Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to 87investor,longview,Sussexlad,niord,staffordian, for Donating to support the site

Absolutezero's HYP

A helpful place to also put any annual reports etc, of your own portfolios
absolutezero
Lemon Slice
Posts: 504
Joined: November 17th, 2016, 8:17 pm
Has thanked: 16 times
Been thanked: 74 times

Absolutezero's HYP

#327980

Postby absolutezero » July 22nd, 2020, 4:03 pm

If anyone else is like me, it's nice to have a look at what other people have in their portfolios and offer 'criticism' and suggested improvements.

I'm conscious I own a fair number of low yielders - LLOY etc - but I expect most of them to start paying out once the Government edict says they can.
Based on current projections, my dividend income is down roughly 30% on last tax year.

Just to point out, I am more than happy with the sector descriptions so if we can avoid saying 'you call it media but it's an advertising agency/TV production company'. I get that but the line has to be drawn somewhere.

If I was looking to collect any new stamps then there aren't really many I would consider at the moment. Unless I've missed some beauties.
I tend to look for a 4% yield as a minimum and I do take a view on short/medium term politics/economics.
Airlines and holiday companies are out for the moment as are owners of offices and shops BLND etc.

And I do tinker/chop and change. iWeb charges me a fiver each way and stamp duty is just how it is.

My own trawl of potentials brings up: (Forecast yields from HYPTUSS)
BHP 5.4%
SSE 5.6%
ADM 5.7%
BA 4.6%
IMB 10.4%
MRW 4.0%
SBRY 5.3%
SVT 4.2%
SLA 7.9%
TCAP 4.9%

                                                                                 Value     Div    Fcst 
Share Epic Sector %Total %Total Yield

Anglo American AAL Mining 3.44% 2.24% 2.90%
AstraZeneca AZN Pharmaceuticals 10.46% 5.63% 2.40%
Aviva AV Insurance 2.91% 6.46% 9.90%
BP BP Oil & Gas Producers 2.68% 5.47% 9.10%
British American Tobacco BATS Tobacco 3.68% 6.44% 7.80%
Compass Group CPG Catering 0.70% 0.00% 0.00%
Diageo DGE Beverages 1.78% 0.96% 2.40%
Elementis ELM Chemicals 1.28% 0.11% 0.40%
GlaxoSmithKline GSK Pharmaceuticals 3.11% 3.34% 4.80%
IG Group Holdings IGG Financial Services 5.03% 5.97% 5.30%
ITV ITV Media 3.03% 2.72% 4.00%
Legal and General Group LGEN Insurance 3.43% 6.16% 8.00%
Lloyds Banking Group LLOY Banks 1.63% 1.03% 2.80%
National Grid NG Utilities 4.46% 5.60% 5.60%
Persimmon PSN Housebuilder 7.34% 6.59% 4.00%
Primary Health Properties PHP Real Estate Investment Trusts 2.44% 2.19% 4.00%
Rio Tinto RIO Mining 5.18% 6.50% 5.60%
RIT Capital Partners RCP Equity Investment Instruments 1.07% 0.45% 1.90%
Royal Dutch Shell 'B' RDSB Oil & Gas Producers 2.47% 2.94% 5.30%
Sage Group SGE Software & Computer Services 2.27% 1.27% 2.50%
Smith (DS) SMDS Packaging 2.61% 2.28% 3.90%
Tate and Lyle TATE Food Producers 4.34% 4.28% 4.40%
Taylor Wimpey TW Housebuilder 2.82% 0.76% 1.20%
Unilever ULVR Food Producers 9.09% 7.14% 3.50%
United Utilities Group UU Utilities 3.71% 4.08% 4.90%
Vodafone Group VOD Mobile Telecommunications 4.77% 6.63% 6.20%
Wood Group (John) WG Oil Equipment, Services & Distribution 2.13% 0.72% 1.50%
WPP WPP Media 2.15% 2.03% 4.20%

Portfolio Running Yield = 4.46%


Value Div
Sector %Total %Total

Mining 8.62% 8.74%
Pharmaceuticals 13.57% 8.97%
Insurance 6.34% 12.62%
Oil & Gas Producers 5.15% 8.41%
Tobacco 3.68% 6.44%
Catering 0.70% 0.00%
Beverages 1.78% 0.96%
Chemicals 1.28% 0.11%
Financial Services 5.03% 5.97%
Media 5.18% 4.75%
Banks 1.63% 1.03%
Utilities 8.17% 9.68%
Housebuilder 10.16% 7.35%
Real Estate Investment Trusts 2.44% 2.19%
Equity Investment Instruments 1.07% 0.45%
Software & Computer Services 2.27% 1.27%
Packaging 2.61% 2.28%
Food Producers 13.43% 11.42%
Mobile Telecommunications 4.77% 6.63%
Oil Equipment, Services & Distribution 2.13% 0.72%
Total 100.00% 100.00%

