City Of London (CTY)

[swill453]

not familiar with AJ Bell platform but if it's anything like iWeb maybe it ony shows the current month by default. we're in march now.

No, it's a cash statement that goes back from the present day to the opening of the account.

EDIT: and I should have mentioned, my actual cash balance is short by the amount of the dividend.

Scott.

[swill453]

So I checked again and it's back! So a glitch/blip. Glad someone else saw it too, and I didn't imagine it.

Scott.

[PhaseThree]

Just noticed my CTY dividends, which appeared in both my SIPP and ISA at AJBell Youinvest as expected last Friday, have now disappeared from my cash statements.

Anybody else?

Obviously I will check with them tomorrow if it doesn't magically reappear.

Scott.

Mine too (also YouInvest) - Very strange

............and now they have reappeared !!

[richfool]

Wednesday 24 March, 2021
City of London IT
Dividend Declaration

A third interim dividend of 4.80p per ordinary share of 25p, in respect of the year ending 30 June 2021 will be paid on 28 May 2021 to holders registered at the close of business on 30 April 2021. The Company's shares will go ex-dividend on 29 April 2021.

The Board intends to declare a fourth interim dividend of 4.80p per share for the year to 30 June 2021. The fourth interim dividend will be declared in July 2021. This would make a total dividend for the year to 30 June 2021 of 19.10p per share, an increase of 0.5% on the previous year and the Company's 55th consecutive annual increase.

https://www.investegate.co.uk/city-of-l ... 24193736T/

[TUK020]

Wednesday 24 March, 2021
City of London IT
Dividend Declaration

A third interim dividend of 4.80p per ordinary share of 25p, in respect of the year ending 30 June 2021 will be paid on 28 May 2021 to holders registered at the close of business on 30 April 2021. The Company's shares will go ex-dividend on 29 April 2021.

The Board intends to declare a fourth interim dividend of 4.80p per share for the year to 30 June 2021. The fourth interim dividend will be declared in July 2021. This would make a total dividend for the year to 30 June 2021 of 19.10p per share, an increase of 0.5% on the previous year and the Company's 55th consecutive annual increase.

https://www.investegate.co.uk/city-of-l ... 24193736T/

Starting to look like they have successfully sailed through the storm, with their record of annual increases intact, even if the increases are minimal.
HYPTUSS is reporting their yield as 5.1% and dividend cover as 0.8.
They will have borrowing facilities to see them through to a full income recovery.
Future increase might not be much, but at 5.1% yield this feels like a good risk/return proposition. Would add if it weren't already my largest holding by a fair margin (having filled my boots last year).

I am trying hard to ignore the whisper at the back of my mind that I should be re-mortgaging to take advantage. SWMBO would take a dim view of that.

[forrado]

Starting to look like they have successfully sailed through the storm, with their record of annual increases intact, even if the increases are minimal.

All things considered, looks to be a likely scenario.

While still some way off, according to the most recent Morningstar analyst’s report of the trust, long standing manager Job Curtis is due to step down in six years. Which should give the Board plenty of time to identify a suitable successor. Only question is how best to do it?

Back in 1994 Job Curtis took on full responsibility of running City of London from the previous manager, Michael Moule, after being his ‘understudy’ for a number of years. So, the Board could well go that route, tasking Curtis to select and train a likely candidate from the graduate intake ranks of Janus Henderson Asset Managers. Which is precisely what James Henderson, a long-standing contemporary of Curtis at Janus Henderson and former Michael Moule ‘pupil’, is doing at Lowland and Law Debenture with Laura Foll, a much younger co-manager, who joined the firm as a university graduate in 2009.

[Dod101]

They will have borrowing facilities to see them through to a full income recovery.

Yes but it is not cash flow that is needed; it is distributable reserves, which usually come from the Revenue Reserve, although they could also use realized capital reserves if they had to, assuming shareholders give them the authority.

Dod

[absolutezero]

I'm debating selling some of my lower yielding shares and buying CTY with the proceeds. (DGE, ITV, RDSB, SMDS mainly, with a few others)
I notice CTY holds some of my lower yielders but also has a higher yield in total than the lower yielders.
Any thoughts?

[Itsallaguess]

I'm debating selling some of my lower yielding shares and buying CTY with the proceeds. (DGE, ITV, RDSB, SMDS mainly, with a few others)

I notice CTY holds some of my lower yielders but also has a higher yield in total than the lower yielders.

Any thoughts?

