Westpac (WBC)

Discussion in 'Shares & Funds' started by mikey7, 5th Dec, 2019.

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  1. mikey7

    mikey7 Well-Known Member

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    I've been looking into shares a lot closer lately.

    Was looking watching Westpac purely because of the decent drop in share price with the issues they've been having lately.

    Their dividends are apparently being paid at $0.80 per share, fully franked.

    I'm trying to work out the returns if someone can let me know if my maths is right, or if there is something I'm missing (still a lot of learning to do).

    Dividend: $0.80
    Share price: $24.20

    Dividend / share price =
    0.80/24.20 = 3.3% return.

    They pay twice a year, so double this get 6.6%.

    Is that correct?
     
  2. thydzik

    thydzik Well-Known Member

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    Risky, we don't know the implications of the anti-money laundering breaches (23 million breaches at max penalty of $21m each).

    3.57b of shares issues, $1.74 per share dividend,
    how much of their dividend will need to be cut to cover their fines.
     
  3. geoffw

    geoffw Moderator Staff Member

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    They've gone from almost $30 to $24.33 in under 3 months. While I have no idea where they're headed in the future, the volatile share price history over a number of years might not indicate good growth. That's your job to decide how you see the future growth.
     
  4. Froxy

    Froxy Well-Known Member

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    Also, expect another series of negative press related to Hartzer and company getting the Oz to bury a story about over charging of fees by BT super in the middle of the RC.

    Apparently affected 100s of 1000s of clients.
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    I must say I like buying while there is bad news in the winds (as long as WBC ain't going bust!!)... but ran out of cash this week :oops:

    The Y-man
     
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  6. Silverson

    Silverson Well-Known Member

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    Share your sentiment exactly, I’ve told myself over and over to focus on index funds/etf but with ANZ, WBC, CGC and TLS where they are it’s very difficult not to buy.
     
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  7. NG.

    NG. Well-Known Member

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    Yep got 30k wbc and 120k nab over the past few days.

    Dividend is great as long as it's sustained over the cost of my loan!
     
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  8. willair

    willair Well-Known Member Premium Member

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    I'm not that good with maths,but you also add on the franking credits into the mix as some see it as a capital gain business,other's see it as a pure 2 times a year payment ..Whatever the price is today last month is not that important and i can't see the obverse flip side that it ends up worth nothing..
    That's one of the problem for those that use teaching's the elloit wave theory and Ralph Elliott ,you could find the same repetitive pattern's this year as Elliott found in the markets in the 1930's and 1940's this year the same fractals just a different set of number's ..
     
  9. Shady

    Shady Well-Known Member

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    mikey7 likes this.
  10. willair

    willair Well-Known Member Premium Member

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  11. Shogun

    Shogun Well-Known Member

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    And 10 months later $18.80
     
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  12. The Y-man

    The Y-man Moderator Staff Member

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    ...and no divs :oops:

    The Y-man
     
  13. skater

    skater Well-Known Member

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    :(
     
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  14. Cousinit

    Cousinit Well-Known Member

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    :(:(:( Same here too. Probably a good time to consider buying?
     
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  15. Shogun

    Shogun Well-Known Member

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    Dividend of 31c 2020
    They also paid a billion dollar fine and held cash back $17.70 ish today.
    I have seen buy values of $17.40 to $25ish
    If they pay 60c next year that's not bad for a $18 share with up to 30% capital gain possible

    I guess the question is are NAB and ANZ better buys even being $1.50ish more.
    Was it NAB paid 2x30c
    And ANZ paid 25c and 35c (I thought I saw 88c mentioned recently but google says 35c)
     
    Last edited: 10th Nov, 2020