"@madamswer whilst your reasoning is logical as usual, if I may...

"@madamswer whilst your reasoning is logical as usual, if I may ask, how much from your original WDS position are you planning to keep?"

I sold around two-thirds of my holdings today, so I still retain a ~2% position


"Reason I ask is, even if you sold, in the current market very few businesses will provide the dividend yelid that Woodside will provide for the foreseable future and that too with some certanity. Once the books are finished off in early 2023, you would think the final dividend will be quite a sizeable one."

In my mind, dividends merely form one part of the Total Investment Return equation and, in the context of the above-average sorts of capital gain targets - i.e., several tens of percentage points - which I feel are warranted for commodity businesses, given their volatile and unpredictable earnings, dividend yield tends to be a subordinate consideration for me.

In other words, to be rewarded for the risks one assumes when investing in a business like and oil & gas producer (no pricing power, capital-intensive, finite asset life, and plenty of risks: regulatory, technical, geological, market, cost inflation, etc), the investment return on offer needs to be high; say, >30%. Which dwarfs the dividend component of the equation.


"From memory you purchased around $20, thus even based on the last two dividend payments you are yeilding 15% thats before F.C."

Yeah, but I think that's a flawed way of looking at things, because while that might be the yield-at-cost, it bears no reflection on the valuation situation today.

For example, it's no good boasting, say a 25% yield on cost paid for a certain stock, when one could lose a bucket of one's capital because the stock is 40% or 50% overvalued today.

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