₦airaland Forum

I stated the reasons in my post.
I agree that all the dead stock should be sold off but I didn't have the time to be listing dead stock out of his brother's portfolio for him.
I can't advise someone to sell at a loss, that's up to him or his brother and is solely their decision.

emmanuelewumi:
Any reason for buying Stanbic IBTC?


It does not matter if he is selling at a loss or a profit all the dead stocks in the portfolio should be sold immediately.

My definition of dead stocks are penny stocks that are illiquid, have not paid dividends in 2 years and above, are having problems with profitability and are not acceptable to Financial Institutions as collateral.

Waiting to sell at a profit might be dangerous, he should understand the time value of money

Marketapprentic:
... ably represented by LOCO. . He is still doing small small miracles for area boys

Oga Loco we dey hail o

Ofu aka ruta mmanụ, ozuo aka niile

Wapgod:
I stated the reasons in my post.
I agree that all the dead stock should be sold off but I didn't have the time to be listing dead stock out of his brother's portfolio for him.
I can't advise someone to sell at a loss, that's up to him or his brother and is solely their decision.

Unfortunately the price of a dead stock can be static for 5 years and above, better to sell at a loss provided there are buyers and look for viable businesses to invest in.

IYGEAL:
Read from December 2019.

Thank you

emmanuelewumi:
Unfortunately the price of a dead stock can be static for 5 years and above, better to sell at a loss provided there are buyers and look for viable businesses to invest in.

Sold all my Oando shares at a loss about 9 years ago, I sold between N22 and N25.


Those who did not want to sell at a loss still have their Oando shares in 2022 at a price of N5

emmanuelewumi:
Sold all my Oando shares at a loss about 9 years ago, I sold between N22 and N25.


Those who did not want to sell at a loss still have their Oando shares in 2022 at a price of N5

You can only average down a good business, that is appropriately priced or undervalued, delivering good earnings, but yet the stock price is falling

moneymanager:
Find a good financial school, where you can learn about investments, understanding financial reports etc

It’s not likely that one will be a veteran investor afterwards but that’s not the goal.
Without adequate financial knowledge, how does one distinguish between good and bad advice

The answer is experience but in the world of finance that’s too costly a price

If you’re gonna hand it over to your kids, you’ve gotta discuss and test their knowledge as well or will you pay your financial advisor for that too and follow his recommendation

No you won’t

Doesn't need to go to any school in my own opinion. This thread alone is enough to source any information one needs about stock investment.
There are lots of veterans here who give signals of what to buy and when to buy. They also indicate when they sell a stock because they consider it overvalued.

If you follow person wey sabi road you no go miss road

pizapato:
Doesn't need to go to any school in my own opinion. This thread alone is enough to source any information one needs about stock investment.
There are lots of veterans here who give signals of what to buy and when to buy. They also indicate when they sell a stock because they consider it overvalued.

If you follow person wey sabi road you no go miss road

True talk this place has been a wealth of information

IYGEAL:
Oga Loco we dey hail o

Ofu aka ruta mmanụ, ozuo aka niile

Nobi only Oga Loco SAMGURU is also doing great in his recommendations.

emmanuelewumi:
No big deal, just replicate what you did with your portfolio for your brother. He needs to sell some of the dead stocks in his portfolio and reduce the stocks to about 30.


He should have two Stockbroking accounts, one will be for long term Investment this should be worth about 70% of his portfolio, the other account should be for trading.


What is the current dividend generated by his portfolio? He should endeavour to invest part of his dividends in fixed income funds.


What will he do if the market is very bearish when his children are about to be admitted to the University, will he sell in a down market?

Reason why he needs funds that won't be affected by the market conditions.



If I may ask, what is the current dividend produced by your portfolio? if it it less than N12 million you need to rebalance your portfolio for a better yield

Is a target of N12 million dividend from a portfolio of N104 million not too high. That is an average dividend (& Coupon) income yield of 11.5% ?

I think an aggressive portfolio should aim for about 9%. While an average portfolio should aim for about 6%.

I will appreciate your views and that of everyone. Looks like i am doing less than 6%.

BabsO2:
Is a target of N12 million dividend from a portfolio of N104 million not too high. That is an average dividend (& Coupon) income yield of 11.5% ?

I think an aggressive portfolio should aim for about 9%. While an average portfolio should aim for about 6%.

I will appreciate your views and that of everyone. Looks like i am doing less than 6%.

Not too high oooo

Just replied to all mails and messages.
...so those involved may wish to look in on them.

Again, I apologise for the late response.
...was due to some unavoidably pressing situation.

Good day everyone.
May God bless the work of our hands and our good deeds as we wrap up the 2nd half of the month of February!
Enjoy the rest of your day.

