For the activity during Year One of this portfolio please see this thread: viewtopic.php?f=15&t=17908
For the activity during Year Two of this portfolio please see this thread: viewtopic.php?f=15&t=22901
For the activity during Year Three of this portfolio please see this thread: viewtopic.php?f=15&t=33979
For the activity during Year Four of this portfolio please see this thread: viewtopic.php?f=15&t=34041
For the activity during Year Five of this portfolio please see this thread: viewtopic.php?f=15&t=39071
This is an update on the HYP constructed by pyad, as recorded on this thread: viewtopic.php?f=15&t=16868&start=140 and subsequently managed by myself.
Further details of how updates are to be made to this portfolio can be found on this thread: viewtopic.php?p=218513#p218513
Dividend Re-Investment Decision – 08 May 2024
Current Portfolio: Holdings
EPIC | Company | Shares | Cost (£) | Price (p) | Value (£) | Value (%) | P/L (£) | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£)
IMB | Imperial Brands | 1,283 | 26,121.51 | 1,857.0000 | 23,825.31 | 7.15% | -2,296.20 | 0.00 | 8,280.28 | 5,984.08 | 7.91% | 1,883.70
BATS | British American Tobacco | 299 | 8,359.04 | 2,395.9970 | 7,164.04 | 2.15% | -1,195.00 | 0.00 | 2,618.33 | 1,423.33 | 9.83% | 704.20
WPP | WPP | 1,780 | 14,997.55 | 829.6000 | 14,766.88 | 4.43% | -230.67 | 0.00 | 3,018.88 | 2,788.21 | 4.75% | 701.32
ITV | ITV | 11,652 | 14,999.08 | 72.8650 | 8,490.23 | 2.55% | -6,508.85 | 384.51 | 2,097.33 | -4,027.01 | 6.86% | 582.60
HSBA | HSBC Holdings | 2,425 | 14,998.27 | 720.6000 | 17,474.55 | 5.24% | 2,476.28 | 0.00 | 2,708.69 | 5,184.97 | 4.45% | 777.30
IGG | IG Grp Holdings | 2,762 | 14,999.32 | 773.0000 | 21,350.26 | 6.41% | 6,350.94 | 0.00 | 6,065.29 | 12,416.23 | 5.89% | 1,256.71
ABDN | Abrdn PLC | 7,953 | 19,638.09 | 153.3000 | 12,191.95 | 3.66% | -7,446.14 | 0.00 | 5,833.37 | -1,612.77 | 9.52% | 1,161.13
MNG | M & G PLC | 4,717 | 9,578.12 | 205.1000 | 9,674.57 | 2.90% | 96.45 | 622.64 | 1,694.08 | 2,413.17 | 9.61% | 929.24
AV | Aviva | 3,663 | 14,970.64 | 483.5000 | 17,710.62 | 5.31% | 2,739.98 | 816.84 | 5,060.47 | 8,617.29 | 6.91% | 1,223.44
PHNX | Phoenix Grp Holdings | 1,193 | 5,724.44 | 510.3400 | 6,088.36 | 1.83% | 363.92 | 317.93 | 0.00 | 681.85 | 10.32% | 628.11
DLG | Direct Line Insurance Grp | 8,882 | 20,716.58 | 183.5070 | 16,299.08 | 4.89% | -4,417.50 | 355.28 | 356.51 | -3,705.71 | 2.18% | 355.28
GSK | GSK PLC | 752 | 11,986.74 | 1,771.0000 | 13,317.92 | 4.00% | 1,331.18 | 0.00 | 3,155.30 | 4,486.48 | 3.39% | 451.20
HLN | Haleon PLC | 941 | 2,723.59 | 330.9000 | 3,113.77 | 0.93% | 390.18 | 39.52 | 39.51 | 469.21 | 1.81% | 56.46
BA | BAE Systems | 3,043 | 14,995.20 | 1,389.0000 | 42,267.27 | 12.68% | 27,272.07 | 562.95 | 3,764.14 | 31,599.16 | 2.16% | 912.89
