HGH - Heartland Group Holdings

[Bjauck]

And they are going to have to adjust their budgets, just like most of the rest of the population.

I feel very lucky to have had enough excess income in the last few years to put money aside in a portfolio. So I have lost lots of it and so HGH might not give me any return on my $60 k shares. So what?

Lots of people are coping on the Govt's $500 odd, and some are suddenly unemployed and coping on the benefit.

Do you have income other than your income from your investments? There are some people for whom income from investments is their main source of income. Without dividends they may not be able to pay their bills.

The government have prevented the companies in which they have invested from conducting their business.

[kiora]

Amen. My best return recently has been on donating $90 to the foodbank, with ZURU matching me $ for $!

Well done you & ZURU. Now that's a company I wouldn't mind investing in.Slash building costs by 90%.It is developing a robotic factory in China
https://zuru.tech/

[Nasi Goreng]

Do you have income other than your income from your investments? There are some people for whom income from investments is their main source of income. Without dividends they may not be able to pay their bills.

The government have prevented the companies in which they have invested from conducting their business.

While no situation is good, these people can sell their shares to provide dividend equivalent. It might mean they may need to sell 10% per year to get their income but 2 years from now, we will have turned the corner... or seen the worse of it... hopefully!

[SCOTTY]

While no situation is good, these people can sell their shares to provide dividend equivalent. It might mean they may need to sell 10% per year to get their income but 2 years from now, we will have turned the corner... or seen the worse of it... hopefully!

Not good advice. Not the time to sell when the price is down. Losing income and capital . You may have noticed that when dividends are reduced or stopped, the share price drops. Time to be buying, not selling.

[Waikaka]

Luckily in NZ everyone gets national super. Which is what ~$980 a fortnight before tax. Should pay most bills

So if dividends were your 'main source of income' and an average dividend across the NZX50 is about 3.4%, then you have a portfolio of ~$750,000. Hopefully not all in HGH so might be a bit dramatic to say they may 'not be able to pay the bills'.

Stability of the whole system is important so it seems prudent for financial institutions to not be paying dividends at this time and focusing on supporting their customers.

Disc holding ANZ, WBC

[Ggcc]

I have someone who is thinking of applying for a REL from heartland while the shares are down and wait for the shares to bounce back before selling shares. Just another thought to add to the list of thoughts of people who survive off income from their shares

[Bjauck]

While no situation is good, these people can sell their shares to provide dividend equivalent. It might mean they may need to sell 10% per year to get their income but 2 years from now, we will have turned the corner... or seen the worse of it... hopefully!

Sure they could sell their shares at fire-sale prices and suffer a permanent loss of income when the recovery comes.

Just like business owners could sell their businesses at fire sale prices too to use their capital as income . Just like employees could sell their homes or other assets and then buy cheaper ones, or rent or rent cheaper, to replace their lost employment income.

The government makes arbitrary decisions as to whom it supports to compensate for its covid policies.

[Bjauck]

Luckily in NZ everyone gets national super. Which is what ~$980 a fortnight before tax. Should pay most bills

So if dividends were your 'main source of income' and an average dividend across the NZX50 is about 3.4%, then you have a portfolio of ~$750,000. Hopefully not all in HGH so might be a bit dramatic to say they may 'not be able to pay the bills'.

Stability of the whole system is important so it seems prudent for financial institutions to not be paying dividends at this time and focusing on supporting their customers.

Disc holding ANZ, WBC

I presume your reference to superannuation paying most bills was a joke? For a start you must assume that accommodation cost has been excluded? Not everyone has the same size household or level of bills. A sudden drastic reduction in your previous income will have an immediate effect in being able to pay your usual bills, unless you were saving a large amount out of your previous income.

Your estimate of portfolio value of $750,000 and dividend yield were pre Covid recession valuations? That portfolio may have lost 20% (or more if you had a high dividend yield portfolio)

[Nasi Goreng]

I agree with what you guys are saying but if you got yourself into a situation where you are reliant on dividends, then taking a 20% haircut over 1-2 years is not the end of the world. Yes income will be down in the future but you should know before you buy that investing carries risk.

[Bjauck]

I agree with what you guys are saying but if you got yourself into a situation where you are reliant on dividends, then taking a 20% haircut over 1-2 years is not the end of the world. Yes income will be down in the future but you should know before you buy that investing carries risk.

Sure..some companies have cancelled their dividends so the haircut from your portfolio may be well over 20%. Everything carries a risk. Just like you cannot rely on receiving a wage or salary or bring employed by the same company. However the government has offered Covid subsidies to some.