Regards

emmanuelewumi:
Not too high oooo

That portfolio will only have the likes of Zenith. And cannot add any other stock on the NSE as most of them have dividend yields less than 11.5%

On the podcast this week, we chat with Mr Oluyomi Faneye, Team lead, Wealth creation, Kedari Capital about managing one's emotions in investing, investment education for our kids and his strategy for investing.

Enjoy our conversation!

https://anchor.fm/value-nigeria/episodes/49--Managing-the-emotions-of-fear-and-greed-in-investing-A-chat-with-Mr-Oluyomi-Faneye--Team-Lead--Wealth-Creation--Kedari-Capital-Nigeria-e1eac8u

BabsO2:
That portfolio will only have the likes of Zenith. And cannot add any other stock on the NSE as most of them have dividend yields less than 11.5%

I use yield on cost, one of the reason why I average down good stocks.

I love buying stocks at cheap prices especially in a down market. So I am a yield hunter

I am more concerned about the cash flow from the portfolio through diversification and reinvesting for a better yield.


If you have been using dollar cost averaging over the years your average price for Zenith should be less than N19, Dangote cement should be less than N190, United Capital should be less than N2.50k etc.


N5 million invested in Vitafoam in 2020, will give you a dividend of about 450k in 2020, dividend of 630k in 2021 and a dividend of N1.35 million in 2022.

The Vitafoam shares that will give this dividend is 1 million units currently valued at N24 million.

As a yield hunter, selling half of the shares will give me a dividend of 675k. The fund realized from the sale will be diversified in a FGN bond at 13% to earn a coupon of N1.56 million. When added to the 675k, I will get a total of N2.23 million from this diversification or portfolio rebalancing.

Part of this dividend will be used to repurchase more of Vitafoam shares after dividend payments.

Fixed income Investment are not as volatile as equities, they can also be used to get more shares in the company based on the future prospect of the business .

emmanuelewumi:
I use yield on cost, one of the reason why I average down good stocks.

I love buying stocks at cheap prices especially in a down market. So I am a yield hunter

I am more concerned about the cash flow from the portfolio through diversification and reinvesting for a better yield.


If you have been using dollar cost averaging over the years your average price for Zenith should be less than N19, Dangote cement should be less than N190, United Capital should be less than N2.50k etc.


N5 million invested in Vitafoam in 2020, will give you a dividend of about 450k in 2020, dividend of 630k in 2021 and a dividend of N1.35 million in 2022.

The Vitafoam shares that will give this dividend is 1 million units currently valued at N24 million.

As a yield hunter, selling half of the shares will give me a dividend of 675k. The fund realized from the sale will be diversified in a FGN bond at 13% to earn a coupon of N1.56 million. When added to the 675k, I will get a total of N2.23 million from this diversification or portfolio rebalancing.

Part of this dividend will be used to repurchase more of Vitafoam shares after dividend payments.

Fixed income Investment are not as volatile as equities, they can also be used to get more shares in the company based on the future prospect of the business .

Even when I do dividend yield based on cost I get about 7.5% for 2021 dividend income after taking out impaired investments. That is I am getting 7.5% after taking out Impaired investments like International Energy Insurance, STARCOMMS, SKYEBANK. Can claim to afford taking them out since my current portfolio value is nearly double my cost value for all stocks i have purchased including the ones that have gone bad that have turned to zero value like SKYEBANK. That is looking at Equity alone. If I factor in bonds I get about 9%

But using current market values I think a portfolio return of 6% is fair or average. And one of 9% and above income yield is excellent. Especially is the portfolio also grows in valuation in trend with inflation.

BabsO2:
Even when I do dividend yield based on cost I get about 7.5% after taking out impaired investments. That is I am getting 7.5% after taking out Impaired investments like International Energy Insurance, STARCOMMS, SKYEBANK. Can claim to afford taking them out since current market value is nearly double my cost value.

Get enough books to read on dividend investing, 7.5% is too low in the Nigerian market.

emmanuelewumi:
Get enough books to read on dividend investing, 7.5% is too low in the Nigerian market.

Using current market values I think a portfolio return of 6% is fair or average. And one of 9% and above income yield is excellent. Especially if the portfolio also grows in valuation in trend with inflation.

emmanuelewumi:
Get enough books to read on dividend investing, 7.5% is too low in the Nigerian market.

I looked through Stanbic IBTC Funds factsheet https://www.stanbicibtcassetmanagement.com/static_file/Nigeria/nigeriaassetmanagement/SIAML/FileDownloads/PDF%20Files/SIAML_Consolidated_Fact_Sheet_Dec2021.pdf

Their Equity Fund that invests about 73% in Equities and 27% in Fixed income. Their 5 year performance which includes dividends and capital appreciation at the end of 2021 was 44%. That tells me a 7.5% return for anyone's portfolio based on dividends and coupons only is not too low in the Nigerian market.

Will build a table of Average stock price vs dividend for a couple of stocks to cross check what performance on an individual stock basis for 2021 was.

