I was literally waiting for you Sunday morning upload then your notification popped up: these company shares are the premier league stocks with solid track record of dividend and capital growth. Now that you have brought RTK to my notice it’s worth doing the research before I jump in. Thanks for the Sunday updates.
Great video. I always used to be confused how companies can increase their dividends, but the yield % goes down. I wish they taught things like this is school.
@@TheCompoundingInvestor thank you so much 😊 And great video as always. I'm a fan of all the stocks mentioned in this video, except BATS which I think we all see a bit of a troubled future for.
Great informative video, really gives you an insight into established companies. BAT also concerns me; there is a strong drive to reduce tobacco consumption, I cannot see this changing. Looking forward to your September update, hope it’s positive 👍
BAT and IMB need new products and markets to survive. Their ability to pay high dividends is contingent on their ability to borrow against stable cash flows. Hence why they were looking into vaping and cannabinoids.
Just noticed a discrepancy! On your Reckitt slide you show 5 year price change but show a graphic of -13%. Why the difference, was it just the wrong graphic?
Yeah someone already pointed this out. The graph is correct and shows -13% over 5 years but the table shows +13% which is a mistake. I then looked at the table when I was narrating. Apologies.
@@juri2001well he can’t magic and create new great companies every week. A good company is hard to come by. There will probably not be another company like apple for decades. Maybe even longer.
1:35 when gsk spun off haleon they did a consolidation. shareholders received 4 shares in GSK for every 5 they previously owned. this was to prevent a bid drop in the share price when haleon was spun off. i guess they just estimated a ball park % they thought the gsk stake in haleon was worth so it's not exact but i don't think the spin off has much effect on the share price drop in 5 years.
Hey, I have a question for you if that's okay please? If I am reinvesting dividends as a long term (15+ years) strategy, before then using dividends to live off - regarding ETFs, is it better to invest in VUKG than VUKE? Vuke would distribute the dividends, which i'd be reinvesting anyway, so it cuts out the manual step. VUKG would accumulate them. The only con I can think of is that in 15+ years, I'd then need to sell VUKG and buy VUKE, for example, to be able to extract the dividends into my bank account (for living).
I’m not 100% sure but I suspect the accumulating version would be cheaper on transaction costs in the long run. I tend to prefer distribution because I often put new money in as well as the dividends and I like to choose which companies the dividends go back into. It helps me to rebalance the portfolio.
Thanks, I’ve done a video below which compares all the providers and shows what my thoughts are. Best Stocks & Shares ISA For 2024 th-cam.com/video/HW_be1fU-G8/w-d-xo.html
If you visit a website called dividend max you can see the dividends per share you receive in different years. As the years go by you get a progressively higher yield on your original investment because a company like Unilever raises the dividends per share consistently each year
The UK utilities do have efficient scale but they are heavily regulated and the regulator controls their profits so they are unable to exploit their moats to achieve higher margins.
It’s actually fallen 13% over the last 5 years and not up 13% as I mistakenly said in the video and shown in the table. The yahoo chart I show is correct however and states -13%. Apologies
Always wondered is it better to settle for individual stocks or an ETF that jncludes these...I've got a bit of a mix at the moment but I need to consider my options
ETFs were not mainstream when I started but most new money goes into those now. I still like individual shares too as I can snap up bargains when they emerge like I did with Royce Royce and now Diageo but that’s just my personal preference and not necessarily the best strategy. Most investors would probably be better off just investing in index tracking ETFs right from the start these days according to Buffett unless you have the time and expertise to analyse individual companies.
What a month…… finished with almost £300 today from Diversified Energy Company. Imperial Brands , legal and general, HSBC. Realty income, shell, Barclays , Lloyds , sse, bp, Rio tinto and SIPP 20% Payment. £1400 ish this month……. Quality
Top tip. Get out of BAT as quickly as possible. Their tobacco replacement / vape products just don't have a future on the kind of scale and margin seen with cigarettes over the last 4 or 5 decades. I won't say how I know, but I know.
