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rimmy2000

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rimmy2000 last won the day on July 19

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About rimmy2000

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  1. I really enjoyed this too. has made me want to buy an old ticker tape machine for the house too!
  2. absolutely, these are not recommendations to go out and buy. Not a chance I would do that. I am trying to construct an argument for looking ahead and considering how income stocks may form part of a portfolio, as a way of assuring decent levels of return if the markets soured. It raises another point, that a dividend yield too high is something to be suspicious of, also. For example Carillion actually raised dividends but went bust earlier this year, as per this article. The main point I am trying to get across is there are some rules that can be used to help our stock selection, and improve chances of success. As I put at the end of my article, it... As for the other point "what I don't get is how these are not getting bought up a lot and people pushing the price up" remember these are large cap stocks, and all will have many millions of shares in issue, a lot will also be held by institutions, for example, RIO TINTO (RIO) has one-billion-three-hundred-and-twenty-one-million (1,321,300,000) ordinary shares in issue, so it will make very very little difference if retail investors buy for future income.. Hope that provides some clarity. Good questions.
  3. Thank you @PandaFace, Your post summarises the attitude that should be taken: being on the front foot, perhaps with some good quality income stocks, keeping *some* cash aside for opportunities and generally acting with trepidation over the coming months.
  4. Hello @cryptotrader, Well This source is probably as good as any: Schroders are in the industry, manage funds and are an asset manager. So their take is reasonable to use, imo. Happy for you or anyone else to look for other estimates, and we can adjust accordingly, but all this is doing is giving us a benchmark from where to set the dividend threshold, we are not allowing this assumption to underpin the entirety of the research.
  5. Just in summary then, what we have done here is: Restricted our market/pool of stocks to large and mid caps (UKX, MIDD) Looked for stocks that yield above the expected market return (4% above) Seen how cash is probably not attractive due to inflationary erosion in the coming years. Added in a simple test of financial health by restricting to shares with a strong current asset:liability ratio Restricted further for positive EPS value in most recent reporting period. Sorted our data by Yield Looked for stocks that produce an EPS in excess of the dividend payout. Reduced our list to a manageable number for further research.
  6. rimmy2000

    Twitter NYSE:TWTR

    @anders Yes I did see something about suspension of bot accounts. For me, this is not a concern. If anything I agree with you that it will improve the quality of the platform. The main reaction would be possibly because the MAU (monthly active users) statistic that Twitter is often assessed on, is impacted. But I think this will be a short term blip. For me the biggest appeal still is that Twitter is a pure unadulterated source of primary breaking news. Years ago if people wanted news they would get it fro a radio or their newspaper. Now it is newspapers that rely on TWTR for their breaking stories!
  7. My previous article looked at potential screening opportunities the stocks that had underperformed the FTSE 100. This article will also look at IGs market screening tool and attempt to come up with some ideas the stocks that could be bought on the basis of the dividend they offer. It seems a good time to at least begin starting to look at stocks that pay a good dividends (begin creating a Watchlist maybe?) but crucially stocks that also seem capable of continuing to pay that dividend. The reason for this article is the markets have been a bit turbulent lately: there are various geopolitical events on the horizon (which could trigger panic in the market) but also because with stocks trading near all-time highs it may be more prudent to look for stocks that pay in income (dividend) rather than stocks for future the growth potential. And lastly the previous stock market crash was 10 years ago. That in itself is not a sign of doom, but history repeats, eventually. 😉 The first thing we will do is open up IG's screening tool. We can access this from the website, IG analysis > market screener. The first thing I always do when playing with filters is hit the Reset button to remove any criteria that may have been remembered from earlier sessions. This gives a clean slate- so we will now start to build our filter. On this occasion let's look at some of the largest stocks on the London stock exchange. (Reason? these giants are partially shielded from UK economic fortunes , as they derive a lot of income from overseas, typically. but also they tend to be mature and stable, which in itself lends to steady earnings and hence dividends) The first thing we will do is refine selection to both the FTSE 100 companies and also include the mid caps - the FTSE 250. Now take a moment to download and read this interesting document I found online https://www.schroders.com/pl/sysglobalassets/digital/insights/2017/pdf/seven-year-asset-class-forecast-returns-2017-update.pdf Using this, we can easily look into Schroders predictions on expected returns of various asset classes in the future. Useful reading for anyone in the markets. As you see from the summary table on page 2, this shows why it is not wise to hold just cash, because although interest rates are expected to average 1.3% this gets eroded by inflation (the increase cost of living) which is (expected to) rise at a greater rate than interest rates, given Cash an expected return of -1% Now let's look at equities, focusing in on the UK equity markets quoted GBP. Schroders expects over the next seven years stocks will return 5.4%. Subtract inflation (exactly the same as cash at 2.4% obviously) so this gives a net return of 3% expected over the next seven years on UK equity. Why are we doing this? well we can use this information to give us a benchmark for what we want screening to return as we look to beat the overall markets… otherwise if we're happy with 3% we may as well simply put money into an ETF or index tracker. Therefore our next criteria will be to filter the stocks in our selection based upon the expected dividend yield. Will set this at 4% as that will outshine the expected market return by 1% minimum. we will also add in another criteria that indicates financial strength by adding the Current Ratio. The current ratio exists to indicate if a company has sufficient liquidity to pay off any short-term liabilities For example if *notional company* has current assets(cash & equivalents) on its balance sheet of £100 and its current liabilities(short term monies owed) are £100 also the current ratio returns would be 1 = current assets (100) divided by current liabilities (100) We want to look for a current ratio of at least 1.5, that is to say current assets exceed current liabilities by 50% this serves to give us some comfort that the company is unlikely to experience issues in paying down its near-term liabilities. And conversely increased confidence the dividend can be paid. Let's add two more criteria for the filter: the dividend per share in cash terms and the most recent earnings per share - we will use these to provide some kind of comparison. Set the Earnings per share minimum to 0.1. This means a positive value is required so any companies with negative eps in the last reporting period will now be excluded. The filter returns 16 stocks, four in the FTSE 100 and 12 in the FTSE 250. This seems like a manageable amount to work with the further research. From here you can exclude companies in industries that you don't do not want to pursue if you wanted to narrow down the search further. Perhaps first sort by Dividend yield column first by clicking on that column header. The next thing I would do is look down the two right-hand most columns those being EPS and dividend per share and I would look to identify for the situations where reported earnings are significantly greater than the dividend. This provides some level of comfort that the profits of the company retains are sufficient to honour the dividend expected. You may want to go even further and look at the level of dividend cover feature of the shortlisted companies by doing some more research on their website or on the IG platform but we can quickly skim over our 18 results and see that some are more appealing than others in this respect four example Henderson group has a dividend and eps at parity so for me this is probably a sign to eliminate it, or at least do much more research. As per the current ratio I would look for dividend cover about 1.5 to 2 times. EG EPS is approx. 50% more than the dividend payout. This is a quick glimpse of looking into some companies that may be suitable to invest our money is if the markets starter gets a bit shaky. At least there will be some certainty of regular income informant dividend payments which as we have shown is far greater than holding cash. This is not investment advice just an expression of ideas, let me know your thoughts. I recognise it is quite simple, but equally it is rules based so gives us a platform to make further choices and conduct more research. There is a lot more we could do, time permitting. It is probably worth running something like this monthly, as the results will change as reporting is released, and you can pick the best for more research or to go into a Watchlist. Cheers, rimmy2000
  8. rimmy2000

