Beginners HYP Next Top Up or New Purchase

[TopOfDaMornin]

I currently have about £2000, received from dividend, to add to the below HYP.

About 6 months ago I sold the below shares as I wanted to use the money elsewhere:
BT Group (BT-A), Lloyds (LLOY), Royal Mail (RMG), Compass Group (CPG), Marston's (MARS)

Suggestions on the top up are welcome or even a new purchase. Below is the HYP.

                                                                                 Value     Div    Fcst 
Share                           Epic    Sector                                  %Total  %Total   Yield
Aviva                           AV      Life Insurance                           2.96%   3.67%   6.40%
BP                              BP      Oil & Gas Producers                      2.03%   2.13%   5.40%
Regional REIT Limited           RGL     IT - Property - UK Commercial            3.16%   6.50%  10.60%
GlaxoSmithKline                 GSK     Pharmaceuticals & Biotechnology          2.69%   2.98%   5.70%
HSBC Holdings                   HSBA    Banks                                    1.95%   1.86%   4.90%
Vodafone Group                  VOD     Mobile Telecommunications                3.10%   3.86%   6.40%
BAE Systems                     BA      Aerospace & Defence                      2.98%   2.89%   5.00%
National Grid                   NG      Multiutilities                           3.34%   3.76%   5.80%
British American Tobacco        BATS    Tobacco                                  3.61%   5.75%   8.20%
Imperial Brands                 IMB     Tobacco                                  3.90%   6.35%   8.40%
Sainsbury (J)                   SBRY    Food & Drug Retailers                    2.46%   2.14%   4.50%
United Utilities Group          UU      Gas, Water & Multiutilities              2.88%   2.62%   4.70%
British Land Company            BLND    Retail REITs                             2.78%   2.32%   4.30%
Unilever                        ULVR    Food Producers                           2.75%   1.87%   3.50%
Legal and General Group         LGEN    Life Insurance                           4.65%   6.04%   6.70%
Royal Dutch Shell 'B'           RDSB    Oil & Gas Producers                      3.11%   2.17%   3.60%
Rio Tinto                       RIO     Mining                                   5.09%   6.32%   6.40%
RSA Insurance Group             RSA     Nonlife Insurance                        3.56%   3.31%   4.80%
Tate and Lyle                   TATE    Food Producers                           3.42%   3.05%   4.60%
BHP Group                       BHP     Mining                                   4.79%   5.39%   5.80%
SSE                             SSE     Electricity                              4.42%   4.46%   5.20%
AstraZeneca                     AZN     Pharmaceuticals & Biotechnology          3.30%   1.80%   2.80%
Smith (DS)                      SMDS    General Industrials                      3.37%   2.29%   3.50%
Severn Trent                    SVT     Gas, Water & Multiutilities              3.50%   2.99%   4.40%
Man Group                       EMG     Financial Services                       4.38%   4.08%   4.80%
Taylor Wimpey                   TW      Household Goods & Home Construction      4.14%   3.70%   4.60%
Pearson                         PSON    Media                                    3.40%   1.85%   2.80%
SEGRO                           SGRO    Industrial & Office REITs                4.07%   1.89%   2.40%
Diageo                          DGE     Beverages                                4.21%   1.96%   2.40%

Portfolio Running Yield = 5.15%

                                                  Value      Div
Sector                                           %Total   %Total
Life Insurance                                    7.61%    9.71%
Oil & Gas Producers                               5.14%    4.30%
IT - Property - UK Commercial                     3.16%    6.50%
Pharmaceuticals & Biotechnology                   5.99%    4.78%
Banks                                             1.95%    1.86%
Mobile Telecommunications                         3.10%    3.86%
Aerospace & Defence                               2.98%    2.89%
Multiutilities                                    3.34%    3.76%
Tobacco                                           7.51%   12.10%
Food & Drug Retailers                             2.46%    2.14%
Gas, Water & Multiutilities                       6.38%    5.61%
Retail REITs                                      2.78%    2.32%
Food Producers                                    6.17%    4.92%
Mining                                            9.88%   11.71%
Nonlife Insurance                                 3.56%    3.31%
Electricity                                       4.42%    4.46%
General Industrials                               3.37%    2.29%
Financial Services                                4.38%    4.08%
Household Goods & Home Construction               4.14%    3.70%
Media                                             3.40%    1.85%
Industrial & Office REITs                         4.07%    1.89%
Beverages                                         4.21%    1.96%
Total                                           100.00%  100.00%

Note: 1. 'Value %Total' is the portfolio value of the share as a % of the total portfolio
      2. 'Div %Total' is the expected dividend of the share based on forecast yield as a % of the total portfolio expected dividend

The top up suggestions from the HYP Top Up spreadsheet are:


Regards
TDM

[tjh290633]

Why not do what the top-up spreadsheet is telling you?

