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Selling bank shares to replace dividends

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Dod101
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Re: Selling bank shares to replace dividends

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Postby Dod101 » April 5th, 2020, 12:24 pm

kempiejon wrote:I'll keep my bank shares, they've been told not to issue their dividends by the regulator, it appears they argued and had their arms twisted. So I expect they'll resuming paying the dividends when they're allowed, I hope at an equivalent level they would have done without the interference. Selling now at the lowest point for years not only is unHYPic but it is slinging the money away I recon.
How to replace that lost income is the problem for HYPers, draw on the income reserve, look for reductions in spending or hopefully have started with more income than they actually needed such that they were getting a surplus to soak up some of the shortfall. A blend of all three will smooth the problem those living on their HYPs experience. It's a good experiment for me as I'm still employed looking to leave that and live off my investments soon. I've built up a cash fund to smooth downturns but I think I need to look how much surplus income is prudent.


You are right. Actually I normally do not pay much attention to my income v expenditure but I do keep tabs on how I spend my money and have done for the last three years or so since my wife died because I wanted to see where my money was going and how much I could afford to give my grandchildren each year. The figures have proved to be very helpful right now because for these years I have had a surplus of income which will now disappear I guess and I have already said that I will try to cut my expenses by around 25% which I believe to be achievable. Of the banks I only hold HSBC and there is no way I am selling any at under £4 for any reason. I think once a lot of retail sellers are out of the way there is no reason why the price should not rise to at least £6 as a value play. Not very HYP I am afraid.

Dod

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Re: Selling bank shares to replace dividends

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Postby idpickering » April 5th, 2020, 1:08 pm

Dod101 wrote: Of the banks I only hold HSBC and there is no way I am selling any at under £4 for any reason. I think once a lot of retail sellers are out of the way there is no reason why the price should not rise to at least £6 as a value play. Not very HYP I am afraid.

Dod


I hold HSBC and Lloyds. The former I topped up last December, and am at my maximum spend on them (and any share) currently. Either way, I wouldn't buy more until the dividend situation is resolved. I've held off topping up my Lloyds holdings due to the Brexit situation, but that matter has been superseded by recent events maybe? Either way, I'm not selling my bank shares, nor any of the others come to that.

Ian.

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Re: Selling bank shares to replace dividends

#297994

Postby moorfield » April 5th, 2020, 1:41 pm

My investment priority is income, of which HSBA has just told me it is paying nada for the next year.

Whereas my benchmark measure, CTY, looks to be continuing its payouts at a current yield of 6.2%.

I will be selling my zero yield bank shares next week (replacing with CTY). I can always consider buying back in years to come.
Moderator Message:
If anyone wishes to discuss this decision please could you do it over on HYP - Strategies. Thanks - Chris


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