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Dividend Aristocrats

  • Anglo American: 14.08% dividend return
  • BP: 8.69% dividend return
  • Royal Dutch Shell:  7.59% dividend return
  • WM Morrison: 7.51% dividend return
  • HSBC: 6.11% dividend return

While these returns look fantastic in today’s current climate of low interest rates and investment returns, caution is well advised. For example, while from the above BP looks to have given a great dividend return of 8.69%, the selling price per share is around £3.20 at the time of writing.  10 months ago, however, the selling price was £4.80 so the value is down over 33%.  It is true that the markets in general are down over the last 12 months but this shows that caution still must always be taken even when investing in so-called blue chip companies.

The most important thing to do when looking at buying shares is spreading risk or ‘diversification’.  If a large enough spread is created this can improve your chances of getting a good performance and decent income without taking the hit of one or two underperforming companies.

Shares should definitely be looked at as long term investments (5 years plus) but buy selecting a portfolio that has the companies that consistently produce good dividend returns, an income can be enjoyed while the capital is invested for the long term.

Many of my clients do not want the pressure or hassle of selecting their own shares so a professional fund manager can be selected to do this for them – this usually incurs a cost of around 1-2% per annum but what can be achieved is expertise knowledge and experience alongside the benefit of pooling investments with thousands of others, creating a larger a pool of money to allow broader diversification and lower dealing costs.

In today’s financial climate it is essential you do everything you can to make sure your money is safe and secure so what you want to transpire in the future has the best chance of happening.

 

Other News

Five Key Retirement Questions for Expats in Spain

Woman sitting on a benchIf you live in Spain, or are thinking of moving to Spain for your retirement, it is essential that you seek expat financial advice in order to give you the best possible chance of successfully protecting and growing your wealth.

Blacktower Financial Management has offices in Barcelona as well as Costa Del Sol, Costa Blanca, Costa Calida and on the Balearic Island of Mallorca. From these branches, our team members can help expat retirees throughout Spain take care of their wealth management and retirement investment needs.

In this guide we take a look at some key questions for expats in Spain.

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The New 30% Ruling – Make the Most of Your Tax Break Now

Alarm clockDespite the protestations of expats in the Netherlands, expat financial advisers and business leaders, the Dutch cabinet recently announced that it would proceed with plans to reduce the favourable 30% expat ruling from eight to five years.

However, there will now be a transitional period for certain expatriates, meaning they will have time to consult their expat financial advisers in the Netherlands to take the necessary tax planning steps to adjust to the new landscape. Nevertheless, there are still a number of consequences associated with changes to the 30% tax break that need to be explored. Here we will attempt to bring some clarity to those who may be affected by the new rules.

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