What are you buying today?

[tjh290633]

I've added PHP to my HYP today. It has been on my watchlist for a long time. Yield at 3.9% is a bit low for an HYP, but still better than some possibles. See my post on the subject: viewtopic.php?p=294120#p294120

TJH

[Dod101]

I've added PHP to my HYP today. It has been on my watchlist for a long time. Yield at 3.9% is a bit low for an HYP, but still better than some possibles. See my post on the subject: viewtopic.php?p=294120#p294120

TJH

I have held it for some time and have been quite happy to sacrifice some yield in favour of security. It is the only landlord I hold. It has held up well which is not surprising considering its assets and that most of its rents are paid directly by the NHS. I presume the same applies to its properties in Ireland (not paid by the NHS but the Irish equivalent. They are canny operators.

Dod

[monabri]

I've added PHP to my HYP today. It has been on my watchlist for a long time. Yield at 3.9% is a bit low for an HYP, but still better than some possibles. See my post on the subject: viewtopic.php?p=294120#p294120

TJH

In a sea of opportunity for an income seeker I think it strange to opt for a yield of 3.9% especially when "plain vanilla" was offering a 12m trailing yield of 7.3% (now a miserable 6% and a 50+ year pedigree).

[tjh290633]

I've added PHP to my HYP today. It has been on my watchlist for a long time. Yield at 3.9% is a bit low for an HYP, but still better than some possibles. See my post on the subject: viewtopic.php?p=294120#p294120

TJH

In a sea of opportunity for an income seeker I think it strange to opt for a yield of 3.9% especially when "plain vanilla" was offering a 12m trailing yield of 7.3% (now a miserable 6% and a 50+ year pedigree).

I have plenty of shares with high yields, here is my portfolio ranked by yield:

Rank   EPIC   Yield 
   1   IMB    15.37%
   2   AV.    11.94%
   3   BT.A   11.71%
   4   LLOY   11.60%
   5   MARS   11.00%
   6   RDSB   10.38%
   7   BP.     9.54%
   8   LGEN    9.36%
   9   RIO     9.18%
  10   BHP     8.56%
  11   BLND    8.54%
  12   BATS    8.16%
  13   ADM     6.46%
  14   VOD     6.42%
  15   SSE     6.07%
  16   SMDS    5.88%
  17   IMI     5.43%
  18   GSK     5.37%
  19   NG.     5.28%
  20   TATE    5.07%
  21   UU.     5.03%
  22   BA.     4.43%
  23   S32     4.06%
  24   PSON    3.90%
  25   PHP     3.85%
  26   WMH     3.77%
  27   ULVR    3.59%
  28   CPG     3.57%
  29   MKS     3.53%
  30   AZN     3.16%
  31   TW.     3.09%
  32   TSCO    3.05%
  33   RB.     3.04%
  34   DGE     2.78%
  35   SGRO    2.63%
  36   KGF     1.95%

I also topped up BLND, which is the highest yielding share in the portfolio, not disqualified from topping up. The list has been adjusted to assume that only the announced dividends to be cancelled have been affected, and that the remainder will not be cancelled. Not neccessarily true.

TJH

[monabri]

Were they that yield when you bought them? If you bought PHP at 3.9% and the share price drops, it is no value claiming a higher yield ... do you receive 15% on IMB?

[tjh290633]

Were they that yield when you bought them? If you bought PHP at 3.9% and the share price drops, it is no value claiming a higher yield ... do you receive 15% on IMB?

I first bought BLND in 2010, at 473p, with a yield from the next 4 quarters at 5.5%.

IMB have given no indication that their dividends will be reduced or cut. I have taken into account that some shares have cancelled or suspended their next dividends.

TJH

[Arborbridge]

Were they that yield when you bought them? If you bought PHP at 3.9% and the share price drops, it is no value claiming a higher yield ... do you receive 15% on IMB?

He's not "claiming" anything, only stating the current yield. The list TJH gives has never been the yields as bought, and as far as I know nobody does that - so why are you picking him, up on this point when surely you know the answer already?

His table is a guide to what to buy next, and nothing to do with the yield received.

Arb.

