BullDog wrote:The yields on some builders shares looks enticing. But I've a feeling it's going to look more enticing yet via share prices falling back. And the yields are getting to the point that with likely falling revenues for a couple of years, the companies will be looking to cut the dividend.
If I could time the market I would be very rich.
I hold both Bellway and Springfield, Bellway I am 12.93% down buying at 2441 in July 22, Springfield am 4.28% down buying in Oct 22 at 85.88 and Feb 23 at 81.37.
I still think longer term they will come good (both are I think decent companies) but certainly my timing was poor.
I am not aware of anything wrong with the companies beyond difficulties with the markets in which they operate (mainly banking/affordability)
We know that when spanners get thrown into the banking machine it can stall, certainly this appears to be what has happened with first time buyers, we also know that like a boxer taking one on the chin banking tends to shake its heads and then gets going again. A contact who builds last year told me mortgages were an issue, they were stopping marketing on one site and going to rent the finished units instead, saw him a few weeks back and sales are happening albeit much slower than before, I think there are signs the banking machine might be safe from the canvas and whilst punch drunk is still standing.
I did not buy much of either so expect I may add a few more of each with current weakness as dividends/pension contributions give me liquidity (or if I sell all/part of something else)
Not sure re divi cuts and pricing falls, both may value their share price for further acquisitions too much to trash them.
I look at my SIPP as something I will take slowly from 2026 onward and I can select what I sell and when, as I want to have withdrawn all of it by 2035 (age 75) I have hopefully a fairly long horizon as to when I will be pushed into selling these holdings and strongly suspect by the time I do I will be back in profit.