Arb HYP adjustment

[Arborbridge]

Where did Sainsbury come from? It's not on your top-up list?

TJH

Well spotted! What happened was, I worked on a spreadsheet for posting, but then did last a moment run - didn't notice that SBRY had popped up in the newer list.

Here are the rankings as last night:-

Woodside Energy Group     | WDS 
Lloyds Banking Group      | LLOY
abrdn                     | ABDN
British American Tobacco  | BATS
Aviva                     | AV  
Chesnara                  | CSN 
Primary Health Properties | PHP 
Sainsbury (J)             | SBRY
HSBC Holdings             | HSBA
WPP                       | WPP 
Greencoat UK Wind         | UKW 
Imperial Brands           | IMB

SBRY SP dived - and looks like a warning sign.

[Arborbridge]

Where did Sainsbury come from? It's not on your top-up list?

TJH

And doesn't it's shaky income history have overtones of AV. too? Several cuts in the pre covid time. I was lured by the strong history in 2010,11&12, then I got a job with them so excluded from extra investment, then the cuts.

Agreed. This all points to WDS plus WPP and UKW as being the front runners. Interestingly, WDS and WPP have recovering charts, whereas UKW has a diving chart. My ideal would be a share with an acceptable yield on an upward trend rather than a long downward trend.

Arb.

[kempiejon]

I quite like PHP, looks like the traditional pick as does BATS. As I wasn't buying PHP couple of years ago I'm not starting at that 20% loss. If I was happy to forgive a stumble, I'm not generally, HSBA might be a good option for growing income with a couple of years of double digit growth. Or as you say WPP.

[Arborbridge]

I quite like PHP, looks like the traditional pick as does BATS. As I wasn't buying PHP couple of years ago I'm not starting at that 20% loss. If I was happy to forgive a stumble, I'm not generally, HSBA might be a good option for growing income with a couple of years of double digit growth. Or as you say WPP.

I definitely have PHP in mind for a small top up - but I notice the SP has taken a turn for the worst again, so there's no hurry. But it does have a brilliant dividend history.

AsI've mentioned occasionally, much of my new effort has gone into bulking up my ITs - it avoids these sorts of decisions, particularly with increasing age - and the results seem as good or better than buying individual shares, in my case.

Arb.

[kempiejon]

I quite like PHP, looks like the traditional pick as does BATS. As I wasn't buying PHP couple of years ago I'm not starting at that 20% loss. If I was happy to forgive a stumble, I'm not generally, HSBA might be a good option for growing income with a couple of years of double digit growth. Or as you say WPP.

I definitely have PHP in mind for a small top up - but I notice the SP has taken a turn for the worst again, so there's no hurry. But it does have a brilliant dividend history.

AsI've mentioned occasionally, much of my new effort has gone into bulking up my ITs - it avoids these sorts of decisions, particularly with increasing age - and the results seem as good or better than buying individual shares, in my case.

Arb.

I set my HYP as done a few years ago so no new money. The income is good enough and I'm still reinvesting dividends for now, I don't have many decisions to make, corporate actions and accumulated dividends every few months. In terms of no effort there's global trackers. I have compared my own efforts and a few ITs to VWRP and buy the market to enhance my wealth.

[Arborbridge]

Update:

WPP and WDS purchases set to triggger next week.


Arb.

[Arborbridge]

After this week's topping up of Woodside and WPP, here is the whole HYP in capital weight order. As regards the topup order, it is mostly the same few jostling for position as the previous table - top up rankings are the right hand column below.
My big hitters for income (over 4% each) are, in order, HSBC, LGN, CSN, BAT, IMB. Together they account for 24% of income. CSN in that list is a bit of an anomaly caused by it currently high yield - it remains to be seen if this translates into the hoped for dividend.



That's it until next time.

[Dod101]

After this week's topping up of Woodside and WPP, here is the whole HYP in capital weight order. As regards the topup order, it is mostly the same few jostling for position as the previous table - top up rankings are the right hand column below.
My big hitters for income (over 4% each) are, in order, HSBC, LGN, CSN, BAT, IMB. Together they account for 24% of income. CSN in that list is a bit of an anomaly caused by it currently high yield - it remains to be seen if this translates into the hoped for dividend.



