Luniversal wrote:...
OUTLOOK
LuniHYP 250 holds more than twenty well-differentiated midcaps. It does not seem too rose-coloured, evaluating each company's mood music in bulletins since Feb., to envisage that only Brown, Cineworld and Marston's should struggle to resume dividends within the strategic ignorance horizon of 24 months forward. Not that all payouts will return fast or in full former glory; experience teaches that boards adore 'macro' excuses for cuts, and that restoration is apt to be slow and grudging.
But on the derisking forecast that receipts halve in 2020-21, the portfolio will still prospectively yield above the joke returns of a bond or cash deposit, and with inflation protection from the income reserve. Windfalls may arise: for instance in lapsed rights if a company tries to repair its finances. So it was in the last blitz, 2009-11. There may be rescue bids which enable recycling into dividend providers. However, that is counting chickens. I would not start a High Yield Portfolio today.
Luni
Thank you for an excellent write up of this long term reference HYP. As nobody can 'bite' on HYP-P where the original thread was posted, I thought I would quote it here and ask what seems to me an obvious question. If you would not start an HYP today, what would you do?