DGOC - A gas company

[johnhemming]

I wonder if DGOC is now allowed as a practical option for HYP-P. It was announced on 2nd September that it is going into the FTSE 250 index although that won't happen until 21st September. It is an interesting stock to watch because the index funds need to start buying it at some stage and that's about 10-15% of free float.

With a current forecast yield of over 10% it has to be classified as high yield.

[Alaric]

It was announced on 2nd September that it is going into the FTSE 250 index although that won't happen until 21st September.

It seems odd that what appears to be a Company operating exclusively in the USA should be incorporated and listed in the UK. A brief scan of their website confirms that it's always been a UK Company, but not why.

[idpickering]

I wonder if DGOC is now allowed as a practical option for HYP-P. It was announced on 2nd September that it is going into the FTSE 250 index although that won't happen until 21st September. It is an interesting stock to watch because the index funds need to start buying it at some stage and that's about 10-15% of free float.

With a current forecast yield of over 10% it has to be classified as high yield.

Thanks for bringing this share to our attention. For me, as a newbie FTSE250 company, I’d rather it was more of a long term 250 company. Also the 10% yield is in ‘to good to be true’ territory. But each to their own.

Ian.

[johnhemming]

It seems odd that what appears to be a Company operating exclusively in the USA should be incorporated and listed in the UK. A brief scan of their website confirms that it's always been a UK Company, but not why.

Their reasoning was that they did not have to be that big to start listing on AIM. They came off AIM onto the main market earlier this year.

[johnhemming]

For me, as a newbie FTSE250 company, I’d rather it was more of a long term 250 company. Also the 10% yield is in ‘to good to be true’ territory. But each to their own.

The yield was higher earlier this year, but the share price has gone up. I expect the yield to go down for the same reason as time goes by. Their strategy (and I do hold the stock) is one of managing risk by using hedging. Hence they are a more dividend orientated than many.

[idpickering]

For me, as a newbie FTSE250 company, I’d rather it was more of a long term 250 company. Also the 10% yield is in ‘to good to be true’ territory. But each to their own.

The yield was higher earlier this year, but the share price has gone up. I expect the yield to go down for the same reason as time goes by. Their strategy (and I do hold the stock) is one of managing risk by using hedging. Hence they are a more dividend orientated than many.

Thanks for your insight on this. One to consider Maybe?

Ian.

[johnhemming]

Thanks for your insight on this. One to consider Maybe?

I have been buying this for some time. In fact I think I first bought it at around 1.20, but I bought most of mine sub 70p.

It is quite strongly income focussed. Not an E&P company.

[88V8]

viewtopic.php?f=16&t=24762&start=20

A UK quoted utility outwith the UK govt's interference. Alarming yield, but iInteresting.

V8

[miner1000]

For me, as a newbie FTSE250 company, I’d rather it was more of a long term 250 company. Also the 10% yield is in ‘to good to be true’ territory. But each to their own.

The yield was higher earlier this year, but the share price has gone up. I expect the yield to go down for the same reason as time goes by. Their strategy (and I do hold the stock) is one of managing risk by using hedging. Hence they are a more dividend orientated than many.

The Energy company that I remember that used hedging to manage risk was Enron. Hedging is inherently very risky and for that reason many would not consider it suitable for HYP. But it looks interesting as a speculative investment although not one I will be making.

[idpickering]

For me, as a newbie FTSE250 company, I’d rather it was more of a long term 250 company. Also the 10% yield is in ‘to good to be true’ territory. But each to their own.

The yield was higher earlier this year, but the share price has gone up. I expect the yield to go down for the same reason as time goes by. Their strategy (and I do hold the stock) is one of managing risk by using hedging. Hence they are a more dividend orientated than many.

The Energy company that I remember that used hedging to manage risk was Enron. Hedging is inherently very risky and for that reason many would not consider it suitable for HYP. But it looks interesting as a speculative investment although not one I will be making.

Thanks for your input. miner1000. It's not one I'm going to make either. Should others choose to do so, then please keep us up to date with your investment. None of us stop learning....

Ian.

[johnhemming]

The Energy company that I remember that used hedging to manage risk was Enron. Hedging is inherently very risky and for that reason many would not consider it suitable for HYP. But it looks interesting as a speculative investment although not one I will be making.

A lot do. I would think hedging where it is in effect selling production in advance at a fixed price reduces risk although derivatives trading can be risky.

[dealtn]

Hedging is inherently very risky and for that reason many would not consider it suitable for HYP.

It shouldn't be, in fact the complete opposite.

[tjh290633]

I know nothing about DGOC except that the first thing that comes to my mind is the

Devon General Omnibus Company.

I assume that there is no connection.

TJH

[johnhemming]

I think this website does not require an account to see the details
https://www.youinvest.co.uk/market-research/LSE%3ADGOC

[Instep]

I know nothing about DGOC except that the first thing that comes to my mind is the

Devon General Omnibus Company.

I assume that there is no connection.

TJH

About Us :: Diversified Gas & Oil PLC (DGOC)
https://www.dgoc.com/about-us

[moorfield]

I wonder if DGOC is now allowed as a practical option for HYP-P. It was announced on 2nd September that it is going into the FTSE 250 index although that won't happen until 21st September. It is an interesting stock to watch because the index funds need to start buying it at some stage and that's about 10-15% of free float.

With a current forecast yield of over 10% it has to be classified as high yield.

I may well be adding some DGOC next month. Is withholding tax applied to its dividend, does anyone hold in a SIPP and has had to complete a W-8BEN form?

Thank you.

[johnhemming]

I may well be adding some DGOC next month. Is withholding tax applied to its dividend, does anyone hold in a SIPP and has had to complete a W-8BEN form?

I think there is withholding tax and I do hold some in a SIPP, but I have not got around to filling any forms in. I don't tend to reconcile dividends.

[PinkDalek]

I may well be adding some DGOC next month. Is withholding tax applied to its dividend, does anyone hold in a SIPP and has had to complete a W-8BEN form?

Despite DCOG appearing to be a UK registered company (okay registered in E&W), WHT does appear to be applicable as per:

https://ir.dgoc.com/dividend-information

Depending on who holds your SIPP, the W-8BEN completion is a relatively simple process as described here:

https://www.youinvest.co.uk/faq/do-you- ... -dividends

[dundas666]

FWIW I've noticed that DGOC is the 10th largest holding of ABERDEEN STANDARD EQUITY INCOME TRUST PLC (ASEI)
https://www.hl.co.uk/shares/shares-search-results/a/aberdeen-standard-equity-inc-trust-ord-25p

[johnhemming]

FWIW I've noticed that DGOC is the 10th largest holding of ABERDEEN STANDARD EQUITY INCOME TRUST PLC (ASEI)
https://www.hl.co.uk/shares/shares-search-results/a/aberdeen-standard-equity-inc-trust-ord-25p

Look at the DGOC hedging portfolio and you could see why people may think it is a reasonably secure dividend.