HYP Report 2017
Posted: January 12th, 2017, 10:56 pm
This is my first post on The Lemon Fool. I was only a very occasional poster on TMF - but a frequent reader since the late 1990s, and like everyone else, I was much saddened by the demise of the message boards. I hope this replacement will be a success, and I’m posting this annual update as a modest contribution to that end !
My last update can - for the time being - be found here : http://boards.fool.co.uk/another-hyp-re ... 14604.aspx. That post contains links to previous reports.
There was less activity in 2016. The main news is that I lost patience with Tesco in September (of course, just before the price started to recover somewhat) and sold it to buy (after adding accumulated dividends) a full size holding in Berkeley Group (after which, of course, the price declined - and, more importantly, they altered their dividend policy). But in general I am happy to have made this change.
My HYP is held in a YouInvest SIPP and now has 22 holdings, as follows :
Or, viewed by sector :
I do not add new money to my HYP (I belong to an occupational final salary pension scheme, and the rest of my retirement savings are directed at trackers and held (mostly) in an ISA). The value of the (accumulation) units has moved like this since I started in 2010 :
October 2010 : 10
January 2013 : 12.38
January 2014 : 13.98
January 2015 : 14.22
January 2016 : 14.14
January 2017 : 16.32
Income, expressed as pence per unit, has progressed like this :
January 2013 : 53
January 2014 : 54
January 2015 : 58
January 2016 : 60
January 2017 : 66
Trailing yield - by which I mean the value at 31 December 2016 (shares + as-yet-unspent cash) divided by the income received during the preceding calendar year - was 4.04%.
The “running yield” - calculated by HYPTUSS, and so using forecast yields - is higher, at 4.53%.
I have read some of the discussion about the income performance experienced by various HYPers in 2016 and this increase in income seems to be at the high end of the scale.
So, I thought some might be interested to see this list of income per holding for 2016 expressed as a percentage of 2015’s income for that holding :
Comments on this list are :
- BHP Billiton was my only cutter.
- Income from GSK included the special dividend of 20 pence - without this it was flat at 80 pence for the year.
- Some increases were the result of exchange rates : HSBC, Shell, Unilever
- Others the result of more recent purchases coming “on stream” - Imperial Brands and Schroders
- Aviva and Legal and General both increased their payouts healthily, most others much more modestly
- RB's increase is slightly illusory - they have been adjusting the ratio of their interim and final payments and this makes up for the consequent drop in 2015
- basically, I seem to dodged a few bullets (for a change)
I feel that I now have a strategic decision to make. Up to now, I have been buying a full unit of a new share at median value when the dividend income has piled up high enough to allow this. This typically means a purchase about once a year - unless, as in 2016, I tinker...
However, I am fairly comfortable with the diversification that I now have, and so I am considering moving to a top-up system which would enable me to get money invested more regularly, and so producing income more quickly. Using my broker’s “regular investment” option (£1.50) it would be cost effective to buy several times a year. But it would mean missing out on the cyclical bargains that a more sporadic and lumpy approach might throw up. I welcome any thoughts !
Chris
My last update can - for the time being - be found here : http://boards.fool.co.uk/another-hyp-re ... 14604.aspx. That post contains links to previous reports.
There was less activity in 2016. The main news is that I lost patience with Tesco in September (of course, just before the price started to recover somewhat) and sold it to buy (after adding accumulated dividends) a full size holding in Berkeley Group (after which, of course, the price declined - and, more importantly, they altered their dividend policy). But in general I am happy to have made this change.
My HYP is held in a YouInvest SIPP and now has 22 holdings, as follows :
Or, viewed by sector :
I do not add new money to my HYP (I belong to an occupational final salary pension scheme, and the rest of my retirement savings are directed at trackers and held (mostly) in an ISA). The value of the (accumulation) units has moved like this since I started in 2010 :
October 2010 : 10
January 2013 : 12.38
January 2014 : 13.98
January 2015 : 14.22
January 2016 : 14.14
January 2017 : 16.32
Income, expressed as pence per unit, has progressed like this :
January 2013 : 53
January 2014 : 54
January 2015 : 58
January 2016 : 60
January 2017 : 66
Trailing yield - by which I mean the value at 31 December 2016 (shares + as-yet-unspent cash) divided by the income received during the preceding calendar year - was 4.04%.
The “running yield” - calculated by HYPTUSS, and so using forecast yields - is higher, at 4.53%.
I have read some of the discussion about the income performance experienced by various HYPers in 2016 and this increase in income seems to be at the high end of the scale.
So, I thought some might be interested to see this list of income per holding for 2016 expressed as a percentage of 2015’s income for that holding :
Comments on this list are :
- BHP Billiton was my only cutter.
- Income from GSK included the special dividend of 20 pence - without this it was flat at 80 pence for the year.
- Some increases were the result of exchange rates : HSBC, Shell, Unilever
- Others the result of more recent purchases coming “on stream” - Imperial Brands and Schroders
- Aviva and Legal and General both increased their payouts healthily, most others much more modestly
- RB's increase is slightly illusory - they have been adjusting the ratio of their interim and final payments and this makes up for the consequent drop in 2015
- basically, I seem to dodged a few bullets (for a change)
I feel that I now have a strategic decision to make. Up to now, I have been buying a full unit of a new share at median value when the dividend income has piled up high enough to allow this. This typically means a purchase about once a year - unless, as in 2016, I tinker...
However, I am fairly comfortable with the diversification that I now have, and so I am considering moving to a top-up system which would enable me to get money invested more regularly, and so producing income more quickly. Using my broker’s “regular investment” option (£1.50) it would be cost effective to buy several times a year. But it would mean missing out on the cyclical bargains that a more sporadic and lumpy approach might throw up. I welcome any thoughts !
Chris