BT stock price

[TUK020]

Looking at my portfolio stock prices, pondering the impact of Covid19.
Idly wondering why BT seem to be plumbing new depths.
Surely a virus that causes everyone to stay home and conduct business by phone and broadband, and has the potential side effect of reducing pension deficits in an unpleasant manner, would be good for BT?

[Bobwood]

Looking at my portfolio stock prices, pondering the impact of Covid19.
Idly wondering why BT seem to be plumbing new depths.
Surely a virus that causes everyone to stay home and conduct business by phone and broadband, and has the potential side effect of reducing pension deficits in an unpleasant manner, would be good for BT?

Index trackers don’t discriminate. All share prices move together nowadays.

[YeeWo]

I was just looking at my broker stock-screener and also noticed that BT is yielding 10%+........

[TUK020]

I was just looking at my broker stock-screener and also noticed that BT is yielding 10%+........

and no shorting activity registering on shorttracker

[TUK020]

I was just looking at my broker stock-screener and also noticed that BT is yielding 10%+........

HYPTUSS showing fcst yield at 7%

[monabri]

Dividend Yield = Total Dividends/ Current Share Price
= (15.4p/ 148.42p) x 100%= 10.38%

https://www.dividenddata.co.uk/dividend ... ?epic=BT.A

[Itsallaguess]

I was just looking at my broker stock-screener and also noticed that BT is yielding 10%+........

HYPTUSS showing forecast yield at 7%

This is a very good example of why, when I'm sometimes told that using 'Forecast Yield' figures is risky (because they are nothing more than 'forecasts'....), I try to remind those that might say this that using 'legacy dividend' figures can be equally as 'risky', because assuming legacy-dividends will continue unchecked is actually no less of a 'forecast'....

HYPTUSS uses the 'Forecast Yield' figures from Sharecast, which is generated from industry brokers, and often a large number of them for the typical HYP stocks that we're generally interested in, and who I assume are likely to know a little more about these income-investments than I do on a day-to-day basis.

Those brokers are currently assuming a cut in the BT dividend of around a third -



(Source - https://tinyurl.com/vummch8)

Some light reading -

BT is likely to cut its dividend by 30% from 2021 to reduce debt and help clinch favourable full-fibre broadband (FTTP) regulation, Jefferies analysts said.

Reiterating their 'buy' rating and 330.0p price target on BT shares, the analysts said BT was priced for a dividend cut with a 10% dividend yield. Jefferies included a 30% cut to the payout in its forecasts from full-year 2021 and said this would leave BT building FTTP at six times the pace of Virgin while investing heavily and reducing leverage from 2022.

https://www.sharecast.com/news/broker-r ... 40756.html

It's been the year of the dividend cut for some of Britain’s best-known blue-chip companies. British Gas owner Centrica, Marks & Spencer and Vodafone have all given their shareholder payouts a trim this year.

Are we about to see BT follow suit? Speculation is mounting in the City that the former state-owned telecoms giant will do just that.

https://www.thisismoney.co.uk/money/markets/article-7392305/STOCK-WATCH-BT-cut-dividend.html

Cheers,

Itsallaguess

[Itsallaguess]

I was just looking at my broker stock-screener and also noticed that BT is yielding 10%+........

HYPTUSS showing fcst yield at 7%

I did mean to make clear in my previous post that where I've used the above quote from YeeWo in my previous post, and then gone on to discuss the use of legacy dividend information against 'forecast yield' information, I did not want to imply in any way that YeeWo was one of those investors I was talking about, who might shun the use of 'forecasts' - it's just that this recent post-exchange was a good example for me to raise the point that using 'legacy dividend' information might be 'just as much' of a forecast as using an 'actual' forecast in many cases...

Apologies for not making the above as clear as I initially intended in my previous post...

Cheers,

Itsallaguess

[Dod101]

So between that list of cutters and of course the perennial cutter that is BT, we can add in the well known names who have held their dividends for some years. Is it any wonder that I have said that it is getting increasingly difficult to follow the HYP principles these days?

Dod

[funduffer]

So between that list of cutters and of course the perennial cutter that is BT, we can add in the well known names who have held their dividends for some years. Is it any wonder that I have said that it is getting increasingly difficult to follow the HYP principles these days?

