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.

1 comment:

  1. Good luck with the sale - I think it's a lot harder to sell than to buy.


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