Note: 1...'Value %Total' is the portfolio value of the share as a % of the total portfolio
2...'Div %Total' is the expected dividend of the share based on forecast yield
as a % of the total portfolio expected dividend


Any helpful thoughts are appreciated.

absolutezero
Lemon Slice
Posts: 504
Joined: November 17th, 2016, 8:17 pm
Has thanked: 16 times
Been thanked: 74 times

Re: Absolutezero's HYP

#327985

Postby absolutezero » July 22nd, 2020, 4:25 pm

Top 5 top up candidates according to HYPTUSS:
BP - though I can't see this not being a cutter
AV - dividend currently suspended
RDSB
WPP
LGEN

monabri
Lemon Quarter
Posts: 4322
Joined: January 7th, 2017, 9:56 am
Has thanked: 525 times
Been thanked: 1356 times

Re: Absolutezero's HYP

#328001

Postby monabri » July 22nd, 2020, 6:13 pm

WPP....divi suspended.

absolutezero
Lemon Slice
Posts: 504
Joined: November 17th, 2016, 8:17 pm
Has thanked: 16 times
Been thanked: 74 times

Re: Absolutezero's HYP

#328124

Postby absolutezero » July 23rd, 2020, 11:04 am

monabri wrote:WPP....divi suspended.

The field gets less crowded by the day...

absolutezero
Lemon Slice
Posts: 504
Joined: November 17th, 2016, 8:17 pm
Has thanked: 16 times
Been thanked: 74 times

Re: Absolutezero's HYP

#340231

Postby absolutezero » September 14th, 2020, 4:38 pm

I've been doing some topping up and trimming dead wood and I now have enough spare cash for a completely new holding in a new sector.

HYPTUSS suggests topping up BP, RDSB, AV, LGEN and DLG in that order.
I think I have enough exposure to oil and plenty exposure to insurers. (Or finance in general or I would have gone for SLA or M&G)

I've been considering a supermarket (Tesco, Morrisons or Sainsbury) or a retail electricity company (SSE).
I know SSE is doing some kind of corporate action by splitting into two bits and the supermarkets are either low yielding or the dividend policy isn't yet clear.

I'd not be averse to suggestions - all ideas gratefully received.


                                                                                 Value     Div    Fcst 
Share Epic Sector %Total %Total Yield

Anglo American AAL Mining 3.37% 2.25% 3.30%
AstraZeneca AZN Pharmaceuticals 10.24% 5.39% 2.60%
Aviva AV Insurance 2.93% 5.58% 9.40%
BP BP Oil & Gas Producers 2.44% 4.19% 8.50%
British American Tobacco BATS Tobacco 3.75% 6.45% 8.50%
Compass Group CPG Catering 0.82% 0.00% 0.00%
Diageo DGE Beverages 1.73% 0.98% 2.80%
Direct Line Insurance Group DLG Insurance 2.99% 7.49% 12.40%
GlaxoSmithKline GSK Pharmaceuticals 3.03% 3.31% 5.40%
IG Group Holdings IGG Financial Services 4.97% 5.53% 5.50%
ITV ITV Media 3.13% 2.40% 3.80%
Legal and General Group LGEN Insurance 3.33% 5.53% 8.20%
Lloyds Banking Group LLOY Banks 1.55% 0.47% 1.50%
National Grid NG Utilities 4.51% 5.38% 5.90%
Persimmon PSN Housebuilder 8.09% 7.04% 4.30%
Primary Health Properties PHP Real Estate Investment Trusts 2.61% 2.06% 3.90%
Rio Tinto RIO Mining 5.17% 6.37% 6.10%
Royal Dutch Shell 'B' RDSB Oil & Gas Producers 2.28% 2.35% 5.10%
Sage Group SGE Software & Computer Services 2.47% 1.20% 2.40%
Smith (DS) SMDS Packaging 2.57% 1.87% 3.60%
Tate and Lyle TATE Food Producers 4.77% 4.05% 4.20%
Taylor Wimpey TW Housebuilder 2.65% 1.23% 2.30%
Unilever ULVR Food Producers 10.14% 6.97% 3.40%
United Utilities Group UU Utilities 3.86% 4.06% 5.20%
Vodafone Group VOD Mobile Telecommunications 4.22% 6.22% 7.30%
WPP WPP Media 2.38% 1.64% 3.40%

