500K to invest, looking for dividends

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PeeHaitche

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Hi, I'm looking for some opinions on my plan.

I have €500,000 in the bank and looks like soon I'll be paying negative interest so I'm looking to find some reliable (if such thing exists!) divedend shares.

I'm currently looking at STAG, VER, O and PBA

Is this a good/bad idea ? what other dividends stock would you suggest ?

Thanks for any advice.
 
Why are you looking for dividends?

We don't allow speculation about individual stocks on Askaboutmoney.

But if someone wants to list out high dividend yield stocks without speculating on their future, that is fine.

Brendan
 
Also you need to bear in mind that investing in ETFs or individual stocks is not risk free and the voliltiity in the markets is not for the faint hearted especially when investing such a large sum.

How would you react to a 20% drop in investment?

I say this from the perspective of someone's investments have been in the - 30 to +25% range... I haven't managed to invest and forget. Its not a nice seeing your investment drop 30% in a short period of time.
 
I have €100k invested in a FTSE 100 pharma company.......mainly for the dividend. I have bought and sold shares in this company for 20 years now. I moved money from Prize Bonds back in to the market after exiting the market some years back. The paltry winnings on my €100k was awful.

Since purchasing the shares they have more or less held their purchase price but I have received over 5% in dividends that are paid 4 times yearly.

At one stage recently it would have been worth my while actually selling the shares and taking a nice €10k profit. It was very tempting and considering that the shares have since fallen back ....frustrating. However I keep reminding myself that I did this for the dividend.

If the shares remain in or around the purchase price plus costs I am happy to have them sit there for the dividend.
 
You shouldn’t focus on dividends exclusively.

Total return is what’s relevant, i.e. dividends plus capital growth.

Lots of ‘dividend payers’ are just rubbish companies whose value has fallen, thus increasing their dividend expressed as a percentage of that value.

Buffett (I think) says that dividends are what you pay when you’ve run out of ideas.

By seeking dividends you would be ignoring some of the biggest and best companies in the world. In a really great company, they make money, grow their business, and keep that money to reinvest in the business to grow it even more.
 
If you really want to pursue a dividend investing strategy you could look at the High-Yield-Portfolio (HYP) approach as promoted for a long time on UK Motley Fool discussion boards, now moved to the Lemon Fool: https://www.lemonfool.co.uk/viewforum.php?f=15 There are also some regular discussions about the merits of this approach there as some believe it has run its course and as Gordon says it's the total return that probably should motivate more. However, there do still seem to be advantages to a dividend investing approach and perhaps as the Irish tax regime is so ridiculously hostile to simple passive ETF investing it may be a good option.

Edit to add: with 500k cash to invest right now at the height of what appears to be a bubble market I would be inclined to wait a while to see what happens before jumping into anything or at least start with a small % and gradually invest over the next year or so. Whatever you end up doing make sure to spread your money across a range of different investment options (stocks, bonds, some gold perhaps) - "Winning the Loser's Game" by Charles Ellis is quite a readable introduction that may help.
 
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I had Covid in January and it nearly killed me. The first thought that went through my mind as I lay in bed with a 40 degree temperature wasn’t “I must trawl though some Internet forums and see if anyone is recommending horse tranquillisers”

Do you see my point?

Marc Westlake
Chartered Certified and European Financial Planner
www.globalwealth.ie
 
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PeeHaitche said:
Hi, I'm looking for some opinions on my plan.

I have €500,000 in the bank and looks like soon I'll be paying negative interest so I'm looking to find some reliable (if such thing exists!) divedend shares.

I'm currently looking at STAG, VER, O and PBA

Is this a good/bad idea ? what other dividends stock would you suggest ?

Thanks for any advice.
Click to expand...

Il probably get slapped down for lack of diversification but the city of london investment Trust pays over 4.5 % yield

Capital appreciation poor this past fifteen years but very good income generation and a long established management team
 
galway_blow_in said:
Il probably get slapped down for lack of diversification but the city of london investment Trust pays over 4.5 % yield

Capital appreciation poor this past fifteen years but very good income generation and a long established management team
Click to expand...

total return portfolio vs fund picked at random

1633434800609.png


We now have written tax opinion confirming that we can deliver two options to investors looking to invest under general tax principles (income tax and capital gains tax) rather than exit tax also known as gross roll up.

I have updated our analysis here

globalwealth.ie

Revenue pulls tax guidance on ETFs - Everlake

How are ETFs taxed in Ireland?
globalwealth.ie globalwealth.ie
 
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Marc said:
I had Covid in January and it nearly killed me. The first thought that went through my mind as I lay in bed with a 40 degree temperature wasn’t “I must trawl though some Internet forums and see if anyone is recommending horse tranquillisers”

Do you see my point?

Marc Westlake
Chartered Certified and European Financial Planner
www.globalwealth.ie
Click to expand...
Marc, I’m guessing your point isn’t about how financial planning and medicine are both underpinned by robust evidence based practice? ;)
 
Marc said:
total return portfolio vs fund picked at random

View attachment 5822

We now have written tax opinion confirming that we can deliver two options to investors looking to invest under general tax principles (income tax and capital gains tax) rather than exit tax also known as gross roll up.

I have updated our analysis here

globalwealth.ie

Revenue pulls tax guidance on ETFs - Everlake

How are ETFs taxed in Ireland?
globalwealth.ie globalwealth.ie
Click to expand...
Is the return on each A and B shown after all applicable charges.

You could plot that graph on a log scale if you weren't trying to make a point.
 
Cardano93 said:
Even in this crazy bull market there are some excellent value stocks available that pay decent dividends with potential growth too. Look at solid pharma companies with low P/E and (I’m not mentioning stock names) there is a famous chip manufacturer not too far from us which is an absolute bargain at the moment with excellent cash flow so dividend is very safe for the foreseeable future. Look at US REITs too - some solid opportunities there on warehousing (you mentioned STAG I see) and medical property types with fantastic dividends although I would avoid anything related to retail.
Click to expand...
You would think mining companies were also decent dividend options?

Those Australian mines ain't closing anytime soon
 
galway_blow_in said:
You would think mining companies were also decent dividend options?

Those Australian mines ain't closing anytime soon
Click to expand...
mining companies are some of the most volatile stocks in the market, they have done great over the last year or so since inflation has come roaring back and shortages of everything. But they have recovered from a very low base, it was terrible owning these stocks back in circa 2015, that is also the reason for the bull market now though lack of investment over the last decade, on top of that the new phenomenon of "greenflation" the huge demand for commodities caused by the so called "green transition"
 
joe sod said:
mining companies are some of the most volatile stocks in the market, they have done great over the last year or so since inflation has come roaring back and shortages of everything. But they have recovered from a very low base, it was terrible owning these stocks back in circa 2015, that is also the reason for the bull market now though lack of investment over the last decade, on top of that the new phenomenon of "greenflation" the huge demand for commodities caused by the so called "green transition"
Click to expand...

absolutely agree its a very volatile sector , I was referring to them within the context of dividend strength

oh and mining stocks have pulled back an awful lot this past three months
 
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