# 500K to invest, looking for dividends



## PeeHaitche (1 Oct 2021)

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.


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## Brendan Burgess (1 Oct 2021)

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


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## Bluefin (1 Oct 2021)

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.


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## PGF2016 (1 Oct 2021)

Have a Google for Dividend Kings and Dividend Aristocrats.


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## SoylentGreen (2 Oct 2021)

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.


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## Gordon Gekko (2 Oct 2021)

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.


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## bankrupt (2 Oct 2021)

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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## Marc (2 Oct 2021)

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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## galway_blow_in (5 Oct 2021)

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.
> 
> ...



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


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## Marc (5 Oct 2021)

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



total return portfolio vs fund picked at random






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









						Revenue pulls tax guidance on ETFs - Everlake
					

How are ETFs taxed in Ireland?




					globalwealth.ie


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## time to plan (5 Oct 2021)

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, I’m guessing your point isn’t about how financial planning and medicine are both underpinned by robust evidence based practice?


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## fistophobia (16 Nov 2021)

Tax advice on non-UCITS etfs.
Have you passed this by anyone in Revenue?


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## cremeegg (25 Nov 2021)

Marc said:


> total return portfolio vs fund picked at random
> 
> View attachment 5822
> 
> ...


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.


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## galway_blow_in (27 Nov 2021)

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.


You would think mining companies were also decent dividend options?

Those Australian mines ain't closing anytime soon


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## joe sod (28 Nov 2021)

galway_blow_in said:


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


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"*_


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## galway_blow_in (29 Nov 2021)

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"*_



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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