SMDS | DS Smith | 4,310 | 14,997.11 | 358.8380 | 15,465.92 | 4.64% | 468.81 | 0.00 | 2,900.63 | 3,369.44 | 5.02% | 775.80
IBST | Ibstock | 5,849 | 14,999.47 | 151.2160 | 8,844.62 | 2.65% | -6,154.85 | 0.00 | 1,813.15 | -4,341.70 | 4.63% | 409.43
LAND | Land Securities Grp | 818 | 7,499.19 | 692.0000 | 5,660.56 | 1.70% | -1,838.63 | 0.00 | 1,349.25 | -489.38 | 5.71% | 323.11
BLND | British Land Company | 1,273 | 7,494.24 | 418.8000 | 5,331.32 | 1.60% | -2,162.92 | 0.00 | 1,215.33 | -947.59 | 5.54% | 295.33
BHP | BHP Grp | 838 | 14,992.51 | 2,277.0000 | 19,081.26 | 5.73% | 4,088.75 | 0.00 | 6,410.89 | 10,499.64 | 5.35% | 1,020.72
RIO | Rio Tinto | 173 | 9,833.07 | 5,525.0000 | 9,558.25 | 2.87% | -274.82 | 0.00 | 2,296.21 | 2,021.39 | 6.18% | 590.69
SHEL | Shell | 457 | 9,626.22 | 2,894.5250 | 13,227.98 | 3.97% | 3,601.76 | 0.00 | 1,842.87 | 5,444.63 | 3.81% | 503.91
WDS | Woodside Energy Grp Ltd | 737 | 12,963.75 | 1,458.0000 | 10,745.46 | 3.22% | -2,218.29 | 0.00 | 1,043.23 | -1,175.06 | 7.69% | 826.82
BP | BP | 1,347 | 7,496.10 | 493.4500 | 6,646.77 | 1.99% | -849.33 | 0.00 | 1,493.43 | 644.10 | 4.72% | 313.88
VOD | Vodafone Grp | 10,077 | 14,998.48 | 67.1800 | 6,769.73 | 2.03% | -8,228.75 | 0.00 | 3,892.64 | -4,336.11 | 11.48% | 776.87
CCL | Carnival Corp. | 384 | 14,979.79 | 1,038.5000 | 3,987.84 | 1.20% | -10,991.95 | 0.00 | 610.18 | -10,381.77 | 0.00% | 0.00
PNN | Pennon Grp | 1,316 | 10,670.59 | 707.5000 | 9,310.70 | 2.79% | -1,359.89 | 0.00 | 2,547.85 | 1,187.96 | 6.51% | 605.88
| | | | | | | | | | | |
| Sub Total: | | | | £328,365.22 | 98.53% | -£6,993.47 | £3,099.67 | | | 5.50% | £18,066.02
| Cash Balance: | | | | £1,793.64 | 0.54% | | | | | |
| Ex-Dividend: | | | | £3,099.67 | 0.93% | | | | | |
| | | | | | | | | | | |
| Current Value: | | | | £333,258.53 | | | | | | |
| From: | | | | | | | | | | |
| Cash In: | | | | £254,904.77 | | | | | | |
| LESS Cash Out: | | | | £0.00 | | | | | | |
| Dividends Rec'd: | | | | £73,068.62 | | | | | | |
| Ex-Dividend: | | | | £3,099.67 | | | | | | |
| Realised P/L: | [2] | | | £9,178.94 | | | | | | |
| UnRealised P/L: | | | | -£6,993.47 | | | | | | |
| | | | | | XIRR | | | | | |
| Total: | | | | £333,258.53 | 5.35% | | | | | |
Current Portfolio: Business Sectors
Business | Cost (£) | Value (£) | Value (%) | P/L (£) | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£)
Weapons | 14,995.20 | 42,267.27 | 12.68% | 27,272.07 | 562.95 | 3,764.14 | 31,599.16 | 2.16% | 912.89
Tobacco | 34,480.55 | 30,989.35 | 9.30% | -3,491.20 | 0.00 | 10,898.61 | 7,407.41 | 8.35% | 2,587.90
Oil | 30,086.07 | 30,620.21 | 9.19% | 534.14 | 0.00 | 4,379.53 | 4,913.67 | 5.37% | 1,644.61
Mining | 24,825.58 | 28,639.51 | 8.59% | 3,813.93 | 0.00 | 8,707.10 | 12,521.03 | 5.63% | 1,611.41
