OldPlodder wrote:BullDog wrote:Itsallaguess wrote:Dod101 wrote:
I think when the dust settles the yield will most likely be a good bit lower than 5% but we'll see.
I have no reason to sell Schroders as the price is not demanding anyway and what has happened today is simply a transfer of some value from the voting shares to the non voting shares, to my benefit and all those who have been holding the non voting shares.
SDRC are one of a now dwindling set of single-share income-stocks that I still own, and as welcome as yesterdays price-rise was, it's not likely to have dropped the underlying yield to a level low enough to where I would normally look to rotate the capital into other income-opportunities, as is often the case with situations I've had with other single-share income-holdings that have had price-rising (yield lowering...) bid situations etc..
I do suspect however, that the processes initiated by Schroders yesterday have brought such a parting of the ways closer, and I think there may be a few more twists in the tale yet, following this move...
Cheers,
Itsallaguess
FWIW, I took the opportunity to split the proceeds of selling SDRC into topping up holdings in LGEN and MNG. Both have very handsome and seemingly fairly good quality yields. I still have exposure to the financial services sector but with a higher prospective income stream and one less share to think about.
Such a move was imho, a no brainer for any SDRC income investor. Bag in five odd years worth of Divis, reinvest the proceeds in other better yielders, no sweat. Very large increase in portfolio income at no costs, even taking trading costs into account. I was very surprised that so many did not seem to follow you.
Plodder
You're too kind. I just don't get emotionally attached to a share and look for opportunities as they arise. I often miss good opportunities with the benefit of hindsight. However, with this one, yes, I believe it was a very decent opportunity all things considered.