Double Digit monthly Dividends for 2017 now possible to produce £5000 a month!

26th Nov '16 by lightningtiger

40 comments 14050 reads

By double digit, that is at least !0% pa & paid monthly.That was not possible here in the UK, but it is possible in the US by carefully selecting a handful of companies that do just that.
The good thing about this is as soon as the shares you are holding goes XD, you are Guaranteed the payments of course.
From a watch list of about a dozen shares it is possible to invest in some that give a regular payment out each month.
I first thought is this 10% at all possible? It seemed a tall order to achieve.& now after a few months work, the plan from an idea has paid off.

The watch list was started with GOOD & GLAD, paying about 8% &10% being invested. GOOD was top sliced and eventually sold for profit, to attain the 10% yield.PA.
GLAD was top sliced also to achieve at least 10% pa.and up now about 22%(capital growth)..
Meanwhile CLM paying 22.3% & ORC paying 15.4% has been invested from the watch list.
The others on the watch list are EDF 14.9% (Hargreaves) OAKS 14.04% PHK 13.67% IGD 13.65% NCZ 12.37%.
I still like to top slice to obtain at least 10% from time to time, perhaps that is a better way to do it.
Although commissions with exchange rates & taxes have to be paid it still makes it worthwhile to to do. With the falling £, the dividends over the last few months have also increased too.
XD date for CLM 13/12, paid 30/12. XD ORC 28/11, paid 9/12. XD GLAD 16/12 paid 30/12.
Please DYOR.For some strange reason CLM is currently showing a huge spread, it is usually only a few cents or pence.This has happened before from Hargreaves & when trading resumes it sorts itself out again.for some strange reason.Just checked iii showing CLM @ $ 15.30 bid $15.32 offer
So is it best to go for double digit dividends or to top slice some profits?

Perhaps worth mentioning the income over the last few months - SEPT £333 OCT £384

NOV £443 DEC est £484 (awaiting ORC going XD

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lightningtiger

4th Apr '17

No is the simple answer Carey, thank you. There is no free lunch here. As you stated in another thread the share price will drop by about half and they have sold a lot of assets to pay the dividend with, but over the last few years they have done well.Perhaps worth putting in the watch list.
Total dividends coming in this month will be 9, of which 8 are already cleared.

6th Apr '17

The 9th dividend is now cleared for payment, so another great 4 digit dividend payment due this month.. Meanwhile ELTA dropped 51.5% to accommodate the dividend payment.

13th Jul '17

An update,.............. Since April this is the best month so far for another bumper 4 digit payout. This is mainly because of Plus500 paying out the first payment for 2017. Currently showing a Stock Rank of 99 with screens having risen to 8.
Looking back perhaps I should have kept hold of GAW, It still looks good as a growth share with a decent dividend,but does not qualify for at least a 10% dividend yield pa.That said, it is still possible to have top sliced GAW to achieve the 10% and let the share price run.
At least there is a decent income coming in each month and it is easy to add more selected shares to increase the income if required & build up your own DIY extra pension.to what you want it to be.

4th Oct '17

Interesting to note that in this months Money Observer a few people have attempted to have a portfolio that produces £1,000 a month and only one achieve it..
Here are their results :-
Sam Lee's £250,000 portfolio income £14,899 with 5 equally balanced funds.Total return 11.5%
Darius Mcdermott's £300,000 portfolio income £11,961 with 9 funds from 7.5 to 12.5 % Total return 8.3%
Ben Willis £350,000 portfolio income £10,407 with 20 funds from 4 to 7% allocation Total return 5.7%
Adrian Lowcock £260,000 portfolio income £10,814 with 11 funds from 6 to 10% allocation Total return 10.3%
My income portfolio in an ISA of £50,000 and growing is progressing well with the regular income each month of around £650 and an irregular income averaging another £200 per month. The regular income fluctuates a bit because it is in US $. Thus if £300,000 was invested it should produce £850 x 6 = £5,100 a month.
So doing the figures it would only need to increase my portfolio to about £82,000 to achieve the £1,000 a month.
New share added today SIHL paying just over 10% yield XD 5/10/17 paid this month.as another irregular dividend.
A useful site to select dividends from is dividenddata.com.uk

jonesj

The vast majority of abnormally high yielding stocks (say >7%) will have some kind of problem, typically perceived risk of dividend cut, the company going bust or shrinking itself.
A 10% annual yield does not look good if it stops soon.