CTY was the first income-related investment trust that I bought, as I started to move away from a more HYP-like 'single-share' income-portfolio.

It was initially bought primarily as a 'testing ground' for me, just to see if I preferred holding collectives rather than the more traditional HYP constituents individually, and I've got to say that I've not looked back from that point, as collectives tick all the boxes for me as a preferably 'hands-off' income-investor.

I've tended to invest quite heavily in non-UK-market income-IT's more recently, and have a much more globally diversified income-portfolio than I ever had when I started out, but I think taking that particular CTY stepping stone, with it largely replicating many of the regular HYP constituents that often crop up, was the single process to start embedding my move over to more diversified income-related collectives, and it remains in my portfolio today...

Some historical info -



Sources - https://www.dividenddata.co.uk/dividend-history.py?epic=CTY and https://www.dividenddata.co.uk/dividend-yield.py?epic=CTY

You are unlikely to see large levels of capital growth, and so if that's important to you then I'd recommend looking elsewhere, but if you're looking for a 'fire and forget', relatively high-yield (around 4.8% currently) UK-centric income-collective, then CTY ticks a lot of boxes, and is unlikely to bring much long-term grief...

Cheers,

Itsallaguess

[absolutezero]

I'm debating selling some of my lower yielding shares and buying CTY with the proceeds. (DGE, ITV, RDSB, SMDS mainly, with a few others)

I notice CTY holds some of my lower yielders but also has a higher yield in total than the lower yielders.

Any thoughts?

CTY was the first income-related investment trust that I bought, as I started to move away from a more HYP-like 'single-share' income-portfolio.

It was initially bought primarily as a 'testing ground' for me, just to see if I preferred holding collectives rather than the more traditional HYP constituents individually, and I've got to say that I've not looked back from that point, as collectives tick all the boxes for me as a preferably 'hands-off' income-investor.

I've tended to invest quite heavily in non-UK-market income-IT's more recently, and have a much more globally diversified income-portfolio than I ever had when I started out, but I think taking that particular CTY stepping stone, with it largely replicating many of the regular HYP constituents that often crop up, was the single process to start embedding my move over to more diversified income-related collectives, and it remains in my portfolio today...

Some historical info -



Sources - https://www.dividenddata.co.uk/dividend-history.py?epic=CTY and https://www.dividenddata.co.uk/dividend-yield.py?epic=CTY

You are unlikely to see large levels of capital growth, and so if that's important to you then I'd recommend looking elsewhere, but if you're looking for a 'fire and forget', relatively high-yield (around 4.8% currently) UK-centric income-collective, then CTY ticks a lot of boxes, and is unlikely to bring much long-term grief...

Cheers,

Itsallaguess

Thanks for this. It's confirmed a few parts of my own thought processes.
-CTY replicates some of the low yielders I would get rid of so I haven't actually lost them.
-I would have a higher income from CTY than I would from the bits I would be selling. 4.9% vs 2.0%.
-It has a revenue reserve (of 11p per share last annual report and the dividend is 19p) so it can keep paying out (at least in the meantime) in the event of dividend cuts. But dividends will probbaly start creeping back up again now.

I have two portfolios.
One is a type of HYP for the income. The other is for 'play' money where I try to beat the market and select my own shares for amusement as a hobby.

[TahiPanasDua]

I've tended to invest quite heavily in non-UK-market income-IT's more recently, and have a much more globally diversified income-portfolio than I ever had when I started out,


Itsallaguess

Hi Itsallaguess.

Can you point me towards any previous list of your IT portfolio if one exists? Like so many on LMF I have also drifted away from individual shares to my current 50% income ITs. I remember being a bit reticent to admit this in the early TMF days when anything other than HYP seemed perverse.

Cheers,

TP2.

[dundas666]

...-It has a revenue reserve (of 11p per share last annual report and the dividend is 19p) so it can keep paying out (at least in the meantime) in the event of dividend cuts. But dividends will probbaly start creeping back up again now.

Over the last 20 years the CTY dividend increase has averaged around 5% pa.

The risk is that CTY will rebuild its reserve by keeping its dividend increases very low for a few years. So worth looking out for that.

Cheers, d6

[moorfield]

I'm debating selling some of my lower yielding shares and buying CTY with the proceeds. (DGE, ITV, RDSB, SMDS mainly, with a few others)
I notice CTY holds some of my lower yielders but also has a higher yield in total than the lower yielders.
Any thoughts?

