Understand. Not everyone’s cup of tea to have a substantial holding in one stock. I am fortunate that I am not relying on it for income. I can survive on other outside super income for years and can let this grow. At the same time, if this appreciates from $1 to $1.20 in a financial year, that is 20% return and in pension phase I could sell enough to pay $4000 income. I’ll use 100k of shares as an example. So I have 96k of shares left at $1.20. That is $115200 left in value. The next year I will have to pay $4608 income to comply with pension rules. If the shares appreciate 10% the next year they will be valued at $1.32. I would have to pay 3491 shares to comply with the pension rules. So the fund still has 92509 shares of PLS valued at $122112.
So in summary, the fund has increased in value from $100k to $122k and I’ve paid a 4% income. Compare that to a basket of ASX blue chips and the average dividend. For me with the current electrification of everything happening and the ASX performance since, well let’s say 2006, it’s something I’m comfortable with.
Is it a realistic expectation that PLS can perform as above figures quoted. Each to their own.
This is in no way investment advice and I am not suggesting it will pan out as above.
PLS Price at posting:
$1.16 Sentiment: Hold Disclosure: Held
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