In summary@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
"Large, stable corporations almost 'never cut dividends' as a strategic choice".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
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.
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 .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
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?
How much Money have you earned in Dividends so far since 8th Jan '24?
Do You Give Up Now?
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 .
@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
"Large, stable corporations almost 'never cut dividends' as a strategic choice".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
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.
i expect the flames but i wont bite and or play
What, do you expect me to give up 15 weeks into this investment experiment? - No, "absolutely not".
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@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.
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 .
@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.
Professor, you are completely wasting your precious time even replying to the Mad Cap't.@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.
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
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@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.
Edit .. Skate surious to know do you ever write OTM covered call to add a little more income ?
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 . cheersNo, 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 .
Now you're talking Professor@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.
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