Freetrade.io - Fintech stocks and shares

Doesn’t fractional shares mean you get no shareholder benefits though?

Do freetrade easily allow any way of claiming share holder benefits yet?

I think you get dividend but nothing else so far

Should ask on Twitter though

I would have thought you’d get the appropriate fraction of any dividend due.

From memory though any perks are not easily available because it’s a nominee account.

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Freetrade currently have no plans to support shareholder perks

So I found the spreadsheet of highest dividend payers on Freetrade

What do you guys think of Evraz? Lots of growth in the last year and paired with 15% payment on dividends

JPMorgan (Chase) believe it’s going to drop from 650p roughly to 450p a share

I’m tempted to pick it up maybe if it goes down to that price, it’s targeting development of third world countries by the look of it (Kazakhstan and Czech) as well as some major countries like USA.

Downside is they’re heavy on coal - which could explain the quick growth?

Obviously I know investment advice is big nono but this is a discussion:tm: with opinions rather than advice

Personally I think I’m going to steer clear for now

I think the discussion has to start with 3 key questions:

  1. What are your goals in seeking high dividend payers?
  2. What do you believe will happen if you pick any single stock to invest in?
  3. What are your overall investment goals and needs for your money?

Here are some truisms we can say about any particular investable company, Evraz included:

  • Someone will predict they’re going to well for reasons X, Y and Z
  • Someone else will predict they’re not going to well for reasons A, B and C
  • Only one of them will turn out to be correct, looking back from 10 years later
  • It’s impossible to know which one of them will be correct

That’s the stock market in a nut shell :wink:

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Offsetting the current impending £36 that Freetrade will eventually charge me + a cushier retirement since I have 40-50 years to invest before realistically being able to retire

We go into a recession and I lose everything on my one stock, knowing my luck.

To live off of dividends :slight_smile: so I can do what I want in my free-time :wink:

I don’t really have any needs for my money, I could invest 1/3 of my wages per year and still do perfectly fine.

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In terms of offsetting the £3/month, FCPT is really useful because they’ve ultra-reliably paid out the exact same dividend for years. The yield is much lower than 15% though (sub 5% IIRC, the last time I checked).
On the other hand, is Evraz’s dividend sustainable? I haven’t looked at the financials of the company at all, but very few companies would keep paying those kinds of dividends as their share price dropped.

In terms of retirement 40-50 years from now, you don’t need high dividend payers today if you don’t need the income today. You can switch to income generating investments closer to or at retirement. Until then you just want your investments to reliably increase in value.

A company with a 15% dividend is at high risk of going to zero even without a recession, so wouldn’t be a reliable way of making money long term.

Let’s imagine 2 equally successful companies:

  1. A reinvests most of its profits back in itself, so that it pays 2% dividends and increases its stock price by 5%.
  2. B wants to attract investors seeking high dividends, so it pays out 6% and increases its stock price by 1%.

For both the total return is in theory the same at 7%. But the disadvantage of B is that the dividends you receive may not be enough to buy whole additional shares, losing you some compounding benefits and leaving uninvested cash in your account.

(Freetrade may solve this with fractional shares in the future though.)

Outside an ISA B is also worse for tax reasons, since you get more capital gains allowance than dividend allowance.

The final disadvantage of companies like B is that it’s much easier to end up picking failing companies by looking at high dividend amounts than it is by looking at high stock price growth companies.

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I just sold my Evraz - bummer

Third world is a bit harsh!
Top 40 for GDP

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I was thinking that! :joy:

Yes, Czech Republic is very much considered a developed country.

It’s GDP is higher than Portugal and New Zealand. Wouldn’t expect either of those to be described in such dismissive terms.

Bang on. ETFs all the way for 99% of the population. Unless you have enough to buy a true spread of the market you’re going to come out way ahead of everyone else over the long term. If you’re interested in investing as a hobby/for fun/learning then stick to the 10% rule - only invest 10% of your portfolio into individual company stocks/crowd funding.

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@Liam @Gaoler @danmullen :joy::joy::joy:

I initially wrote that about Kazakhstan but just cba to change it when I added Czech to the list

I’ve just been given another invite referral. If anyone wants to have a dabble and receive a free share worth up to £200 :money_with_wings: give me a shout.

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I think if you’ve made yourself a high profile figure in a business then there may be some legitimacy to having a discussion if you were to depart.

As an example, I’d expect discussions should Ann Boden depart Starling, ditto Nikolay at Revolut or Viktor at Freetrade.

I also think that it’s reasonable to discuss staff general turnover at Freetrade (or the wider sector).

I think though, that when we start to name other individuals and invite speculation as to their reasons for departure - or even their financial affairs - we start to invade the privacy of private individuals. Let’s not do that.

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Businesses have lots of turnover for lots of reasons, most of them don’t really need much more from the business unless it’s a c office position.

The tech and finance side can be quite competitive, I’ve seen it myself where it can be difficult to keep people for many reasons. It’s not necessarily an indication of a problem with the business or person.

3 posts were split to a new topic: Freetrade crowdfunding