Further to my earlier post that was looking at how reliant HYP1 is on a relatively small number of portfolio components, I've now looked back at HYP1 ages 10-to-16 and compiled some income and capital data that I've found interesting.
I've chosen to look at how reliant HYP1 has been over recent years on the dividend income and capital values of the top 5 holdings per year.
The compiled data and resultant chart is here for anyone interested -
http://i.imgur.com/BwrQGzN.pngLooking back at earlier data might give a more illuminating picture, but the thing that strikes me immediately is that considering this historical data covers a relatively turbulent time with regards to the UK stock market and the wider global economic situation, both the income and capital figures come out within fairly tight ranges for the 5-share contributions to overall portfolio output, with those ranges being roughly 66% to 72% for dividends and 62% to 70% for capital, and being range-bound within those parameters for the past 7 years.
Whilst those dependency levels might be seen to be relatively high for just a third of the shares in the HYP1 portfolio, I think it's heartening to know that such a steady level of dependency was maintained throughout the period.
That said, it also makes me wonder if a larger number of initial shares, rather than the 15 allocated to HYP1 over the period being looked at, might produce a similarly range-bound result, but at a lower level than the 60% to 70% levels seen with HYP1.
Whilst I've always been keen on the original HYP idea, one of the things that I've always had a natural aversion to is such a small number of portfolio holdings. If we could find out that, over a similar period to the HYP1 history examined above, a larger but equally-mature High-Yield Portfolio of income-producing shares delivered similarly range-bound levels of income and capital, but at a lower level than that seen with HYP1, it would be quite instructive to discover in my opinion.
Given that the 5 top HYP1 contributors above equate to roughly 33% of the overall 15 HYP1 holdings, then taking similar income and capital data for the top 33% of the holdings of a larger, more mature HYP portfolio would seem to be an interesting and relative comparison point....
Does anyone know of anyone that might have the data easily available to carry out such an exercise?
:O)
Cheers,
Itsallaguess