Portfolio Running Yield = 4.95%


Value Div
Sector %Total %Total

Mining 8.54% 8.62%
Pharmaceuticals 13.27% 8.70%
Insurance 9.25% 18.60%
Oil & Gas Producers 4.72% 6.54%
Tobacco 3.75% 6.45%
Catering 0.82% 0.00%
Beverages 1.73% 0.98%
Financial Services 4.97% 5.53%
Media 5.51% 4.04%
Banks 1.55% 0.47%
Utilities 8.37% 9.44%
Housebuilder 10.74% 8.27%
Real Estate Investment Trusts 2.61% 2.06%
Software & Computer Services 2.47% 1.20%
Packaging 2.57% 1.87%
Food Producers 14.91% 11.02%
Mobile Telecommunications 4.22% 6.22%
Total 100.00% 100.00%

Note: 1...'Value %Total' is the portfolio value of the share as a % of the total portfolio
2...'Div %Total' is the expected dividend of the share based on forecast yield
as a % of the total portfolio expected dividend

moorfield
Lemon Quarter
Posts: 1954
Joined: November 7th, 2016, 1:56 pm
Has thanked: 559 times
Been thanked: 558 times

Re: Absolutezero's HYP

#340316

Postby moorfield » September 14th, 2020, 10:26 pm

absolutezero wrote:I've been doing some topping up and trimming dead wood and I now have enough spare cash for a completely new holding in a new sector.

HYPTUSS suggests topping up BP, RDSB, AV, LGEN and DLG in that order.
I think I have enough exposure to oil and plenty exposure to insurers. (Or finance in general or I would have gone for SLA or M&G)

I've been considering a supermarket (Tesco, Morrisons or Sainsbury) or a retail electricity company (SSE).
I know SSE is doing some kind of corporate action by splitting into two bits and the supermarkets are either low yielding or the dividend policy isn't yet clear.

I'd not be averse to suggestions - all ideas gratefully received.



Brewin Dolphin (BRW), FTSE250 listed asset manager, 7.1% yield. A couple of evenings spent with Mr Oakley's book and it's annual reports have persuaded me to buy into this. No debt on its balance sheet and it has distinguished itself by not suspending or cancelling its dividend during the pandemic. Next Finals due 25 November.

Dod101
Lemon Half
Posts: 6326
Joined: October 10th, 2017, 11:33 am
Has thanked: 1436 times
Been thanked: 2522 times

Re: Absolutezero's HYP

#340333

Postby Dod101 » September 15th, 2020, 7:13 am

moorfield wrote:
absolutezero wrote:
HYPTUSS suggests topping up BP, RDSB, AV, LGEN and DLG in that order.
I think I have enough exposure to oil and plenty exposure to insurers. (Or finance in general or I would have gone for SLA or M&G)

I've been considering a supermarket (Tesco, Morrisons or Sainsbury) or a retail electricity company (SSE).
I know SSE is doing some kind of corporate action by splitting into two bits and the supermarkets are either low yielding or the dividend policy isn't yet clear.



Brewin Dolphin (BRW), FTSE250 listed asset manager, 7.1% yield. A couple of evenings spent with Mr Oakley's book and it's annual reports have persuaded me to buy into this. No debt on its balance sheet and it has distinguished itself by not suspending or cancelling its dividend during the pandemic. Next Finals due 25 November.


But the OP tells us that he has enough finance shares and here you offering just that. I would suggest he goes with SSE. Not a great share these days, but the corporate action he seems unsure about is presumably the sale of the retail arm, now completed and the reset dividend as a result of this has been done. To strengthen their Balance Sheet, they are currently planning to sell non strategic assets and the first deal has recently been announced. In the HYP sector it would make a decent enough addition. Better than any of the supermarkets I think.

Dod

moorfield
Lemon Quarter
Posts: 1954
Joined: November 7th, 2016, 1:56 pm
Has thanked: 559 times
Been thanked: 558 times

Re: Absolutezero's HYP

#340343

Postby moorfield » September 15th, 2020, 8:14 am

Dod101 wrote:But the OP tells us that he has enough finance shares and here you offering just that. I would suggest he goes with SSE. Not a great share these days, but the corporate action he seems unsure about is presumably the sale of the retail arm, now completed and the reset dividend as a result of this has been done. To strengthen their Balance Sheet, they are currently planning to sell non strategic assets and the first deal has recently been announced. In the HYP sector it would make a decent enough addition. Better than any of the supermarkets I think.



