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IDP's HYP as of 22 Sep 21.

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idpickering
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IDP's HYP as of 22 Sep 21.

#443590

Postby idpickering » September 19th, 2021, 2:50 pm

Good afternoon all.

I get that the title of my opening post is dated in the future, but this is a rough guide as to how my HYP will look then (ish).

My HYP was last put up here on 09 Jul 21 here; viewtopic.php?p=426324#p426324 since which I've made two buys of HICL. There was comment regarding me maybe top slicing my oil stocks, which I've done too. In that thread Malcolm MDW1954 mentioned that I could do with raising my exposure to REITs, and kindly mentioned some suggestions, some of them were a bit to small for my taste in terms of cap size, but one did stick out to me, that being LXI. So much so, that on 22 Sep 21 I will be adding them to my HYP. I get that they've risen in sp terms of late, and better yields are available elsewhere, but this is about diversification for me. So, on that date my HYP will look something like this, in capital value weighted terms;

Share                                  Weight

Legal & General 5.7%
Admiral Group 5.4%
British American Tobacco 4.8%
BAE Systems 4.7%
National Grid 4.6%
Phoenix Group 4.6%
SSE 4.4%
GlaxoSmithKline 4.2%
IG Group 4.2%
The Renewables Infrastructure Group 3.8%
Tritax Big Box 3.5%
Vodafone 3.4%
Tate & Lyle 3.4%
Tesco 3.4%
Greencoat UK Wind 3.4%
BP. 3.3%
Shell (RDSB) 3.3%
United Utilities 3.3%
AstraZeneca 3.3%
Sainsbury 3.3%
Schroders (non-voting) 3.2%
BHP Group 3.2%
Rio Tinto 3.2%
Primary Health Properties 3.2%
Unilever 2.6%
LXI 2.2%
Diageo 2.0%
HICL 1.1%
Average 3.5%

The law of ish applies.


I do intend topping up my LXI and HICL holdings further.

Ian.

idpickering
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Re: IDP's HYP as of 22 Sep 21.

#443732

Postby idpickering » September 20th, 2021, 5:14 am

Further to the above, I'm likely to buy more Unilever soon too, as they seem to be on offer right now. I meant to include that in my OP too, but forgot. ;)

Ian.

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Re: IDP's HYP as of 22 Sep 21.

#444485

Postby idpickering » September 22nd, 2021, 4:47 pm

Returning to this thread if I may, my LXI share purchase happened today, and they weigh in at 2.3% in capital value terms, of my now 28 share HYP. I'm buying more HICL next month, but I'll confirm that nearer the time. Things change.

Ian.

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Re: IDP's HYP as of 22 Sep 21.

#444621

Postby Arborbridge » September 23rd, 2021, 8:21 am

idpickering wrote:Returning to this thread if I may, my LXI share purchase happened today, and they weigh in at 2.3% in capital value terms, of my now 28 share HYP. I'm buying more HICL next month, but I'll confirm that nearer the time. Things change.

Ian.


Well, they seem a very interesting company, quite an attractive play on the face of it - even if this company would be an outlier choice for a traditional Pyad type HYP, I would say. Let's see how it settles in to your collection.


Arb.

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Re: IDP's HYP as of 22 Sep 21.

#444632

Postby idpickering » September 23rd, 2021, 9:26 am

Arborbridge wrote:
Well, they seem a very interesting company, quite an attractive play on the face of it - even if this company would be an outlier choice for a traditional Pyad type HYP, I would say. Let's see how it settles in to your collection.

Arb.


Thanks for your input Arb. I was beginning to think I was Billy no-mates. ;) Yes LXI are certainly an interesting company. I like the added diversification they bring to my HYP, as well as the fact that their own portfolio is well diversified too, covering numerous segments of the real estate segment. OK, they're not as cheap as they once were, but I'm ok with that. I can see me topping up my LXI holdings in the future, but right now, next month's intended top up of my HICL holdings still stands.

Ian.

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Re: IDP's HYP as of 22 Sep 21.

#444637

Postby Arborbridge » September 23rd, 2021, 9:34 am

idpickering wrote:
Arborbridge wrote:
Well, they seem a very interesting company, quite an attractive play on the face of it - even if this company would be an outlier choice for a traditional Pyad type HYP, I would say. Let's see how it settles in to your collection.

