Saturday, 30 May 2015

FTSE 100 Stock Sky Plc- A new stock dividend stock for me or not

Since I like FTSE 100 stocks I thought it was about time I started to focus on some new dividend stocks within the footsie 100, ones that I have never considered before. First up is Sky Plc, ticker SKY. Sky is part of the media sector, an area where I hold no stocks.

The current share price of FTSE 100 share price Sky is 1055 pence with a one year low of 839 pence and one year high of 1116 pence. The Sky share price seems to be responding to some good news surrounding the stock lately. It seems Sky has struck a deal for advertising space on Channel 5. Obviously more advertising space means more revenue, which is one of the reasons for the increasing share price.

Another thing I like to consider when purchasing a new stock is dividend payments. The Sky interim dividend payment is 12.30 pence. The final dividend payment has not yet been announced. Last year's total dividend payment per share was 32 pence at a dividend yield of 3.5%. I normally prefer FTSE stocks with a dividend of 4% or greater but I would not rule this particular stock out as I believe in it's growth and increasing, allbeit small, dividends each year.

Would I buy some Sky shares? Yes if the price is right. I am looking for bargains so this is another FTSE 100 stock for my watchlist. Perhaps I will set my buy in price around 1000 pence so it is unlikely I will buy anytime soon.

Tuesday, 26 May 2015

I will be selling £1000 of Royal Mail shares just before ex dividend date

I love my Royal Mail shares and if you have followed my website you will be aware that I bought them when they were first released at 330 pence, what a bargain, considering they reached a high today of 520 pence. My husband and I are building a house and I have promised him a £30000 deposit. I am saving hard but will need to dip into my investments to reach the total of 30K.

My plan focuses on leaving £40000 in my cash ISA which is currently sitting at £46000 so this gives me £6000 of funds. I will have £18000 in savings by the end of the week giving me £24000 so only need another 6k. I am planning on using £1000 from the Royal Mail shares and £5000 from my Premium Bonds; this is breaking my heart because I love the chance of winning a prize. I will only have £75 left and it is unlikely I will win anything substantial with such a small holding but who knows. As they say it only takes £1 to win the big prize.  I am hopeful that my deposit will perhaps not be needed until the end of August so this buys me a bit more time to save some more cash, however I will be on maternity leave by then so my saving power is reduced.

With regards to the Royal Mail shares I would like to hold them forever but I am not so sure the share price can get much higher than say 550 pence. I am not alone in this viewpoint as fellow shareholders seem to agree. One guy in particular is saying he will offload just over 5000 of his holding because he will have made a considerable profit on them. I will be selling as little as possible to get the £1000 so obviously the higher the share price goes the better for me because then I can still get to keep a small holding. A small number of Royal Mail shares is better than none at all in my opinion.

The Royal Mail share price is likely to remain stable around 512 -520 pence until just before ex dividend date, which is at the beginning of July. This is unless some bad news appears before then. I am hoping for a further rise in share price at the end of June so that I can sell as little of my holding as possible. A share price of 530 pence would mean I would only have to sell 192 shares and get to hold onto 45. Obviously there is no guarantee this is the price the RMG shares would get to but I can dream, the higher the better.

I would not rule out investing in Royal Mail in the future provided the share price was below 470 or so pence. I will continue to follow the company and keep them on my watch list after offloading most of my stock.

Monday, 25 May 2015

Whitbread is my idea of a fabulous FTSE 100 Dividend stock

I spend my time reading the latest trading and investment news about FTSE 100 dividend stocks like Whitbread (WTB). This is a much more expensive FTSE 100 dividend stock than those I currently own.  I am actually addicted to visiting Costa Coffee and of course Whitbread owns Costa as well as Premier Travel, one of my favourite hotels to stay in when I visit Glasgow or Manchester. When I like a company I want to own part of it so it is only natural that I want to own some shares.  Not surprisingly I am sitting in my local Costa Coffee right now enjoying a Caramel Crisp bun. It is extremely busy, another reason why I want a piece of it.

The only downside is that the shares are extremely expensive. They are currently priced at around £52 per share, which means I would need around £540 to buy 10 of them counting trading costs. They actually reached a high of £54.75 per share last month. I have them on my FTSE dividend stocks watch list for now and should a dip in price occur I may splash out.

