The Lemon Fool

Like many I am sure, I hold South32 (S32) following its spin-off from BHP Billiton.

I have not sold, being lazy and inclined not to tinker, and I received a small dividend (equivalent to $0.01) in October 2016, and am also now sitting on a modest capital gain.

Suddenly, DL is showing a 5.9% forecast yield, and a predicted >$0.1 divi per share for this financial year.

I was about to sell when I next top-up, but now it is top of my HYPTUSS top-up list, so it may turn out to be the next one I top up!

Have I missed some announcement, or is this analysts' guesses, or a DL mistake?

FD

Investors Chronicle is showing consensus broker forecasts for dps of 0.087c for 2017 and 0.073c for 2018. This compares to 0.01c for 2016 as you say.

funduffer wrote:Like many I am sure, I hold South32 (S32) following its spin-off from BHP Billiton.

I have not sold, being lazy and inclined not to tinker, and I received a small dividend (equivalent to $0.01) in October 2016, and am also now sitting on a modest capital gain.

Suddenly, DL is showing a 5.9% forecast yield, and a predicted >$0.1 divi per share for this financial year.

I was about to sell when I next top-up, but now it is top of my HYPTUSS top-up list, so it may turn out to be the next one I top up!

Have I missed some announcement, or is this analysts' guesses, or a DL mistake?

FD

To decide if it is HYP. Would you buy it today? Is its market cap good enough for you and does it have the yield history? As to whether you should top it up or not. Does seem strange the divi, but as I do not hold have not been following it.

Raptor.

I decided to hang on to S32 and to buy some more, so that I had a tradeable holding. I took the starting price after demerging as 117p, and added about 5 times the original holding at 102p on 17 Jun 2015.

There was no interim dividend, but a final of 1USc was paid in October. The interim results came out in late February, and I would suggest that no decisions are made before that time. The yield is of the order of 0.7% on the basis of the dividends paid in the last year. The forecasts above suggest a tenfold rise in dividend, which is a little unlikely in my view, but who knows?

With only one dividend paid so far, it is a little short on history for buying as an HYP share, but there is no harm in continuing to hold just in case.

It did have a rise of over 200% in the last calendar year, having fallen by about 50% from the demerger price in 2015, so holding for future prospects has not been without its rewards.

TJH

tjh290633 wrote:I decided to hang on to S32 and to buy some more, so that I had a tradeable holding. I took the starting price after demerging as 117p, and added about 5 times the original holding at 102p on 17 Jun 2015.




It did have a rise of over 200% in the last calendar year, having fallen by about 50% from the demerger price in 2015, so holding for future prospects has not been without its rewards.

TJH

With my hindsight glasses on I'm now wishing I'd bought more when they were well down last year shortly after the demerger, I have two very small holdings one inside and one outside my ISA (but both with the same broker). They are also at the top of my HYPTUSS top up list but I think I will wait and see what the interim report brings in February and if the price continues to move up and I miss a buying opportunity then so be it.

I have some as well. I didn't sell after the de-merger because they were LSE-listed, because I don't like selling if I can help it, and because I took the view that I owned these assets when they were part of BLT, so why not hold them now.

When reviewing my portfolio, though, I add BLT and S32 together and count them as a single holding. Is this a daft thing to do? It seems to make sense to me at least until the point when S32 grows big enough to be considered on its own - if that ever happens. And since it now looks like it may be delivering a decent yield I think I'll be holding on to it for the foreseeable.

StepOne

StepOne wrote:When reviewing my portfolio, though, I add BLT and S32 together and count them as a single holding. Is this a daft thing to do?

Don't know - but I do that too.

Partly because I shall probably sell S32 next year - neither wishing to add to it - nor to hold a minnow.