Return on Monzo shares


(Ross) #1

Can anyone advise me if the Monzo shares pay a dividend on a yearly basis or if the only return on investment is when you sell them at a higher share price?

Thanks


#2

Currently no dividends as far as I’m aware and I doubt this will change anytime soon.


(MikeF) #3

There’s no dividend for the foreseeable future and selling them is also very difficult because of their nature at the moment.

Effectively, the money is locked away for an extended period with no real possibility of a return. It’s probably best to think of it as something that may provide a return one day rather than anything more concrete.


(Duncan) #4

They’re not like shares in a publicly listed company; it’s quite a different beast. Rather than investing for yield, you’re investing for growth. And the risk of losing your money is higher.

IBM doesn’t change size all that quickly, but Monzo are hiring people at a huge rate, expanding their customer base similarly, expanding the product significantly, expanding their revenue model, and (mid-term) expanding to other countries. So you’re choosing (or not! DYOR) to invest in a growing company in the hope that in several years time the company will be a lot bigger, and thus so will your investment. But you should definitely read up before investing in Monzo, or anything else.


#5

I would argue that Monzo is a safer investment than most “listed” companies on AIM (and possibly a few main markets), just because it is a private company does not mean it is inherently riskier.

In fact because it is a private company it’s shares can’t be used to short and its share price is not manipulated by dubious types who can push market listed company share prices all over the place.

And because you can’t get your money out easily you are less likely to panic sell (in fact you probably can’t sell - so make sure you understand this).


#6

I would argue this as Monzo doesn’t seem to have any actual revenue streams besides the marketplace currently, besides pots. The marketplace is really underdeveloped to rely on as a main income stream currently too.

I’ve no interest in investing in Monzo so I haven’t looked into it, but do Monzo have any concrete plans for revenue or are they running investments based on hope that they monetise their massive userbase at some point in the future? From what I’ve seen all they’ve done is undermine their initial stance of “everything should be on the marketplace to further our goal of everyone having a choice” by introducing “savings pots” which aren’t on the marketplace, but seem to be exactly what they should be putting on it to give it some worth.


(Is Santa here yet?) #7

It’s all in the prospectus


#8

I should mention I also don’t plan to look into it regardless, I was just curious :man_shrugging: someone can post the tl;dr here if they want to


( related to Monzo CEO, Investor in Monzo ) #9

lol

  • edit - strong views on why Monzo cant make money , cant be bothered reading the prospectus , because no interest in investing anyway - show man shrugging emoji

:man_shrugging:


#10

:man_shrugging:


(Duncan) #11

It’s a startup. It’s definitionally riskier than the average listed company. AIM is indeed a special subset, but only you mentioned AIM, not any of the preceding discussion.


(Duncan) #12

¯\(ツ)

Preferred form.


#13

Companies tend to give dividends to shareholders to divide out that year’s profit amongst the owners (shareholders).

Growing companies (like Monzo) will want to reinvest most or all of their profit (when they eventually break even) so they can hire more staff, launch more products etc.

People generally invest in startups for capital growth, and established companies for income.


(Nick) #14

(Not sure what AIM is other than AOL Instant Messenger, so apologies if I’m getting the wrong end of any sticks. However.)

I can’t agree with any suggestion that Monzo could be considered a ‘safe’ investment in any way. I intend to invest myself to a degree, but I do so being very aware I may lose it all.

Consider, five years from now, we could be reading:

Monzo, once a rising star in the fintech sector, was sold today to ($LegacyBank) at a massive lost after failing to have ever made a profit. Despite soaring user growth in the early years, Monzo were unable to successfully generate any revenue from their customers. This was partially due to their reluctance to raise money the traditional way through usual bank fees for their services, but also because their ‘marketplace’ concept was never able to deliver on its promises after companies were unwilling to take part in it and users ignored it to do their comparative shopping in more traditional ways. Speaking today, Tom said “I’m so proud of everything we achieved with Monzo, and I’m so disappointed we weren’t able to make it work. Though I never wanted to sell to a legacy bank, this at least won’t leave our customers in the lurch and gives Monzo a change to evolve again in future.” $LegacyBank have promised that they want Monzo to keep its ‘unique and special’ atmosphere, but will be reviewing fees for many aspects of the service.

Granted, none of us want this to happen. Granted, many of us may have different views on how likely this is to happen. But, being realistic, we all have to acknowledge that that is a non-zero probability of this outcome or one resembling it will come about.


#15

Safer, not safe.


(Is Santa here yet?) #16

AIM and LSE have far greater scrutiny by the markets, regulators and media than you will get with an unlisted company, LSE to a far greater extent. But as can be seen by the patisserie Valerie collapse it doesn’t mean things are going to be fine.


(Nick) #17

I accept that - as I put in the disclaimer, because I can’t think of anything other than what’s clearly the wrong AIM, I didn’t have a proper frame of reference. :sweat_smile:


#18

I wish that were true, but as someone who has invested in AIM it feels like market scrutiny extends no further than “how much money can I make out of these sucker PI’s?”.

I’m currently keeping my eye on Sound Energy Plc, a company that has no problem taking money from PI tonpay fat salaries and return huge losses, where leaks are rampant and rich investors get to hear news before the average jo and yet the market regulators etc do absolutely F-ALL about it.

(You watch Sound will shoot up and prove me wrong)


(Is Santa here yet?) #19

AIM is a lot easier to get listed on :grin:

Big salaries and huge losses doesn’t sound like a good long term investment, especially the way energy firms are collapsing at the moment

*not investment advice, like Jon Snow I know nothing


(Jamie 🏳️‍🌈) #20

Post of the year.