You may also have to pay tax on the dividends. Am not an expert on this, as my only US stocks have no yield, but there is typically a non-reclaimable portion of tax on overseas dividends, even after looking at the double taxation rules.

Then, in the old days, when stocks went XD, the price used to fall by an amount similar to the net value of the dividend. I suppose it still works like that. That's certainly what should happen.

So what theory am I missing in the opening post ?

Logic

I see this is a slightly older series of posts that have been resurrected.

Jonesj: I agree that usually shares will not yield above 7% for long (either SP increases or dividend is reduced).

Share price should indeed drop when shares go XD, which may or may not be preferable to synthetic dividends (depending on taxation etc). Some economists have argued in favour of shares that pay a dividend, although others have argued the other way.

I am guessing that the appeal in a portfolio paying a monthly dividend is likely that it forms a continuous revenue stream which can be used for re-investing or for supplementing/replacing other income.

Personally I would probably not attempt such investments with my current broker as their FX rates are a ripoff, and I am not sure I would try to get a dividend yield of 10%. The longer term average return on S&P500 including dividends is approximately 9% after inflation (iirc), attempting 10% return (including yield and capital gain) during bull market is not unreasonable.

In the opening post it states at least 10% pa paid monthly and there are very few shares that qualify for this criteria of which CLM and ORC are two of them. They have been paying out these consistent dividends for a few years now. These two shares are still producing after costs jointly in excess of 15% pa or 1.25% per month.
Since they are in an ISA the dividends have no tax to be paid on them.
When the share price declines the dividend yield increases (time to buy more shares) and visa versa. The dividends are paid each month at a constant amount. and therefor eliminates the drop in share price like happens in the irregular dividends.like GAW and others that take a bit of time to recover..

5th Oct '17

lightningtiger, while there is no abrupt drop in shareprice perhaps, it does mean that one would have expected the SP to increase by 1.25% more per month without the dividends. If they stay static, the "drop" is simply constantly being priced in.

While an ISA account will avoid paying dividend to HMRC, holding oversea shares may mean paying tax to the local government (I do not know if this is true for US in particular) and I believe ISA accounts do not allow you to hold foreign currencies, meaning there is forced exchange (how awful that would be may depend on your broker, mine is a joke).

I have not looked into CLM/ORC, I don't have a great deal of time for it at the moment, but they do sound interesting (even if I may not be looking to invest in them).

While a lower SP may represent a buying opportunity, it depends on why the SP is dropping, but I'm sure you did not mean it as a blanket statement.

Personally I would happily see more companies pay out on a monthly basis, it does "smooth out the bumps" so to speak.

Rusty2

Usa shares will have 15% deducted if you have completed a withholding tax form, if not it will be 30%. The only exception I believe is for shares held in a SIPP. It is a problem with US and Canadian shares. I do hold AT&T which pays about 6% dividend and seems pretty reliable. Am looking more to European shares which avoids the tax problem.

My ISA account does allow me to hold these US shares and I pay all the taxes and costs required to have $ converted back into £.
As a 700 club member I got this idea from Pat Robertson, who is a multi millionaire worth about $100M and in his latest DVD this month entitled " Ask me anything" a question came up "How should I invest my money?". His reply was to look for companies paying a good dividends and re invest the dividends, so that is precisely what I am doing, and it is working.He likes the utility companies.I have also read his book "The Secret Kingdom"
You can check his previous program on 14th Sept 2017 and about 14 minutes in they are asking people to join and by the end of the program they brought in over $400,000.in just one hour!
I think most people would think this sort of money would be impossible to get in just one hour., but that is not the case.
Certainly the US market pays higher dividends than we can get here in the UK generally speaking.

