What is a HYP?
Posted: January 11th, 2017, 1:47 pm
I'm sure this question has been asked/answered before on TMF in days of old..... but what is a "HYP"? Obviously it is a High Yield Portfolio but is it not a form of a cut down FTSE100 tracker where all the low yields have been removed? OK, the financial metrics need to be assessed for the new candidate share and it ain't just a case of buying a share because it currently has a high yield.
If this is the case, then I guess the value of the portfolio will move more or less in line with the general market - after all, some of the favourite HYP shares are the big boys (shell/BP/GSK/AZN etc).
So, just as one might "drip" money (divvis perhaps) back into a tracker, is this the general rule of thumb for a HYP? I guess that you select the sector based on on "one that you have not currently covered in your portfolio" when you are considering adding a new buy.
If this is the case then most HYPers must be riding high at the moment with the record FTSE 100 share level. It seems also to be a case of buy and forget to a degree - if the market goes down, then simply take advantage of divvis to buy shares at a lower price?
Also, I might add, I could put my money in a LYP (low yield portfolio with my local build soc ) but I'm working on the priciples that if I leave the money for 20 years ..or more..at 5% and providing the companies still exist and divvis increase yearly or at least remain constant, I should do ok!
Is this a fair understanding of a HYP?
If this is the case, then I guess the value of the portfolio will move more or less in line with the general market - after all, some of the favourite HYP shares are the big boys (shell/BP/GSK/AZN etc).
So, just as one might "drip" money (divvis perhaps) back into a tracker, is this the general rule of thumb for a HYP? I guess that you select the sector based on on "one that you have not currently covered in your portfolio" when you are considering adding a new buy.
If this is the case then most HYPers must be riding high at the moment with the record FTSE 100 share level. It seems also to be a case of buy and forget to a degree - if the market goes down, then simply take advantage of divvis to buy shares at a lower price?
Also, I might add, I could put my money in a LYP (low yield portfolio with my local build soc ) but I'm working on the priciples that if I leave the money for 20 years ..or more..at 5% and providing the companies still exist and divvis increase yearly or at least remain constant, I should do ok!
Is this a fair understanding of a HYP?