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Is This Board Exclusively About Dividends?

General discussions about equity high-yield income strategies
dealtn
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Is This Board Exclusively About Dividends?

#325367

Postby dealtn » July 11th, 2020, 11:53 am

88V8 wrote:
Wizard wrote:The board should not be exclusively about dividends, if that is what you are suggesting then you are simply wrong.

I agree. It should also be about bonds and Prefs and other negotiable fixed income as part of a portfolio although not cash accounts of course, although yes Bonds etc do have their own board. It should be about all types of income-generating options with a high yield.

But not TR.
TR is about flogging stuff off.

My portfolio does not 'generate TR'.
It may fluctuate in value, but when it rises I don't think Whoopee TR, and when it falls I don't think Humphh negative TR.....
Similarly, when my house rises in value, I don't think Whoop-pee I can sell the outside loo.....

TR is the most unreliable and ridiculous income-generating concept. At best one is burning the boat to keep warm. At worst in a bear market, there is no gain to encash. In contrast, income generators whether divis or coupons will always generate, in varying degrees.

As to the Jehova's Witnesses of TR who complain when folks jib at them dragging TR into every topic, they have plenty of Boards where they can TR to their heart's content, without trying to ram their religion down everyone's throat.

Interesting poll, btw.

V8


From a quote elsewhere on this Board.

These are the Board Guidelines.

The High Yield Share Strategies board is intended for wide-ranging discussions of ways to obtain high yields from equities. Securities such as preference shares, PIBs, Investment Trusts, ETFs, etc can be considered.

While discussions of such securities in the context of specific high-yield strategies are appropriate here, dedicated boards for Investment and Unit Trusts, REITs, and ETFs also exist, as does a board for Investment Strategies. In considering where a specific topic would be most appropriate, posters should bear in mind that this board is intended for discussing income-oriented equities or income-investment strategies. Other strategies, discussions not related to income, or discussions of non-income-related equities, should be directed to those other boards. (my bolds)

From this I think we can conclude that starting a thread on the subject of "Total Return", or even making a post that is almost exclusively about Total Return on a thread, is almost certainly in the wrong place. I don't think though that strategies that aren't solely about (dividend) income are excluded though.

Firstly discussions are specifically allowed to be wide ranging discussions. Secondly it is clear that one way of increasing the income potential of one's portfolio is to have a portfolio that is growing in size.

From the above post it is clear that much is misunderstood about an approach that is labelled "Total Return". It is quite possible it means different things to different people. In the same way that an "Income Strategy" will have underlying changes in the price of constituent shares within the portfolio, hence a Capital "Return", a "Capital Strategy" will have income, and changes in income, that are an Income "Return". It is a rare strategy, in practice, that doesn't have a "Total Return".

(There is much else in the Post quoted that I believe is wrong, but let's leave that for now).

There are a number of "Value" strategies that overlap considerably in their share selection with Income strategies, for instance. Those shares are often income-oriented equities and specifically allowed within the guidelines. Whilst the income that is generated by those companies is welcome, it is incidental to the strategy. The strategy is for the value to be "outed" by the market and the shares re-priced higher. When (or perhaps if) that happens the investment might be sold, and replaced with another (income oriented) equity. Precisely because the original share price rose, more shares of the new candidate can be purchased, and the income generated by that new income-oriented equity is higher than would be the case if the original selection hadn't "grown". Not only is such a strategy producing income, but it is pursuing a growing income stream.

There are other different strategies that can be pursued by selecting income-oriented equities.

One of the most followed strategies on this site was "promoted" by pyad. It is interesting that of those 4 letters none stands for income (or dividend), yet it seems many on this Board seem to think it is a home exclusively for a certain type of income/dividend method. It is very clear from the guidelines it is not. Other Boards might have much tighter guidelines.

Wizard
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Re: Is This Board Exclusively About Dividends?

#325405

Postby Wizard » July 11th, 2020, 3:35 pm

88V8 wrote:
Wizard wrote:The board should not be exclusively about dividends, if that is what you are suggesting then you are simply wrong.

I agree. It should also be about bonds and Prefs and other negotiable fixed income as part of a portfolio although not cash accounts of course, although yes Bonds etc do have their own board. It should be about all types of income-generating options with a high yield.

But not TR.
TR is about flogging stuff off.

My portfolio does not 'generate TR'.
It may fluctuate in value, but when it rises I don't think Whoopee TR, and when it falls I don't think Humphh negative TR.....
Similarly, when my house rises in value, I don't think Whoop-pee I can sell the outside loo.....

TR is the most unreliable and ridiculous income-generating concept. At best one is burning the boat to keep warm. At worst in a bear market, there is no gain to encash. In contrast, income generators whether divis or coupons will always generate, in varying degrees.

As to the Jehova's Witnesses of TR who complain when folks jib at them dragging TR into every topic, they have plenty of Boards where they can TR to their heart's content, without trying to ram their religion down everyone's throat.

Interesting poll, btw.

V8

Had you not cut the quote from my post short you would have included...

“Take as an example Dogs of the FTSE. In that strategy shares are selected on yield, but the reason for doing so is because they are expected to give a superior total return provided by income and capital growth as the value of these unloved stocks increases.”

How does this fit with your view of this board? This is an example of a strategy that selects shares based on their high yield but is not exclusively focussed on dividends, but is seeking a total return which includes capital appreciation.

dspp
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Re: Is This Board Exclusively About Dividends?

#325413

Postby dspp » July 11th, 2020, 3:50 pm

Moderator Message:
This board is for "wide-ranging discussions of ways to obtain high yields from equities. Securities such as preference shares, PIBs, Investment Trusts, ETFs, etc can be considered" per the guidelines.

It is not for more general discussion re strategies, including for example Total Return, or other non-equity asset classes such as bonds.

Please go to the Investment Strategies Board if you want to get into such wide-ranging discussions. See viewforum.php?f=8 . I have coped this thread over to there so you may continue if you wish.

regards, dspp


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