Share Split Query



  • Forgive me if this has already been asked or discussed,

    But .. if everyone has the same idea and pumps loads of money in before the split ... will it not just spike, people then realise they have made a fair bit of money then start taking it out?

    Everyone seems to have the same idea by putting in before the split, no1 is talking about putting in afterwards. Im worried that im going to get excited, deposit loads of money then it after the split it going goes one way - down



  • Personally I don't see any reason for that to happen. Not saying it won't, but it doesn't make any sense to me. Once somebody with a lower sum to invest is able to get a Pogba for £8 rather than £24 I can certainly see shares being purchased.



  • Maybe I am confused but everyone seems to think players price will fly back up to previous levels but dividends will be reduced by 60% across the board surley that has to affect post split prices



  • @Don-keyballs said in Share Split Query:

    Maybe I am confused but everyone seems to think players price will fly back up to previous levels but dividends will be reduced by 60% across the board surley that has to affect post split prices

    I think with the new dividend structure that £10 looks to be the sensible ceiling after the split so we will probably move towards that a bit. Anything above that and its just bubble money. Even in the crazy irrational FI world, prices shouldn't ever get back to current levels in the current structure would need a chunky dividend rise.



  • @Don-keyballs for new joiners. Although would they even be aware of this? People with shares currently it's actually an increase in dividends.



  • I am sure there will be profit taking. Some people will have a strategy that sees them cash all or a percentage of shares once they rise by a certain % and I am sure those people also buy/sell when players reduce by a certain % too.

    I think for the majority of us, the old investment advice of time in the market rather than timing the market is sensible. Sure, there are sensible proactive trades we should all be doing but massive pumps and dumps at the top end will just see commission eroding your profits.



  • @mike778 I can see a dividend rise happening in the next 12 months. I remember reading a load of posts about the last share split and there were similar thoughts. I think it was around 3 or 4 months later when PB was introduced?
    I wouldn't be surprised if there's some increase over the summer, or which kicks in around the start of the new season otherwise you're right, players simply won't be worth the prices they are now with reduced divs.



  • Yes short term gains for current holders but this process will drive down dividend payouts for fi on a whole....they will be the real winners in the long run. I left 8 months ago but got sucked back in because I was lead to believe dividends were staying same (Cole stated this in official vid) but this was misleading.



  • @mike778 I like to work to a 10% rule. post split any player even neymar will struggle to return £1 divs in a year so even 10 is high....maybe a tactic change because players like Ramsey 80p post split should have much higher chance of 10% return 8p.



  • @GregF mighty be worth watching fi share split u tube vid. Adam Cole basically catagorical states no div increases in future.



  • @Don-keyballs said in Share Split Query:

    @mike778 I like to work to a 10% rule. post split any player even neymar will struggle to return £1 divs in a year so even 10 is high....maybe a tactic change because players like Ramsey 80p post split should have much higher chance of 10% return 8p.

    Please see attached which is my premium players (currently over a tenner) and the dividends they have returned last summer and this season. To say Neymar will struggle to return £1 dividend (33p per share new money) is not correct.

    The yields quoted are for the current price with the last year dividends per share and that doesn't include the end of last season either or the average 28% increase starting tomorrow and IPD.

    FI have already said they are going to announce special media dividends for the summer in addition to the top 3 which will be announced on April 15th. If the market flies all summer and prices have risen dramatically then I reckon they will look at PB next.

    There is still huge value in the Index at the new level which is why I am sitting on the floor in my house as I have pawned everything I own to invest. My 12 year old was up at 5am to sweep chimneys and do his paper round too.

    0_1553520163317_upload-d3337ddc-5d8d-4ac1-b5fd-444f00b19ebe



  • @Zidave in 12 months prior to today neymar has returned £2.37 in total dividends...the dividends are reducing by 60% so post split 1 share would have returned 94p and as far as am aware that's less than £1.



