course you risk getting exersized but you pocket some premium . There are certain periods around div runups when getting exxxed is unlikely . I think once you have held for over a year in a buy and hold the tax implication are halved its a missed opportunity . just putting it out there . Ok will sit back and observe for a while . cheers

Edit .. also if you got a planned sell into a runup selling a covered call to actually exit a trade adds a bit of cream

 

[Skate]

Fair enough but you can certainly add to those div returns if not double them with a good strategy . Of course you risk getting exersized but you pocket some premium .

@Chipp, writing covered calls can be a good strategy to generate additional income, but I prefer to keep my trading simple and avoid using fancy strategies.

Skate.

 

[farmerge]

@Chipp, writing covered calls can be a good strategy to generate additional income, but I prefer to keep my trading simple and avoid using fancy strategies.

Skate.

Now you're talking Professor