Iron ore price, page-35817

Not sure when you entered FMG or how many dividends you have collected along the way but cudo's for your honesty. At least any capital losses will offset your big gains on APT.

Everyone situation and risk profile is different. If I factor in the last two dividends I received since jumping onboard and the next one six weeks away including the franking credits my average will be down around $13. I bought it for the dividends as well but full well knew the oversize dividends were only short term. The way I look at it,even if the worse case scenario plays out and dividends are slashed to $1.20 a year I am sitting on over a 10% return on my entry. I ignore the first 3 dividends and see FMG as a growth stock that instead of reinvesting the dividend back into itself it paid it out to me which I used to buy other blue chip dividend plays at bargain prices. Personally I envisage a average dividend of $2 a year over the medium term and where it goes to from there and the future success of FFI to add to the dividends is anyone's guess.

I have no debt on my portfolios or holdings and it would not matter if FMG stopped paying dividends so our situation is different to others. I never sweat that sometimes I may be looking at a capital loss on my average entry if I still believe in the company, its management and its long term future outlook is unchanged. From experience I have historically found my returns were the highest when I sat on my holdings and did not give into the urge to trade thinking I was missing out in the swings and then trying to time the market. You may get lucky on a few occasions but long term you are better off not jumping in and out in my opinion. Its worked for me on our banking stocks during the GFC, on A2M from IPO till the high teen exit and our entry into FMG, and over a dozen other stocks that most have gone up nigh on 100% including dividends since March 2020.

Good luck to those trying to time the market and who knows it may play out much better for you than me. Everyone is responsible for their financial choices but I will stick to what's worked out for me and Andrew Forrest as well.