It's a perennial question I wrestle with. For the forseeable future I am comfortable holding 15-25 shares provided that collectively they are yielding higher than CTY. That affords me wiggle room to continue holding lower yielders like ULVR, RDSB, AZN, HSBA.

I'm not yet ruling out moving all those into a single CTY holding in future (I am running a parallel "paper" holding already), however that raises a different/interesting question on whether holding one's entire retirement pot in CTY would be wise...

[Darka]

I'm debating selling some of my lower yielding shares and buying CTY with the proceeds. (DGE, ITV, RDSB, SMDS mainly, with a few others)
I notice CTY holds some of my lower yielders but also has a higher yield in total than the lower yielders.
Any thoughts?

It's a perennial question I wrestle with. For the forseeable future I am comfortable holding 15-25 shares provided that collectively they are yielding higher than CTY. That affords me wiggle room to continue holding lower yielders like ULVR, RDSB, AZN, HSBA.

I'm not yet ruling out moving all those into a single CTY holding in future (I am running a parallel "paper" holding already), however that raises a different/interesting question on whether holding one's entire retirement pot in CTY would be wise...

I would never hold just CTY, but they are an excellent foundation for an IT based portfolio.

[Alaric]

I notice CTY holds some of my lower yielders but also has a higher yield in total than the lower yielders.

They might now be paying out as dividends more than they are receiving so as to maintain their track record of increasing dividends. Assuming they did this and given that they remain fully invested, they would have to have done some net sales or borrowed the shortfall.

[Arborbridge]

CTY have had periods when dividend increases have been slower for the reasons expressed earlier, and it is only to be expected. The interesting thing to watch now is whether my IT income (and/or CTY income) stays ahead of the (hopefully) rebounding HYP income.

I will naturally keep you all in touch with the resulting chart comparisons!

CTY and MYI are more or less equal biggest IT holdings for me, followed by HFEL and EDIN.

Arb

[absolutezero]

CTY have had periods when dividend increases have been slower for the reasons expressed earlier, and it is only to be expected. The interesting thing to watch now is whether my IT income (and/or CTY income) stays ahead of the (hopefully) rebounding HYP income.

I will naturally keep you all in touch with the resulting chart comparisons!

CTY and MYI are more or less equal biggest IT holdings for me, followed by HFEL and EDIN.

Arb

I sold some holdings in ITV and LLOY today and the proceeds went into HFEL.
I will do further tidying soon and sell DS Smith and Diageo and buy CTY with those proceeds.

[Itsallaguess]

Hi Itsallaguess.

Can you point me towards any previous list of your IT portfolio if one exists?

Hi TP2,

I don't tend to post too many portfolio threads to be honest, but here's a quick list of my Investment Trust holdings as my income-portfolio stands today -



They're not all equally weighted, and a couple of the UK Equity Income holdings are relatively small compared to the general weightings of the others. Overall the above list accounts for nearly 60% of my invested capital, and as dividends roll in and fresh capital is added from my working wage, along with my yearly rotation of some of my single-share holdings from my non-sheltered account over to my ISA accounts, I expect that level to generally rise quite steadily over the coming years.

I should add that FCIT (Foreign and Colonial) is the clear outlier in there, as it's not really held for income-purposes (it has something like a 1.4% yield..), and it plays a specific role in my 'hopefully better than a Cash ISA' holdings, which include a few other odds and sods, such as a slug of Vanguard LifeStrategy 80/20 and a few other single-share 'growthy-holdings' that I like to have on the boil as a bit of a side-hustle..

I'm sure that I could do better, but I know that I could do a lot worse as well, and whilst I'd clearly point out that none of the above are a recommendation at all, I've got to say that I'm very content with the strategy that I'm pursuing, which is simple, steady, and repeatable, and which brings me no bother at all as things just tick along, letting time itself do the majority of the heavy lifting for me...

Cheers,

Itsallaguess

[absolutezero]

Further to earlier posts
I have now sold my holdings in the very low yielding DS Smith and Diageo and re-deployed the capital into City of London.
My yield is improved.

[Dod101]

Further to earlier posts
I have now sold my holdings in the very low yielding DS Smith and Diageo and re-deployed the capital into City of London.
My yield is improved.

Presumably then you are living off your dividends and need the income? And at the risk of stating the obvious you presumably rejected the idea of selling some shares in either of the individual holdings to bolster the yield from them? That is what City of London does as you know, I am sure.

Dod