Time to trim RIO

[tjh290633]

One result of the Trump effect is that miners have soared. Consequently RIO has now shot past my trigger point for trimming back and all being well I propose to sell 25% of my holding tomorrow. My top up ranking table looks like this:

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Top-up          Income                     Cost               
Rank     EPIC   Rank     EPIC   % Income   Rank   Epic   % Cost
     1   CLLN        1   TW.       4.73%      1   PSON    4.49%
     2   LLOY        2   ADM       4.69%      2   LLOY    4.45%
     3   PSON        3   BP.       4.41%      3   RIO     4.32%
     4   MKS         4   RDSB      4.26%      4   CLLN    4.31%
     5   BLND        5   GSK       4.20%      5   BLT     3.97%
     6   TW.         6   CLLN      4.20%      6   SGRO    3.86%
     7   BT.A        7   PSON      4.15%      7   LGEN    3.84%
     8   AV.         8   SSE       3.99%      8   RDSB    3.80%
     9   MARS        9   LGEN      3.85%      9   BP.     3.77%
    10   WMH        10   VOD       3.56%     10   MARS    3.66%
    11   LGEN       11   MARS      3.47%     11   ADM     3.66%
    12   RDSB       12   MKS       3.27%     12   GSK     3.52%


The first 3, Carillion (CLLN), Lloyds (LLOY) and Pearson (PSON) are disqualified because topping them up would take either their share of portfolio cost or their contribution to portfolio dividend income above my arbitrary 5% limit. Adding 20% to a holding standing at 4.2% in either ranking would take it past the limit.

Consequently MKS and BLND will be topped up with the proceeds by 23% and 21% respectively.

TJH

[kempiejon]

MKS and BLND were on my top up for this week, I missed turning the Halifax Sharebuilder so next week now, I have Premier Farnell's cash this month so Capita which has recently come into my HYP range is booked for a buy too.

[tjh290633]

Well, that was duly done this morning, with RIO having a further substantial rise to 3196p, and BLND was topped up ay 610.4p, MKS at 326p.

It didn't end there as BAE Systems had also risen by over 5% and in consequence was now ready for trimming back by 25% at 627.7p, so I sold 25% of that and bought AV. at 461p and BT>A at 361p adding 20% and 23.5% to the holdings respectively.

That, of course, has changed my top up rankings, now as follows:

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Top-up          Income                     Cost               
Rank     EPIC   Rank     EPIC   % Income   Rank   Epic   % Cost
     1   CLLN        1   TW.       4.69%      1   PSON    4.50% Disqualified
     2   LLOY        2   ADM       4.66%      2   LLOY    4.45% Disqualified
     3   PSON        3   BP.       4.38%      3   CLLN    4.32% Disqualified
     4   TW.         4   RDSB      4.23%      4   AV.     4.22% Disqualified
     5   MKS         5   GSK       4.17%      5   BLT     3.97%
     6   WMH         6   CLLN      4.17%      6   SGRO    3.86%
     7   MARS        7   PSON      4.12%      7   LGEN    3.84%
     8   LGEN        8   MKS       4.00%      8   RDSB    3.81%
     9   BT.A        9   SSE       3.96%      9   BP.     3.77%
    10   RDSB       10   LGEN      3.82%     10   MARS    3.66%
    11   IMB        11   VOD       3.53%     11   ADM     3.66%
    12   BLND       12   MARS      3.44%     12   GSK     3.52%


Compared with my previous table, only the top four in income and cost are now disqualified, with Aviva having displaced BLT in the cost rankings.

So, MKS returns to the top of the top-up ranking, behind the four disqualified holdings.

TJH

[kempiejon]

I wonder if these actions will sway Arb in his pickering about MKS?

I'd agree with you TJH BT is looking more attractive than in recent times with the current yield but as BT is one of my largest contributors to income and capital is excluded from topping up. I too have received a capital lift for BA.e and is well above my average weight but as I topped up in October and I'm not strict about trimming heavyweights it'll stick around.

Non HYPishly I bought a few post brexit bargains including AV and they're ready to flip I think, I'm some 20% to the better just now and have banked an interim dividend.