IDP's HYP as of 20 May 21.

[Arborbridge]

I believe TRIG was mentioned earlier, and here's a link to TMF about three which have been mentioned:
https://www.fool.co.uk/investing/2021/0 ... es-id-buy/

Arb.

Thanks for posting this information Arb. I must admit that I do like the look of TRIG, and may well buy into it? It'd be handy to double up in the sector with it sitting alongside my UKW holdings. Hmm?

Ian.

It could be a case of buying two in place of one, as one might with RDSB nd BP. TRIG has the advantage of including solar power, but on the other hand the dividend history is not quite so good: 1.7% pa increase over 5 years, as opposed to UKW's 2.5% - neither of which is startling, BTW. What will be really interesting to see is how these dividends perform with higher inflation.

My inexpert eye tells me you have probably chosen the right one, if you intend to choose only one. But I am by no means competant to check the details, so maybe someone who knows these companies - a hint to MDW - might come along and explain why one might be better than the other, or at least note the points we should bear in mind when deciding.

A little niggle in my mind placed there by Dod: beware diworsification. Not that being both would necessarily be. Thinking back on HYP basics, I think it's a shame there isn't one very large company in this sector which we can look to as being "best in class".


Arb.

[Wizard]

To come back to your HYP, were you about to check if the 40% dividend recovery is like-for-like or if it includes the dividends on additional shares bought with reinvested income? If the 40% is not like-for-like do you have that figure?

I think he wrote that some of it was generated from extra investment. Not sure how much.

Arb.

Yes I did Arb, thanks. The 40% figure is due to the TSCO special, and new monies invested in my dividend payers, such as GSK which I topped up last October and again twice this year, as I mentioned on this board at those times.

Ian.

Thank you for confirming. Your initial response was not clear, to me at least, as you said...

It's fair to say that that figure is largely from new shares I bought to replace those that had cancelled theirs'. Last May I sold Smith (DS), Lloyds, British Land, Land Securities, HSBC and Taylor Wimpey. Had they been paid, no doubt my 40% improvement in dividends paid thus far this year would be less . Newbies since last May that have paid out this year include TSCO, PHP, SDRC and BBOX. Two of them aren't large payers, so it seems the special from TSCO has helped my dividend return a lot. I'm in no rush to buy back into those shares that failed to pay out, but might do so in the future.

As can be seen, you mentioned selling some and replacing them with others, but there was no mention in what you wrote about any top ups.

Do you know the like-for-like figure? I think that would be a much better measure of recovery than the one including dividends from top ups and is more comparable to other HYPs.

[Arborbridge]

As regards TRIG/UKW it trades at a premium of around 10% as opposed to UKW on about half that.


Seems a bit rich: do this signal reliability or fashion?

Arb.

[richfool]

As regards TRIG/UKW it trades at a premium of around 10% as opposed to UKW on about half that.


Seems a bit rich: do this signal reliability or fashion?

Arb.

I don't know if the HYP rules allow one to look at the capital/past performance and NAV of stocks and particularly of (these) renewables, but as an investor in that sector, it is something I do take particular note of. Apologies, if I have spoken out of turn, or off board, but definitely something I look at.

[Arborbridge]

As regards TRIG/UKW it trades at a premium of around 10% as opposed to UKW on about half that.


Seems a bit rich: do this signal reliability or fashion?

Arb.

I don't know if the HYP rules allow one to look at the capital/past performance and NAV of stocks and particularly of (these) renewables, but as an investor in that sector, it is something I do take particular note of. Apologies, if I have spoken out of turn, or off board, but definitely something I look at.

I don't see why not - it's just another point to factor in if you so desire. If we are worried, let's just add them to out IT baskets

[idpickering]

I believe TRIG was mentioned earlier, and here's a link to TMF about three which have been mentioned:
https://www.fool.co.uk/investing/2021/0 ... es-id-buy/

Arb.

Thanks for posting this information Arb. I must admit that I do like the look of TRIG, and may well buy into it? It'd be handy to double up in the sector with it sitting alongside my UKW holdings. Hmm?

Ian.

It could be a case of buying two in place of one, as one might with RDSB nd BP. TRIG has the advantage of including solar power, but on the other hand the dividend history is not quite so good: 1.7% pa increase over 5 years, as opposed to UKW's 2.5% - neither of which is startling, BTW. What will be really interesting to see is how these dividends perform with higher inflation.

