high yield from anti-woke

[Kantwebefriends]

Some investors are apparently shunning some companies on "woke" grounds e.g. booze, baccy, betting, arms manufacturers, oil and gas, mining, rental housing, and so on. I'd therefore like to take advantage by buying such shares but particularly those with a high yield. I would keep the US shares in a SIPP for the withholding tax rebate and the rest in an ISA. Would anyone like to suggest particular contenders? I hope to get useful diversification by holding about ten companies.

[idpickering]

Some investors are apparently shunning some companies on "woke" grounds e.g. booze, baccy, betting, arms manufacturers, oil and gas, mining, rental housing, and so on. I'd therefore like to take advantage by buying such shares but particularly those with a high yield. I would keep the US shares in a SIPP for the withholding tax rebate and the rest in an ISA. Would anyone like to suggest particular contenders? I hope to get useful diversification by holding about ten companies.

I’m not interested in that woke aspect and am happy to hold BP., Shell, BAE Systems, imperial Brands, British American Tobacco, Rio Tinto, and Glencore in the sectors you’ve mentioned, in my 28 share HYP.

Ian.

[kempiejon]

Some investors are apparently shunning some companies on "woke" grounds e.g. booze, baccy, betting, arms manufacturers, oil and gas, mining, rental housing, and so on. I'd therefore like to take advantage by buying such shares but particularly those with a high yield. I would keep the US shares in a SIPP for the withholding tax rebate and the rest in an ISA. Would anyone like to suggest particular contenders? I hope to get useful diversification by holding about ten companies.

Woke - alert to racial prejudice. ​aware of social and political issues, especially racism. Not much to do with high yield shares. I doubt a few investors apparently shunning some companies will drive the yield about in any significant manner.
I think there are always high yield shares to pick and for useful diversification I'd want more than 10 companies. Think about a dozen sectors/industries and pick one high yielder per industry, make sure the income those picks generate looks to be secure and hopefully rising. Personally I have a minimum market cap from within the FTSE350. UK shares do very much mis the wider international market, you talk of US shares in a SIPP so you've already diversified away from the UK.

[MrFoolish]

I see so few people smoking these days and I wouldn't touch tobacco shares with a bargepole. Sure the developing world still smokes but it's only a matter of time before they follow the trends.

I suppose if you have a short time horizon (perhaps you smoke yourself) then you might be tempted by the higher yields. But it will probably be accompanied by capital erosion so the benefit is doubtful to say the least.

[Dod101]

I see so few people smoking these days and I wouldn't touch tobacco shares with a bargepole. Sure the developing world still smokes but it's only a matter of time before they follow the trends.

I suppose if you have a short time horizon (perhaps you smoke yourself) then you might be tempted by the higher yields. But it will probably be accompanied by capital erosion so the benefit is doubtful to say the least.

That is true I am sad to say. I hold both tobaccos and keep living in hope of a revival in their share price. The best hope would have to be a share buyback instead of these very high yields and I think I would prefer that.

Dod

[88V8]

Some investors are apparently shunning some companies on "woke" grounds e.g. booze, baccy, betting, arms manufacturers, oil and gas, mining, rental housing, and so on. I'd therefore like to take advantage by buying such shares but particularly those with a high yield. I would keep the US shares in a SIPP for the withholding tax rebate and the rest in an ISA. Would anyone like to suggest particular contenders? I hope to get useful diversification by holding about ten companies.

Funny that the woke or those concerned with ESG - another example of irrelevant trivia - never eschew supermarkets... purveyors of cheap booze, unhealthy food, and fags.

The big oilies are a good long-term bet, perhaps prefer SHEL, plus a modest dip into DEC Diversified Energy.
I hold BATS and IMB although the SPs are declining.
RIO pick of the miners, albeit cyclical of course.
Some hold BLND, not me.
IGG is part of TJH's long-term portfolio where you may get some other ideas.

Not sure that woke & ESG really has much impact on SPs... perhaps more media smoke than fire.

V8

[moorfield]

Some investors are apparently shunning some companies on "woke" grounds e.g. booze, baccy, betting, arms manufacturers, oil and gas, mining, rental housing, and so on. I'd therefore like to take advantage by buying such shares but particularly those with a high yield. I would keep the US shares in a SIPP for the withholding tax rebate and the rest in an ISA. Would anyone like to suggest particular contenders? I hope to get useful diversification by holding about ten companies.

The problem with this is that every company, if one looks hard enough, presents the "woke" with moral or ethical questions and reasons not to invest in them. And those shunning booze, baccy companies etc. on "woke" grounds may find it difficult to avoid them entirely albeit through very small indirect holdings if they are invested in pension funds. It can quickly become a rabbit hole of hypocrisy and nonsense.


From my own portfolio I hold, not naming names, and have no qualms whatever about doing so:

Environmental polluter
Animal tester
Peddler of derivative finance to small businesses
Manufacturer of tobacco products
Exploiter of zero-contract employees
Exploiter of third world employees
Exploiter of indigenous rainforest
Government briber/palm-greaser
Weapons manufacturer

[XFool]

What does 'woke' mean to Britons?

YouGov

YouGov explores how many Britons understand the term, and who and what they consider to be woke

"One of the political words of the moment is “woke”. As with so many parts of British political discourse, it is an import from the United States – and as with so many other things in the USA, its origin is in the Black community before being co-opted and eventually distorted by mainstream white people.

Originally the term referred to a need to wake up to, and stay ‘woke’ to, the realities of Black people’s place in America and the system designed to keep them down. With the term becoming more mainstream recently it evolved to mean a more general sense of awareness to social injustice against all groups, although it remains closely associated with the Black Lives Matter movement.

