Although I’m sure there’s room for an awful lot of debate about which strategies might have coped best with the upheaval of the last couple of years, I’m quietly pleased with how my HYP has held up.
Here are the scores on the doors :
1) Trading
I lost patience with Aviva, bought in 2010 for 405p, sold in 2021 for 406p - and never better than average on the income front. I replaced it with Admiral in April 2021, at 3204. Eagle-eyed observers will note that Admiral’s price at the end of 2021 is lower, at 3157. Still, it has a decade or so to enjoy the benefit of the doubt before my next bout of ruthlessness.
Such observers might also spot that I am, for now at least, patiently hanging onto a clutch of shares which have performed even worse than Aviva (HSBC, Vodafone, Imperial, Micro Focus) - but this trade was a relatively painless like-for-like swap and I am hopeful of a modest boost to performance. Ridding myself of the other miscreants would be a fair bit more expensive…
Apart from that, I used accumulated dividends to top up Unilever (way down the HYPTUSS list, but looking about as cheap as it ever does for much of the year - I bought at 3967, because that’s when I had the money, but I know it’s been lower still at times) and United Utilities (bringing it up to a “full” holding after two 1/3rd sized buys in 2020), as well as an initial half holding of Greencoat UK Wind, strictly an IT of course, but hopefully not too heretical in the pursuit of diversity.
So, as a whole the portfolio is now (courtesy HYPTUSS, thanks again to Kiloran and itsallaguess for this invaluable tool) :
Value Div Fcst
Share Epic Sector %Total %Total Yield
HSBC Holdings HSBA Banks 2.4% 1.9% 4.1%
Vodafone Group VOD Mobile Telecommunications 2.1% 2.8% 6.8%
GlaxoSmithKline GSK Pharmaceuticals & Biotechnology 4.6% 4.4% 4.9%
Royal Dutch Shell 'B' RDSB Oil & Gas Producers 2.7% 2.1% 4.0%
Unilever ULVR Food Producers 6.1% 4.4% 3.7%
British American Tobacco BATS Tobacco 2.8% 4.3% 7.9%
AstraZeneca AZN Pharmaceuticals & Biotechnology 7.6% 3.6% 2.4%
Imperial Brands IMB Tobacco 1.7% 2.9% 8.7%
Diageo DGE Beverages 8.5% 3.0% 1.8%
Reckitt Benckiser Group RKT Household Goods & Home Construction 4.5% 2.4% 2.7%
National Grid NG Multiutilities. 4.8% 4.5% 4.8%
Legal and General Group LGEN Life Insurance 5.8% 7.1% 6.2%
BAE Systems BA Aerospace & Defence 3.8% 3.4% 4.5%
SSE SSE Electricity 4.8% 4.8% 5.1%
Schroders (Non-Voting) SDRC Financial Services 4.7% 4.6% 4.9%
British Land Company BLND Retail REITs 3.3% 2.3% 3.6%
Tate and Lyle TATE Food Producers 3.3% 2.2% 3.5%
Micro Focus International MCRO Software & Computer Services 1.0% 0.9% 4.7%
Rio Tinto RIO Mining. 3.8% 11.9% 15.7%
BHP Group BHP Mining. 6.5% 12.4% 9.8%
Tritax Big Box Reit BBOX IT - Property - UK Commercial 6.2% 3.3% 2.7%
United Utilities Group UU Gas, Water & Multiutilities 3.7% 2.9% 4.0%
Admiral Group ADM Nonlife Insurance 3.4% 5.7% 8.6%
Greencoat UK Wind UKW IT - Renewable Energy Infrastructure 2.1% 2.1% 5.1%
Running Yield: 4.90%
Value Div
Sector %Total %Total
Pharmaceuticals & Biotechnology 12.2% 8.0%
Gas, Water & Multiutilities 3.7% 2.9%
Multiutilities. 4.8% 4.5%
Tobacco 4.5% 7.2%
Household Goods & Home Construction 4.5% 2.4%
Beverages 8.5% 3.0%
Oil & Gas Producers 2.7% 2.1%
Life Insurance 5.8% 7.1%
Retail REITs 3.3% 2.3%
Aerospace & Defence 3.8% 3.4%
Software & Computer Services 1.0% 0.9%
Financial Services 4.7% 4.6%
Nonlife Insurance 3.4% 5.7%
IT - Property - UK Commercial 6.2% 3.3%
Banks 2.4% 1.9%
IT - Renewable Energy Infrastructure 2.1% 2.1%
Food Producers 9.3% 6.7%
Mobile Telecommunications 2.1% 2.8%
Electricity 4.8% 4.8%
Mining. 10.3% 24.3%
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
As ever, take the forecast yields reported here with a large pinch of salt, especially the 15.7% predicted for RIO.
2) Valuation
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
December 2017 : 18.31
January 2019 : 16.82
January 2020 : 19.88
January 2021 : 18.61
January 2022 : 22.84
Which means a record high - and I’d call that a decent recovery over the 15 months or so since the low of 16.60 that I noted in October of 2020.
3) Income
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
December 2017 : 83
January 2019 : 84
January 2020 : 120
January 2021 : 78
January 2022 : 106
So, not quite back up to the level of two years ago - but that was boosted considerably by specials. This year there were also specials from Rio Tinto and Admiral (I refer to the “further” special paid on 1st October, not their habitual specials which I have decided to treat as standard for now) - but they haven’t made quite the difference that bonus payments made in 2019. Income per unit in the year to Jan 2020 with specials stripped out was 93p, whereas in the year to today it was 103p - in effect, another new high.
Trailing yield - income received over the last 12 months divided by the present value - has improved from 4.2% a year ago to 4.7% today. As you can see from the snapshot above, HYPTUSS calculates the “running yield” at 4.9%, and so forecasts a smidge more income over the next 12 months. We will see.
Wishing you all the best for 2022,
Chris