The latest Whitbread share news states that Credit Suisse has set a target price for the company at £62 per share. This is due to the fact that they expect Whitbread to achieve long term annual growth estimated at 13% over the next 5 years. A growing company means rising share prices and in lots of cases rising dividends.

The ex dividend date is actually this Thursday so if you want a share of some dividends you need to buy in now. To be honest I am not sure I will have the funds to purchase this time around.  For those that are interested the Whitbread dividend payment is 56.95 pence per share giving a total dividend of 82.15 pence per share. I can see that from studying the dividend charts that the dividend payment has been growing these past few years. This is another good sign of a company making profits.

Friday, 22 May 2015

Cheap UK Dividend Stock with decent yield is on my watchlist

I have trying to save money for a new house whilst also adding to my dividend holdings in my stocks and shares ISA. One cheap UK dividend stock with a decent yield has just been added to my watchlist. I have selected this particular stock because it is priced at less than 300 pence per share. This means I can get 100 of them reasonably cheaply. However this is not the only reason I have pinpointed this particular company.

The company I am talking about is Legal and General, stock ticker LGEN. This is a life insurance company with a current share price of 269 pence. The stock had a recent high price of 296 pence on the 24th March and a low of 209 pence last year, oh how I wish I had bought some then. The sp did drop today and I am going to watch it closely to see if it drops much more. I would love to buy some of these at under 250 pence.

This company seems fairly stable with small fluctuations in the share price. I would be buying in for the dividend income, which I would of course reinvest back into the company again. The dividend payment per share has been growing for the last few years and the latest recorded was 11.25 pence a share. The current dividend yield is around 4.5% although was as high as 6.2% four years ago.

Payday is next week and I always love treating myself to a new FTSE 100 stock after I get paid. The interim ex-dividend date is always in August and paid by the end of November. Buying this stock in May or June is probably best before the share price starts to rise coming up to ex-dividend date.

I will be holding £300 of my cash for this stock including fees. I will update everyone if and when I decide to buy in. I will be aiming for over 100 shares in this stock.

Friday, 15 May 2015

I won some money on Lucky Lines instant game this evening

I love a little bit of gambling, all within moderation of course. I do not want to be squandering any spare investment cash, money that could be used for stocks or premium bonds or even to take my Ratesetter account into three figures. I put £20 into my National Lottery account and debated whether to buy 10 Euromillions tickets or even some National Lottery tickets. I decided against both and played some instant wins instead.

I was playing Super 7s Multiplier but after two games I realised my luck was not in, well on this particular game anyhow. Not to mention the fact that it was costing me £3 a time to play. I moved onto another instant called 'Lucky Lines'. Previously I have won £100 on this game. This is a decent return as it costs £2 a game. In fact £100 is my biggest win on the National Lottery site, but not my biggest win on a gambling site (I may talk about this another time). I was hoping for some similar luck this evening and fortunately it came my way. On my second £2 game I managed to win £40. Obviously this is not big bucks but considering I only added £20 to the site I was up in money. I decided to withdraw £30, meaning that I had £10 profit. A tenner is a tenner after all, and I earned it while having fun!!

I kept playing Lucky Lines with my remaining £10 and got a few £2 and £4 wins before getting another £20 win. I decided to withdraw another £15, taking my total withdrawals to £45. I kept playing with my remaining balance and was unable to get another decent win. I am always hoping for the £50 000 prize, which is the top prize on this particular instant game. I mean someone has to win it. I may deposit this money into my Ratesetter peer to peer lending account.

Deposited £20, withdrew £45, PROFIT £25

Do you gamble? Do you use your winnings for investments?

Sunday, 10 May 2015

Best Dividend Paying Stock List

Many investors will be interested in the best dividend paying stock list. I am one of these because I prefer stocks that pay dividends or income as opposed to those that rely on capital growth. Personally I feel more comfortable with such investments because at least I get something back from my investment rather than having to be patient and wait for the company to grow. I can then decide whether I want to invest my dividends back into the stock or withdraw them to my bank account.

Since I am based in the UK I will be looking for the best dividend paying stock list within the FTSE 100 market. I will be hoping to acquire a few of these stocks myself in the not too near future. I have used various websites for my research and below you can find my results.

