ID Pickering HYP Feb 2020 top up.

[idpickering]

Here's my HYP as of 14/02/20;

Share                                        % Capital value

Admiral Group                                   3.8%
AstraZeneca                                     3.5%
BAE Systems                                     4.0%
BHP Group                                       4.1%
BP.                                             3.7%
BT Group                                        3.0%
British American Tobacco                        3.8%
British Land                                    4.0%
Diageo                                          2.4%
GlaxoSmithKline                                 4.0%
HSBC                                            4.0%
IG Group                                        3.3%
Imperial Brands                                 3.3%
Land Securities                                 3.0%
Legal & General                                 4.0%
Lloyds                                          3.8%
Marston's                                       3.2%
National Grid                                   3.5%
Phoenix Group                                   3.2%
Rio Tinto                                       4.2%
Shell  B                                        4.0%
Smith DS                                        4.0%
Standard Life Aberdeen                          4.3%
Tate & Lyle                                     3.3%
Taylor Wimpey                                   4.2%
United Utilities                                3.0%
Unilever                                        3.3%
Vodafone                                        3.8%
WPP                                             3.3%

The law of ish applies.

Tomorrow I'm making a small top up of my HSBC holdings. Next month Shell RDSB seem the likely top up. The reason for my choice this month is due to the apparent weakness of the share currently, and the higher yield that it offers right now,

Ian.

[kempiejon]

Ian, Invoking a further rule of ish, both HSBA and RDSB offer high yields of the 7%ish order but have been static for 6ish years - in local currency, the story in pounds is different. I've got both in my HYP too and they are, at these prices good buys for income today. My choices for top-ups are for above portfolio yield and growing dividends where possible and I'd sacrifice a little yield today for growth but as I'm still adding new money to my HYP and I think you are not our priorities might diverge. My HYP yields 5ish currently do you know what yours is?

[monabri]

Ian, does "% Capital" mean the percentage of funds you have invested in each holding (and not the value of each holding relative to one another)?

[idpickering]

Ian, Invoking a further rule of ish, both HSBA and RDSB offer high yields of the 7%ish order but have been static for 6ish years - in local currency, the story in pounds is different. I've got both in my HYP too and they are, at these prices good buys for income today. My choices for top-ups are for above portfolio yield and growing dividends where possible and I'd sacrifice a little yield today for growth but as I'm still adding new money to my HYP and I think you are not our priorities might diverge. My HYP yields 5ish currently do you know what yours is?

Thanks for your input kempiejon.your reasoning regarding HSBC and RDSB are the same as mine. I do invest the dividends received each month, and only drip in £20 per month as new money in order to keep my account with Halifax open. As for the overall yield of my HYP, it’s not something I stress about, but I’d say about 5.5%. The HYP is weighted towards the higher yielding shares. The likes of DGE are smaller holdings I’ve had for years and am not intending buying more of that share.

Ian.

[idpickering]

Ian, does "% Capital" mean the percentage of funds you have invested in each holding (and not the value of each holding relative to one another)?

Thanks for your input. The %age is with regards the capital value of the holding, not monies invested.

Ian.

[Dod101]

Ian

Time for some pickering, or do you know something that we do not? HSBC announces its full year results on Tuesday. If they fall short on the consensus, you might get them more cheaply then. Of course who knows? The time to buy is now. I wouldn't be doing so though.

In fact, I am beginning to wonder if I might shave say 10% off each of HSBC, Shell, AstraZeneca and Glaxo and forego some income in favour of growth by boosting some of my growth shares or maybe buying something like Nestle. Good heavens, this is the HYP-P Board! I am not allowed to say that I suppose.

However, I am really beginning to wonder about the four that I have mentioned. None would qualify today as HYP shares given the static dividends.

Dod

[idpickering]

Ian

Time for some pickering, or do you know something that we do not? HSBC announces its full year results on Tuesday. If they fall short on the consensus, you might get them more cheaply then. Of course who knows? The time to buy is now. I wouldn't be doing so though.

In fact, I am beginning to wonder if I might shave say 10% off each of HSBC, Shell, AstraZeneca and Glaxo and forego some income in favour of growth by boosting some of my growth shares or maybe buying something like Nestle. Good heavens, this is the HYP-P Board! I am not allowed to say that I suppose.