My inexpert eye tells me you have probably chosen the right one, if you intend to choose only one. But I am by no means competant to check the details, so maybe someone who knows these companies - a hint to MDW - might come along and explain why one might be better than the other, or at least note the points we should bear in mind when deciding.

A little niggle in my mind placed there by Dod: beware diworsification. Not that being both would necessarily be. Thinking back on HYP basics, I think it's a shame there isn't one very large company in this sector which we can look to as being "best in class".


Arb.

Thanks again for your input. By picking the right one, do you mean I’ve got that already in UKW, or by buying TRIG to sit alongside it? I agree that some input from Malcom would be very welcome here.

Ian.

[moorfield]

TRIG has the advantage of including solar power,

Not much of one. Only 9% of it's portfolio is solar. If Ian really does want to diworsify, FSFL would provide much more exposure there.

I think it's a shame there isn't one very large company in this sector which we can look to as being "best in class".

SSE ?

[idpickering]

I think he wrote that some of it was generated from extra investment. Not sure how much.

Arb.

Yes I did Arb, thanks. The 40% figure is due to the TSCO special, and new monies invested in my dividend payers, such as GSK which I topped up last October and again twice this year, as I mentioned on this board at those times.

Ian.

Thank you for confirming. Your initial response was not clear, to me at least, as you said...

It's fair to say that that figure is largely from new shares I bought to replace those that had cancelled theirs'. Last May I sold Smith (DS), Lloyds, British Land, Land Securities, HSBC and Taylor Wimpey. Had they been paid, no doubt my 40% improvement in dividends paid thus far this year would be less . Newbies since last May that have paid out this year include TSCO, PHP, SDRC and BBOX. Two of them aren't large payers, so it seems the special from TSCO has helped my dividend return a lot. I'm in no rush to buy back into those shares that failed to pay out, but might do so in the future.

As can be seen, you mentioned selling some and replacing them with others, but there was no mention in what you wrote about any top ups.

Do you know the like-for-like figure? I think that would be a much better measure of recovery than the one including dividends from top ups and is more comparable to other HYPs.

I’m not certain of the figure, and am not overly concerned about it either. Once I’ve dumped a share, I move on.

Ian.

[idpickering]

TRIG has the advantage of including solar power,

Not much of one. Only 9% of it's portfolio is solar. If Ian really does want to diworsify, FSFL would provide much more exposure there.

I think it's a shame there isn't one very large company in this sector which we can look to as being "best in class".

SSE ?

I topped up my SSE holdings four times last year. They’re riding high currently, so I have no intention of buying more of them, but am very happy to hold. By the way, diworsify is your opinion, and may not be the same as mine. Each to their own.

Ian.

[Dod101]

SSE is good for wind power these days and I simply do not understand why people do not mention 3i Infrastructure. I think Arb holds it?

The results for the year to 31 March 2021 were announced recently. Dividend increase of 6.6% year on year and the same is expected for FY22. In addition for 2020/21, they had an increase in NAV of 9.2%. They do not keep raising additional capital either, which as I have said many times, dilutes existing shareholders.

Between them, these companies have given decent income from this general sector.

Dod

[richfool]

... thoughts...

Ian, (Re: UKW and TRIG), I would look at their capital past performance, their premiums to NAV, their holdings and their financial accounts/factsheets. (The latter I look at through the HL website).

Note that UKW invests in wind assets, whereas TRIG invests in wind, solar and other related assets, including battery storage. I held and sold TRIG last year, because it's SP growth had been poor and as with many other renewables, they often raise further capital, thus causing some dilution to existing investors. There is a lot of discussion on that aspect on the renewable energy thread:

viewtopic.php?f=8&t=17343&p=393693&hilit=renewables#p393693

viewtopic.php?f=31&t=28248&p=394507&hilit=renewables#p394507

[idpickering]

SSE is good for wind power these days and I simply do not understand why people do not mention 3i Infrastructure. I think Arb holds it?

The results for the year to 31 March 2021 were announced recently. Dividend increase of 6.6% year on year and the same is expected for FY22. In addition for 2020/21, they had an increase in NAV of 9.2%. They do not keep raising additional capital either, which as I have said many times, dilutes existing shareholders.

Between them, these companies have given decent income from this general sector.