Thanks, There are a few others I could have included. National grid does have a moat but as with the other utilities they have tight regulation and don’t have control over their profits. The regulators do. The utilities can’t really exploit their moats. I’ve owned NG for many years however and will continue to do so.
@riddlergorshin I’m sure there are several others I could have mentioned. I tried to pick the ones with the largest capitalisations but Ashtead is certainly a candidate.
I held GAW in November 2016 when it was breaking out around £5.80 … banked 30% & moved on. I remember looking at it again around £10 thinking it was too high 🥲
No problem@@TheCompoundingInvestor , looking forward to your September passive income video, very inspiring and enjoyable to watch! Recently began my own investing journey and really value your insights. Thank you.
I liked the idea of the dividend yield getting larger as time passes, but really it only makes sense if you consider inflation right? For example, the prices of 'everything' in the UK has doubled in the past 30 years or so.
Yeah dividend yield, dividend growth and share price growth all need to be considered. For FTSE 100 shares the historical total return is around 7.5% per year. Inflation expected to fall to 2% in 2025 but no guarantee of course
@@TheCompoundingInvestorsuch amazing low fees on a ftse 100 etf aswell. Thinking I'm going to begin to transition more here than my high yield etfs with high fees
@davidjones4130 I absolutely agree. The regular FTSE ETF regularly seems to outperform the high dividend version in total returns and as you say, the fees are lower too.
Personally I like holding both. Snapping up bargains in large caps having a temporary fall and when there are no bargains to be had I’ll just drip-feed into an ETF.
Is there one in particular? There have been a few challenger banks emerging in recent years. Not sure any one UK banks has monopoly status in its own right
Banks don't necessarily have a strong moat just because they control a lot of assets or are large in scale. Brands have offered little comfort since the crash, since it was obvious even the biggest beasts could run into trouble. Hence they mostly compete on price in major developed markets. When run well they are effectively money printing machines albeit risky due to large amount of leverage by design, so I'd still keep an eye out for bargains in the sector. It'd boost the income on your overall holdings. But don't bet the house on them! :)
You raise a good point and they will need to adapt and change. We all know what happened to the likes of Nokia, Kodak, Blackberry etc. Shell and BP also face similar challenges but they are transitioning into greener energy.
That’s true. I’m a fan of the S&P500 too and last year put more into my IUSA ETF than any other share. This year will be the same I suspect. When I started this portfolio in 2009 ETFs were not mainstream and I was restricted by my platform to investing in individual U.K. stocks without paying huge fees and opening an expensive international trading account.
Probably because they are established large cap companies which can churn out cash to their shareholders and can cope better than smaller companies when a crisis strikes. Unlikely to go bust because they are virtual monopolies however as you say more difficult to grow than smaller ones.
@@TheCompoundingInvestor I’m quite new to investing so you most likely know better, but knowing that a dividend could get cut at any time would make me want to have a combination within a company of share price growth and also dividend growth also. Companies like Visa as an example. Or am I way off?
@smeg3519 I also like companies giving a growing dividend but also a share price which grows too. Unilever / Diageo are good examples in the U.K. You are correct that dividends can be cut at any moment. I hold around 25 individual companies and usually see at least one of them suffer a divided cut each year. It even happened to Shell not long ago which had not cut its dividend since the 1945. Another advantage of not having all eggs in one basket
I’m quite happy holding individual companies as well as a few ETFs. Most of my gains over the last few years have come from buying shares in large caps when they were suffering a temporary shock (Shell, BP, Unilever and now Rolls Royce). I could not snap up bargains when they emerge if I was just into ETFs. If I can’t see any bargains then I’ll drip-feed instead into an ETF.
I was literally waiting for you Sunday morning upload then your notification popped up: these company shares are the premier league stocks with solid track record of dividend and capital growth. Now that you have brought RTK to my notice it’s worth doing the research before I jump in. Thanks for the Sunday updates.
