tag:blogger.com,1999:blog-2887408586168605394.post4936873030524285574..comments2022-10-22T10:08:59.187+01:00Comments on The Dividend Drive: A Minor Miner Addition: South32 (S32) Joins My Portfolio After BHP Billiton DemergerAhren Lesterhttp://www.blogger.com/profile/10131811751957847395noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-2887408586168605394.post-8196025047802497352015-05-31T17:58:22.753+01:002015-05-31T17:58:22.753+01:00I sort of agree with you. Certainly, the main reas...I sort of agree with you. Certainly, the main reason I was invested in BHP was because of its diversity. Its logic was that by divesting of non-core assets it (i.e. BHP itself) could focus more on cost-cutting in its core areas and thus improve margins. Similarly, for South32 they could focus on currently underperforming assets and themselves engage in cost-cutting and margin improvements. It has the potential to work out that way. But, of course, the proof of the pudding is in the eating so we will have to wait and see.<br /><br />Same here. Happy yo hold and maybe consider a top up at some point. But we will see!<br /><br />Thanks for dropping by and commenting.Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-14682612795888231792015-05-31T17:13:32.647+01:002015-05-31T17:13:32.647+01:00I thought the whole point of being a big miner was...I thought the whole point of being a big miner was that you had diverse interests, so I cannot see BLT's logic in divesting. However, I am quite happy to own S32 for the sake of diversity and will probably buy more shortly. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-26059717331763048862015-05-26T11:37:43.945+01:002015-05-26T11:37:43.945+01:00I just posted my article about ShareGift as a way ...I just posted my article about ShareGift as a way of donating tiny shareholdings I mentioned above. May be of interest!Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-25830835129034884512015-05-23T12:24:37.180+01:002015-05-23T12:24:37.180+01:00Thanks for dropping by, RIT.
Your holding is much...Thanks for dropping by, RIT.<br /><br />Your holding is much larger than mine then! I'd count a c.£300 as a pretty healthy--if on the small side--holding! It would amount to about 1.2% of my entire portfolio at present!<br /><br />If I was to sell my little holding the fees would amount to about 7% of the value (assuming S32 is Stamp Duty exempt which I presume it is)! Not exactly an efficient way of handling the transaction. <br /><br />I just this second, in fact, finished a post I will publish next week (or at least soon) on a possible alternative to selling mini holdings like this if you no longer want them. More anon! It is a more efficient and charitable way of handling such holdings.<br /><br />I agree, rebalancing through fresh capital is, I think, the best way. Especially as a small addition like this (which in essence is not even a new addition but a share division) hardly unbalances your portfolio unless it is very, very small!<br /><br />It will be interesting to see what happens once the company has bedded in a bit, provided an inaugural report and--indeed--declared any dividend. We may see a nice capital increase then as well as a small but welcomed dividend income addition. We will see!<br /><br />Thanks for your thoughts!Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-9231618797306726142015-05-23T11:45:07.173+01:002015-05-23T11:45:07.173+01:00Hi DD
"What are you doing with your new Sout...Hi DD<br /><br />"What are you doing with your new South32 shares? Selling them or keeping them?" I ended up with 251 S32 shares or about £292 at current valuation. Compared to my total portfolio value it's an insignificant amount. On top of that selling them will cost me £11.95 or 4% of value. <br /><br />I'm essentially a buy and hold investor as I like to minimise expenses. Thus far my rebalancing over my total FIRE journey has nearly always been able to be achieved via new money additions rather than selling anything. It therefore takes a lot to get me to sell anything and given the above I'll just hang on to them as a minor insignificant holding for now.<br /><br />Cheers<br />RITRetirement Investing Todayhttp://www.retirementinvestingtoday.comnoreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-76016606492335172902015-05-23T11:40:53.251+01:002015-05-23T11:40:53.251+01:00It certainly is, DH.