I want to agree with babs02 at every dividend paying year return of 7.5 percent is good altogether, except one is having just a single stocks that pays more than 10perc

BabsO2:
I looked through Stanbic IBTC Funds factsheet https://www.stanbicibtcassetmanagement.com/static_file/Nigeria/nigeriaassetmanagement/SIAML/FileDownloads/PDF%20Files/SIAML_Consolidated_Fact_Sheet_Dec2021.pdf

Their Equity Fund that invests about 73% in Equities and 27% in Fixed income. Their 5 year performance which includes dividends and capital appreciation at the end of 2021 was 44%. That tells me a 7.5% return for anyone's portfolio based on dividends and coupons only is not too low in the Nigerian market.

Will build a table of Average stock price vs dividend for a couple of stocks to cross check what performance on an individual stock basis for 2021 was.

As per returns on investment, retail Investors have advantages over the big fund managers.

Kindly share the returns for Stanbic IBTC Asset Management over the last 5 years

gentop1:
I want to agree with babs02 at every dividend paying year return of 7.5 percent is good altogether, except one is having just a single stocks that pays more than 10perc

Your entry price is the most important factor if you are a yield hunter.


7.5% is poor for the Nigerian market

BabsO2:
Using current market values I think a portfolio return of 6% is fair or average. And one of 9% and above income yield is excellent. Especially if the portfolio also grows in valuation in trend with inflation.

The minimum iook at is 10%, with exception of MTN, Lafarge, Dangote cement etc but when I consider my average price my yield on cost will be higher than 10%

Well I think I understand you now if you are coming talking in terms of average cost and base on recent low price for Nigeria stocks in last 3 years.

Am not looking at the entry cost any more, am looking at dividend yield in relative to the present price of stocks.

gentop1:
Well I think I understand you now if you are coming talking in terms of average cost and base on recent low price for Nigeria stocks in last 3 years.

Am not looking at the entry cost any more, am looking at dividend yield in relative to the present price of stocks.

We have a number of stocks with dividend yield of 10% and above

Slimdove:
Nobi only Oga Loco SAMGURU is also doing great in his recommendations.

Yes oh. I don't know if he's the one making cryptic stock recs in my inactive WhatsApp group.

BabsO2:
I looked through Stanbic IBTC Funds factsheet https://www.stanbicibtcassetmanagement.com/static_file/Nigeria/nigeriaassetmanagement/SIAML/FileDownloads/PDF%20Files/SIAML_Consolidated_Fact_Sheet_Dec2021.pdf

Their Equity Fund that invests about 73% in Equities and 27% in Fixed income. Their 5 year performance which includes dividends and capital appreciation at the end of 2021 was 44%. That tells me a 7.5% return for anyone's portfolio based on dividends and coupons only is not too low in the Nigerian market.

Will build a table of Average stock price vs dividend for a couple of stocks to cross check what performance on an individual stock basis for 2021 was.

The current prices don't show the true reflection for a portfolio that has been active for years. During those years, there must have been price fluctuations at which points the investor is expected to balance his portfolio.

I don't have a lot of units of Zenith, for example, but my average price is about N15. I had bought at 11 in 2020 and sold some; then bought more below 20.

IYGEAL:
The current prices don't show the true reflection for a portfolio that has been active for years. During those years, there must have been price fluctuations at which points the investor is expected to balance his portfolio.

I don't have a lot of units of Zenith, for example, but my average price is about N15. I had bought at 11 in 2020 and sold some; then bought more below 20.

My average price for ZENITH is N23.5 because I added it to my portfolio last year and it is about 3% of my portfolio

My average price for UBA is N4.98 and it is about 25% of my portfolio. Waiting for their meeting tomorrow 14th Feb.

emmanuelewumi:
Your entry price is the most important factor if you are a yield hunter.


7.5% is poor for the Nigerian market

I think I am speaking from a different reference compared to you. The 7.5% is based on current valuation of portfolio and 2021 dividends received. If i back out dividend reinvested and focus on original money brought into NSE from work my dividend yield is above 12% and my portfolio has grown significantly in value compared to original money brought into NSE.

Slimdove:
Nobi only Oga Loco SAMGURU is also doing great in his recommendations.

That One na Oracle with telescope. He be Oloye.

If I get a dollar for each time I hear the question "which company should I buy?", I will be retired by now...

In this article, I explain, in a step by step manner, my thought process in picking stocks...

I hope you find it enlightening...

https://stocksng.com/how-i-pick-stocks-part-1/amp/

I want to start investing in shares. I have a stockbroker: ESS INVESTMENT AND TRUST LIMITED, I don't know if I should change to another Stockbroker MORGAN CAPITAL.
I have forgotten my password and I need USERNAME and CSCS NO but I have forgotten my USERNAME. How can I retrieve my a/C