You are welcome. Thanks so much for watching
Great video. I always used to be confused how companies can increase their dividends, but the yield % goes down. I wish they taught things like this is school.
Plenty of food for thought. Glad to say I have some already and a few others on my watch list. Some more to ponder. Thank you.
Thanks my friend and all the best.
Brilliant. Can't wait to watch this after work today!
Thanks Tom. All the best with your channel
@@TheCompoundingInvestor thank you so much 😊 And great video as always.
I'm a fan of all the stocks mentioned in this video, except BATS which I think we all see a bit of a troubled future for.
Very gud thank u 1 question how dividend with holding tax do forieng investors holding UK stocks pay ?
For individual stocks It’s 30% but there is a form you can fill in to reduce it to 15%.
Great informative video, really gives you an insight into established companies. BAT also concerns me; there is a strong drive to reduce tobacco consumption, I cannot see this changing. Looking forward to your September update, hope it’s positive 👍
Thanks so much.
what new information did you get??
he is talking about same companies over and over
BAT and IMB need new products and markets to survive. Their ability to pay high dividends is contingent on their ability to borrow against stable cash flows. Hence why they were looking into vaping and cannabinoids.
Checking is their debt is increasing and cash flow after expenses decreasing whilst still paying out a reasonably high Div. 🚩
Investing in lung cancer seems like a bad idea.
Just noticed a discrepancy!
On your Reckitt slide you show 5 year price change but show a graphic of -13%.
Why the difference, was it just the wrong graphic?
Yeah someone already pointed this out. The graph is correct and shows -13% over 5 years but the table shows +13% which is a mistake. I then looked at the table when I was narrating. Apologies.
@@TheCompoundingInvestor Nobody is perfect ..... not even me! ;o)
Thanks for the clarification though!
I have 4 off that list AZN DGE GSK ULVR I will most likely have them all for a while longer thanks for the video take care
Thanks for watching. All the best
Always love your content… Fan of most of these companies and would invest more into most of these if I had extra cash
Thanks so much, I really appreciate it.
always the same companies he is talking about
@@juri2001well he can’t magic and create new great companies every week. A good company is hard to come by. There will probably not be another company like apple for decades. Maybe even longer.
@@Thehungrywolf999 then why make youtube videos so often?
1:35 when gsk spun off haleon they did a consolidation. shareholders received 4 shares in GSK for every 5 they previously owned. this was to prevent a bid drop in the share price when haleon was spun off. i guess they just estimated a ball park % they thought the gsk stake in haleon was worth so it's not exact but i don't think the spin off has much effect on the share price drop in 5 years.
Thanks for your insights on this Lee.
Hey, great video! Where do you find the graphs with blue bars showing dividend growth over time? Thanks
There is a website called dividend max
@@TheCompoundingInvestor Thanks for the reply 👍
Great video. Thank you. I'll be adding some of those to my portfolio 💪
You are welcome. All the best on your investing journey
Hey, I have a question for you if that's okay please? If I am reinvesting dividends as a long term (15+ years) strategy, before then using dividends to live off - regarding ETFs, is it better to invest in VUKG than VUKE? Vuke would distribute the dividends, which i'd be reinvesting anyway, so it cuts out the manual step. VUKG would accumulate them. The only con I can think of is that in 15+ years, I'd then need to sell VUKG and buy VUKE, for example, to be able to extract the dividends into my bank account (for living).
I’m not 100% sure but I suspect the accumulating version would be cheaper on transaction costs in the long run. I tend to prefer distribution because I often put new money in as well as the dividends and I like to choose which companies the dividends go back into. It helps me to rebalance the portfolio.
Great video as always! What platform do you recommend using for investing in these companies?
Thanks, I’ve done a video below which compares all the providers and shows what my thoughts are.
