New Hyp

Practical discussions about equity High-Yield Portfolios (HYP) for income
paullidd
Posts: 10
Joined: November 7th, 2016, 12:31 pm

New Hyp

Postby paullidd » January 11th, 2017, 8:45 am

Hi everyone,

I have run a hyp portfollio previously 2008 to 2012, but then sold most of my holdings to fund a house purchase.
I am now in the lucky position of having some money with which to start a new HYP.

I am looking to create a shortlist of 15 companies in which to invest.

All suggestions greatly received.

Kind Regards
Paul

monabri
Posts: 47
Joined: January 7th, 2017, 9:56 am

Re: New Hyp

Postby monabri » January 11th, 2017, 8:54 am

BMS
VOD
TW
SKG
SSE
GFRD (but mindful of % as TW same sector)
CNCT
ITV

idpickering
Lemon Slice
Posts: 278
Joined: November 4th, 2016, 5:04 pm

Re: New Hyp

Postby idpickering » January 11th, 2017, 9:48 am

paullidd wrote:Hi everyone,

I have run a hyp portfollio previously 2008 to 2012, but then sold most of my holdings to fund a house purchase.
I am now in the lucky position of having some money with which to start a new HYP.

I am looking to create a shortlist of 15 companies in which to invest.

All suggestions greatly received.

Kind Regards
Paul


Hi Paul,

If I were to start afresh now, my list would be something like this;

RDSB,
AZN,
BA.,
BT.A
BATS,
BLND,
CLLN,
GSK,
HSBA,
LGEN,
NG.,
RIO,
SSE,
TW.,
VOD.

I hold all of these.

Hope that helps,

Ian.

tjh290633
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Posts: 241
Joined: November 4th, 2016, 11:20 am

Re: New Hyp

Postby tjh290633 » January 11th, 2017, 11:14 am

These are my 20 top yielding shares:

Rank   EPIC   Yield
1 CLLN 7.74%
2 ADM 7.10%
3 MKS 6.86%
4 PSON 6.35%
5 GSK 6.27%
6 TW. 6.24%
7 RDSB 5.91%
8 SSE 5.89%
9 BP. 5.75% Duplicate sector
10 VOD 5.64%
11 LGEN 5.62% Duplicate sector
12 MARS 5.36%
13 NG. 4.66%
14 BLND 4.65%
15 AV. 4.41% Duplicate sector
16 UU. 4.33%
17 IMB 4.32%
18 AZN 4.28% Duplicate sector
19 LLOY 4.27%
20 WMH 4.07%

There are four clear duplicates in that list, one oil, two insurers and one pharmaceutical. I don't count NG. as being a duplicate of SSE.

I reckon that you can take your pick from that lot.

TJH

Raptor
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Posts: 284
Joined: November 4th, 2016, 1:39 pm

Re: New Hyp

Postby Raptor » January 11th, 2017, 2:24 pm

paullidd wrote:Hi everyone,

I have run a hyp portfollio previously 2008 to 2012, but then sold most of my holdings to fund a house purchase.
I am now in the lucky position of having some money with which to start a new HYP.

I am looking to create a shortlist of 15 companies in which to invest.

All suggestions greatly received.

Kind Regards
Paul


Do you have any criteria that you would use, IE market cap >1000m, forecast divi > FTSE100, no divi cuts in last 5 years, no company in the same sector etc, etc. If you do let me know and I'll have a "scrape" using stepone's spreadsheet to get a flavour of what''s available.

Raptor.

paullidd
Posts: 10
Joined: November 7th, 2016, 12:31 pm

Re: New Hyp

Postby paullidd » January 11th, 2017, 3:53 pm

Thanks for the replies, that'll give me something to get my teeth into.

Raptor - Hi, I was thinking Mkt Cap >£500 Mil, Yield > 3.5%, No cutters >7 years.

I will then try and produce a shortlist of 20-30 candidates for a final portfolio of 10 - 15 shares.

