Australian (ASX) Stock Market Forum

The official "ASX is tanking!" panic thread

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I am seeing a lot of talk about dividends, lol. What is the largest dividend cheque any of you has recieved based on their holdings and outlayed capital? I know it isn't going to be Lotto, but still curious :p
 
Ves said:
I will agree that on any forum at any one time that there will be a small majority that post as if they have made a killing out of the market's misfortune.
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Slightly contradictory, do you mean "small minority"?
 
NewTrade said:
I am seeing a lot of talk about dividends, lol. What is the largest divident cheque anyone has recieved based on their holdings and outlayed capital? I know it isn't going to be Lotto, but still curious :p
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I purchased MAP in my SMSF many years back. 10,000 x $0.86 and I have held them ever since. Since then the dividends received have repaid the initial capital outlay and the price has risen (and fallen) to the current $3.13.

MAP has announced the pending swap of their interest in Copenhagen and Brussels Airports with a Canadian Superannuation fund for further interest in Sydney Airport plus some cash. As a result they plan to do a special div of $0.80.

While the special div will be a respectable $8,000.00, it will also represent a return on capital of 93%.

Just one of the reasons I didn't panic this last two weeks and won't panic in the next few weeks.
 
mazzatelli said:
What's small majority aussie slang for?
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Bugger all.

notting said:
I did notice a bit of day account flashing from day traders after one or two good one's amidst many!!
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You talking to me? [The 2nd taxi driver reference in the same thread!]. Amidst many what? Many days or many day traders. I am not a day trader by the way, more like a week trader.

tech/a said:
Different scales.
The XAO is around 4200 and the DJIA 11200
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Tech/a you said something nice towards me many pages ago (was it even this thread?) and I forgot to say thank you.

So_Cynical said:
The QBE 10 year chart shows 6 up years 1 flat year and 4 down years and a total 10 year return with divis of about $15 per share (gross)...hardly a Disastrous long term investment. :rolleyes: a 10 year gross return of around 146% with no compounding...lol and that's the absolute worst case scenario for selling after 2005.
~
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What was the entry? I hope you didn't pick the bottom after 9/11?!

Lets say you (or any other person here who thinks QBE has been doing good in their portfolio) still hold. What will trigger a sell in the future? Only when you want to release the capital for some cash? Or something company related? e.g. Profits down 50%?
 
Sorry Chickie,
I wasn't talking to you just a general impression of the forum at that point which over all is very impressive.
I really like what you have to say and think your comments are worth squillions right up there with Ducky.
You should see my back yard, you'd love my pond.
I'll see if I can get a pic!

I'm a bit lazy but I found this one.
Hadn't been holding for very long either!!
23-Aug-10 TLS DIV @ 0.14 6720
I thought it was much bigger than that having just added it. Must check something.
Disclaimer it can be a good trick to sell just befor div payments in falling sentiment - obvious :rolleyes:

Cheap Quack
 
nulla nulla said:
I purchased MAP in my SMSF many years back. 10,000 x $0.86 and I have held them ever since. Since then the dividends received have repaid the initial capital outlay and the price has risen (and fallen) to the current $3.13.

MAP has announced the pending swap of their interest in Copenhagen and Brussels Airports with a Canadian Superannuation fund for further interest in Sydney Airport plus some cash. As a result they plan to do a special div of $0.80.

While the special div will be a respectable $8,000.00, it will also represent a return on capital of 93%.

Just one of the reasons I didn't panic this last two weeks and won't panic in the next few weeks.
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That is rather interesting. So what determines the price of a dividend?You made a purchase of 10,000 x 0.86 which means you recieved a dividend payout of 0.86 x 10,000 p/a respecitvley?
 
Julia said:
Thanks, Bill.
So, can you say if you were buying a company which offers what you consider a decent dividend and the SP is in a downtrend, is that an acceptable buy for you?

What's your comment about Mr Jeff's post including the chart of QBE which shows a 62% fall in the value of the capital?

No obligation, of course, Bill, but if you were to share a list of the companies you own, I'd be interested.
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I guess that was a 'no', then. OK. Thanks for other responses.

Ferret said:
And isn't it funny that QBE seems to be one of those stocks that brokers always have a buy on!
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Indeed.


NewTrade said:
That is rather interesting. So what determines the price of a dividend?You made a purchase of 10,000 x 0.86 which means you recieved a dividend payout of 0.86 x 10,000 p/a respecitvley?
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No. the 86 c referred to above is the price per share.
The dividend amount is declared by the company and is announced when they report to the market twice yearly.

Have you had a look through the Beginners' Forum? You'll find lots of what you're looking for there.
 
notting said:
If I was a real wanka I could just make that up too:2twocents
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I am sure there are other members that receive bigger dividend cheques, albiet at a lower percentage of their capital outlay. This one just happens to have worked out for me.
 