Insurance: Life | 20,695.08 | 23,798.98 | 7.14% | 3,103.90 | 1,134.77 | 5,060.47 | 9,299.14 | 7.78% | 1,851.55
Fund Manager | 29,216.21 | 21,866.52 | 6.56% | -7,349.69 | 622.64 | 7,527.45 | 800.40 | 9.56% | 2,090.37
Gambling | 14,999.32 | 21,350.26 | 6.41% | 6,350.94 | 0.00 | 6,065.29 | 12,416.23 | 5.89% | 1,256.71
Banks | 14,998.27 | 17,474.55 | 5.24% | 2,476.28 | 0.00 | 2,708.69 | 5,184.97 | 4.45% | 777.30
Insurance: NonLife | 20,716.58 | 16,299.08 | 4.89% | -4,417.50 | 355.28 | 356.51 | -3,705.71 | 2.18% | 355.28
Packaging | 14,997.11 | 15,465.92 | 4.64% | 468.81 | 0.00 | 2,900.63 | 3,369.44 | 5.02% | 775.80
Advertising | 14,997.55 | 14,766.88 | 4.43% | -230.67 | 0.00 | 3,018.88 | 2,788.21 | 4.75% | 701.32
Pharma | 11,986.74 | 13,317.92 | 4.00% | 1,331.18 | 0.00 | 3,155.30 | 4,486.48 | 3.39% | 451.20
Real Estate IT | 14,993.43 | 10,991.88 | 3.30% | -4,001.55 | 0.00 | 2,564.58 | -1,436.97 | 5.63% | 618.44
Utility: Water | 10,670.59 | 9,310.70 | 2.79% | -1,359.89 | 0.00 | 2,547.85 | 1,187.96 | 6.51% | 605.88
Bricks | 14,999.47 | 8,844.62 | 2.65% | -6,154.85 | 0.00 | 1,813.15 | -4,341.70 | 4.63% | 409.43
Television | 14,999.08 | 8,490.23 | 2.55% | -6,508.85 | 384.51 | 2,097.33 | -4,027.01 | 6.86% | 582.60
Telecom: Mobile | 14,998.48 | 6,769.73 | 2.03% | -8,228.75 | 0.00 | 3,892.64 | -4,336.11 | 11.48% | 776.87
Cruising | 14,979.79 | 3,987.84 | 1.20% | -10,991.95 | 0.00 | 610.18 | -10,381.77 | 0.00% | 0.00
Medical Products | 2,723.59 | 3,113.77 | 0.93% | 390.18 | 39.52 | 39.51 | 469.21 | 1.81% | 56.46
[1] - Yield and Forecast Income are based on my own Share Database Spreadsheet and are essentially calculated from the dividends that would have been earned over the previous 12 months, unless the company itself has clearly indicated otherwise.
[2] - Realised Profit and Loss & Return of Capital – To Date
Date | EPIC | Name | Real P&L (£) | Comment
20-Sep-19 | IBST | Ibstock | 292.45 | Return of Capital
09-Oct-19 | GNK | Greene King | 4,188.29 | Sale – Pending Takeover
16-Jul-21 | PNN | Pennon Group | 1,676.05 | Return of Capital - Share Consolidation
21-Sep-21 | BHP | BHP Group | 550.49 | Return of Capital
16-May-22 | AV | Aviva | 173.70 | Return of Capital - Share Consolidation
01-Jun-22 | BHP | BHP Group | 2,565.55 | Return of Capital - Woodside Energy Group (WDS) shares
19-Jul-22 | GSK | GSK PLC | -275.74 | Return of Capital - Haleon PLC (HLN) shares - Share Consolidation
19-Jul-22 | WDS | Woodside Energy Group Ltd | 8.15 | Return of Capital - Woodside Energy Group (WDS) shares - Share Consolidation
| | | |
| | Total | £9,178.94 |
Dividend Re-Investment: 11 September 2023
As at the close of business on Thursday 09 May 2024, the amount available for re-investment will be £2,416.28. This amount will be used to invest in one holding on Friday 10 May 2024.