Well, let's hope South32...It certainly is, DH.<br /><br />Well, let's hope South32 pays a dividend. They have not declared anything since the 40% announcement some months ago. I don't see that they are likely to renege on that though. The benefit of being created at a low point in the commodity cycle means that a 40% payout dividend should be very strong going forward and give plenty of scope to head northwards when/if conditions improve. This, of course, if the opposite position to its parent company--BHP Billiton--whose dividend is still set to a high commodity cycle point and thus is barely covered.<br /><br />You have picked up quite a portfolio of demerged assets! Did you keep both Kraft and Mondelez after the demerger? If so, you must be sitting pretty at present! Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-87849568425617642202015-05-23T08:32:12.435+01:002015-05-23T08:32:12.435+01:00Always nice getting new shares in a company and es...Always nice getting new shares in a company and especially one that pays a dividend. I got shares in HYH from KMB but they do not pay a dividend. Still, others have like ALLE from IR, ABBV from ABT and MDLZ from KRFT. Thanks for sharing. Will be interesting to see how South32 will perform over time.DivHuthttp://divhut.comnoreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-34708989462925424252015-05-22T14:22:37.853+01:002015-05-22T14:22:37.853+01:00I know what you mean, DL. I was surprised to see t...I know what you mean, DL. I was surprised to see that BHP's share price actually held up quite well on the day of South32's share release. It did not drop quite as much as the value of the South32 shares. It will be interesting to see where both companies share prices settle eventually (not that mining companies really "settle"!).<br /><br />If they start to pay a dividend--which they seem highly likely to do--I will be happy to hold for the long term. It may be that I eventually top on on them. Though that is far from known!<br /><br />Thanks for that! I am trying to catch up with my blog reading which I have fell behind on about a week ago. I missed your post for some reason. I had better get thinking about my responses!<br /><br />Keep up the good work!Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-46444816248177564552015-05-22T14:06:58.681+01:002015-05-22T14:06:58.681+01:00Hey DD,
It's pretty sweet to get "free&q...Hey DD,<br /><br />It's pretty sweet to get "free" shares to be honest, but I'll just wait to see what happens rather than sell. Like you said, their value is so small in comparison that I see no point in doing anything right now.<br /><br />By the way, I've nominated you for a Liebster Award! Check my blog and the latest post ;)<br /><br />Cheers.<br /><br />Dividend LegionAnonymoushttps://www.blogger.com/profile/13976224269523086029noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-83562387017757776242015-05-22T12:10:55.298+01:002015-05-22T12:10:55.298+01:00I know what you mean. Obviously mine is a little l...I know what you mean. Obviously mine is a little larger but it still only amounts to a holding under £70 in value. It will be nice to see what they throw off as a dividend. It may only contribute a few pennies or pounds here or there, but--as Tesco always reminds us--every little helps (ironically, South32 will probably yield more than Tesco this year)!Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-55666937093881828742015-05-22T10:26:58.166+01:002015-05-22T10:26:58.166+01:00I'll just hang onto them as my strategy with s...I'll just hang onto them as my strategy with shares is buy and hold (for as long as possible!) It's only a small holding anyway, 24 shares!weeniehttps://www.blogger.com/profile/01602950445306813601noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-59021761419610197422015-05-21T23:59:00.438+01:002015-05-21T23:59:00.438+01:00Yes, it was a nice little treat to bump into whils...Yes, it was a nice little treat to bump into whilst flicking around my brokerage account. It will be interesting to see what they decide to do dividend wise. Even without a dividend I will likely continue to hold for now.<br /><br />What are you thinking you are likely to do with your holding? Anything?Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-75859422169370398272015-05-21T23:56:25.037+01:002015-05-21T23:56:25.037+01:00I am not too surprised you have not heard of it. T...I am not too surprised you have not heard of it. The company was only demerged from BHP earlier this month. If you did not own BHP you probably would not have followed its progress up to this point!<br /><br />Personally I would probably not invest in South32 with fresh capital. However, I am happy to hold my handful of shares for now to see what its future holds!<br /><br />Good luck with your research!Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-64523049363569652842015-05-21T21:21:44.668+01:002015-05-21T21:21:44.668+01:00This is the first time I have heard of South32 sha...This is the first time I have heard of South32 shares but they do seem reasonable value. I could do with a few new stocks in my portfolio so will be giving them some thoughtLaurahttp://www.ftse-market.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-16683282544090791402015-05-21T20:36:22.248+01:002015-05-21T20:36:22.248+01:00Thanks for the write up DD - I can see some 'i...Thanks for the write up DD - I can see some 'interim' activity on my account relating to my BLT shares - great stuff - extra shares!weeniehttps://www.blogger.com/profile/01602950445306813601noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-5480553511621169762015-05-21T19:52:12.875+01:002015-05-21T19:52:12.875+01:00I suspect some brokers take longer than others in ...I suspect some brokers take longer than others in distributing the shares. Also, if you hold ADR shares this may delay it as well. Definitely keep your eyes peeled for their arrival! I just bumped into them as I went into my brokerage account to check something else!<br /><br />Do you think you will keep them once they arrive?Dividend Drivehttp://dividend-drive.blogspot.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2887408586168605394.post-34808629846285757672015-05-21T19:35:09.897+01:002015-05-21T19:35:09.897+01:00I have a Motif account and own shares of bhp but I...I have a Motif account and own shares of bhp but I haven't seen any new South32 shares. Maybe I'll check back tomorrow.Anonymousnoreply@blogger.com