Dod101 wrote:moorfield wrote:
No. Since this is the HYP Practical board after all, let's remind ourselves of what has become obvious this morning (see also my previous post):
HSBA is a low yield share.
Neither a candidate for new purchase or top up imo (I apply a sort of equivalence principle to both actions), but I respect those of a firmer pyadic constitution will continue to hold.
Now the fog has cleared and it is offering a yield less than half of my benchmark, I will be selling shortly. Despite crystallizing a capital loss, I can double if not treble forecast income over the next few years on what's left from dividends elsewhere. I'm not going to hang around waiting for HSBA's new "sustainable" dividend to catch up.
If you really think that why on earth did you not sell in April 2020 when they were forced to desist from paying a final for 2019? It did not take a crystal ball to see that a) they would not be paying quarterly dividends for 2020 and b) that any dividend now would be relatively modest. In fact, it is rather more than some of us were expecting , and there was never any prospect of their simply paying dividends for 2021 as though the pandemic had never happened.
I am not sure I would add to my still considerable holding bit I will not be selling either.
I think it has often been said that a 'knee jerk' reaction can be a mistake - I think initially a TJH point. So I can see why somebody would hold on after the initial cut, I just think it is still too soon to consider the dust settled.
Another recently discussed hare that illustartes that is Marstons. I imagine if inclined to do so, those who jumped ship and sold out when the shares were 20p or 30p will look back now with 20:20 hindsight and recognise it was a mistake. I think this is more important to consider for income investors than those looking at TR. Selling Marstons at say 30p may have allowed the use of the capital released to buy a share paying maybe 7 or 8% at the time, so 2.4p per year. At the current price of over 90p that 2.4p can be achieved from a much wider range of replacement candidates, or a much higher replacement income can be achieved. Of course the replacement share may have 'bounced back by more than Marstons, but considering that and / or trading in and ot of shares for capital gain is not very HYP.