However, I am really beginning to wonder about the four that I have mentioned. None would qualify today as HYP shares given the static dividends.

Dod

Thanks for your input Dod, and well reminded! I’d forgotten about HSBC reporting. Ok, I’m going to plan b, tomorrow I’m buying more RDSB. I can forgive the static divis on those shares. Imho they still offer a firm base to my HYP. I was going to top up my shell holdings next month anyway, so not a major change really. I’m gobsmacked that I forgot about that.
Thanks,

Ian.

[idpickering]

For what it's worth, I last topped up my RDSB holdings on 21 Jan 2016, buying at 1305p. My average buy price for this share is currently 1757p, and I've held shares in RDSB since 20 Jul 2005. They're (RDSB) currently just shy of their one year low, offering a yield of 7.48% according to dividenddata; https://www.dividenddata.co.uk/dividend ... alDiv=true

Ian.

[tjh290633]

Ian, it seems a little perverse to me, that the two shares which you have in mind to top up, HSBA and RDSB, are among your top weight shares, at 4.0%.

In my system they would seldom make the short list. How come they make yours?

TJH

[idpickering]

Ian, it seems a little perverse to me, that the two shares which you have in mind to top up, HSBA and RDSB, are among your top weight shares, at 4.0%.

In my system they would seldom make the short list. How come they make yours?

TJH

Hello Terry, thanks for your input. As I add new money every month to my HYP from dividends accrued, I don’t mind the odd over weighting. That would be rectified over the coming months as I invest elsewhere. With regards to those two, RDSB and HSBA, they’re near my maximum spend limit so I’m unlikely to buy more after I’ve topped them both up one last time, for now at least. By the way, I topped up HSBA last month anyway. I like to buy when shares are on offer.

Ian.

[Wizard]

Ian, it seems a little perverse to me, that the two shares which you have in mind to top up, HSBA and RDSB, are among your top weight shares, at 4.0%.

In my system they would seldom make the short list. How come they make yours?

TJH

Hello Terry, thanks for your input. As I add new money every month to my HYP from dividends accrued, I don’t mind the odd over weighting. That would be rectified over the coming months as I invest elsewhere. With regards to those two, RDSB and HSBA, they’re near my maximum spend limit so I’m unlikely to buy more after I’ve topped them both up one last time, for now at least. By the way, I topped up HSBA last month anyway. I like to buy when shares are on offer.

Ian.

If value is the key factor why RDSB or HSBA instead of Imperial Brands?

[moorfield]

Ian, it seems a little perverse to me, that the two shares which you have in mind to top up, HSBA and RDSB, are among your top weight shares, at 4.0%.

RDSB is offering a more generous yield than it has for a while, and Ian is making a "small top up", which I'll wager will change its weighting to no more than 4.1% (*). 1 decimal place does not seem too perverse to me.

(*) Ian, prove me wrong and post up your portfolio after you're done....

[idpickering]

Ian, it seems a little perverse to me, that the two shares which you have in mind to top up, HSBA and RDSB, are among your top weight shares, at 4.0%.

In my system they would seldom make the short list. How come they make yours?

TJH

Hello Terry, thanks for your input. As I add new money every month to my HYP from dividends accrued, I don’t mind the odd over weighting. That would be rectified over the coming months as I invest elsewhere. With regards to those two, RDSB and HSBA, they’re near my maximum spend limit so I’m unlikely to buy more after I’ve topped them both up one last time, for now at least. By the way, I topped up HSBA last month anyway. I like to buy when shares are on offer.

Ian.

If value is the key factor why RDSB or HSBA instead of Imperial Brands?

I had toyed with the idea tbh, but I’ve spent enough there already. Doesn’t mean I might not do so in the future. We’ll see.

Ian.

[idpickering]

Ian, it seems a little perverse to me, that the two shares which you have in mind to top up, HSBA and RDSB, are among your top weight shares, at 4.0%.

RDSB is offering a more generous yield than it has for a while, and Ian is making a "small top up", which I'll wager will change its weighting to no more than 4.1% (*). 1 decimal place does not seem too perverse to me.

(*) Ian, prove me wrong and post up your portfolio after you're done....