Arb.


Thanks for your input Arb. I was beginning to think I was Billy no-mates. ;)
Ian.



I'm sure you re not! The truth is probably that we make a statement about our HYPs and there isn't really much people can say about it, since there is sometimes not much to be discussed. One could say, that's the nature of HYPing.

Arb.

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Re: IDP's HYP as of 22 Sep 21.

#444654

Postby idpickering » September 23rd, 2021, 10:25 am

Arborbridge wrote:
idpickering wrote:
Arborbridge wrote:
Well, they seem a very interesting company, quite an attractive play on the face of it - even if this company would be an outlier choice for a traditional Pyad type HYP, I would say. Let's see how it settles in to your collection.

Arb.


Thanks for your input Arb. I was beginning to think I was Billy no-mates. ;)
Ian.



I'm sure you re not! The truth is probably that we make a statement about our HYPs and there isn't really much people can say about it, since there is sometimes not much to be discussed. One could say, that's the nature of HYPing.

Arb.


Thanks Arb. I must admit I figured that out. I listened to other’s ideas and suggestions in my last offering. Then made my own mind up on the opinions, and acted accordingly.

I guess less comment is more, and maybe that’s how HYPing should be? But let’s keep our community going here still of course.

Ian.

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Re: IDP's HYP as of 22 Sep 21.

#444709

Postby MDW1954 » September 23rd, 2021, 1:16 pm

Arborbridge wrote:
idpickering wrote:Returning to this thread if I may, my LXI share purchase happened today, and they weigh in at 2.3% in capital value terms, of my now 28 share HYP. I'm buying more HICL next month, but I'll confirm that nearer the time. Things change.

Ian.


Well, they seem a very interesting company, quite an attractive play on the face of it - even if this company would be an outlier choice for a traditional Pyad type HYP, I would say. Let's see how it settles in to your collection.


Arb.



I started buying into LXi back in 2018, at 112p, when the share price was on a small discount. Obviously, the discount was rather larger for most of last year! For me, it's not a large holding, but I'm very happy with it, and I've topped up several times. Resilience, diversification, and long-dated index-linked income are the attractions.

MDW1954

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Re: IDP's HYP as of 22 Sep 21.

#444712

Postby Arborbridge » September 23rd, 2021, 1:19 pm

MDW1954 wrote:
Arborbridge wrote:
idpickering wrote:Returning to this thread if I may, my LXI share purchase happened today, and they weigh in at 2.3% in capital value terms, of my now 28 share HYP. I'm buying more HICL next month, but I'll confirm that nearer the time. Things change.

Ian.


Well, they seem a very interesting company, quite an attractive play on the face of it - even if this company would be an outlier choice for a traditional Pyad type HYP, I would say. Let's see how it settles in to your collection.


Arb.



I started buying into LXi back in 2018, at 112p, when the share price was on a small discount. Obviously, the discount was rather larger for most of last year! For me, it's not a large holding, but I'm very happy with it, and I've topped up several times. Resilience, diversification, and long-dated index-linked income are the attractions.

MDW1954


I could certainly be tempted - but it's not classic Pyadic HYP territory (which is where most of us started, including Ian). Strictly speaking it is too small, and the yield wouldn't make the cut.

Arb.

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Re: IDP's HYP as of 22 Sep 21.

#444741

Postby MDW1954 » September 23rd, 2021, 2:48 pm

Arborbridge wrote:
I could certainly be tempted - but it's not classic Pyadic HYP territory (which is where most of us started, including Ian). Strictly speaking it is too small, and the yield wouldn't make the cut.

Arb.


Not today, no: the yield is below 4%. But it's FTSE 350.

Obviously, the yield was well over 5½% this time last year.

I last bought some in March, and the share price is up 20p since then.

MDW1954

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Re: IDP's HYP as of 22 Sep 21.

#444747

Postby Arborbridge » September 23rd, 2021, 2:57 pm

MDW1954 wrote:
Arborbridge wrote:
I could certainly be tempted - but it's not classic Pyadic HYP territory (which is where most of us started, including Ian). Strictly speaking it is too small, and the yield wouldn't make the cut.