Dod

Indeed.

Of my 20 share, ~6 year old, 6.3% yielding HYP:

7 have consistently increased dividends for the time I have held (ULVR, LGEN, IMB, BLND, LLOY, NG., BA.)

1 has increased overall, but suffered a temporary cut (BHP)

1 has increased consistently, but has announced a cut (SSE)

5 have been flat (GSK, RDSB, HSBA, MARS, WPP). HSBA & RDSB have increased in £ terms due to exchange rate. GSK gave out a special.

4 have cut dividends (S32, VOD, SBRY, SGC)

2 I have not yet held long enough to know which way they will go (VTY, SLA).

Overall, a bit of a roller-coaster.

Lesson learnt: if you want a steadily rising income, pick some 'Steady Eddies' like BA. & ULVR which can be 'relied upon' to ratchet up income every year, to compensate for the volatility in the others.

FD

[tjh290633]

So between that list of cutters and of course the perennial cutter that is BT, we can add in the well known names who have held their dividends for some years. Is it any wonder that I have said that it is getting increasingly difficult to follow the HYP principles these days?

Dod

For the financial year to come, I have 2 held dividends (GSK and TW.), 1 reduced (WMH) and 9 increased. In the
current financial year I had 10 maintained dividends, 12 reduced (some through currency fluctuation) and 69 increased.

A good rise from RIO today if you want cheering up.

TJH

[monabri]

(I'd prepared this for the other board but as TJH says, a good rise from Rio. Taylor Wimp increased their special from 10.70p to 10.99p .

The actual ordinary divi has increased from 307 cents to 382 cents but note the specials (I can't remember why they paid a special without investigating - was it as a result of a sale of something?).

[tjh290633]

The actual ordinary divi has increased from 307 cents to 382 cents but note the specials (I can't remember why they paid a special without investigating - was it as a result of a sale of something?).

From what RIO said in the RNS (See the other board), it was down to cash flow and a change of reporting standards.

TJH

[dealtn]

Looking at my portfolio stock prices, pondering the impact of Covid19.
Idly wondering why BT seem to be plumbing new depths.
Surely a virus that causes everyone to stay home and conduct business by phone and broadband, and has the potential side effect of reducing pension deficits in an unpleasant manner, would be good for BT?

Markets aren't rational, particularly in the short term.

[daveh]

So between that list of cutters and of course the perennial cutter that is BT, we can add in the well known names who have held their dividends for some years. Is it any wonder that I have said that it is getting increasingly difficult to follow the HYP principles these days?

Dod

I'm not so sure that it is that difficult to produce growing income from a HYP. Mine has produced growing income apart from one year (2009) due to the aftermath of the financial crisis. My portfolio started out as a pretty orthodox Pyadic HYP, though in recent years I've added some high yield ETFs for foreign diversification and in 2019 added HFEL for asia pacific, TRIG for renewables and VWRL for USA (I know its all world and not high yield, but its >50% North America and I toyed with VHYL instead as an alternative but it has not performed so well). I'm still investing some new money and all dividends so I've quoted here the dividends per income unit. Bar the one year mentioned the income per unit is still growing ahead of inflation (just). The income growth has been fairly pedestrian the last three years and it has been the longest spell of <5% growth so far. But it is still growing faster than inflation and so far this years dividends are ~ par with last year despite last year including a significant special from BHP (paid January 30th 2019). We'll have to see how the rest of this year goes as there have been a couple of cutters plus some more specials that might not be repeated that could hold back the growth in dividends.

Income units - income per unit
year income	% change
2003 £0.0505	
2004 £0.0510	0.99
2005 £0.0534	4.71
2006 £0.0573	7.34
2007 £0.0606	5.66
2008 £0.0661	9.11
2009 £0.0457	-30.84
2010 £0.0470	2.75
2011 £0.0521	10.91
2012 £0.0612	17.51
2013 £0.0634	3.52
2014 £0.0654	3.24
2015 £0.0712	8.90
2016 £0.0804	12.88
2017 £0.0823	2.31
2018 £0.0850	3.29
2019 £0.0874	2.82