My ESY Portfolio

[JamesMuenchen]

I have been consolidating some savings into one LTBH portfolio over the last year and am now at the stage where I don't expect to add any new funds so will start tracking the performance from here. I intend to let it stew for at least 10 years.

Shares have been added on basis of
E = ETFs: for cheap diversification
S = Stalwarts: companies with a good CAGR and dividend growth. Not really high yielders right now, but still found in many HYPs. More of a nod to the work of ValueMargin on TMF, than the Sturdies of Luniversal.
Y = Yield: basic HYP criteria

I have been adding shares since last summer and now have:



Running Yield is 4.30%

It's already quite imbalanced, partly from market movements over the year and partly as I wasn't adding consistent amounts.

From here, I plan to reinvest 80% of the dividend income into the ETFs on a monthly basis, purchasing the smallest holding of the 4 that was not topped-up the previous month. I'm holding in an IB account which has a minimum monthly charge of $10 net of any fees. An ETF trade costs £6, so it is still cost-effective to make one small trade into the ETFs as it is effectively free.

Otherwise, I will trim any share that exceeds 150% of the median value and reinvest into the non-ETF shares according to the HYPTUSS. Currently TW is a trim candidate and the proceeds should go into CLLN, we will see next month.

I will post a review in 12 months

Any thoughts?

[Raptor]

Like you my TW shares are (and have been for a while) in the "must" trim region, but it has been hard to give up that dividend yield. As am about to sell shares in my trading account for various reasons (building project, CGT, reduce dividend tax payable and top-slicing), this will go along with BA, PSON and SVS. This should help balance portfolio and save me some tax going forward. This will still leave me with TW and BA in "tax" exempt portfolios though.

Nice to see your portfolio mix.

Raptor.

[tramrider]

Shares have been added on basis of
E = ETFs: for cheap diversification
S = Stalwarts: companies with a good CAGR and dividend growth. Not really high yielders right now, but still found in many HYPs. More of a nod to the work of ValueMargin on TMF, than the Sturdies of Luniversal.
Y = Yield: basic HYP criteria

Any thoughts?

I would say Y E S to the philosophy.

I was surprised that you could not find some others you could classify as Stalwarts with better yields, such as PNN Pennon Group (water) at 4.2%.

I think I would have chosen VAPX Vanguard FTSE Developed Asia Pacific ex Japan instead of VJPN Vanguard Japan Index, as I think the whole Far East will probably do better than Japan, which seems to be having troubles, as illustrated by Toshiba.

Otherwise, the portfolio looks a good balance with plenty of flexibility.

Tramrider

[YeeWo]

Well though out portfolio. The Carillon Yield looks worryingly high! For a major to be paying out so much can rarely be a good sign?

[JamesMuenchen]

I was surprised that you could not find some others you could classify as Stalwarts with better yields, such as PNN Pennon Group (water) at 4.2%.

High Yield wasn't a big consideration for this component, I was looking more for good long-term SP and Div growth

I think I would have chosen VAPX Vanguard FTSE Developed Asia Pacific ex Japan instead of VJPN Vanguard Japan Index, as I think the whole Far East will probably do better than Japan, which seems to be having troubles, as illustrated by Toshiba.

Could be. I did think of adding VAPX as well, but never got to round to it. At the time I bought VJPN (November) it had shown a nice -ve correlation to the falls in UK due to Brexit.

The Carillon Yield looks worryingly high! For a major to be paying out so much can rarely be a good sign?

Yes, I agree.

More worrying that it is #1 pick for topping-up according to the High Yield Portfolio Top-Up SpreadSheet (HYPTUSS). If I trim TW and top-up CLLN according to the method I wrote above, then they would be on respectively 6.7% and 7.4% by value, and CLLN would be the largest holding. So I will probably overrule the HYPTUSS if nothing changes next month.

thanks for the feedback