Best Stocks & Shares ISA For 2024
th-cam.com/video/HW_be1fU-G8/w-d-xo.html
how do you calculate holding Unilever shares for that period of time would give you 12.2% dividend yield? 3:06
If you visit a website called dividend max you can see the dividends per share you receive in different years. As the years go by you get a progressively higher yield on your original investment because a company like Unilever raises the dividends per share consistently each year
Great video 👍
Thanks, glad you found it useful.
Always love video 😊
Thanks Paul
Most UK water companies are monopolies too. You can't use another water service provider. Similar to National grid.
The UK utilities do have efficient scale but they are heavily regulated and the regulator controls their profits so they are unable to exploit their moats to achieve higher margins.
Great video! Thank you!
You are welcome. Thanks for watching
I hold reckitt in my isa and its at a reasonable price now. Im tempted to buy more.😊
It’s actually fallen 13% over the last 5 years and not up 13% as I mistakenly said in the video and shown in the table. The yahoo chart I show is correct however and states -13%. Apologies
Awesome video, brilliant!
Thanks so much
Always wondered is it better to settle for individual stocks or an ETF that jncludes these...I've got a bit of a mix at the moment but I need to consider my options
ETFs were not mainstream when I started but most new money goes into those now. I still like individual shares too as I can snap up bargains when they emerge like I did with Royce Royce and now Diageo but that’s just my personal preference and not necessarily the best strategy. Most investors would probably be better off just investing in index tracking ETFs right from the start these days according to Buffett unless you have the time and expertise to analyse individual companies.
I hold most of this companies 😊
What a month…… finished with almost £300 today from Diversified Energy Company. Imperial Brands , legal and general, HSBC. Realty income, shell, Barclays , Lloyds , sse, bp, Rio tinto and SIPP 20% Payment. £1400 ish this month……. Quality
Wow, that’s a decent catch Barry. Nice work indeed. I bet you will be putting every penny of that straight back to work 👍🏼
@@TheCompoundingInvestorit’s sat there waiting to be reinvested with HL next month. With the ftse down now is a good time to buy and accumulate
Top tip.
Get out of BAT as quickly as possible. Their tobacco replacement / vape products just don't have a future on the kind of scale and margin seen with cigarettes over the last 4 or 5 decades.
I won't say how I know, but I know.
A Great Video. I may have included National Grid
Thanks, There are a few others I could have included. National grid does have a moat but as with the other utilities they have tight regulation and don’t have control over their profits. The regulators do. The utilities can’t really exploit their moats. I’ve owned NG for many years however and will continue to do so.
Games workshop GAW has a huge moat and is growing fast. It also has a 4% dividend. They just struck a big deal with Amazon.
Ashtead?
@riddlergorshin I’m sure there are several others I could have mentioned. I tried to pick the ones with the largest capitalisations but Ashtead is certainly a candidate.
I held GAW in November 2016 when it was breaking out around £5.80 … banked 30% & moved on. I remember looking at it again around £10 thinking it was too high 🥲
Thanks for another video 😊
You are welcome, thanks for watching
I’m just wondering, do you hold any greencoat uk wind ? Love the videos btw!
Thanks. Yes I’ve held them for around 10 years now.
Great video!
Morgan Sindall has a 4.96% dividend yield right now, any thoughts on this?
Thanks. I don’t know a lot about the company but the yield looks great and so does the Year to Date share price and 5 yr share price.
Hello, interesting video from a foreign point of view.
Hi there Trunky. Glad you found it useful.
National Grid too!!
I think you meant to say Reckitt is down 13%
Yep, I totally missed that one. Thanks for spotting.
No problem@@TheCompoundingInvestor , looking forward to your September passive income video, very inspiring and enjoyable to watch! Recently began my own investing journey and really value your insights. Thank you.
I liked the idea of the dividend yield getting larger as time passes, but really it only makes sense if you consider inflation right? For example, the prices of 'everything' in the UK has doubled in the past 30 years or so.