Thanks for all your help

Paul

Raptor
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Posts: 284
Joined: November 4th, 2016, 1:39 pm

Re: New Hyp

Postby Raptor » January 11th, 2017, 9:01 pm

Straight plug in the figures and top 30 (removed RDS "A" ). Only five years rising yield, sorry.



Of that my favourites are :-

TW, ADN, RDSB, LGEN, SSE, MARS, IMB, NG. , BLAND. ( I own TW, MARS and SSE).

Further down and the 3 I own and would go for:-



No banks in the list though as none have five years of rising divi's on the scrape



My choice is LLOY , but I am biased and loyal (or foolish).

Hope this gives you an idea, but DYOR.

Raptor.

AJC5001
Posts: 33
Joined: November 4th, 2016, 4:55 pm

Re: New Hyp

Postby AJC5001 » January 11th, 2017, 10:26 pm

monabri wrote:BMS
VOD
TW
SKG
SSE
GFRD (but mindful of % as TW same sector)
CNCT
ITV


VOD, TW and SSE are common HYP shares.

I don't recall seeing BMS, SKG, or CNCT suggested as being HYP shares before.

Could you perhaps explain why you have suggested them?

Adrian

Raptor
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Posts: 284
Joined: November 4th, 2016, 1:39 pm

Re: New Hyp

Postby Raptor » January 12th, 2017, 8:47 am

AJC5001 wrote:
monabri wrote:BMS
VOD
TW
SKG
SSE
GFRD (but mindful of % as TW same sector)
CNCT
ITV


VOD, TW and SSE are common HYP shares.

I don't recall seeing BMS, SKG, or CNCT suggested as being HYP shares before.

Could you perhaps explain why you have suggested them?

Adrian


Cannot find SKG as a company anywhere?

BMS Braemar Shipping Services, market cap £89.31. Certainly not in the HYP league and way below the posters min of £500m.
CNCT Connect Group. market cap £378.77, forecast yield 6.2%, P/E 8, cover 2. Again below what would normally be a choice for HYP, but if nothing else fits.

Neither are in FTSE350.

Raptor.

PinkDalek
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Posts: 366
Joined: November 4th, 2016, 1:12 pm

Re: New Hyp

Postby PinkDalek » January 12th, 2017, 1:22 pm

Raptor wrote:Cannot find SKG as a company anywhere?
Raptor.


Fwiiw, looks like Smurfit Kappa Group PLC, the Irish packaging company which is a FTSE100 constituent.

http://www.londonstockexchange.com/exch ... ml?lang=en

http://www.digitallook.com/equity/Smurfit_Kappa_Group - which shows a forecast dividend yield of 3.4% and it looks like they report and declare dividends in Euros.

I've delved no further.

Raptor
Lemon Slice
Posts: 284
Joined: November 4th, 2016, 1:39 pm

Re: New Hyp

Postby Raptor » January 12th, 2017, 1:52 pm

PinkDalek wrote:
Raptor wrote:Cannot find SKG as a company anywhere?
Raptor.


Fwiiw, looks like Smurfit Kappa Group PLC, the Irish packaging company which is a FTSE100 constituent.

http://www.londonstockexchange.com/exch ... ml?lang=en

http://www.digitallook.com/equity/Smurfit_Kappa_Group - which shows a forecast dividend yield of 3.4% and it looks like they report and declare dividends in Euros.

I've delved no further.


Thanks, do not know why I missed them. Irish company, divi in Euro's, Forecast 3.3%, healthy market cap. I would actually go for Smith DS (SMDS) in that arena, if I had to choose both have same forecast yield. However, for me there are far better opportunities around.

Raptor.

paullidd
Posts: 10
Joined: November 7th, 2016, 12:31 pm

Re: New Hyp

Postby paullidd » January 12th, 2017, 2:12 pm

Hi Raptor, thanks for mentioning stepone spreadsheet, I've just used it and come up with this list of top 40 by yield.
I can see straight away that there are some to be trimmed out, but I'll post this now to see if I have the table formatting working.



paullidd
Posts: 10
Joined: November 7th, 2016, 12:31 pm

Re: New Hyp

Postby paullidd » January 12th, 2017, 2:14 pm

Ah, now that seems to have dumped my table, it was there in preview but not when submitted. I'll see if I can work it out and try again.

