moorfield wrote:I don't think I am muddying anything here Dod. I am simply observing that Rhinestone is holding a Low Yield Portfolio (LYP).
I reference CTY because for all the talk of the "FTSE 100 yield" no one can determine reliably what it is, or reference a source that does, not even the Board Guidelines. CTY is not a "hard" benchmark for me, but it is a reliable one. The internal mechanics of how it has continued to pay out a rising dividend over the last 50 years are irrelevant, that it can use reserves and borrowing facilities to do so is the "edge" its managers have over us DIYers and is reflected in that yield difference perhaps. If there is a more accurate benchmark that can be used, and determined easily, I'm all ears.
I keep records of 3 indices as yardsticks. The FT Ordinary (FT30) index, The FTSE100 Index (UKX) and the FTSE350HY Index (HIX).
Why the FT30? Because when I started the others did not exist. Why the HIX? Because in my view it is the index more aligned to an HYP. Let's just look at some of the data, using my unitised portfolio figures since 1987, when I first started building my HYP in a PEP. The FT30 and UKX are the yardsticks here, because the HIX did not come in until later.
. Income Units Accumulation
Year to Unit Value Div/Unit Unit Value FT30 FT100
21-Apr-87 1.00 0.00 1.00 1.00 1.00
05-Apr-88 0.91 2.86 0.94 0.92 0.91
05-Apr-89 1.18 2.72 1.28 1.10 1.05
05-Apr-90 1.21 4.24 1.40 1.13 1.14
05-Apr-91 1.34 5.42 1.69 1.28 1.26
05-Apr-92 1.30 7.52 1.75 1.24 1.26
05-Apr-93 1.51 6.91 2.13 1.44 1.46
05-Apr-94 1.70 6.27 2.50 1.65 1.65
05-Apr-95 1.66 7.48 2.55 1.57 1.62
05-Apr-96 1.95 7.38 3.13 1.80 1.90
05-Apr-97 2.16 8.40 3.62 1.85 2.21
05-Apr-98 3.31 10.00 5.72 2.45 3.05
05-Apr-99 3.44 8.46 6.12 2.47 3.21
05-Apr-00 3.32 11.33 6.13 2.42 3.35
05-Apr-01 3.29 12.42 6.32 2.05 2.89
05-Apr-02 3.37 13.02 6.76 1.65 2.69
05-Apr-03 2.29 12.10 4.85 0.85 1.85
05-Apr-04 2.92 13.38 6.56 1.22 2.25
05-Apr-05 3.46 13.06 8.10 1.33 2.51
05-Apr-06 4.30 17.42 10.57 1.68 3.06
05-Apr-07 4.91 19.42 12.63 1.90 3.31
05-Apr-08 4.14 24.32 11.21 1.58 2.93
05-Apr-09 2.28 21.17 6.46 0.87 2.01
05-Apr-10 3.69 11.06 10.86 1.33 2.91
05-Apr-11 4.16 16.71 12.76 1.43 3.03
05-Apr-12 4.40 17.73 14.19 1.33 2.96
05-Apr-13 5.27 21.83 17.01 1.54 3.29
05-Apr-14 5.34 23.05 18.88 1.75 3.38
05-Apr-15 5.91 24.98 21.84 1.91 3.47
05-Apr-16 5.92 22.67 21.72 1.79 3.17
05-Apr-17 6.62 26.21 25.47 2.10 3.76
05-Apr-18 6.12 33.19 24.66 1.79 3.62
05-Apr-19 6.35 31.25 27.04 1.95 3.82
05-Apr-20 4.50 31.57 20.59 1.44 2.77
16-Dec-20 5.62 14.16 27.24 1.64 3.37
The dividend income per unit and the accumulation unit value are irrelevant in this case, as I do not look at the Total Return versions of the indices here.
I compare the dividends per income unit with the RPI, as follows:
. Ordinary Rebased RPI
Year to Divs/unit Divs/unit Rebased
05-Apr-88 2.86 100.00 100.00
05-Apr-89 2.72 94.81 112.28
05-Apr-90 4.24 147.94 122.89
05-Apr-91 5.42 189.25 130.75
05-Apr-92 7.52 262.34 136.35
05-Apr-93 6.91 241.32 138.11
05-Apr-94 6.27 218.85 141.65
05-Apr-95 7.48 261.07 146.37
05-Apr-96 7.38 257.48 149.90
05-Apr-97 8.40 293.36 153.54
05-Apr-98 8.88 310.04 159.72
05-Apr-99 8.46 295.34 162.28
05-Apr-00 11.33 395.51 167.09
05-Apr-01 11.73 409.64 170.04
05-Apr-02 13.02 454.50 172.59
05-Apr-03 12.10 422.26 178.00
05-Apr-04 11.62 405.63 182.42
05-Apr-05 12.07 421.42 188.21
05-Apr-06 13.12 458.13 193.03
05-Apr-07 14.04 490.19 201.77
05-Apr-08 24.32 849.07 210.22
05-Apr-09 21.17 739.15 207.76
05-Apr-10 11.06 386.20 218.86
05-Apr-11 16.71 583.44 230.26
05-Apr-12 17.46 609.34 238.21
05-Apr-13 19.91 694.93 245.09
05-Apr-14 20.47 714.45 250.29
05-Apr-15 21.33 744.60 253.44
05-Apr-16 21.67 756.58 256.78
05-Apr-17 24.93 870.11 265.82
05-Apr-18 29.23 1,020.51 274.75
05-Apr-19 29.25 1,020.97 283.10
05-Apr-20 31.57 1,102.06 284.38
05-Apr-21 14.16 494.35 288.31
The latest year is incomplete, and the latest figure for the RPI is for October, 293.5 rebased as indicated in the table. Regarding the HIX, I only started recording it at the start of 2010, and on 1st April it stood at 3052.0 and the UKX was at 5744.89. The latest figure is 2934.15 and the UKX last night was at 6513.32. Somewhere I had the start date for the HIX, when it stood at 1,000, but I cannot lay my hands on it now.
TJH