How to build a high-yield, low-risk portfolio of shares

[Itsallaguess]

Below is a PDF link from John Kingham, titled 'How to build a high-yield, low-risk portfolio of shares' -

https://www.ukvalueinvestor.com/wp-content/uploads/2017/10/How-to-build-a-high-yield-low-risk-portfolio.pdf

It looks to be an interesting guide for anyone looking to use income-investment strategies -

Table of Contents -

1. Introduction
2. Part One - Analysing a company's accounts
3. How to find shares that pay a reliable dividend
4. How to find reliable, profitable dividend growth
5. Fast dividend growers - How to find them
6. Taking account of return on capital employed
7. The capital cycle is something every investor should be aware of
8. Important lessons from a volatile investment
9. Measuring debt and other forms of leverage
10. Debt ratios and pension ratios - Connecting the dots between them
11. The importance of a string bank balance sheet
12. Defensive shares - An unusual way to value them
13. Part Two - Analysing a company's business
14. Value traps - 18 Questions to help you avoid them
15. Looking for companies with a durable competitive advantage
16. The pros and cons of building an investment story
17. Part Three - Managing a high-yield, low risk portfolio
18. 3 Components of a well diversified portfolio
19. Why a diversified portfolio is easier to manage than a concentrated one
20. How I'm increasing my focus on defensive sectors
21. How to start building a portfolio of shares
22. UK Value Investor

I hope the above might be of interest.

Cheers,

Itsallaguess

[wanderer]

Thanks - that looks like a great find! Something for me to have a read through over the Christmas hols!

[MrDividend]

Blimey, I forgot that guide existed.

It's effectively the draft version of The Defensive Value Investor. In other words, I wrote the first draft for each chapter of the book as a series of blog posts. Hariman House then helped me shape those drafts into the more detailed and polished chapters that are in the final book. The book was published in early 2016 (IIRC) and it looks like at some point I decided to bundle the blog posts together and turn them into a PDF, so people could read a slightly less polished version of the book for free as a PDF, if they wanted to.

I would still endorse most of that guide, but some bits are outdated now (written mostly in 2014/2015 I think), so you might want to follow up with some of the newer PDFs on my new website. A Google search for "uk dividend stocks free resources" should work.

JK

[Bubblesofearth]

A lot of the contents make the assumption that it is possible for private investors to get an edge on professional analysts and pick 'good' shares. I've seen little evidence for that.

The rest advocates what is essentially a 30 share HYP.

My usual cynical question would be is the author getting paid to write stuff?

BoE

[Itsallaguess]

Blimey, I forgot that guide existed.

It's effectively the draft version of The Defensive Value Investor. In other words, I wrote the first draft for each chapter of the book as a series of blog posts. Hariman House then helped me shape those drafts into the more detailed and polished chapters that are in the final book. The book was published in early 2016 (IIRC) and it looks like at some point I decided to bundle the blog posts together and turn them into a PDF, so people could read a slightly less polished version of the book for free as a PDF, if they wanted to.

I would still endorse most of that guide, but some bits are outdated now (written mostly in 2014/2015 I think), so you might want to follow up with some of the newer PDFs on my new website. A Google search for "uk dividend stocks free resources" should work.

Thanks JK - much appreciated.

I'm aware that you might not be comfortable posting direct links, but given how useful and interesting I've found the PDF document linked in my opening post, I'm more than happy to post up the following direct links to some other High-Yield related information and resources -

Free Resources for UK Dividend Investors -

A collection of useful documents, guides, checklists and spreadsheets for sensible long-term investors.

https://www.ukdividendstocks.com/free-resources


Here's a list of some of the content on the above page -

UK Top 40 High-Yield Blue-Chip Stocks -

This is a list of FTSE 100 and FTSE 250 stocks with the best combination of size and yield. It contains links to detailed reviews of each company (once I've written them) and the list is updated each month.


Dividend Investing Guide -

This is a brief but reasonably detailed overview of how I invest in high-quality dividend-paying companies.

It will give you a solid understanding of how the main pieces of the strategy fit together, without getting bogged down in too much detail.


Dividend Investing Checklist -

This is the checklist I use on a regular basis to analyse and value companies.

The checklist is made up of a series of questions that have been designed to assess the quality, defensiveness and value of any dividend-paying company.

Each question comes with a detailed explanation, so you'll know exactly why it's there and how to answer it.


Company Review Checklist -

This is an editable version of my checklist.

It's a Google Doc, so you can make a copy (or download it as an MS Word document) and enter your analysis directly into the checklist.


Company Review Spreadsheet -

This is the spreadsheet I use to analyse income statements, balance sheets and other financial data.

Just make a copy, enter data for a company and the spreadsheet will calculate a range of key metrics and an initial discounted dividend model.


In addition to the above, here's a link to the associated UK Dividend Stocks Blog, which contains a number of related high-yield articles -

https://www.ukdividendstocks.com/blog


Cheers,

Itsallaguess