Aviva is not anywhere near overweight, its dividend is not an undue proportion of the total. Regional REIT is arguably at the top end of contribution to dividends, so I would rule that out. BP. is arguably more attractive than AV.

Why have a tool and ignore it?

TJH

[idpickering]

Hi TDM, thanks for putting your HYP up.

To be honest, seeing that insurance is your largest bet, I'd ignore the top up suggestion, and look elsewhere. BP. look like a good choice for you imho.

Good luck with your HYP.

Ian.

[kempiejon]

The top up suggestions from the HYP Top Up spreadsheet are:


Regards
TDM

I can usually find a reason to rule out any given share. I know nothing of regional REIT but they're not FTSE350 so I'd exclude them as too small A few of the others have cut. BAE, BATS and National Grid have unblemished income history of increases, GSK has been static for 5 years or more.

[funduffer]

If you want a good steady eddie, with no drama, National Grid seems to fit the bill.

It seems immune to pandemic pressures. (Sorry for the pun!)

FD

[Dod101]

I would probably buy Admiral with the new money on the basis that I would then add the proceeds from RSA when its takeover goes through. It has a good record and a very good yield if as I do you count the so called 'specials' as part of the ongoing dividend.

Dod

[pyad]

If you want to consider a new share rather than a top up, financial markets bookmaker IG Group (IGG) is worth a look as is fund manager M&G (MNG). Both these have decent forecast yields, very decent in the case of MNG though it does have only a short record as an independent business, formerly part of Prudential so it's not exactly a new business, just a recent listing.

As Dod says, you'll soon have the the RSA bid proceeds to add to any new purchase, if the sum you now have is on the small side relative to your current average holding value.

[TopOfDaMornin]

Why not do what the top-up spreadsheet is telling you?

Aviva is not anywhere near overweight, its dividend is not an undue proportion of the total. Regional REIT is arguably at the top end of contribution to dividends, so I would rule that out. BP. is arguably more attractive than AV.

Why have a tool and ignore it?

TJH

The only reason I posted the question is, because the tool does not cater for new purchases i.e. perhaps there are some better external candidates e.g. the ones I sold 6 months ago BT Group (BT-A), Lloyds (LLOY), Royal Mail (RMG), Compass Group (CPG), Marston's (MARS)

Regards
TDM

[tjh290633]

Why not do what the top-up spreadsheet is telling you?

The only reason I posted the question is, because the tool does not cater for new purchases i.e. perhaps there are some better external candidates e.g. the ones I sold 6 months ago BT Group (BT-A), Lloyds (LLOY), Royal Mail (RMG), Compass Group (CPG), Marston's (MARS)

Regards
TDM

None of those are currently paying dividends, so at the moment I would rule them out. Possibly the first to rejoin the ranks of dividend payers is LLOY, but I would wait until they have come off the fence before jumping. That's unless you fancy a gamble. I bought IGG with the proceeds of William Hill a couple of weeks ago.

TJH

[kempiejon]

The only reason I posted the question is, because the tool does not cater for new purchases i.e. perhaps there are some better external candidates e.g. the ones I sold 6 months ago BT Group (BT-A), Lloyds (LLOY), Royal Mail (RMG), Compass Group (CPG), Marston's (MARS)RegardsTDM

As TJH noticed those you sold are not income picks. For a new share my first call is http://www.dividenddata.co.uk and pick the yield tab for the 100 index. Sorting the FTSE100 by yield today has new boy M&G 8.9% at the top followed by EVRAZ, Imperial Brands and British American Tobacco but only BATS is cut free. Then there's BP (cutter), Standard Life, and Phoenix. These all yield over 6% but it's time to the drill down into cover, debt, history of increasing dividends, cash flow etc.