Share advice - best dividend paying stocks?

[Ecosseven]

Evening all,

With interest rates at an all time low and even cash isa rates at less than 2% I'm thinking about investing some money in relatively stable shares with a good dividend yield (circa 4.5% and above). I'm looking to invest around £10k in between 2 and 4 different companies.

All advice and recommendations much appreciated.

[anonymous-user]

While we're at it, has anyone seen the holy grail lying about?

[BIRMA]

You can easily double your money in a year, or be down 38% or even at the very worst and unlikely event loose your stake. Shares are a risky venture in my early research I noticed that a lot of big asset management companies invested in booze and fags so as a start you probably can't go far wrong with those.

[honest_delboy]

2.5k each
BP
Astrazeneca
HSBC
Vodafone


good luck

[OtherBusiness]

This might help too

http://www.moneyobserver.com/portfolio/dogs-footsi...

[audidoody]

Stick a print-out of the FTSE 100 on a dartboard. Throw darts. Invest where they hit.

[Gh45]

audidoody said:

Stick a print-out of the FTSE 100 on a dartboard. Throw darts. Invest where they hit.

Nonsense. Dogs consistently returns higher

[Siscar]

audidoody said:

Stick a print-out of the FTSE 100 on a dartboard. Throw darts. Invest where they hit.

You could do that.

Alternatively you could do a little research and pick stocks with a growth future and invest in them. You tend to make more money if you do that.

[ringram]

Siscar said:

You could do that.

Alternatively you could do a little research and pick stocks with a growth future and invest in them. You tend to make more money if you do that.

Prove it.

http://www.zerohedge.com/news/2013-04-29/wall-stre...

[Broccers]

Your dart board would have to have div paying shares on for starters.

I've read BP are good but don't have any.

[Siscar]

ringram said:

Prove it.

http://www.zerohedge.com/news/2013-04-29/wall-stre...

Oh, look, it's a complex and personal business, personal because it's all about your own view of risk and the extent to which you want to invest time in getting to know what is happening. Funds tend to be widely invested and that will cut risk as well as returns. Over the past few years I've been invested in a relatively small number of companies - four or five - but latterly they have included Compass, Pace and Rolls-Royce, all of whom have done pretty well. Compass, for example, are showing a 261% gain since I bought, RR are at 79% and I sold out of Pace when they had doubled my money in roughly a year. OK, they weren't bought for the dividend yield, it was growth potential each time, but they've done better than a dart into the FTSE was likely to do.

[audidoody]

Siscar said:

You could do that.

Alternatively you could do a little research and pick stocks with a growth future and invest in them. You tend to make more money if you do that.

Yeah. I did that. Xcite Energy. Researched the arse out of it, memorised analyst's BUY notes. Down 50% because none of the whiz kids ever thought Osborne was going to levy an extra tax against North Sea oil.

BP? Best dividend payer in the world. Until an oil well pipe fractured.

Did you ever wonder why all the 'experts' who tip shares still have to work for a living?

Frankly anyone who comes onto a bulletin board called PistonHeads asking for share tips should keep their money in the bank.

If you think the missiles are going to fly over Damascus load up on Gold. If Obama presses the button you too will make a killing. Japan? . Here's a Japan Recovery Fund that is a sure-fire tip. Oops. Sorry about that earthquake and tsunami. Ooh look. Airlines are doing well as the recovery rumours gather pace. Oh sh*t - an Airbus has just crashed in Taiwan (along with my BA shares). And I REALLY researched that sector.

Apart from which, by the time we amateurs punters have spotted a bandwagon, it has already left town.

ALL investment results are determined by events outside anyone's control.

So I'll stick with the dartboard theory thanks.

Edited by audidoody on Tuesday 10th September 15:22

[Yell_M3]

Ecosseven said:

Evening all,

With interest rates at an all time low and even cash isa rates at less than 2% I'm thinking about investing some money in relatively stable shares with a good dividend yield (circa 4.5% and above). I'm looking to invest around £10k in between 2 and 4 different companies.