The best dividend paying stock list starts with Morrison supermarkets at number one. This company is set to pay as much as 13.65 pence per share. The yield for Morrison supermarkets is 7.54% right now. This does sound extremely appealing but I am sure investors will be cautious after what happened at Tesco. I previously discussed the dividends at Tesco and how they were heading in the wrong direction. Could the same thing happen with Morrisons?

There are a number of best paying dividend stocks with yields of between 5 and 6%. This is much higher than any bank account or cash ISA right now and this is what makes them favourable. I want my money to go further and help me increase my net worth. Investing it in a Cash ISA with 1.5% interest is not the best option right now. Royal Dutch Shell pays 121.77 pence per dividend giving it a yield of 5.88%. This particular oil stock is more competitively priced than it was 8 months ago due to the fall in oil prices. Oil prices are not starting to rise and so are share prices of these companies. I would love to buy some of these but the only thing stopping me is the huge price per share of just under £21. I only have small amounts to invest right now but I guess I could afford 25- 30 of these. BP is another option for me. It too has a decent dividend yield of 5.77% and is priced at under £5 per share.

Other companies near the top of the best dividend paying stock list include GlaxoSmithKline, a company I am very interested in, as well as HSBC Holdings and Scottish and Southern Energy. These three stocks also have yields above 5%.

There are numerous other sticks with top yields of over 4% but I felt that my cutoff should be 5%. In saying that Royal Mail have a yield of just over 4% and National Grid have a yield of 4.66% and I have invested in these two companies.

The stocks I have mentioned here appear to be the best paying dividend stocks in the UK right now. Of course this can change at any time but it is the here and now I am interested in.

Were you lucky enough to buy one of the best paying dividend stocks in 2014? The only stock I held last year was Royal Mail and I am pleased with the dividends and growth from the initial IPO price. I have only bought one new stock this year so far, National Grid but I hope to add to my portfolio sometime soon.

Friday, 8 May 2015

My net worth is now 6 figures!!

I only started writing about my net worth last month and I feel I need to update how I have increased my net worth in the past month. My April net worth was around £99100, so close to six figures!! Remember increasing my net worth is the perfect way for me to retire from my 9-5 job earlier than the UK retirement age. So how is my May net worth looking?

My buy to let property still has around £31000 equity on it. Not much change from last month as my mortgage payments are so low. I now owe just over £44 000 on my mortgage which is covered by my tenants rent payment. I have debated overpaying my mortgage recently but my interest is so low at 2.89% I have held fire for now.

My premium bonds are now worth £5075 as I won another prize this month. I just love reinvesting these prizes in the hope that I win get a big win sometime soon.

No change to my cash ISA of £46 100 as I continue to save hard for a new build deposit so I have limited funds to save.

My stocks and shares ISA is now worth £1587, an increase of £587 from last month. This is partially due to my acquiring some National Grid shares and the fact that the Royal Mail shares have soared in price. I hope to acquire some more stocks soon and take my stocks and shares ISA to over £2000.

My high interest savings account (going towards a new build home) is worth £16600 so I have managed to save £600 this month as well as buying more shares. I am very pleased with this as I had some unplanned expenses recently.

My net worth is now £100362!! This is an increase of over £1200 since last month. I have achieved a new record with regards to my net worth!! I am so pleased. Has your net worth increased much in this past month?

Wednesday, 6 May 2015

Premium Bonds Winnings May 2015

I love my Premium Bonds especially whenever I win a prize. I have been relatively lucky recently and have managed to win three times this year and we are only in May.

I managed to win another £25 this month bringing my total winnings for 2015 to £75. This is a better return than I am getting on any of my savings accounts or ISAs as the winnings are tax free.

I have reinvested this prize money so now my total holding is £5075. I might have to withdraw some of my funds to go towards my new house but I want to keep them for as long as possible. Who knows when I may get a big win. I always check out the Premium Bonds big money prize winners to see who is in the money and how much of a holding they have. I am hopeful as I see someone with a £5000 holding won £100 000 and someone with a £6000 holding won £50000 this month. If you are not in you cannot win!

Did you get lucky with your Premium Bonds this month? What is your biggest ever win? Mine is still £25.