JohnEustace

I would advise anyone who is thinking of following lightningtiger's strategy to read up first on Pat Robertson's background.

https://en.wikipedia.org/wiki/...

https://en.wikipedia.org/wiki/Pat_Robertson_controversies

6th Oct '17

It was firstly Pat Robertson's strategy, and all I have done is put it into action and I am grateful for it.
Your above Wikipedia reads are sure going to take a long time to read, Far better to read his book, it will be quicker and you will be better informed. He also needed to get $1.5M I think within a day and got it. Read the book.
The other thing he teaches is save 10% of your income for yourself,live on 80% and give away 10%
I think if a few pension fund managers put this sort of thing into practice we would all be better off.
On our last investment club meeting we worked out that for the state pension to double in value at today;s increases it would take about 30 years to do so. Comparing increasing @ 15% pa it would only take about 5.
This type of investment will not be everybody's cup of tea but it works for me.
I still have part of my portfolio in growth shares to boost up the capital with.

aflash

Meeting of three worlds here:

1)High risk, high yield investing

2) Using the method for dividend stocks

3) Using positive thinking and faith to achieve better results.

Stockopedia is the last place where I expected the meeting to take place because the methodology of most ex-accountant, ex-stock-broker subscribers is rooted in financial logic.

However since I have experience of all the above I say:

When it comes to yield if it sounds too good to be true, it is.

A high yield often attracts people who do not want to look under the hood and that has included me in previous lives. It all cases the capital loss exceeded the income. One finds it a lot in the Carribean Island Hedge Funds and the Real Estate Bonds. Exciting stories, charismatic reunions but heavy tax losses.

So I switched to 2) and that works OK but I look at other factors before the % yield. HSBA, RDSB, BATS, NG, UU, SSE even BP and more recently CNA. I paid too much for BLND before the financial crisis but still sold for a profit recently, having collected 5 years dividends. On the US side REITs, preferred shares, monthly paying stocks and ETFs. It is a method similar to 'Bond Washing.'

I both hold a core position and trade them using the method lightningtiger has described. Diarize ex-dividend dates and take the capital profit and loss around that time. I have found Mr Market euphoric and despondent on ex-dividend day. Sometimes I have been able to sell for more on the ex-dividend date than the previous days by holding and collect the dividend. Sometimes it drops much further than my entry price and does not recover before the ex-dividend date.

I only calculate the yield at the end of the year but take my profits and losses daily on about 10 trades a week. The annual income is subject to tax in my case and others have mentionned US withholding tax which I am able to recover partially in my tax calculations.

Finally the crowd-funding, positive, faith-driven, optimistic approach certainly helps but Stockopedia itself goes a long way. The number of suggestions and short-cuts suggested in discussion threads such as this gives collective results far greater than ploughing through all the info alone.

For further reading: Wallace D. Wattle may be a new name to you but his Science of Getting Rich pre-dates Napoleon Hill. Norman Vincent Peale has also helped me in a similar way to your 700 Club.

Ask, Believe, Receive.

cig

You'll pay withholding taxes on dividends from European shares too, and it is harder to recover (no W8-BEN for an easy discount, few if any brokers doing it for you in SIPPs).

I too diarize both the XD dates and payment dates and then you are able to see what cash is coming in up to 3 or 4 months ahead. Still awaiting another dividend payment today from SAN. Ten trades a week seems a lot to me but as long as most of them are profitable it makes it worthwhile. Interesting to note that Plus 500 has 87% profitable trading days ,which I thought was very good and can be seen in their company reports. I used to get contract notes and file them all, but now have gone paperless and that saves a bit on expenses.
As for the yield, it is easy to work out because all the dividends are paid into the bank each month and then I can choose either to increase my holdings, buy something new or spend some.
Regarding your Ask, Believe, Receive takes me to a true story of a Pastor Abraham in India that I met a few years ago, who was also a 700 club member, and still see him each year,who was a pharmacist and left to go into ministry. He has started from scratch and last year had built up 3600 churches in India. One of his other pastors cycled over 100 miles each Sunday to do 3 services and they needed extra money to get more bicycles, so I was happy to give him some money for another bicycle.
This year there are now 4500 churches in spite of lots of churches burned down and people being killed..One such lady in North India went to a burial service and spoke to the dead body "Get up In Jesus name" and the person came back to life again!. There is certainly power in what you speak.
A good friend of ours visited us a few weeks ago complaining so much about her back, pain, she could hardly move.We spoke the words over her and God did the healing and she is now pain free, and a big smile on her face, Praise God.This is something that money can't buy.
On that happy note I will check if my other dividend has come in yet.
Dividend income this Sept £650 up from £333 last Sept and this Oct£734 again up from £384 last Sept.