All advice and recommendations much appreciated.

Go to digitallook.com. It has tools (free) that allow you to choose stocks based on your own criteria. Ie dividend, low risk etc.

[BIRMA]

Ecosseven said:

Evening all,

With interest rates at an all time low and even cash isa rates at less than 2% I'm thinking about investing some money in relatively stable shares with a good dividend yield (circa 4.5% and above). I'm looking to invest around £10k in between 2 and 4 different companies.

All advice and recommendations much appreciated.

I'm guessing if you have read through the replies so far you may be even more undecided about what to do, it is after all your money and your decision.
There will always be merchants of gloom or people who think they know better than anyone else on this subject and probably a few professionals in the field who probably have a bloody good laugh reading through the posts on here. But be in no doubt it is potentially very risky, although you can set a figure to sell your stock, so if you have a £1 share you can set it to sell at 90p if you feel uncomfortable about any given situation that may arise or you fall into a coma and the market crashes. I think there are some very useful tips in this forum like the recent GKP situation where I knew nothing about them and bought a 1000 for a punt. I started two years ago and have put 4 times my original stake into buying shares and through luck and a favourable tail wind am significantly up. I've been down over £20K on my shares and within a fairly short period up over £20K I can't think of more stimulating buzz that's legal anyway to compare.

[Siscar]

audidoody said:

Siscar said:

You could do that.

Alternatively you could do a little research and pick stocks with a growth future and invest in them. You tend to make more money if you do that.

Yeah. I did that. Xcite Energy. Researched the arse out of it, memorised analyst's BUY notes. Down 50% because none of the whiz kids ever thought Osborne was going to levy an extra tax against North Sea oil.

BP? Best dividend payer in the world. Until an oil well pipe fractured.

Did you ever wonder why all the 'experts' who tip shares still have to work for a living?

Frankly anyone who comes onto a bulletin board called PistonHeads asking for share tips should keep their money in the bank.

If you think the missiles are going to fly over Damascus load up on Gold. If Obama presses the button you too will make a killing. Japan? . Here's a Japan Recovery Fund that is a sure-fire tip. Oops. Sorry about that earthquake and tsunami. Ooh look. Airlines are doing well as the recovery rumours gather pace. Oh sh*t - an Airbus has just crashed in Taiwan (along with my BA shares). And I REALLY researched that sector.

Apart from which, by the time we amateurs punters have spotted a bandwagon, it has already left town.

ALL investment results are determined by events outside anyone's control.

So I'll stick with the dartboard theory thanks.

Edited by audidoody on Tuesday 10th September 15:22

Wel good luck to you, I won't.

Thing happen that are unpredictable, some of the time. But in my experience over the past twenty years or so you can be right more than you are wrong, well at least I have been.

Personally I'd say that if a dartboard is the best method you have you should away, but it's your money to do what you want with.

[Ecosseven]

BIRMA said:

Ecosseven said:

Evening all,

With interest rates at an all time low and even cash isa rates at less than 2% I'm thinking about investing some money in relatively stable shares with a good dividend yield (circa 4.5% and above). I'm looking to invest around £10k in between 2 and 4 different companies.

All advice and recommendations much appreciated.

I'm guessing if you have read through the replies so far you may be even more undecided about what to do, it is after all your money and your decision.
There will always be merchants of gloom or people who think they know better than anyone else on this subject and probably a few professionals in the field who probably have a bloody good laugh reading through the posts on here. But be in no doubt it is potentially very risky, although you can set a figure to sell your stock, so if you have a £1 share you can set it to sell at 90p if you feel uncomfortable about any given situation that may arise or you fall into a coma and the market crashes. I think there are some very useful tips in this forum like the recent GKP situation where I knew nothing about them and bought a 1000 for a punt. I started two years ago and have put 4 times my original stake into buying shares and through luck and a favourable tail wind am significantly up. I've been down over £20K on my shares and within a fairly short period up over £20K I can't think of more stimulating buzz that's legal anyway to compare.

