Capital Appreciation v Dividends V2.0



  • Eureka! I think I've got it!

    So, capital appreciation is hinged upon other traders having the same opinion as ourselves (identifying that either a player is good or is going to be good), buying in and subsequently moving the players price up.

    Buying a player to return dividends is UNAFFECTED BY OTHER TRADERS BEHAVIOUR. The money comes in regardless (although it's nice when they significantly rise too)

    So we can stop with all the "buy Pogba" posts now. People who want money will own or buy him anyway. Leave the "pump" posts to those invested deep in the capital appreciation game (of which we all should be slightly, if our portfolio is balanced 😉).



  • @ScouseSte yeh but... Buy pogba, neymar, ronaldo, messi, rashford



  • @Vespasian32 hahaha 😉





  • @ScouseSte this my way of thinking dividends are the safer route although usually more expensive. Cap app seems to be safe at the moment but can be risky as anything can happen will waiting for the price to appreciate and theres no saying how ling you will need to wait. However when buying for dividends you still need cap app to get out of a player with a decent profit so you cant have one without the other really but dividends offer a good safety net



  • @Black-wolf yes mate of course you don't want your player to fall from 5 quid to 3 quid whilst earning 50p in divs but you get my point ☺



  • @ScouseSte

    I recently changed strategy and decided to buy Pogba and Neymar. I don't really look at their price anymore, it is irrelevant, I am not selling and I cannot afford to buy anymore. The current price doesn't alter my dividend return. It makes little difference to me if the price is £6 or £8 per share, obviously nicer for my portfolio profits to be higher but not going to change my strategy.

    I thought it would be stressful owning these premium players, but it isn't. I can forget about them and wait for the dividends to come in. Then use dividends to top up the rest of my portfolio. I find it more stressful with my cheaper players that are doing well, so do I sell now, wait, sell half etc.

    I would like to buy another 100 Neymar at the end of next week after making a fresh deposit, but not If the price has risen past what I believe to be good value, so I will monitor prices then.



  • @Martyn-B said in Capital Appreciation v Dividends V2.0:

    @ScouseSte

    I recently changed strategy and decided to buy Pogba and Neymar. I don't really look at their price anymore, it is irrelevant, I am not selling and I cannot afford to buy anymore. The current price doesn't alter my dividend return. It makes little difference to me if the price is £6 or £8 per share, obviously nicer for my portfolio profits to be higher but not going to change my strategy.

    I thought it would be stressful owning these premium players, but it isn't. I can forget about them and wait for the dividends to come in. Then use dividends to top up the rest of my portfolio. I find it more stressful with my cheaper players that are doing well, so do I sell now, wait, sell half etc.

    I would like to buy another 100 Neymar at the end of next week after making a fresh deposit, but not If the price has risen past what I believe to be good value, so I will monitor prices then.

    That's exactly it. You have bought these players to earn you dividends - capital appreciation is a by-product/bonus at the end of the day.

    These players are to sit quietly in our portfolio and just bring in regular pennies so that we can dabble in the slightly more uncertain players...and hope it comes off.

    I liken buying these big-hitters to being "pot-committed" in a game of poker - you are in deep now because you were confident in your hand, so there's no way you're folding 😊.

    The only way you're getting out is if they stop gaining divs for some reason (at a loss), or they reach a price you have earmarked as an exit point (at a profit)



  • @ScouseSte

    I have 54 players in my portfolio. The plan at the moment is too try and have 500 of each of the 5 proven earners, so Pogba, Neymar, Messi, Ronaldo and Eden Hazard. I am getting towards my target with 500, 400, 220, 500 and 300 respectively. When I get the numbers I want these 5 will make up about 50% of my portfolio.

    The rest of my portfolio is split fairly evenly between proven PB winners and cheaper prospects. Hopefully a PB winner most weekends and several MB wins each week.

    Looks like a clean sweep of MB tonight. The £27 (or £28) dividends is nearly 10% of my annual ISA return on 20k. This is working well for me so far!



  • @Martyn-B sounds like a solid strategy mate.
    Nice one



  • @Martyn-B said in Capital Appreciation v Dividends V2.0:

    I don't really look at their price anymore, it is irrelevant, I am not selling and I cannot afford to buy anymore. The current price doesn't alter my dividend return. It makes little difference to me if the price is £6 or £8 per share, obviously nicer for my portfolio profits to be higher but not going to change my strategy.

    Nail firmly smacked on the head



  • Why is neymar only £7.01? Will he drop loads if he transfers?



  • @Tom7471 people worried he ends up in Messi’s shadow from a PB point of view



  • @Black-wolf cool. He scores crazy high anyway though doesn't he?



  • @Tom7471 he's dropped because market thinks he's going back to Barca where he directly competes with Messi for PB... And historically neymar has been a massive pb player. More recently tho he's become an mb powerhouse and I believe a move back to Barca would make him number 1 for mb. The market thinks staying at psg is better so will rise again quite a lot if he stays (as long as tuchel is willing to play him)... If he goes to Madrid... Wow he should be £10 mb and PB number 1 or 2 I reckon. Defo number 1 div earner on the index.



  • @Tom7471 hes unlikely to out score Messi though as he wont take over the set pieces. They would both be in diirect competion tor the forward PB category. Neymar does post some huge scores but Messi tends to post bigger ones. I hold both so not trying pump one more than the other



  • @ScouseSte said in Capital Appreciation v Dividends V2.0:

    Exhibit A...

    https://forums.footballindex.co.uk/topic/11900/bale

    Woah woah woah, @ScouseSte zola doesnt pump, he just brings under the radar gems to the attention of the forum. On this occasion it's some guy called Bale, who most of us probably havent heard of, much less formed our own opinions as to what kind of investment he might be. Bang out pal 😂😂😂😂😂😂



  • Since media madness I can't remember the last time I didn't get 50-100 quid divs in a week. Which nearly matches what I was willing to put in from my wages each month. That's pretty much thanks to pog and Neymar, and also to the rise of mb grabbers maggy n rashy and my much loved diverse pb team.

    The divs have been spent on players in dips like Rabiot, and the yth bunch whilst they are low and some players for risky gambles so hopefully there is cap app on that money.

    I now no longer need to put wages in. I can save my wages elsewhere and build a pile for any future deposit bonus or ipos.



  • I've overlooked dividends since I've been on the index but my most recent purchases have been focused around dividend players just to maintain at least some sort of cash in flow per week. The main purchase being Pogba, I only hold 49 shares (apologies to the OCD among you) but he's provided me 2% ROI in just 13 days of holding. Although due to recent events I'm down 33p on each share I'm more than confident he'll reach £8 within the next 3 months whilst maintaining a good dividend yield in this time. I've got fairly sizeable holds in Ronaldo & Messi too who I'm confident will return a good amount of divs over the season especially during the UCL latter stages. I'm happy with the way my port is currently split with around a 30%:70% split focused on dividends and capital appreciation.

    I think neither should be overlooked by the other in terms of a better way too earn cash, if they're providing profit then who cares?!



  • @ScouseSte also about spotting trends!!!!!!!!!!

    People like YOUNG/ENGLISH/PROSPECTS and if those young English prospects are playing for Man Utd or Liverpool or another fashionable club that sun readers have heard of then they will also BUY BUY BUY without them ever needing to kick a ball!!!!

    This won't earn you any dividends of course, but for a £1 or £2 punt you could esily double or treble your money just off the back of a kid making his debut in a Carabao Cup tie at Accrington!!!!!


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