Well if we are going to pick nits the OP also wrote ...
absolutezero wrote:I'd not be averse to suggestions - all ideas gratefully received.


I started out investing with self-imposed portfolio limits (10%/sector, 20%/industry iirc) and have come to realise that obsessing over these can create blind spots to good investment opportunities, once I had taught myself how to better analyse companies financials I dropped them. Personally I do not now apply pyad's tenet of equally weighted sectors too rigourously.

SSE is an inefficient, capex intensive, debt laden business which has generated thin margins for and struggled to cover its dividend to its owners for years. As you wrote, not a great share. BRW isn't and hasn't. (As I see it, having spent a few hours examining both companies annual reports.)

Dod101
Lemon Half
Posts: 6326
Joined: October 10th, 2017, 11:33 am
Has thanked: 1436 times
Been thanked: 2522 times

Re: Absolutezero's HYP

#340346

Postby Dod101 » September 15th, 2020, 8:28 am

moorfield wrote:[


Well if we are going to pick nits the OP also wrote ...
absolutezero wrote:I'd not be averse to suggestions - all ideas gratefully received.


I started out investing with self-imposed portfolio limits (10%/sector, 20%/industry iirc) and have come to realise that obsessing over these can create blind spots to good investment opportunities, once I had taught myself how to better analyse companies financials I dropped them. Personally I do not now apply pyad's tenet of equally weighted sectors too rigourously.

SSE is an inefficient, capex intensive, debt laden business which has generated thin margins for and struggled to cover its dividend to its owners for years. As you wrote, not a great share. BRW isn't and hasn't. (As I see it, having spent a few hours examining both companies annual reports.)


I agree with all that you say, but was just trying to follow the guidance that the OP provided. There seem to me to be very few decent HYP shares around these days and like many, I guess, I too have more in financials than some would regard as acceptable. I got out of SSE a couple or so years ago for the reasons you cite and bought back in after they did the retail deal and announced the sale of non strategic assets. That should help to make them a bit more secure. As to Brewin Dolphin, I have never looked at them but would be reluctant to add to asset managers although I guess they would be regarded as a wealth manager rather than an asset manager like SLA, Schroders etc., but it is firmly in the financials category.

Dod

absolutezero
Lemon Slice
Posts: 504
Joined: November 17th, 2016, 8:17 pm
Has thanked: 16 times
Been thanked: 74 times

Re: Absolutezero's HYP

#340376

Postby absolutezero » September 15th, 2020, 10:43 am

Thanks for the replies so far.

Brewin Dolphin is worth a closer look. I'm reluctant to add another financial share but as we said above, there aren't many good HYP shares around at the moment.
SSE. I have had this in the past and got rid of it while Corbynomics was a factor. Thankfully now a distant memory. Dividend cover is shocking too.

A few I have considered:
Tesco - looks fairly solid these days. Circa 4% forward yield.
Airtel Africa - FTSE 250. Indian based mobile phone services in Africa. 9ish% yield. A few things put me off - one being the fact that it only listed a year or so ago. Plus Vodafone does a similar job and is a known quantity.
BHP - though I probably have enough mining shares.
BAE Systems - I'm pickering on this but I don't feel easy with holding shares in something that makes bombs.
Sainsbury's - the rumours show a decent dividend but the company have yet to declare anything.


I could always top up some of my holdings - but then that's another whole debate. If it's a top up then my gut is telling me to top up Lloyd's or buy Barclays- despite the ban on dividends for the rest of the year.
What was that about financial shares?

TUK020
Lemon Quarter
Posts: 1079
Joined: November 5th, 2016, 7:41 am
Has thanked: 280 times
Been thanked: 611 times

Re: Absolutezero's HYP

#340415

Postby TUK020 » September 15th, 2020, 1:27 pm

As we are not on HYP-P, I would suggest that you think about broadening your geographic/sector diversification by considering ITs

Things like Henderson Far East Ltd (HFEL) and Murray International (MYI) might be thought of as some insurance against UK economy specific problems.
Another sector that may be worth considering is infrastructure, HICL has performed steadily but is at a premium to NAV at the moment

Dod101
Lemon Half
Posts: 6326
Joined: October 10th, 2017, 11:33 am
Has thanked: 1436 times
Been thanked: 2522 times

Re: Absolutezero's HYP

#340428

Postby Dod101 » September 15th, 2020, 2:14 pm

To reply to absolutezero, I would steer clear of the supermarkets. All of them are still unsettled by the Covid problems and difficult to judge what with rates relief and so on, as well as a change in the consumer buying patterns.

