TUK020 wrote:I am significantly overweight in L&G. The key speculative move I made in the COVID market mini crash was to sell some Gold ETFs and buy a chunk of L&G at £1.50. I have been trying to determine what price I should top slice.
The sp feels like it still has some room to run, so I have been sitting on my hands.
Any thoughts?
If you bought at £1.50 you did very well as it was not at that level for long. However, just look what the share price has done since; not a lot and it has moved in a narrow band for a long while. You never know, the price could suddenly take off but it may not. You could be waiting for long enough, but the dividend looks secure.
Thus the dividend looks more secure than a further meaningful capital gain in the near future.
So
a) just sit tight and enjoy the high yield
b) set a price at which you will sell, or
c) set a percentage of your total portfolio above which you will sell.
If you want to cut back your holding a bit, then having set the latter two numbers, just sell if either of the numbers are reached at b) or c) with no further thought.
Obviously none of us has any idea where the share price will go although logically it should rise, but how often have we said that? There does not seem any particular momentum behind the price.
Dod