  • @Don-keyballs said in Share Split Query:

    @Zidave in 12 months prior to today neymar has returned £2.37 in total dividends...the dividends are reducing by 60% so post split 1 share would have returned 94p and as far as am aware that's less than £1.

    This is the data I used so I don't have the last 12 months. So actually you have confirmed it to be higher which is good.

    So £2.37 @ £23.90 is a 9.91% annual dividend yield so better than I stated.

    What I don't understand is what you are talking about a 60% reduction in dividends post split. Dividends are increasing comparatively and as a MB and PB monster I would expect his yield to rise??? Plus he has been injured for 3 months so I really am struggling to understand your point?

    Can you explain please?

    0_1553521828573_upload-77f3e2a7-5973-4645-a906-359bb20566aa

    0_1553521882672_upload-507c2882-7bb0-4c08-9167-c17d955a884a



  • @Zidave I will happily stand corrected but my maths

    Media 8p media after spit 8p-60%=5p
    5p 5p-60%=3p
    3p 3p'60p=1p

    Fwd winner 12-60% =5p
    All based on 1 share



  • @Don-keyballs said in Share Split Query:

    @Zidave I will happily stand corrected but my maths

    Media 8p media after spit 8p-60%=5p
    5p 5p-60%=3p
    3p 3p'60p=1p

    Fwd winner 12-60% =5p
    All based on 1 share

    But you will own 3 times as many shares. Hence the name Share Split. Otherwise your maths is spot on.



  • @Zidave that hasn't posted the same as I typed but basically minus 60% from current divs and u will get the new divs for 1 share



  • @Zidave yes a lot will benefit in short term but believe me this will drive down the total divs payed out in long run so eventually we all lose out. They currently pay out 28% in divs after the initial rise this will settle back to a more realistic 10% great for them not so for us.



  • @Don-keyballs said in Share Split Query:

    @Zidave that hasn't posted the same as I typed but basically minus 60% from current divs and u will get the new divs for 1 share

    I knocked this up by 7.01pm last Monday which shows the % rises in real terms of the share split. yes, the dividends are reducing but by less than the multiplication of 3 shares for each 1 you currently own.

    New shares bought will be £8 not £24 so the same principle applies.

    0_1553523009925_upload-9a8e43bc-53e8-4d34-8f13-07418b6b4a60



  • @Don-keyballs said in Share Split Query:

    @Zidave yes a lot will benefit in short term but believe me this will drive down the total divs payed out in long run so eventually we all lose out. They currently pay out 28% in divs after the initial rise this will settle back to a more realistic 10% great for them not so for us.

    No it fucking won't.

    0_1553523166795_upload-4cb3ec60-b74e-4ddc-b517-d7ce5d670a7b



  • @Don-keyballs

    Sorry to be blunt, but you seem to be lacking a fundamental understanding of what the Share Split is doing.

    While I agree your maths is sound, it is flawed in its context. What I mean by this is that your maths (the 60% reduction in Dividends) only applies IF share quantities and prices stay at their current levels, but there in lies your fundamental misunderstanding. When you log in tomorrow you're going to have 3 times as many shares as you had today - assuming you don't sell any.

    Quick Example :-

    Yesterday's Triple Media Buzz winner was Callum Hudson-Odoi.

    Lets say you own 100 x Hudson-Odoi. Yesterdays MB Win would have netted you 100 x 8p = £8.00.

    Let's now say Hudson-Odoi wins MB on Tuesday, fresh from the Share Split.

    Your 100 shares have multiplied by the SS factor (3) so you now have 300 shares. The new Triple Media Buzz win is 3p (see table below). This hypothetical win would net you 300 x 3p = £9.00.

    Any which way you look at that, you're getting an increase. The ONLY dividend that isn't increasing after the Share Split (as you can see from my table below and the tables @Zidave already posted for you) are the Star Player PB dividends on a Triple Match Day. They are splitting exactly by the same factor (3), so they're not increasing but more importantly they're not decreasing either.

    0_1553526531960_upload-a720a137-18f3-40c3-b4d4-f0bada823d12


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