That's it until next time.

Thanks for your detailed portfolio.How can some of these yields be justified? I am thinking in particular of Legal & General and HSBC. We should surely see some fireworks from HSBC soon, given that they publish their results next week when they are likely to shower shareholders with dividends, including of course the special from the sale of the Canadian business. We share many of these shares and in fact if you removed Haleon and BLand I would happily take it over. You are a little more widely focussed than I am and that is probably no bad thing.

Dod

[Charlottesquare]

After this week's topping up of Woodside and WPP, here is the whole HYP in capital weight order. As regards the topup order, it is mostly the same few jostling for position as the previous table - top up rankings are the right hand column below.
My big hitters for income (over 4% each) are, in order, HSBC, LGN, CSN, BAT, IMB. Together they account for 24% of income. CSN in that list is a bit of an anomaly caused by it currently high yield - it remains to be seen if this translates into the hoped for dividend.



That's it until next time.

Thanks for your detailed portfolio.How can some of these yields be justified? I am thinking in particular of Legal & General and HSBC. We should surely see some fireworks from HSBC soon, given that they publish their results next week when they are likely to shower shareholders with dividends, including of course the special from the sale of the Canadian business. We share many of these shares and in fact if you removed Haleon and BLand I would happily take it over. You are a little more widely focussed than I am and that is probably no bad thing.

Dod

Surely backwards, price and hence yield react to perception, directors do not set the dividend relative to prevailing price. (well most do not )

Whether a yield is justified surely more depends upon EPS and cover in the long term.

In Legal & General's case I am yet to be convinced that the market is not mispricing their shares, I hold a small holding awaiting a rebound of the SP. Of course I may be wrong (I often am) but not convinced the share price giving rise to a current P/E of 6.19 is fair, next results are key.

[Dod101]

I am confident that the market is badly mispricing the shares of Legal and General and quite possibly HSBC. The latter is not so sound, based on recent history but the current management have done a great job I think in improving the whole business. They will like other banks be helped of course by the current interest environment.

BTW, when I said ‘how can these yields be justified?’ I meant how can the market leave them at these yields and not be buying the shares. I am not for a second suggesting that the yield has much to do with the directors nor can they do much about it.

Dod

[Arborbridge]

Thanks for your detailed portfolio.How can some of these yields be justified? I am thinking in particular of Legal & General and HSBC. We should surely see some fireworks from HSBC soon, given that they publish their results next week when they are likely to shower shareholders with dividends, including of course the special from the sale of the Canadian business. We share many of these shares and in fact if you removed Haleon and BLand I would happily take it over. You are a little more widely focussed than I am and that is probably no bad thing.

Dod

Thank you for the kind remarks. Haleon may not last much longer, but it's there because I wanted to see if it would make any progress. It's actually quite a good sector to be in, but sooner or later I should decide whether to buy more or sell it. At the moment, it's too small to be useful.


Arb.

[kempiejon]

Haleon may not last much longer, but it's there because I wanted to see if it would make any progress. It's actually quite a good sector to be in, but sooner or later I should decide whether to buy more or sell it. At the moment, it's too small to be useful.

Was that the same position with WDS another spin off? Perhaps a similar fate. I don't have Haleon but remember they came out of GSK.

[Dod101]

Haleon may not last much longer, but it's there because I wanted to see if it would make any progress. It's actually quite a good sector to be in, but sooner or later I should decide whether to buy more or sell it. At the moment, it's too small to be useful.

Was that the same position with WDS another spin off? Perhaps a similar fate. I don't have Haleon but remember they came out of GSK.

Yes and they were loaded with debt. That and the overhang of shares still held by GSK and Pfizer means I think that they will not do much for some time.

I sold mine immediately I got them and I think bought more GSK with the proceeds.

Dod

[monabri]

Was that the same position with WDS another spin off? Perhaps a similar fate. I don't have Haleon but remember they came out of GSK.

Yes and they were loaded with debt. That and the overhang of shares still held by GSK and Pfizer means I think that they will not do much for some time.

