The Dividend Table Effect

  • Not exactly the butterfly effect, but please can someone explain how our Football Index lives may be changed by whether dividends go up or stay the same. I’m expecting they will stay in the same proportion as now or a fractionally higher amount given FI have said changes are unlikely at this stage.

    If proportion is the same, which players should I be getting on?

  • If they stay the same, then conventional logic is that the high value players will shoot up first given how cheap they look.

    Personally, I think it will be the £3-4 players to shoot, given how ridiculously cheap they seem for decent players.

    However, I might be wrong. Thus my portfolio is very diversified and balanced between all price points, so basically I'll catch any wave of investment that happens on the Index.

  • I’ll be disappointed if FI don’t use the share split to increase dividends.

    Aside from the introduction of In Play dividends (which did my portfolio more harm than good), dividends have been static for 17 months now. All the while user numbers have rocketed and the Footie has increased nearly ten-fold!

    I have three times more money invested in FI than I did 12 months ago, yet my monthly dividend return is no better (sometimes worse) than it was. PB has become a bit of a lottery with the mass and continuing IPOs and if MB is expanded beyond the top 200, that will become a far less reliable source of dividends too.

    When In Play dividends were confirmed, FI more or less admitted it was to increase liquidity in the market and commission for them. Hopefully they do something to promote the long term growth of the Index this time.

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