Arb.


Not today, no: the yield is below 4%. But it's FTSE 350.

Obviously, the yield was well over 5½% this time last year.

I last bought some in March, and the share price is up 20p since then.

MDW1954


Last time I looked the capitalisation was well under the classical HYP criteria. I know that has been altered on this board, but I did say classic Pyad criteria in my comment. The HYP system was set up with the biggest companies and best in class in mind - not tiddlers. The size of a company what enabled pyad to be sanguine about leaving well alone, and was one of the in built safety factors. People seem to have forgotten that.

Arb.

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Re: IDP's HYP as of 22 Sep 21.

#444766

Postby idpickering » September 23rd, 2021, 3:57 pm

Arborbridge wrote:
MDW1954 wrote:
Arborbridge wrote:
I could certainly be tempted - but it's not classic Pyadic HYP territory (which is where most of us started, including Ian). Strictly speaking it is too small, and the yield wouldn't make the cut.

Arb.


Not today, no: the yield is below 4%. But it's FTSE 350.

Obviously, the yield was well over 5½% this time last year.

I last bought some in March, and the share price is up 20p since then.

MDW1954


Last time I looked the capitalisation was well under the classical HYP criteria. I know that has been altered on this board, but I did say classic Pyad criteria in my comment. The HYP system was set up with the biggest companies and best in class in mind - not tiddlers. The size of a company what enabled pyad to be sanguine about leaving well alone, and was one of the in built safety factors. People seem to have forgotten that.

Arb.


Thanks for your input Malcolm. You too Arb.

I haven’t forgotten about the preferred mathematical ratios of likely HYP candidates, and I admit that I do prefer the perceived safety of the larger shares. However, I think there comes a time when one could believe they had enough of the usual suspects on board, and might decide to look elsewhere, which I have done. For me, even the size of LXI as a company enhances my overall diversification in my HYP. As to whether or not I buy more of LXI remains in the balance. We’ll see.

Ian.

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Re: IDP's HYP as of 22 Sep 21.

#444770

Postby funduffer » September 23rd, 2021, 4:18 pm

I am on the hunt for a REIT to add to my HYP, holding British Land only at the moment.

LXI look interesting, but a bit on the small side, and with a >10% premium to NAV currently - a bit steep. However, the ongoing charges of 0.87% look pretty reasonable.

On infrastructure, HICL are a bit bigger, and more diversified, but also at a >10% premium.

I have put some money into GCP infrastructure, but this has quite a large amount of renewables in it, as well as more conventional assets. A better yield and a lower premium.

FD

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Re: IDP's HYP as of 22 Sep 21.

#444789

Postby idpickering » September 23rd, 2021, 5:17 pm

funduffer wrote:I am on the hunt for a REIT to add to my HYP, holding British Land only at the moment.

LXI look interesting, but a bit on the small side, and with a >10% premium to NAV currently - a bit steep. However, the ongoing charges of 0.87% look pretty reasonable.

On infrastructure, HICL are a bit bigger, and more diversified, but also at a >10% premium.

I have put some money into GCP infrastructure, but this has quite a large amount of renewables in it, as well as more conventional assets. A better yield and a lower premium.

FD


Thanks for your input FD. I did check GCP Infrastructure out when you mentioned them to me before. I was put off by their recent cut to their dividend, as shown on perusal of the GCP page on HL here; https://www.hl.co.uk/shares/shares-sear ... ltd-1p-shs . I'm happy to be convinced otherwise though.

Ian.

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Re: IDP's HYP as of 22 Sep 21.

#444885

Postby MDW1954 » September 24th, 2021, 12:01 am

funduffer wrote:I am on the hunt for a REIT to add to my HYP, holding British Land only at the moment.

LXI look interesting, but a bit on the small side, and with a >10% premium to NAV currently - a bit steep. However, the ongoing charges of 0.87% look pretty reasonable.

On infrastructure, HICL are a bit bigger, and more diversified, but also at a >10% premium.

I have put some money into GCP infrastructure, but this has quite a large amount of renewables in it, as well as more conventional assets. A better yield and a lower premium.