Thanks Birma. Some very interesting replies and as you say everyone has their own opinion. I've decided to put around £3k in a fixed bond savings account and £7k into shares over 3 different companies. I'll set the trigger price for automatic sale at around 80-85% of what I paid for the shares to minimise any potential losses although with a bit of luck and some good judgement, hopefully I won't need it.

Thanks everyone for your advice and opinions.

[BIRMA]

Ecosseven said:

BIRMA said:

Ecosseven said:

Evening all,

With interest rates at an all time low and even cash isa rates at less than 2% I'm thinking about investing some money in relatively stable shares with a good dividend yield (circa 4.5% and above). I'm looking to invest around £10k in between 2 and 4 different companies.

All advice and recommendations much appreciated.

I'm guessing if you have read through the replies so far you may be even more undecided about what to do, it is after all your money and your decision.
There will always be merchants of gloom or people who think they know better than anyone else on this subject and probably a few professionals in the field who probably have a bloody good laugh reading through the posts on here. But be in no doubt it is potentially very risky, although you can set a figure to sell your stock, so if you have a £1 share you can set it to sell at 90p if you feel uncomfortable about any given situation that may arise or you fall into a coma and the market crashes. I think there are some very useful tips in this forum like the recent GKP situation where I knew nothing about them and bought a 1000 for a punt. I started two years ago and have put 4 times my original stake into buying shares and through luck and a favourable tail wind am significantly up. I've been down over £20K on my shares and within a fairly short period up over £20K I can't think of more stimulating buzz that's legal anyway to compare.

Thanks Birma. Some very interesting replies and as you say everyone has their own opinion. I've decided to put around £3k in a fixed bond savings account and £7k into shares over 3 different companies. I'll set the trigger price for automatic sale at around 80-85% of what I paid for the shares to minimise any potential losses although with a bit of luck and some good judgement, hopefully I won't need it.

Thanks everyone for your advice and opinions.

Just to give you some figures on some of my choice
RR +90.13%. QQ +62.83%. LLOY +61.04% VOD +26.02%
Negative Glencore -34%
These figures were just taken from my trading account RR, VOD dividends aren't bad I re-invest all dividends back into shares.

Edited by BIRMA on Tuesday 10th September 19:11

[Revisitph]

There are several investment trusts which have a decades-long record of buying major shares for their income stream and then paying increasing dividends year on year. TR City of London for example; (CTY.LON). These ITs are actively managed. Last time I bought CTY, a couple of months ago it was trading at a premium to NAV (i.e. more than the value of the shares it owns, implying that buyers think that it had some growth potential as well as income). Alternatively there are some relatively new physical ETF trackers which, at lower cost (e.g. 0.3% p.a.) will use an algorithm to follow shares which have shown a good dividend return over a prolonged period, perhaps a decade and which track European, US or UK markets (EUDV.LON, USDV.LON,UKDV.LON). I don't know if these will include BP, which has had a bit of a hiccup recently with the blowout in the sea S of Texas, but may well, to a managed fund manager with a less mechanistic view than a tracker be attractive. They often include tobacco and pharmaceutical companies.

There were some FT articles on this in the last 6 months, pointing out that a significant proportion of the long-term return on the stock market is reinvestment of dividends. However, they were written in a low growth, poor bond or cash-return environment - things may have changed and you may want to go for cyclical stocks like miners which wouldn't follow a consistent pattern and therefore not be likely to feature in the trackers but might provide better overall returns.
As Blind Date said "the choice is yours".

D.O.I. I have investments in a range of shares; ITs like CTY and the various UK/EU/DV trackers mentioned above.

Edited to remove brackets and realising that CGT is unlikely to be an issue.

Edited by Revisitph on Thursday 12th September 07:57

Edited by Revisitph on Thursday 12th September 07:59