Dod

Cheers for your input Dod. I did look at 3i the other day when it was mentioned, but imho, the 3.2% yield isn’t very tempting. That figure from HL. Or am I missing something?

Ian.

[Arborbridge]

SSE is good for wind power these days and I simply do not understand why people do not mention 3i Infrastructure. I think Arb holds it?

The results for the year to 31 March 2021 were announced recently. Dividend increase of 6.6% year on year and the same is expected for FY22. In addition for 2020/21, they had an increase in NAV of 9.2%. They do not keep raising additional capital either, which as I have said many times, dilutes existing shareholders.

Between them, these companies have given decent income from this general sector.

Dod

Yes, I hold 3iN in my IT basket, yielding around 3.2%. It has rarely qualified as a HYP share on yield, AFAIK, which is why it isn't often mentioned here. The SP has done very well since I bought it, but the yield is even less than when I bought.
It would not have been an appropriate buy for my HYP being well below the average yield at the time.
Although tempted by wind or solar energy, because it will be a growing market, I am also pulled by another consideration: that for my HYP I tend to try and avoid smallish companies. However, UKW does seem to have legs as a steady payer like PHP - another small company of which you approve.

Arb.

[Arborbridge]

SSE is good for wind power these days and I simply do not understand why people do not mention 3i Infrastructure. I think Arb holds it?

The results for the year to 31 March 2021 were announced recently. Dividend increase of 6.6% year on year and the same is expected for FY22. In addition for 2020/21, they had an increase in NAV of 9.2%. They do not keep raising additional capital either, which as I have said many times, dilutes existing shareholders.

Between them, these companies have given decent income from this general sector.

Dod

Cheers for your input Dod. I did look at 3i the other day when it was mentioned, but imho, the 3.2% yield isn’t very tempting. That figure from HL. Or am I missing something?

Ian.

No, you are not It does not qulify as a HYP share at present on yield. There's no way this would squeeze in unless one specifically wanted to add that sector even though it does not qualify.

[MDW1954]

My inexpert eye tells me you have probably chosen the right one, if you intend to choose only one. But I am by no means competant to check the details, so maybe someone who knows these companies - a hint to MDW - might come along and explain why one might be better than the other, or at least note the points we should bear in mind when deciding.

Arb.

Arb & Ian,

You have both asked for my input, so here goes.

I've nothing against TRIG whatsoever. There are several broadly-based renewable infrastructure plays out there that I've looked at over the years, and TRIG has always struck me as one of the better ones. Some of the others are into battery power and composters things like that, about which I know next to nothing, while TRIG is much more of a pure-play power firm.

All I can say is that every time that I've looked at TRIG, I've eventually invested elsewhere -- namely UKW, BSIF, and FSFL in the renewables sector, and HICL etc with a broader infrastructure focus. Each time, the decision has been predicated on factors such as yield, discount/premium, and recent price history.

The only thing against TRIG (and some people might argue that this is a plus) is its dividend policy. UKW etc (at least for the moment) have dividends that are explicitly linked to RPI inflation. TRIG's dividend aspiration, so far as I am aware, is less explicit.

TRIG's advantage -- compared to UKW, BSIF, and FSFL -- is that it is not a pure play: it has offshore, onshore, solar, and some battery. That said, I think that most of these firms will wind up embracing battery sooner or later. And I wouldn't be surprised if their power generation remit broadened, either.

MDW1954

[Arborbridge]

I’m not certain of the figure, and am not overly concerned about it either. Once I’ve dumped a share, I move on.

Ian.

I can respect that.
As I mentioned two days ago, I think, some are interested to note that their income has risen - it does not matter whether that is buy further investment or not - it's enough to know one is getting more income.

Others, like me, want to compare like with like so I can contemplate whether HYP or some other style of investment is my best course. For me, unitisation is therefore of interest, but for others it is irrelevant.

Both approaches are valid and to ask someone who isn't bothered about like for like or unitised comparisons to quote chapter and verse is likely to be fruitless, so we shouldn't bother
The reasonable plea from me would be that people should make it clear if the increase or decrease they mention is due to changes in portfolio size or whether it's "unitised" observation.

Arb.

[Arborbridge]

TRIG's advantage -- compared to UKW, BSIF, and FSFL -- is that it is not a pure play: it has offshore, onshore, solar, and some battery. That said, I think that most of these firms will wind up embracing battery sooner or later. And I wouldn't be surprised if their power generation remit broadened, either.