Tuesday, 5 May 2015

How many GlaxoSmithKline shares would I need to own to retire by age 45

I am interested in investing in a major pharmaceutical company like GlaxoSmithKline (GSK) and living off the quarterly dividend income. I am not alone as the majority of stock traders are investing in high yield dividend stocks to enable them to retire early and live off the yearly dividend payments. They set themselves targets each year and hope to surpass them. They invest any spare cash they have into such stocks and reap the rewards of the dividends. My question is how many shares in GSK would I need to own to generate enough dividend income to be able to retire by age 45?

Firstly I need to consider how much money I would need on a yearly basis to be able to leave the daily grind of 9-5. I have come off with the figure of £18000 after tax. This would give me £1500 monthly, which means this is the amount of dividend money I need to get each month. I plan to hold the GSK shares in a stocks and shares ISA which means that I will not have to pay tax on any dividends received.

Basically I need to find out how many GlaxoSmithKline shares I would need to get £18000 a year in dividends. Looking at the GSK dividend history from 2014 I can see that the company paid shareholders 80 pence per share. Of course I have to assume that the dividend payments will stay stable at 80 pence per share, or even better increase each year. Doing a quick calculation I can see that I would need to hold 22500 GlaxoSmithKline shares. Now for the scary fact, the price these would cost. Yep a rough calculation at the current share price tells me these would cost me a staggering £339 975.

Of course I want to reach this holding by the time I am 45, which gives me 12 years. Even then 339 975 divided by 12 means I would need to invest £28331 per year. I have to be honest and say that it is not possible for me to invest anywhere near this amount. I could possibly invest 10% or maybe 20% of this amount.

So what now? Do I give up or rethink my strategy? Well I will never give up. I guess I will try and invest as much as I can each year and reinvest all my dividends into more shares. This will help me reach my target of 22500 shares sooner rather than later. Dividend growth starts to happen quickly when your dividend payments rise. The company could also grow and increase their dividend payment so this would help me too. Who knows what the future may bring.

However it is unlikely I would risk all my money in one company, no matter how secure they appear in today’s market. I wish I could afford so many GSK shares though. Have you set yourself an annual dividend target which would generate enough income for you to retire early?

Sunday, 3 May 2015

FTSE 100 Stock Purchase- I bought some National Grid shares on 28th April

I previously discussed National Grid and I am very pleased to say that I have treated myself to some of the FTSE 100 dividend stock. I had planned to splash out when payday arrived and after some initial difficulties funding my stocks and shares ISA I was successful. I always get really excited whenever I buy a new stock because I know I am investing for my future, a future which I hope will enable me to retire early. I mean are we all not buying dividend stocks to retire early?

I bought 50 shares in National Grid at a share price of 895 pence each. The total cost counting trading charge and stamp duty was £462.36. These 50 shares should earn me a yearly dividend payment of over £20 going by last year’s dividend; the dividends have not been announced for 2015 as yet. I will monitor this particular stock and will possibly add to my holding in the next year if I can afford to do so. I will also invest all my dividends.

Friday, 1 May 2015

Tesco Dividend Payments

Someone actually asked me about Tesco dividend payments the other day, possibly because I did a post about the decreasing Tesco share price. I had also mentioned that I thought this may have a detrimental effect on Tesco dividend payments. Now that someone has asked the question I need to do some research and find the answer. I guess the best thing for me to do is consider the history of these dividend payments over the past 5 years or so. Of course this does not necessarily predict the future payments but it might help you decide if you want to invest in this particular supermarket stock.

I checked the Tesco dividend history and have added up the prelim and interim payments since 2011. The yield was between 3 and 4.6% until 2015 which looks to be poor. You can see the results below.

Year Dividend per share (p) Dividend payment if you hold 1000 shares (£)/th>
2015 1.16 (prelim still needs to be added later in the year) 11.60
2014 14.76 1476.0
2013 14.76 147.60
2012 14.76 147.60
2011 14.46 144.60

Tesco has not experienced any dividend growth in the last few years but unfortunately the first signs for this year look as if they will be seeing a massive drop in dividend payments. I like high paying dividend stocks with a decent yield so I will not be investing in Tesco right now


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