What can investors do with their Royal Mail shares?
Many investors have already cashed out their Royal Mail shares and the remaining are wondering what to do. Even if the value slides down than expected, the float prices will insulate the investors. What to do now? Should the investors nest the shares or sell them before the situation goes out of hand?
Another question arises as should the investors buy more shares. Some feel that it would take almost 8 years to get the dividend that equals the quick money offer that it has now.
Is it time to buy, hold or sell?
Though it is time to rush and sell the share, the share price is high enough to tempt the investors to buy. Is it still a buy at 470p given that the share prices will go up? The dividend yield at this price is 4.2%. How many investors has missed out more sizeable allocation and made cash out of the 749.10 Pounds allocation?? If the investors think to be risk free then it is time to sell the shares and wait for the shares to go down and buy at a low rate and make use of the offer now.
If investors wish to gamble with the shares, it is better to reinvest the dividend and seek more income. Woodford was able to deliver that for many years. Can Royal Mail do so?