To opponents of the social aims of such movements, however, it has become a catch-all term for a certain type of socially liberal ideology they dislike – much as the term ‘political correctness’ can often be."

Most Britons now know what ‘woke’ is

YouGov

[Lootman]

From my own portfolio I hold, not naming names, and have no qualms whatever about doing so:

Environmental polluter
Animal tester
Peddler of derivative finance to small businesses
Manufacturer of tobacco products
Exploiter of zero-contract employees
Exploiter of third world employees
Exploiter of indigenous rainforest
Government briber/palm-greaser
Weapons manufacturer

I cannot think of a company that I would not invest in purely for ethical reasons. If it can make me a profit then I will hold it. And if I feel bad about it later I can always donate some of my profit to an appropriate charity.

I particularly like arms makers and hold Raytheon, General Dynamics, Northrop Grumman and Lockheed. (Not HY but that isn't my thing).

[MrFoolish]

I cannot think of a company that I would not invest in purely for ethical reasons. If it can make me a profit then I will hold it. And if I feel bad about it later I can always donate some of my profit to an appropriate charity.

I particularly like arms makers and hold Raytheon, General Dynamics, Northrop Grumman and Lockheed. (Not HY but that isn't my thing).

I suppose if you invested in a manufacturer of landmines, you could offset this by investing in the manufacturer of prosthetic limbs.

[dealtn]

I cannot think of a company that I would not invest in purely for ethical reasons. If it can make me a profit then I will hold it. And if I feel bad about it later I can always donate some of my profit to an appropriate charity.

I particularly like arms makers and hold Raytheon, General Dynamics, Northrop Grumman and Lockheed. (Not HY but that isn't my thing).

I suppose if you invested in a manufacturer of landmines, you could offset this by investing in the manufacturer of prosthetic limbs.

I think they complement rather than offset. One doesn't hedge the other; both used, or not used.

[Lootman]

I suppose if you invested in a manufacturer of landmines, you could offset this by investing in the manufacturer of prosthetic limbs.

I think they complement rather than offset. One doesn't hedge the other; both used, or not used.

I am fairly sure that you cannot invest in a landmine maker. Not even sure they are made in the developed world any more. Or if they are it would only be a small part of the overall business.

You could probably invest in companies that make the equipment that locates and neutralises them if you were really concerned.

[SalvorHardin]

Unilever is an extremely strong candidate for an anti-woke / unethical HYP investment. Earlier today Unilever was named as an "international sponsor of war" by the Ukrainian government in response to a new Russian law requiring companies to directly contribute to the Russian war effort.

Unilever's support of Russia isn't new BTW, it's been an open secret that Unilever has continued to profitably operate in Russia since the war started. Not long before Russia invaded Ukraine, Unilever's subsidiary Ben & Jerry's criticised America for supporting Ukraine, but said nothing about Russia's behaviour (Ben & Jerry's hasn't said anything since about the war; it's obvious whose side they are on). From 2022:

"We call on President Biden to de-escalate tensions and work for peace rather than prepare for war. Sending thousands more US troops to Europe in response to Russia’s threats against Ukraine only fans the flame of war."

https://twitter.com/benandjerrys/status/1489393235655106562

https://www.theguardian.com/business/2022/feb/10/ben-jerrys-ukraine-tweet-gets-frosty-reception-from-unilever-boss

"Unilever was placed on the sponsors of war list on Monday alongside companies including Procter & Gamble (P&G), the world’s largest manufacturer of household chemicals and personal care products, and the French supermarket group Leroy Merlin."

https://www.theguardian.com/business/2023/jul/03/unilever-named-international-sponsor-of-war-by-ukraine

Unilever makes makes some of my non-HYP shareholdings, which some would call unethical, look rather benign. There's Hugh Boss, which made uniforms for the Nazis. Smith & Wesson (firearms) has long since agitated some people, I remember a debate back on TMF back in 2010 which got rather heated. And of course there's Thales, the French defence company whose NLAW turned the Battle of Kyiv by turning lots of Russian tanks and AFVs into burning wrecks (all dividends are sent to Ukraine).

[CryptoPlankton]

Not defending them, but it only seems fair to see what Unilever have to say for themselves:

https://www.unilever.com/news/press-and ... n-ukraine/

What should they have done differently? (Genuine question...)

[Hornblower]

I think this is potentially a great strategy. The ESG fad (like all the fads before it) leads to mis-pricing & market distortion. This should allow us to pick up stocks like BP. at relatively low valuations if we can identify them.

That's exactly what I did last month & I may add to the position over time. We lock in a decent dividend that's growing over time, with the added advantage of a potential revaluation once the fad fades & sense returns. With BP. in particular (I haven't looked at other anti-woke plays) we ALSO get a vigorous share buy-back scheme.


"In the short term the market is a voting machine, in the long term it's a weighing machine"


Hornblower

[Hornblower]

....and right in cue BP. reports strong interim results, increases it's dividend 10% & is embarking on another round of share buy-backs this quarter totalling $1.5B.


H

[Charlottesquare]

....and right in cue BP. reports strong interim results, increases it's dividend 10% & is embarking on another round of share buy-backs this quarter totalling $1.5B.


H

The catch and risk is that strong results may see them punished by governments, keen to raise taxes and punish those who did well from high energy prices etc.

I still hold Shell (well I always hold Shell) but departed most other energy companies a few years back when I started to suspect Gov interference was a distinct possibility within the sector.