We’ve already considered the attractions of dividends and what makes a good individual high yield share. Part 3 now looks at how many different shares you need to get a squad of high yield shares fit for the long-term. (For those who like spoilers: Part 4 will offer an illustrative portfolio assembled using real share [...]
Investing
Part One of this series introduced how dividend payments from shares can produce a growing income stream with minimal effort on your part, and certainly no need to frenetically ‘play the markets’ like a demented monkey bashing the bongo drums. (Remember, study after study has proven most share traders fail to beat buy-and-forget tracker funds [...]
“Buy! Buy! Buy!” shout the city folk in blue braces from one side of the trading pit. “Sell! Sell! Sell!” retort those with red neckties. Whatever happened to “Wait! Wait! Wait!” wonders your writer? These days sharetrading is conducted via computer – the trading is often done automatically according to decisions made by the computers [...]
You’ve bought a share and – ye gads! – it’s gone up 30%. Should you sell it and take the profit? It sounds like a simple question, but the answer, my friends, is complicated and controversial enough to give us the stock market we know and love, with all its wild oscillations in share prices, [...]
Dividends are typically declared twice a year in the UK, when the company announces its interim and final results. The two dividend payments declared add up to the total dividend for the year. The historical yield is calculated by dividing last year’s declared dividend by the current share price. The forecast yield, in contrast, is [...]
Consider a fictitious company, Loadsamoney Ltd, whose shares cost 100p each, which is paying an annual gross dividend of 10p per year. The dividend yield is calculated by dividing the dividend by the share price, and then expressing it as a percentage. In Loadsamoney’s case then, the dividend yield is: 10p/100p x 100 = 10% [...]