I sold mine immediately I got them and I think bought more GSK with the proceeds.

Dod

Like Dod, I sold immediately - and topped up GSK. There is little there to merit investment IMHO. Debt level doesn't look to be too onerous (I'm willing to stand correction on that!) but margins & ROCE are poor and I just don't see long term growth potential (so the Total Return possibility is discounted). The current yield doesn't appeal to the closet HYP-er in me (I must see someone about that I'll need "therapy"!) . Then, as Dod mentions, sooner or later GSK/Pfizer will be wanting to divest their significant holdings in HLN.

A nitpick or two...even after the deal was done and HLN hived off, the company was still advertising their products on TV under the GSK banner - why? In additon, I don't know who the bigger duckeggs were, GSK's CEO ( Walmsley) refusing the Unilever offer or Unilever's ex-CEO (Polman) offer of £50bn (current market cap <£30bn).

https://www.haleon.com/our-brands

Looking at their leading brands - they list 16 on the above link - I have never heard of some of them (Eno, Fenistil, Theraflu, Flonase, Emergen-C (groan!), Caltrate, Biotene, Paradontax).



Hence the sale decision I mentioned earlier.

[kempiejon]

And to go along with WDS I see WPP, mine is underweight too. Did we share the same purchase time, having watched that strong dividend history for years with the yield always out of range then finally they tipped about 5% in 2017/18, excellent my patience has paid off, everything come to he who waits. Oh no, dividend cuts and share price crumble, Sorrell scandal. I see they are returning to HYP orbit with 4 years increasing dividend and 5% yield hence your top up I guess.

[Arborbridge]

And to go along with WDS I see WPP, mine is underweight too. Did we share the same purchase time, having watched that strong dividend history for years with the yield always out of range then finally they tipped about 5% in 2017/18, excellent my patience has paid off, everything come to he who waits. Oh no, dividend cuts and share price crumble, Sorrell scandal. I see they are returning to HYP orbit with 4 years increasing dividend and 5% yield hence your top up I guess.

Exactly right! I'd been eyeing WPP as a leader in its field and had the misfortune to buy around three weeks or so before the Sorrell thing broke. Now they seem to be returning to a decent dividend record, I decided to top up.

Arb.

[Arborbridge]

Haleon may not last much longer, but it's there because I wanted to see if it would make any progress. It's actually quite a good sector to be in, but sooner or later I should decide whether to buy more or sell it. At the moment, it's too small to be useful.

Was that the same position with WDS another spin off? Perhaps a similar fate. I don't have Haleon but remember they came out of GSK.

WDS spun out of BHP but they seem potentially a "keeper" so I decided to back them by building up the holding.

Haleon, on the other hand, are not a HYP share, though they are in a good sector which is the only reason I decided to hang on to them. To be honest, the capital amount is neither here nor there, and the dividend yield is so low as to mean any dividends are hardly worth writing up on my spreadsheet.
They will probably go before long, but whether I do or do not is not material to my pension survival. Interesting to realise just last week that my toothpaste has a tiny "haleon" logo on the side. I never knew!

My usual rule, when I get given a rump holding like this, is to sell straight away. This time I didn't, just to make a change.

Arb.

[csearle]

Was that the same position with WDS another spin off? Perhaps a similar fate. I don't have Haleon but remember they came out of GSK.

My usual rule, when I get given a rump holding like this, is to sell straight away. This time I didn't, just to make a change.

Neither did I. My reasoning was laziness. I too saw Haleon printed on something. C.

[torata]

https://www.haleon.com/our-brands

Looking at their leading brands - they list 16 on the above link - I have never heard of some of them (Eno, Fenistil, Theraflu, Flonase, Emergen-C (groan!), Caltrate, Biotene, Paradontax).

Hence the sale decision I mentioned earlier.

They're not brands in the UK (for a number of different reasons), but they have high market share in other countries.
Some of them are sold under different brand names in the UK, like Paradontax <> Corsodyl.

torata

[csearle]

Some of them are sold under different brand names in the UK, like Paradontax <> Corsodyl.

Yes! That's where I saw the name printed!