On the North American side there is more to this method.

Bryan Perry's Cash Machine specializes in high yielding instruments. MLPs Master Limited Partnerships, Capital repayments are all covered and I recognize some of the names in your earlier posts.

https://www.bryanperryinvesting.com/

9th Oct '17

Hi Aflash, thanks for the link.An interesting bit of reading. Tempted to take up his offer and read his books. He is also into options trading as well which I have never tried. May be worth looking into to do a bit of study again on.
Next share purchased was BDEV which makes both November and December payments will top the 4 digit payments and tempted to top up with a few more BDEV before XD date arrives.
Any other ideas welcome.

31st Oct '17

Interesting article in Money Observer October how to generate £1,000 a month.A few people have had a go at it and most have failed.
Starting with Ben Willis investing £350,000 producing £10,407 and not forgetting the extra 89p. Total return 5.7% failed.
Next Darius McDermott investing £300,000 producing £11,961.96. Total return 8.3%. also just failed.
Third Adrian Lowcock incesting £260,000 producing £10,814.64. Total return 10.3% failed as well.
The winner Sam Lee investing £250,000 producing £14,899. Total return 11.5%.
These were all invested in funds.
Having read this and seen how much capital it took to get up to £1,000 a month to come in I decided to see if by carefully selecting shares that paid decent dividends which have been mainly coming from the US. That is about 70% of my income portfolio, and the rest from the UK.
. After ordering Mark Minervini's book "Think & trade like a champion",which I am about half way through right now, he states the importance of keeping records.
So now it is much easier to see what you need to do to get some results.to be on target with.
Results -
Jan £474.88
Feb £443.85
Mar £628.01
Q1 Average £515 mth
Apr £1,038.21
May £542.08
June £691.75
Q2 Average £757 mth
Jly £2,466.27
Aug £549.57
Sept £738.46
Q3 Average £1,251
Oct £733.50
Nov est £910
Dec est £1,383
Q4 Average £1,008 which is on target.
Jan pipeline £625.
You still can't beat growth investing with the likes of GAW still going up.but a proportion of my portfolio is with dividends for now.
PS I like the pumpkin in Stockopedia, somebody has a bit of fun to it all.

21st Nov '17

Update Nov actual £924 Dec est £1,400 Jan pipeline now £1,050 with new purchase SPO XD 23/11/17 paid 18/12/17 but will actually be paid in Jan 2018 because it will miss the payout date of 14th Dec from Hargreaves. It is paying 29p returning 27.55% on a share price of 105.2P. This brings the Total for this year to about £10,800.

The exact figure can only be known when PLUS 500 is paid at the end of this week and the tax reclaimed from Israel is also paid.This will certainly be up on last year by a double digit amount..
Interesting article today in Morning Star stating global dividend forecast for 2017 is $1.25 trillion. Q3 stood @ $328BN up 14.5% from previous 3 months.

29th Jan '18

Now into 2018 and sufficient to say comfortably 2017 returned in excess of £10.000 income, that is about 41.5% up on 2016, job done.
New addition is VCT ,high flyer Rank 90 XD 1/2/18 paying a dividend of 109.6p on the current share price of 2566p which is 4.27%.
Money Observer February 2018 addition shows a model portfolio of £161,000 invested to produce estimated £10,082.
The selection shown is 10 shares BP, MKS, LLOY, LGEN, GSK, IMT, BDEV, SSE, GFRD, VOD.
That is about 65% more capital required than mine. I am not sure if any dividends have been paid from their portfolio this year already in January so far.
Food for thought and see how things pan out.

A quick check reveals SSE is the only share XD in January worth about £200 so the rest of the portfolio will have to work a lot harder to produce that result (average £833.33 per month.

Double Digit monthly Dividends for 2017 now possible to produce £5000 a month!

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Lightningtiger

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