FD


LXi on the small side? At >£1bn? Sorry, disagree. This is a REIT, where very arguably smaller market caps are very welcome.

But if you're looking for REITs on a discount, then look at CREI, RGL, EPIC, CSH, SREI, and UKCM.

Of the above, I hold four. All smaller than LXi.

MDW1954

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Re: IDP's HYP as of 22 Sep 21.

#444911

Postby kempiejon » September 24th, 2021, 8:08 am

I've not really noticed LXI REIT before so a quick squizz before tea this morning. I'll generally look at shares of a MktCao >£1b (£1.04b from yahoo) and yield over 4% (4.01% from dividenddata) so why hadn't I bother with them? The only dividends I've spotted on dd of maiden 4p in 2018, 5.5p, 5.75p and 5.55p subsequently misses my first filters of 5 years rising dividend. I would let a good forecast sway and saw 4.2% from sharecast.

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Re: IDP's HYP as of 22 Sep 21.

#444915

Postby Itsallaguess » September 24th, 2021, 8:29 am

kempiejon wrote:
I've not really noticed LXI REIT before so a quick squizz before tea this morning.

I'll generally look at shares of a MktCao >£1b (£1.04b from yahoo) and yield over 4% (4.01% from dividenddata) so why hadn't I bother with them?

The only dividends I've spotted on dd of maiden 4p in 2018, 5.5p, 5.75p and 5.55p subsequently misses my first filters of 5 years rising dividend.


It does seem a bit odd that Ian was put off GCP Infrastructure because of 'a recent cut to their dividend' (https://www.lemonfool.co.uk/viewtopic.php?f=15&t=31295#p444789), and yet plumped for LXI which did exactly the same thing with their last full-year payout -

Image Image

Source - https://www.dividenddata.co.uk/dividend-history.py?epic=LXI


But even taking that into account, I think it's also worth clearly noting their nearly 12% premium to NAV -

Image

Source - https://www.theaic.co.uk/companydata/0P00019U9P

I'll admit to struggling to see the compelling investment case here, especially for a HYP...

Cheers,

Itsallaguess

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Re: IDP's HYP as of 22 Sep 21.

#444957

Postby idpickering » September 24th, 2021, 10:14 am

Thanks for your input IAAG. It was my call (re LXI), and I went for it, and I'm happy with having done so. Each to their own and all that. I might even buy into GCP at some point, we'll see, but I'm not going to lose any sleep about it. I did say further up that I was happy to be convinced otherwise re GCP.

Ian.

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Re: IDP's HYP as of 22 Sep 21.

#445004

Postby MDW1954 » September 24th, 2021, 12:04 pm

Briefly jumping in, here. Dividend cut? There's the small matter of a global pandemic to consider. Q2 of 2020 saw lots of decisions made from an abundance of caution. I may be wrong here, but didn't even BBOX shave a sliver off the dividend? And that's a £4bn company renting to the likes of Amazon -- who, you may recall, had quite a good pandemic.

The premium is more problematic. I like buying REITs on a discount -- see the list in the post above, for instance. From a diversification and resilience perspective, I have no issues with Ian's purchase. Could he a chosen a better entry point? Arguably yes. But I doubt he'll regret his decision.

MDW1954

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Re: IDP's HYP as of 22 Sep 21.

#445012

Postby idpickering » September 24th, 2021, 12:41 pm

MDW1954 wrote:Briefly jumping in, here. Dividend cut? There's the small matter of a global pandemic to consider. Q2 of 2020 saw lots of decisions made from an abundance of caution. I may be wrong here, but didn't even BBOX shave a sliver off the dividend? And that's a £4bn company renting to the likes of Amazon -- who, you may recall, had quite a good pandemic.

The premium is more problematic. I like buying REITs on a discount -- see the list in the post above, for instance. From a diversification and resilience perspective, I have no issues with Ian's purchase. Could he a chosen a better entry point? Arguably yes. But I doubt he'll regret his decision.

MDW1954


Thanks for your informed and considered post Malcomm.

Tbh, I’m of a mind to have another look at the list of shares you’ve kindly put up, again. I appreciate your input. Ok, my timing re my LXI buys might be out, but as you say, I don’t regret them.

Ian.


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