Six share buys to kick off the week, some for dividend income, some for Pound Cost Averaging (PCA) and one as a pure punt!
Royal Bank of Scotland Group
First on the list today was the “punt”. A purchase of Royal Bank of Scotland Group (RBS). Not exactly a “safe haven”, but I fancied holding some of these shares for the long-term as a pure growth play. Got in at 22.41p per share after another drop in their share price today.
Earlier this year RBS was around the 40p level, and we all know they were up around the 600p back in 2007. I’m not suggesting they will be back at those heady heights any time soon, if ever, so tread carefully…
International Personal Finance
Second on the list today was International Personal Finance (IPF). They are going ex-dividend on 7th September, paying out 3p per share on 7th October, so I bought a few to grab this interim dividend and hopefully get the forecast dividend of 3.9% for 2012 (forecast dividend figure courtesy of my Share Centre research).
I bought at an average of 253p. Using the forecast 2012 total dividend of 9.09p this actually works out at a yield of 3.59% for 2012 (still not sure how the Share Centre forecast yields work. I think they must be based on a given share price rather than the live share price).
National Westminster 9%pf
Next came National Westminster 9%pf (NWBD). A preference share paying 9% – of the original 100p buying cost I think, so 9p per share.
I purchased for 103.3p which means the yield is slightly lower than 9%, but still healthy.
Lloyds 9.25% non cum irrd pref
On the preference share theme I purchased some more Lloyds 9.25% non cum irrd pref (LLPC). I already have some in another portfolio, but at a higher buying price.
This time I got in at 79.92p per share meaning the yield is a lofty 11.57% – but the fly in the ointment is that the dividend has been suspended (many suspect it won’t resume until at least 2012).
So while I am foregoing any income I could have got elsewhere on the capital, my eye is on this tasty yield in the future.
New Europe Property Investments
The penultimate trade today was the purchase of New Europe Property Investments (NEPI) in the real estate investment trusts sector.
They are going ex-dividend on Wednesday (7th September), with 9.77¢ being paid on 12th September. I don’t know much about this company (typical Amateur Investor investing without researching!), but the 2010 dividend yield was 5.9%, so this seemed a good candidate for the High Yield Portfolio.
Finally came Ferrex (FRX), “an exploration and development company focussed on developing and producing low capital intensive iron ore manganese deposits in Africa” according to The Share Centre.
I already held Ferrex shares, at an average buying price of 3.69p and today’s purchase reduced this, albeit only just, to 3.68p