Whatsup HYP

[Whatsup]

Morning

Having lurked for a long time I thought I might post my current HYP for comments / suggestions.

I am still building it and re-investing dividends. All bar Standard Life are held within an ISA and there is still money to invest this year amounting to around 2 median weight holdings ( or 4 * 1/2 holdings which is my normal way of investing)

The table includes weighting relative to median and the dividends both relative to median and actual % using forecasts. The list is in HYPTUS order.

Code: Select all

NAME                      | EPIC | WEIGHT | DIVIDEND | DIVIDEND %
Admiral Group             | ADM  |   0.79 |      0.9 |       5.03
Carillion                 | CLLN |   0.97 |     1.28 |       7.21
Centrica                  | CNA  |   0.31 |     0.34 |        1.9
Pearson                   | PSON |   0.95 |     1.14 |       6.42
Vodafone Group            | VOD  |   1.01 |     1.13 |       6.34
Amec Foster Wheeler       | AMFW |   0.56 |     0.48 |       2.67
Royal Dutch Shell 'B'     | RDSB |   1.15 |     1.43 |       8.03
G4S                       | GFS  |    0.8 |     0.55 |        3.1
Aberdeen Asset Management | ADN  |   1.17 |     1.41 |       7.93
SSE                       | SSE  |    1.1 |     1.22 |       6.82
Standard Life             | SL   |   1.09 |      1.1 |       6.19
Marston's                 | MARS |   0.99 |      0.9 |       5.06
Tesco                     | TSCO |   0.38 |        0 |          0
BAE Systems               | BA   |   0.88 |     0.57 |       3.18
HSBC Holdings             | HSBA |   1.15 |      1.3 |       7.26
GlaxoSmithKline           | GSK  |   1.09 |     1.05 |       5.89
BHP Billiton              | BLT  |   0.92 |     0.33 |       1.83
British Land Company      | BLND |   1.12 |     0.98 |       5.47
National Grid             | NG   |    1.2 |     1.02 |       5.75
Unilever                  | ULVR |   1.15 |      0.7 |       3.92
                         


Suggestions, observations welcome. Please note I will not invest in tobacco and I know this is an omission

Colin

[jackdaww]

Perhaps DIAGEO and NEXT ?

.

[kempiejon]

You have 2 utilities but neither of them in the water business. United Utilities UU. has been touted as HYP standard but I prefer Pennon PNN these days, better income growth history, yield is close but UU slightly ahead Pennon has the higher forecast. Severn Trent also in the group but I've not done the research.
Have I missed a house-builder? You can get a good yield from them these days. BT is not on your list, not really high yielding but better today than in recent months and a new sector for diversification.

[Whatsup]

Thanks

There are 3 utilities (NG, SSE & Centrica) but agree there is no water. I had noticed this in a discussion previously and am considering Pennon or UU.

Housebuilders are another consideration and Diageo. Less sure about Next but will look again. Also considering top ups to Admiral although they have more than 5% of the dividend income.

Colin

[Gengulphus]

Having lurked for a long time I thought I might post my current HYP for comments / suggestions.

I am still building it and re-investing dividends. All bar Standard Life are held within an ISA and there is still money to invest this year amounting to around 2 median weight holdings ( or 4 * 1/2 holdings which is my normal way of investing)

As regards possible top-ups, I would not top up any holding that accounted for more than 5% of the capital value or of the forecast income. 5% of the capital value works out as 0.939 times median, so that lets out all but Centrica, Amec Foster Wheeler, G4S, Tesco, BAE Systems and BHP Billiton. I wouldn't top up Centrica because the substantial holdings in SSE and National Grid put you over 10% in Energy Utilities, and I wouldn't top up Tesco or BHP Billiton because of poor yield. Amec Foster Wheeler, G4S and BAE Systems I would investigate further.

As regards new purchases, I'd have a look at water utilities for a new sector - United Utilities and Pennon are the usual suspects. And in existing sectors, AstraZeneca and BT strike me as possibilities.

Note all of those are recommendations for further investigation, not for purchase. I haven't done that further investigation, partly because I have plenty of other things to do and partly because I'm feeling distinctly under the weather today and not really up to the concentration required for proper investigation of a share...

Gengulphus

[Whatsup]

Dear Gengulphus

Thank you for your considered response and I hope you feel better soon.

I had considered Amec Foster Wheeler but rejected it. G4S was my probable next top up before I asked for advice ( although I wavered about Admiral as it was just .03% over the 5% dividend %).

BAE systems is also under consideration. Happy to consider water utilities as mentioned earlier.

Have not considered Astra Zeneca as a duplicate in pharma so may look again. BT will also be considered.

Thanks again for your views

Colin

[77ss]

Suggestions, observations welcome

I think you should focus on diversification.

In particular, I would avoid putting any more capital into financials - where I believe you are overexposed. There are so many tempting HYP candidates in this supersector that this an easy thing to become. If I understand your data, you have 22% of your capital in it, and derive 26% of your dividends from it.

A water utility and a housebuilder would seem sensible additions. As would putting more money into BAE and GSK (or adding AZN).

I hold PNN, GFRD, BAE, GSK and AZN - not recommendations, just for the record (and a mere 18% in financials).

Good luck!

[jackdaww]

Suggestions, observations welcome

I think you should focus on diversification.

====================

Agreed - suggest ASTRA and Greene King as a start .

.

[Whatsup]

Update

Having considered the observations and helpful suggestions I purchased Pennon (PNN) today.

This was an initial 50% purchase and will be topped up to full weight in the next few months

Thanks for your help in clarifying my thoughts on the way forward


Colin