I've been thinking long and hard about my intended TRIG purchase scheduled for next Tuesday, and comments from kempiejon here;
kempiejon wrote:Ian, I jumped on the green band wagon a while back with TRIG, still yielding in the ball park 5% I bought at a few years ago. BATS at nearer 8% would make it the winner in a fair fight but as you've already said you have enough that rules them out. If I was minded to add more to my HYP I'd plump for the bigger yield, particularly as BATS has a much longer history and I think bigger CAGR of dividend.
And from V8 here;
I view 'renewables' as a punt.
In a post-subsidies world... eventually.... they may pay long-term or not.
Meanwhile if one brave, one is getting in at the ground floor.
I have a toe in a general infrastructure IT, which is about as far as I want to go.
have really given me cause to pause and mull it over more.
I'm a big fan of Stephen Bland's item "HYPsavers here; https://web.archive.org/web/20071231131 ... avers.aspx
In the piece he says;
Ultimately there will probably come a time when you run out of shares to buy. You will have a full portfolio. In my example this might happen after perhaps six or seven years.
What I mean by full is that you have all the sectors you want in the portfolio, you have an adequate number of shares in it and any potential new shares at that point look too weak. That's because their yields are too low or their safety fundamentals don't stack up adequately by your standards or are unacceptable to you for other reasons. The only really attractive candidates are from those you already hold. What to do?
You start again. I don't mean you start a new portfolio, you start increasing the investment in the original shares provided they are still sufficiently attractive to be worth buying.
So say your portfolio is full in the sense I use above. You have twenty shares worth £60,000, an average of £3,000 each and you have accumulated £3,000 for the next selection yet nothing you don't already hold appeals. You rank the shares in your portfolio by descending forecast yields and invest that £3,000 in the highest yielder so it become a doubled holding. Or you could split it into two and put £1,500 each into the highest and second yielders, making them 1.5x holdings or go even further.
But that's the general idea for a full portfolio, increasing the average holding value of the existing shares instead of buying a new substandard one having regard to minimising costs.
Ideally you would spread the new money equally across all the existing holdings but I guess that for nearly all savers, they would have insufficient cash to make this economic on costs, hence my advice to double up or 1.5up etc.
It was that part that caused me to start buying yet more of the shares I already held, which is why I bought more Legal & General last year, making it a 1 and a 1/2 holding
With all this in mind, I've decided to "keep it simple" and just buy more British American Tobacco instead of TRIG. OK, I'd only have Greencoat in that sector, but I only have BAE Systems in the defence one. I'm ok with that.
The bottom line for me is peace of mind is important, and not to be forgotten.
Thank you all for your input. You haven't wasted your time in this thread, just helped an aging Lemon Fool make up his HYPing mind.
Ian.