Itsallaguess wrote:Femi wrote:
I intend to reinvest dividends whenever they total more than £1000
Just a quick aside, but isn't that amount a little too low for efficient allocation of dividend re-investment?
I only ask because I always try to make sure that my own personal re-investment dealing costs are kept below 1% wherever possible, and many years ago I landed on a sum of around double the amount you've mentioned above, and so I now tend to keep a watchful eye out for any of my share-accounts that accumulate £2000 or above before I look to re-invest it.
Some quick sums based on typical trading costs of £10 and taking into account stamp duty of 0.5% shows the following percentage cost charges at those two levels -
Invested Sum | Percentage Trading Costs
£1000 | 1.495%
£2000 | 0.9975%
When looking into this myself many years ago, I also ran the numbers for a £3000 re-investment level, which comes out at a general trading cost of 0.83%, so I personally felt like it was worth holding on for the £2000 level, but from that point onwards I felt like the bulk of the benefit had been gained, with less inclination to hold on until more had accumulated for less of an additional benefit.
In addition to the above, and as my income-portfolio grew over the years, I also felt that I benefited quite a lot from having a slower re-investment drum-beat in terms of portfolio-management as well, with less time having to be spent thinking about it, and more time doing other things, so unless there's a particular
benefit in paying 50% more in trading costs than you might have to, then it could be worth re-considering that particular trigger-level...
Of course the above doesn't take into account the potential 'opportunity-cost' of uninvested cash, which might also be a driver in your process, but even then, for me personally, the improved portfolio-management benefit of much fewer trades trumped that consideration as well.
Whilst I'm here, and just in case you weren't aware in terms of the HYPTUSS '
Overview' functionality that you've used to generate your portfolio tables, if you go to the main sheet and click the '
Toggle Sector / Super-Sector' button, then the
Overview process will then generate the portfolio table based on that setting, which might have highlighted sooner some of the '
Super-Sector' concerns that have been mentioned earlier in the thread.
The relevant '
Sector' and '
Super-Sector' allocations for each share in the tool is held in the following columns of the '
Company Data Sheet', and by design they are user-configurable if anyone wants to manually allocate more appropriate sector definitions, depending on their particular views -
- Sector -Company Data Sheet - Column D
- Super-Sector -Company Data Sheet - Column I
If any of the
'Super-Sector' definitions are missing from the vanilla HYPTUSS download, then looking at similar EPICS on the data-sheet can usually offer up an appropriate one to copy from elsewhere in Column I.
Cheers,
Itsallaguess