Paul

YeeWo
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Joined: November 5th, 2016, 10:12 am

SMURFIT KAPPA

Postby YeeWo » January 12th, 2017, 2:53 pm

Raptor wrote:Cannot find SKG as a company anywhere? Raptor.

I've had my profitable dalliance with SKG. The reason I sold is because of Irish Dividend withholding Tax. Any Investor, HYPer or not, who has a focus on dividend income please double check with your Broker how SKG's dividend is collected. If your Broker cannot claim dividend in Sterling and allow you to do the necessary to exempt yourself from Irish Tax then SKG from a yield perspective isn't worth holding for UK based Investors!

Gengulphus
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Posts: 415
Joined: November 4th, 2016, 1:17 am

Re: New Hyp

Postby Gengulphus » January 12th, 2017, 8:28 pm

paullidd wrote:Ah, now that seems to have dumped my table, it was there in preview but not when submitted. I'll see if I can work it out and try again.

It's still there, in fact - if you click on the " quote button at the top right of your preceding post, you'll find it in the quote, inside 'table' tags. It's just that when looking at the post normally, it's not been made visible!

The problem is that you need to tell the software where new rows start, by putting "L=" at the start of each row, and when to move on to a new column, by putting "||" between the items on each row to separate the columns. If you leave out the "||"s, each row will have just one column containing all the items put together - and if you leave out the "L="s, it appears that the software cannot work out where to put any of it and ends up putting it nowhere!

Gengulphus

Breelander
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Joined: November 4th, 2016, 9:42 pm

Re: New Hyp

Postby Breelander » January 12th, 2017, 8:40 pm

Reformatted for you, as per Gengulphus' explanation:

paullidd wrote:Hi Raptor, thanks for mentioning stepone spreadsheet, I've just used it and come up with this list of top 40 by yield.
I can see straight away that there are some to be trimmed out, but I'll post this now to see if I have the table formatting working.



Gengulphus
Lemon Slice
Posts: 415
Joined: November 4th, 2016, 1:17 am

Re: New Hyp

Postby Gengulphus » January 12th, 2017, 9:01 pm

Edited down to just say that Bree beat me to it, so I won't waste everybody's time reading my virtually identical post!

Gengulphus

Wizard
2 Lemon pips
Posts: 181
Joined: November 7th, 2016, 8:22 am

Re: New Hyp

Postby Wizard » January 12th, 2017, 9:35 pm

I am also grateful for the StepOne spreadsheet being linked to as I had not seen it before. A couple of quick questions if anyone knows. Where does it draw it's data for forecast dividends from? Do the yields quoted include special dividends? Just that I can't reconcile a couple of the entries to my own calculations.

Thanks,
Terry.

Wizard
2 Lemon pips
Posts: 181
Joined: November 7th, 2016, 8:22 am

Re: New Hyp

Postby Wizard » January 12th, 2017, 9:42 pm

I am in the process of building an HYP at the moment as well and made my first purchases late last year. I am now in a position to add two more shares to the HYP each of the same initial size as the previous purposes. I am narrowing the field by not looking at anything below a market cap of £1.5bln, once you factor in sensible gearing, reasonable cover and an acceptable record of increasing dividends the options become very limited.

So I'll be interested to hear what you land on and the rationale behind it.

Terry.

kiloran
2 Lemon pips
Posts: 211
Joined: November 4th, 2016, 9:24 am

Re: New Hyp

Postby kiloran » January 12th, 2017, 9:42 pm

Wizard wrote:I am also grateful for the StepOne spreadsheet being linked to as I had not seen it before. A couple of quick questions if anyone knows. Where does it draw it's data for forecast dividends from? Do the yields quoted include special dividends? Just that I can't reconcile a couple of the entries to my own calculations.

Thanks,
Terry.

The User Guide at http://lemonfoolfinancialsoftware.weebl ... se350.html should answer many of your questions

--kiloran


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