Julia said:
No. the 86 c referred to above is the price per share.
The dividend amount is declared by the company and is announced when they report to the market twice yearly.

Have you had a look through the Beginners' Forum? You'll find lots of what you're looking for there.
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Yes I am lurking thread as we speak - the question was answered by you before could get there, so thank you very much.

Perhaps I should spead some money into dividend paying stocks as well as my intermediate stocks and speculative stocks...

Thanks for the responses.
 
NewTrade said:
That is rather interesting. So what determines the price of a dividend?You made a purchase of 10,000 x 0.86 which means you recieved a dividend payout of 0.86 x 10,000 p/a respecitvley?
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The special dividend is the return to investors of the additional cash in the swap deal plus the release of surplus funds on hand.

The original outlay has returned an annual dividend over the years ranging between 11c to 21c per annum with a similar special div of 12.5c last year from the sale of their interests in the Mexican Airports. it does not return a div of $0.86c per annum.
 
skc said:
Lets say you (or any other person here who thinks QBE has been doing good in their portfolio) still hold. What will trigger a sell in the future? Only when you want to release the capital for some cash? Or something company related? e.g. Profits down 50%?
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Hi SKC

I put up a reason why somebody might hold QBE and it related to time frame and purchase price. This mimics my strategy which is basically, buy right and hold tight. Now hold tight doesn’t mean there are no sell criteria but they are valuation and business performance criteria and not market price related.

QBE was expensive in 07 but so was everything else and there would have been CGT implications, All the same not selling on overvaluation would probably have been a mistake given the then available information and defiantly a mistake in hindsight. I actually don’t think there have been any business related sell triggers on QBE. One year Profit results wouldn’t be one of my sell triggers for a long term hold of an insurance company as I would expect them to fluctuate and cycle.

The past example I sighted used a buy price of $5 in 2001 and QBE’s closing price to show a hold over that period returned an IRR of 22.5%. If QBE went belly up tomorrow because they failed due to say counterparty default with their underwriters after a major catastrophe somewhere and their whole 10Billion of equity was eaten up in claims then the 2001 purchase would still return an IRR of nearly 10% pa. (unfranked) just on dividends received to date. That’s not too shabby for making a major blunder on a sell trigger and a catastrophic business failure scenario.

This is a hypothetical example, but if it was real and I had missed the overvaluation sell I would still be holding QBE warts and all, with my eye firmly fixed on the current business quality and what the return may look like looking backward from 2021. If the business quality/performance does falter shortly, I would be presented with a sell trigger and get out turning the light off as I leave knowing that my strategy means I’m sometimes the last one to leave the party, but that’s just the way it is because I haven’t found a way to have my cake and eat it too. The outcome of any sale now would be northward of the 10%pa return from the catastrophic scenario which is not too bad for one decision in a decade. Lots of people work a lot harder for a lot less, if they are honest.
 
Disclosure:
asset.php

Unfortunatly I really am a cow.
Hence the typing and other issues.
 
I know I should resist bottom feeding - however, QBE, CCC and a few others are looking quite attractive right now.
 
craft said:
This is a hypothetical example, but if it was real and I had missed the overvaluation sell I would still be holding QBE warts and all, with my eye firmly fixed on the current business quality and what the return may look like looking backward from 2021. If the business quality/performance does falter shortly, I would be presented with a sell trigger and get out turning the light off as I leave knowing that my strategy means I’m sometimes the last one to leave the party, but that’s just the way it is because I haven’t found a way to have my cake and eat it too. The outcome of any sale now would be northward of the 10%pa return from the catastrophic scenario which is not too bad for one decision in a decade. Lots of people work a lot harder for a lot less, if they are honest.
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Thanks craft for the considered response. All the best with this strategy (and I mean it in a sincere way). In fact this is how my Mum buy/hold shares. I tried many times to tell her that the price she paid is called "sunk cost" and has nothing to do with whether she should hold or sell (she has little income and pays no tax). But I couldn't convince her so I am certainly not going to try that here :).

Here's some news on QBE for those interested.

http://www.smh.com.au/business/bond-collapse-sends-qbe-shares-south-20110811-1iow0.html

FWIW it sounds like a whole lot of BS. The bond hasn't collapse. Bond yield has. The bond itself has risen. The total interest QBE will be getting is the same on their existing holding (the US govn't doesn't pay variable rates, right?). Only new purchases are returning less and with the $A falling 10% surely they are ahead if not at least square. Not to mention the fact that, when they need to sell that bond to settle claims they will get a higher price...It's like saying that I am poorer because those CBA shares I hold are now yielding only 4% due to the share price going up 15%...
 
NewTrade said:
I am seeing a lot of talk about dividends, lol. What is the largest dividend cheque any of you has recieved based on their holdings and outlayed capital? I know it isn't going to be Lotto, but still curious :p
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I think it was about $14,500.
 
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