    Renold RNO 50% upside..?

    AGM and trading statement today . read it here https://www.investegate.co.uk/renold-plc--rno-/rns/agm-statement/201807180700039392U/ this trade is on 21% gain. Outlook is encouraging too. I think the 50% target will come.
  9. rimmy2000

    William Hill WMH

    Yes, I agree with that @PandaFace, there is a good chance the World Cup will bring a windfall, and possibly Wimbledon (with Federer and Serena getting knocked out perhaps?) The big news here is how things start to unravel in the USA I think, as this and likely consolidation will generate the big moves, but I agree with your sentiments this will likely be positive for the next trading update - through loss avoidance!
  10. Thanks @TinkerTrader. I appreciate you reading my article. I get quite busy at times, however I will create something similar soon for dividend paying ideas. With the markets undergoing (potentially) a bit of turbulence then we might want to look at stocks that provide some level of income to switch into to ride out the storm! I might get chance this week..
  11. rimmy2000

    ocado and superdry

    sold today, not on valuation grounds but for other reasons. This is on the watchlist cheers
  12. rimmy2000

    Dow Jones Grid EA

    Hmm, I am not going to knock it as I am sure it is a great method. I am guessing you are using very small stakes to prove the system first. I cannot help but think it is a lot of work for the effort though. The net result is £50 credit, with most of the wining trades cancelled out by losses. Or is there something I am missing..?
  13. this strikes me as at least somewhat confusing. Is it possible to be both, in the red AND making a mint..? the two seem to be contradictory.. I am not eligible for Professional Status either (I feel my experience should mean that I am, and that is more important than the tests ascribed. My performance demonstrates more than the criteria- which seem a bit arbitrary) However, no point complaining, just keep leverages to a comfortable level or add a bit of ballast to the account. Not worth losing sleep over, imo.
  14. thank you for this. A useful post
  15. rimmy2000

    UK share dealing and ISA custody fee

    yes, this will work for some. Moving to a spreadbet account will avoid some of these custodial fees. However, I trade with a personal account (spreadbet) but also through a registered company, using LEI, so all accountable. It is harder for a company to trade via derivatives or spreadbet, I believe. The fee will probably affect me (my company account) some quarters, but some maybe not. The IG platform is by far the best ( i also use three other providers) so its a small price to pay for a good service, imo.
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