[monabri]

The question was

"In a sea of opportunity for an income seeker I think it strange to opt for a yield of 3.9% especially when "plain vanilla" was offering a 12m trailing yield of 7.3% (now a miserable 6% and a 50+ year pedigree)."

So, to "deliberately " buy something with a yield so low in an income based strategy is puzzling. Equally puzzling was the reply.

"I have plenty of shares with high yields, here is my portfolio ranked by yield:"

[88V8]

TJH... "I have plenty of shares with high yields, here is my portfolio ranked by yield:"

It's part of the HYP dogma that a high-yielding portfolio can contain a few dogs

And mine does, but they were inadvertent dogs..........

V8

[Dod101]

I think monabri's point is that TJH's table is not showing his 'buying' yields and yet is comparing them with PHP at its 'buying ' yield. There was a whole collection of shares with much higher current yields and yet he decided to forego these in favour of a yield of a mere 3.9%.

As it happens, it is of course impossible at the moment to make a sensible comparison and it needs an act of faith in assuming that all the dividends listed will be at least maintained.

Since this is HYP-P and PHP does not satisfy the definition of a HYP share, I think he is off topic anyway, although continuing to be off topic, I have held PHP for some years and am happy to sacrifice some income for the perceived security of the dividend. As it happens, TJH also bought it at a high price, near its peak of about £1.60 in fact which makes the purchase all the more curious because until about 6 months ago, PHP was available at around £1.30/1.40. It seems he may not be very confident of the sustainability of some of the dividend yields he has listed. I think he may be right.

Dod

[Arborbridge]

The question was

"In a sea of opportunity for an income seeker I think it strange to opt for a yield of 3.9% especially when "plain vanilla" was offering a 12m trailing yield of 7.3% (now a miserable 6% and a 50+ year pedigree)."

So, to "deliberately " buy something with a yield so low in an income based strategy is puzzling. Equally puzzling was the reply.

"I have plenty of shares with high yields, here is my portfolio ranked by yield:"

I agree his reply was a little cryptic! However, I guess he fancied that share as a reliable payer and justified it because he has plenty of other high yielders. I did something similar when I topped up Lloyds on the expectation of the dividend returning, and of Unilever when that company's yield was "as good as it gets" - neither were anywhere near my top rank.

Sometimes one does not adhere exactly to HYP principles: we sin but hopefully get away with it!

Arb.

[Arborbridge]

It seems he may not be very confident of the sustainability of some of the dividend yields he has listed. I think he may be right.

Dod

Like many good investors, TJH has a system but is willing to break the rules or "nuance" them. In the past we have referred to TJH's "secret sauce" which he uses to finalise a choice, and this could be an example of it in action.

In reading about the world's famous investors, I notice that one can describe what they do in theory, but what they do in practice is quite another matter (and impossible to copy). Although we try to mechanise investment, it often comes down to shades of grey and the gut feeling - something you, Dod, would recognise as "smell"

Arb.

[Dod101]

In reading about the world's famous investors, I notice that one can describe what they do in theory, but what they do in practice is quite another matter (and impossible to copy). Although we try to mechanise investment, it often comes down to shades of grey and the gut feeling - something you, Dod, would recognise as "smell" .

Absolutely. And I agree with his choice of PHP as it happens and an illustration of why is illustrated in its current price, but it is not a HYP share and I do not think ever has been. When I bought it at the equivalant of just under£1 (they had a share split after I bought) it was because it was (and still is) the only landlord I held, except for Daejan which I unfortunately sold before the very generous offer from the major shareholder was made not so long ago.

Dod

[tjh290633]

The question was

"In a sea of opportunity for an income seeker I think it strange to opt for a yield of 3.9% especially when "plain vanilla" was offering a 12m trailing yield of 7.3% (now a miserable 6% and a 50+ year pedigree)."

So, to "deliberately " buy something with a yield so low in an income based strategy is puzzling. Equally puzzling was the reply.

"I have plenty of shares with high yields, here is my portfolio ranked by yield:"

As you have no doubt read elsewhere, BLND is not paying its Q3 dividend, for which it would have gone XD today. In a few weeks' time, 3.9% may look very acceptable.