Yeah dividend yield, dividend growth and share price growth all need to be considered. For FTSE 100 shares the historical total return is around 7.5% per year. Inflation expected to fall to 2% in 2025 but no guarantee of course
@@TheCompoundingInvestorsuch amazing low fees on a ftse 100 etf aswell. Thinking I'm going to begin to transition more here than my high yield etfs with high fees
@davidjones4130 I absolutely agree. The regular FTSE ETF regularly seems to outperform the high dividend version in total returns and as you say, the fees are lower too.
New subscriber here 🙋🏾♂️
Great video...
👍
hold them all in ftse100 etf but considering selling that and focusing on just a few
Personally I like holding both. Snapping up bargains in large caps having a temporary fall and when there are no bargains to be had I’ll just drip-feed into an ETF.
That sounds very sensible, Im only two years in hopefully I dont make to many mistakes@@TheCompoundingInvestor
Ashtead?
What about UK banks?
Is there one in particular? There have been a few challenger banks emerging in recent years. Not sure any one UK banks has monopoly status in its own right
Banks don't necessarily have a strong moat just because they control a lot of assets or are large in scale. Brands have offered little comfort since the crash, since it was obvious even the biggest beasts could run into trouble. Hence they mostly compete on price in major developed markets.
When run well they are effectively money printing machines albeit risky due to large amount of leverage by design, so I'd still keep an eye out for bargains in the sector. It'd boost the income on your overall holdings. But don't bet the house on them! :)
Haleon only pays div 2x a year, not quarterly
You are indeed correct. I missed that one. Apologies and thanks for pointing it out
I would say Rolls Royce have a pretty strong economic moat.
That’s a fair comment and perhaps I should have included them too.
Only so much space…I thoroughly enjoy your Sunday morning offerings. Thank you.
Love rolls Royce.
One of my very share .
Bought when I was 19 .
Never sold .
43 now ...
Happy days ❤❤❤❤🎉
i fell like BAT will never recover unless they move into vapes and other products, smoking tabacco is a falling trend year on year.
You raise a good point and they will need to adapt and change. We all know what happened to the likes of Nokia, Kodak, Blackberry etc. Shell and BP also face similar challenges but they are transitioning into greener energy.
Also unethical.
They have quite a decent amount of R&D devoted to vaping. A modest position seems like quite a good buy still though.
thanks, but its still all uncompetitive when compare to S&P500...
That’s true. I’m a fan of the S&P500 too and last year put more into my IUSA ETF than any other share. This year will be the same I suspect. When I started this portfolio in 2009 ETFs were not mainstream and I was restricted by my platform to investing in individual U.K. stocks without paying huge fees and opening an expensive international trading account.
BATS will be here when we’re all 6ft deep
Some of the 5 year growth of these companies is horrendous
Probably because they are established large cap companies which can churn out cash to their shareholders and can cope better than smaller companies when a crisis strikes. Unlikely to go bust because they are virtual monopolies however as you say more difficult to grow than smaller ones.
@@TheCompoundingInvestor I’m quite new to investing so you most likely know better, but knowing that a dividend could get cut at any time would make me want to have a combination within a company of share price growth and also dividend growth also. Companies like Visa as an example. Or am I way off?
@smeg3519 I also like companies giving a growing dividend but also a share price which grows too. Unilever / Diageo are good examples in the U.K. You are correct that dividends can be cut at any moment. I hold around 25 individual companies and usually see at least one of them suffer a divided cut each year. It even happened to Shell not long ago which had not cut its dividend since the 1945. Another advantage of not having all eggs in one basket
@@TheCompoundingInvestor what are your thoughts about growing a dividend paying etf like FUSI instead of individual companies?
I’m quite happy holding individual companies as well as a few ETFs. Most of my gains over the last few years have come from buying shares in large caps when they were suffering a temporary shock (Shell, BP, Unilever and now Rolls Royce). I could not snap up bargains when they emerge if I was just into ETFs. If I can’t see any bargains then I’ll drip-feed instead into an ETF.
I can't believe you include tobacco as a top pick. Everything else i can see merit but cancer sticks aren't a good buy.