Candidates
I am not one to place a limit on the yield being purchased. HYP is an income strategy so forget any idea of limiting the yield to twice the number you first thought of after stepping off the scales this morning. I am looking for the “Highest Sustainable Yield”.
To this end, the following candidates were considered:
EPIC | Company | Reward (%) | Decision | Comments
VOD | Vodafone Grp | 11.48% | Possible | Resultant Sector Value Concentration (2.75%)
PHNX | Phoenix Grp Holdings | 10.32% | Possible | Resultant Sector Value Concentration (7.85%)
BATS | British American Tobacco | 9.87% | Possible | Resultant Sector Value Concentration (9.99%)
MNG | M & G PLC | 9.61% | Possible | Resultant Sector Value Concentration (7.27%)
ABDN | Abrdn PLC | 9.52% | Possible | Resultant Sector Value Concentration (7.27%)
IMB | Imperial Brands | 7.91% | Possible | Resultant Sector Value Concentration (9.99%)
Decision
1. Vodafone Grp (VOD) – Yield 11.48%
VOD will be releasing the full year results for the year ended 31 Mar 2024 on next Monday, 14 May 2024.
As I mentioned before:
My suspicion is, and it is only a suspicion, the management are going to concentrate on doing whatever is necessary to restore value to the company shares. I am not convinced that a dividend cut will be a part of that, but it cannot be ruled out. I would however be surprised if there were to be an increase in dividend, while this “action plan” is ongoing.
So, in spite of continuing cash generation, VOD is again to be passed over, at least until those final results provide further information.
2. Phoenix Grp Holdings (PHNX) – Yield 10.32%
This is a tough one.
On the one hand they are currently throwing off a lot of cash – including a recently increased dividend – but on the other there are those tha caution against a coming earnings drought.
https://finance.yahoo.com/news/phoenix- ... 48276.html
Personally, I am not very good at determining future events, preferring to base my decisions on what is or has been recently happening, together with a review of what the management think.
Phoenix announces strong full year 2023 results and new progressive dividend policy.
"Phoenix's vision is to be the UK's leading retirement savings and income business, and we are making great progress in delivering our strategy to achieve this, as our strong 2023 financial results demonstrate.
We have achieved our 2025 growth target two years early with £1.5bn of new business cash delivered by our Standard Life business - a new record. We delivered over £2bn of cash generation and maintained our resilient balance sheet, and our strong performance has enabled the Board to recommend a 2.5% dividend increase.
The next phase of our strategy will see us balance our investment across our strategic priorities to grow, optimise and enhance our business. This will support us in delivering the ambitious new 2026 targets we are announcing today. Our confidence in this strategy is demonstrated by the new progressive and sustainable dividend policy we will operate going forward."
So, I am going to stick with the management and add some more PHNX to the portfolio.
Incidentally:
3. British American Tobacco (BATS) – Yield 9.87%
and
4. M & G PLC (MNG) – Yield 9.61%
and
5. abdn PLC (ABDN) – Yield 9.52%
and
6. IMB PLC (IMB) – Yield 7.91%
All look pretty good to me, there are a lot of high-yielders around I believe. Famous last words?
I will be having a further quick review tomorrow - 09 May 2024 - but for now …..
Insurance Life – Phoenix Group Holdings (PHNX) – Yield 10.17% - is the decision for this dividend re-investment.
The Sector Value Concentration after purchase (7.85%) will leave the Insurance Life Business Sector holding as number five by that measure, well below the maximum allowed – 10% - but who knows, there may be further purchases to come.
I am not intending to purchase PHNX for any of the “real” portfolios under my control, and therefore the price to be applied for this “virtual” purchase will be the Mid Price reported on the day. I shall post an update when the details of the purchase are known.
Should anyone wish to comment on this or any prior top-ups, as well as any other actions taken in the management of this virtual HYP Portfolio, then please do so but only on this related thread: viewtopic.php?f=15&t=43343
The intention is to keep this thread simply recording the events of the Portfolio during its fifth year.
Enjoy!
Ian