Your crystal ball may be clear, mine isn't.

TJH

[monabri]

As you have no doubt read elsewhere, BLND is not paying its Q3 dividend, for which it would have gone XD today. In a few weeks' time, 3.9% may look very acceptable.

Your crystal ball may be clear, mine isn't.

TJH

I didn't mention BLND...the comment was...

Oh, I give up!

[Wizard]

As you have no doubt read elsewhere, BLND is not paying its Q3 dividend, for which it would have gone XD today. In a few weeks' time, 3.9% may look very acceptable.

Your crystal ball may be clear, mine isn't.

TJH

I didn't mention BLND...the comment was...

Oh, I give up!

Yes, but the point is sustainability. There was a discussion previously where the thrust of one was that it is primarily backward looking, I think the current market makes clear that approach is not always a great one. If every other share in the market cuts its dividend, by definition the one share standing is HYP by definition.

I asked if the switch was income dilutive, I was thinking about PHP. It clearly was income dilutive, but for another reason. The question is will the shares trimmed (Admiral, AstraZeneca and GlaxoSmithKline if I recall correctly) still be paying their dividends in few months time. If yes, from an HYP perspective it was not a good move, if no then it may well have been.

[tjh290633]

I asked if the switch was income dilutive, I was thinking about PHP. It clearly was income dilutive, but for another reason. The question is will the shares trimmed (Admiral, AstraZeneca and GlaxoSmithKline if I recall correctly) still be paying their dividends in few months time. If yes, from an HYP perspective it was not a good move, if no then it may well have been.

I meant to do that calculation, which is easily done. Before the BLND suspension of its dividend, there would have been a 0.65% increase in the dividend which would have been received from the shares sold .

Considering PHP alone, its dividends will provide 72% of the dividends anticipated from the three shares sold.

Any more questions?

TJH

[Arborbridge]

As you have no doubt read elsewhere, BLND is not paying its Q3 dividend, for which it would have gone XD today. In a few weeks' time, 3.9% may look very acceptable.

Your crystal ball may be clear, mine isn't.

TJH

I didn't mention BLND...the comment was...

Oh, I give up!

No you didn't, but TJH did

The point he's making is that one cannot predict anything so diversity becomes important as does trying to pick companies where you believe the dividend will be paid. What TJH has done with PHP is hedge his bets in that way with a lower yielder. I applaud him for not slavishly following the usual method, but finessing it due to these strange times.

Arb.

[idpickering]

I've added PHP to my HYP today. It has been on my watchlist for a long time. Yield at 3.9% is a bit low for an HYP, but still better than some possibles. See my post on the subject: viewtopic.php?p=294120#p294120

TJH

I have held it for some time and have been quite happy to sacrifice some yield in favour of security. It is the only landlord I hold. It has held up well which is not surprising considering its assets and that most of its rents are paid directly by the NHS. I presume the same applies to its properties in Ireland (not paid by the NHS but the Irish equivalent. They are canny operators.

Dod

I'm toying with swapping my LAND holdings with PHP, as they attract me for the reasons depicted by Dod in his post above. Maybe it was folly on my part buying LAND in the first place as they're very similar to my other REIT BLND. I've been toying with this move for a while, thoughts on this anyone? I must admit to not being keen to make my paper losses on my LAND holdings a reality by selling, but I might just have to bite the bullet on that. The other option is to leave my LAND holdings alone and make PHP a new holding. 3 REITs in 29 holdings is over the top though surely? I favour a straight LAND/PHP swap.

Ian.

[GoSeigen]

I'm toying with swapping my LAND holdings with PHP, as they attract me for the reasons depicted by Dod in his post above. Maybe it was folly on my part buying LAND in the first place as they're very similar to my other REIT BLND. I've been toying with this move for a while, thoughts on this anyone? I must admit to not being keen to make my paper losses on my LAND holdings a reality by selling, but I might just have to bite the bullet on that. The other option is to leave my LAND holdings alone and make PHP a new holding. 3 REITs in 29 holdings is over the top though surely? I favour a straight LAND/PHP swap.

Ian.

Is HYP not a no-selling strategy?

GS