Is Berkeley Group (BKG) a high yield share?

[JoyofBrex8889]

Moderator Message:
Moved from HYP-Pratical to Share Ideas as the content has nothing to do with HYP as defined by the guidelines of that board. - Chris

Over a 1, 3, 5 and 10 year period Berkeley has had a total return well in excess of the FTSE100.

I note a Berkeley has an 18% 10year annualised trailing return vs 9% for the FTSE100.

Remind me again about the rubbish yield?

Who cares!?

It is compounding at 18% for a decade! That’s a damn good result and I would defy anyone to do better. Green line shows FTSE100TR, Red line is Berkeley hitting it out of the park.

[Alaric]

Remind me again about the rubbish yield?

Who cares!?

Devotees of HYP who are disinterested in total return and would buy any falling share if its yield had become high enough.

The Berkeley share price might collapse whilst the Company maintained dividends. If it did, it becomes of interest again and "allowed" to be discussed.

I don't subscribe either to the logic that says that if a share price trebles, but the dividends are flat, that's a sale signal.

[Arborbridge]

BKG has at times in the past had a yield above the FTSE100 average, at times touching 9%.

Source: 5 year view available here.
https://www.dividenddata.co.uk/dividend ... ctor=goods

Of course, mathematically share buybacks are just as valuable as dividends provided the price paid is fair. And from a taxation point of view a buyback may be considerably more advantageous as it doesn’t create a taxable income event, allowing one freedom to use CGT allowances at a sale timing of your choice rather than income allowances at a time that suits the company.

I doubt the yield seekers here will see the mathematical sense, but thats their lookout.

Now we see Fools makings plans made to dispose of shares in a business performing pretty well, run by the founders, with a reputation as one of the top management teams in property earned over 40 years, purely because of the way the total return is split when given to them?

Seems a bit odd to me, but that’s what makes a market.

What seems a bit odd is that you bother to write on the HYP practical board, on which posters are unlikely to see things in quite the way you do. Maybe you enjoy conflict, maybe you feel some need to preach to the heathens here to change their ways. Well, that's unlikely to work, so save your passion.

Some people (like me) actually prefer the convenience of seeing income arriving in their bank accounts and are quite sanguine about whether something is mathematical the same or not, or whether the TR might have been a smidgen better. Why would I want to make selling decisions when I can just let the system do the whole thing for me by providing income? Now that's what makes sense.

Arb.

[JoyofBrex8889]

I would suggest that compounding at 18% is way more than a smidgen better than the FTSE index.

As for preaching: Your post was entirely off topic as it said zero about the share, Berkeley, actually under discussion. I posted a comparative graph, pointed out the founders involvement and the long positive track record in property that the founders have every right to be proud of.

All you did was bluster about your love of income. Zero input about the share.

So I ask you: who is preaching, and who is trying to help further the discussion on Berkeley? House builders are thought in some quarters to be making excessive profits currently, hence my surprise at Fools selling.

[IanTHughes]

I would suggest that compounding at 18% is way more than a smidgen better than the FTSE index.

Such a calculation does of course entirely depend on when the purchase was made, which date as far as I am aware, you have not given.

From my records I can see that Berkeley Group Holdings (BKG) became a high yield for HYP purposes on or around January 2014, using the most generous price that I have for that month - 2,611p - I calculate the annual return to date to be a shade over 12%, certainly nowhere near the 18% you have managed. Of course you may be using different inputs - date and price - which, if you will advise them, I shall gladly do my calculation again. Until such, I must assume my calculation is correct.

As for preaching: Your post was entirely off topic as it said zero about the share, Berkeley, actually under discussion. I posted a comparative graph, pointed out the founders involvement and the long positive track record in property that the founders have every right to be proud of.

Yes you did and thank you so much for your sermon - sorry lecture - on the capital gains being enjoyed by the founders, most illuminating.

All you did was bluster about your love of income. Zero input about the share.

Please do not be offended, but this is the HYP - Practical board so Income is … well …. rather important. Would you not agree?

So I ask you: who is preaching, and who is trying to help further the discussion on Berkeley? House builders are thought in some quarters to be making excessive profits currently, hence my surprise at Fools selling.

Well, right now, you are. Preaching that is, but also trying to help further the discussion on Berkeley, thank you so much for that. But do you not think such a discussion would be better on a board not dedicated to an Income Strategy? Just a thought.


Ian

[Grumpi]

https://www.dividenddata.co.uk/ex-divid ... chTerm=bkg

With a proposed dividend of 20.08p payment in September on a share price around 3800p it doesn't seem like high yield to me.

[spiderbill]

Good grief! That's even less than my pessimistic penciled in forecast based on last year. Just under 1% if my mental arithmetic is working right. Why Sharecast insist on forecasting 5.5% is beyond me.

And the share price is not much higher than a year ago and well down on 1½ years ago. So much for the theory that shareholders benefit from buybacks. Think I'll be taking my profit (I bought at 2829p in early 2017 and moving it elsewhere, as it's no longer HYP and certainly isn't growth any longer.

Thanks for the link Grumpi

[monabri]

Words not required.


https://www.dividenddata.co.uk/dividend ... y?epic=BKG