Cheers for your input. You’re right. I’m raising my RDSB holdings by 10%, over the whole HYP it’s barely a nudge to the HYP value. I just want to buy more of it whilst it’s cheap.

Ian.

[idpickering]

If value is the key factor why RDSB or HSBA instead of Imperial Brands?

I had toyed with the idea tbh, but I’ve spent enough there already. Doesn’t mean I might not do so in the future. We’ll see.

Ian.

Further to my above comment, I don’t want to just chase the sky high 11.3% yield seemingly on offer by buying yet more IMB. Such yields are imho, major warning signs. ‘If it looks to good to be true’ and all that.

Ian.

[miner1000]

Hi Ian,

I doubled my holding in RDSB last week too at 20.14. I am only after the yield and since they haven't cut the divi since WW2 I guess that is good enough for me. I am living off the HYP so it is all about income for me.

Miner

[idpickering]

Hi Ian,

I doubled my holding in RDSB last week too at 20.14. I am only after the yield and since they haven't cut the divi since WW2 I guess that is good enough for me. I am living off the HYP so it is all about income for me.

Miner

Thanks for your input Miner. I doubled up my RDSB holdings in 2016, due to the fact that they were very cheap. Ditto currently. I topped up my BP. holdings recently too. We don’t live on the dividends yet, but will in the coming years, so it’s nice to buy that income when one can. Currently the dividends received are held in my account as cash, and invested where I choose. As I say, we may go into the spend the dividends mode in the coming years, but not just yet.

Ian.

[tjh290633]

I take your point about having put enough money into IMB, Ian. I'm in the same position myself with them.

My ranking system, also used by HYPTUSS, rarely selects a share holding above median weight for topping up. If it did, I would think twice before acting.

My original plan was to top up the lowest value holding, provided that the yield was acceptable. Then the one with the highest yield, but that led me to put too much money into Mapeley, and so my present system was devised, with vetoes on shares which had taken more than 5% of portfolio cost or which provided more than 5% of portfolio income. For anyone with 20 holdings, those limits would need to be up to 10% to be effective.

TJH

[idpickering]

I take your point about having put enough money into IMB, Ian. I'm in the same position myself with them.

My ranking system, also used by HYPTUSS, rarely selects a share holding above median weight for topping up. If it did, I would think twice before acting.

My original plan was to top up the lowest value holding, provided that the yield was acceptable. Then the one with the highest yield, but that led me to put too much money into Mapeley, and so my present system was devised, with vetoes on shares which had taken more than 5% of portfolio cost or which provided more than 5% of portfolio income. For anyone with 20 holdings, those limits would need to be up to 10% to be effective.

TJH

Thanks for your input Terry. I've always admired your system of choosing your picks. It's something I think I need to work on myself. My intention over the coming months is to do as you mention above, ie topping up the lowest value shares in my HYP, provided the yield on offer is acceptable. I'm happy with 29 holdings, and not in a rush to expand that number currently.

Ian.

[Arborbridge]

I take your point about having put enough money into IMB, Ian. I'm in the same position myself with them.

My ranking system, also used by HYPTUSS, rarely selects a share holding above median weight for topping up. If it did, I would think twice before acting.

My original plan was to top up the lowest value holding, provided that the yield was acceptable. Then the one with the highest yield, but that led me to put too much money into Mapeley, and so my present system was devised, with vetoes on shares which had taken more than 5% of portfolio cost or which provided more than 5% of portfolio income. For anyone with 20 holdings, those limits would need to be up to 10% to be effective.

TJH

Thanks for your input Terry. I've always admired your system of choosing your picks. It's something I think I need to work on myself. My intention over the coming months is to do as you mention above, ie topping up the lowest value shares in my HYP, provided the yield on offer is acceptable. I'm happy with 29 holdings, and not in a rush to expand that number currently.

Ian.

Ian, I think if you intend to do that, try the HYPTUSS because it really does lay out he options in a regular way. Of course, one does not have to follow it slavishly, but I find it a good place to begin one's pickering.

And I'll just add: it is very easy to use, and even the setting up is pretty simple.

PS I'm moving house in a few days. So up to my eyes in boxes that I have little brain left over for thinking of a topup - but if I do, it may be SLA.
Arb.