MDW1954

I also wondering if there will be some industry consolidation sometime, and whether we should wait for the take-overs to work through! Other investors won't want to wait for that.


Arb.

[Dod101]

SSE is good for wind power these days and I simply do not understand why people do not mention 3i Infrastructure. I think Arb holds it?

The results for the year to 31 March 2021 were announced recently. Dividend increase of 6.6% year on year and the same is expected for FY22. In addition for 2020/21, they had an increase in NAV of 9.2%. They do not keep raising additional capital either, which as I have said many times, dilutes existing shareholders.

Between them, these companies have given decent income from this general sector.

Dod

Yes, I hold 3iN in my IT basket, yielding around 3.2%. It has rarely qualified as a HYP share on yield, AFAIK, which is why it isn't often mentioned here. The SP has done very well since I bought it, but the yield is even less than when I bought.
It would not have been an appropriate buy for my HYP being well below the average yield at the time.
Although tempted by wind or solar energy, because it will be a growing market, I am also pulled by another consideration: that for my HYP I tend to try and avoid smallish companies. However, UKW does seem to have legs as a steady payer like PHP - another small company of which you approve.

Arb.

OK I forgot we are on the HYP Board. I am very happy with 3IN however, much better in my opinion than the more 'purist' share like TRIG. I know nothing of UKW but will take a look, although I am not looking for another share at present.

Dod

[monabri]

On UKW...
https://www.londonstockexchange.com/new ... g/14862647

Feb 2021

"Greencoat UK Wind plc (the "Company" or "UKW"), the leading listed renewable infrastructure fund, invested in UK wind farms, is announcing that it is seeking to raise up to £198 million through a placing (the "Placing") of new ordinary shares in the capital of the Company (the "Placing Shares") by way of a non-pre-emptive issuance to institutional investors at 131p per share.

Proceeds from the Placing will be used to repay or reduce borrowings under the Company's revolving credit facility to allow the Company to fund its strong pipeline of acquisition opportunities, including an acquisition in the near term and £162 million of previously announced committed acquisitions over the next 12 months."

"Under the terms of the Placing and conditional upon, inter alia, Admission (as defined below) (together the "Conditions"), UKW intends to place up to 150,853,600 new Ordinary Shares in the capital of the Company (up to 8.3% of the existing issued share capital) at a Placing Price of 131p per Placing Share (the "Placing Price"):"

Doesn't this dilute ownership, particularly for 'retail ' investors. More shares...more free cash to find to pay dividends. However, it is the restriction of shares being offered at a discount to institutional investors rather than to all existing shareholders. Then again, UKW is owned ~83% by institutions and ~16% Joe Public.

[idpickering]

SSE is good for wind power these days and I simply do not understand why people do not mention 3i Infrastructure. I think Arb holds it?

The results for the year to 31 March 2021 were announced recently. Dividend increase of 6.6% year on year and the same is expected for FY22. In addition for 2020/21, they had an increase in NAV of 9.2%. They do not keep raising additional capital either, which as I have said many times, dilutes existing shareholders.

Between them, these companies have given decent income from this general sector.

Dod

Yes, I hold 3iN in my IT basket, yielding around 3.2%. It has rarely qualified as a HYP share on yield, AFAIK, which is why it isn't often mentioned here. The SP has done very well since I bought it, but the yield is even less than when I bought.
It would not have been an appropriate buy for my HYP being well below the average yield at the time.
Although tempted by wind or solar energy, because it will be a growing market, I am also pulled by another consideration: that for my HYP I tend to try and avoid smallish companies. However, UKW does seem to have legs as a steady payer like PHP - another small company of which you approve.

Arb.

OK I forgot we are on the HYP Board. I am very happy with 3IN however, much better in my opinion than the more 'purist' share like TRIG. I know nothing of UKW but will take a look, although I am not looking for another share at present.

Dod

For me, should I buy into TRIG, apart from the decent yield they offer, along with further diversification to my HYP, they’d fulfil my liking to double up in any given sector if viable. It is not a given that I buy TRIG, but I’ve got a decent slug of dosh to invest next month, so they might get the nod. I will decide nearer the time. My other thought was to just buy more UKW? As for TRIG, I do like the diversification within the outfit itself, much outlined by Malcolm in his post above.

Ian.