I would certainly endorse TUK's thoughts on HFEL and Murray International. I hold both. I bought 3i Infrastructure in April to give me a slightly different angle and all the infrastructure ITs seem to be on a premium, but we might wait long enough to see it reduced and may just have to accept that as par for the course as it were.

Dod

monabri
Lemon Quarter
Posts: 4322
Joined: January 7th, 2017, 9:56 am
Has thanked: 525 times
Been thanked: 1356 times

Re: Absolutezero's HYP

#340458

Postby monabri » September 15th, 2020, 4:29 pm

I'd avoid SBRY, TSCO and MRW as their margins are "thin". I would be looking to ITs for dividend income.

Wizard
Lemon Quarter
Posts: 4862
Joined: November 7th, 2016, 8:22 am
Has thanked: 2 times
Been thanked: 847 times

Re: Absolutezero's HYP

#340497

Postby Wizard » September 15th, 2020, 7:24 pm

I too am very bearish on traditional supermarkets. Margin pressures from low cost recent entrants, a millstone of massive out of town property much of which will not be needed in the future and the ever looming threat of Amazon deciding to batter them with financial firepower they can not even dream of. A nightmare combination IMHO.

Looking at the OP’s portfolio and taking account of the board we are on meaning we are not limited by FTSE350 only handcuffs I would suggest looking beyond the UK, either through ITs as already suggested or some direct US or Canadian holdings of quality shares paying a modest but reasonable dividend, eg Coca Cola or IBM. Another suggestion that I have yet to look at is Kraft Heinz or there is one of the Canadian banks. Any of those are better options than a UK supermarket IMHO. Not sure where you hold your shares but an ISA or better still a SIPP help mitigate withholding tax drag.

absolutezero
Lemon Slice
Posts: 504
Joined: November 17th, 2016, 8:17 pm
Has thanked: 16 times
Been thanked: 74 times

Re: Absolutezero's HYP

#340520

Postby absolutezero » September 15th, 2020, 10:56 pm

Thank you all.

The IT angle is also worth a look. City of London is the one that gets mentioned quite a lot on here.

I'm rather loath to hold foreign shares due to tax considerations.
ISA is full! In process of shifting non ISA shares into the ISA but that will take several years yet (assuming they don't cut the ISA subscription amount - a definite maybe).

I also have a SIPP held with Vanguard and that has Worldwide exposure through VWRL.
I know it can be done cheaper by buying different Vanguard funds but I can't be bothered. Just buy VWRL and pay the 0.22% fee.
I'm also about 20 years off being able to access it.

It seems apart from Brewin Dolphin, nobody can really suggest a LSE traded share in a single company that would be suitable for a new HYP share! Unusual times.

Golam
Posts: 19
Joined: August 11th, 2019, 9:35 pm
Has thanked: 49 times
Been thanked: 12 times

Re: Absolutezero's HYP

#340536

Postby Golam » September 16th, 2020, 3:06 am

'' It seems apart from Brewin Dolphin, nobody can really suggest a LSE traded share in a single company that would be suitable for a new HYP share! ''

Take a look at KLR. Classed as in the construction sector but rather specialist with world wide activities. Excellent divi record. Their promotional literature is an interesting read.
I hold BRW too.

Dod101
Lemon Half
Posts: 6326
Joined: October 10th, 2017, 11:33 am
Has thanked: 1436 times
Been thanked: 2522 times

Re: Absolutezero's HYP

#340543

Postby Dod101 » September 16th, 2020, 8:00 am

Golam wrote:'' It seems apart from Brewin Dolphin, nobody can really suggest a LSE traded share in a single company that would be suitable for a new HYP share! ''

Take a look at KLR. Classed as in the construction sector but rather specialist with world wide activities. Excellent divi record. Their promotional literature is an interesting read.
I hold BRW too.


OK so after a lot of digging around I find that KLR means Keller Group, a geotechnical specialist apparently, so specialist that I guess few know much about it even if they have held the name. It is a general convention that we at least spell out the name in full as a courtesy to others.

A relatively quick glance at the interim results to 28 June reveals no interim dividend and a very cautious outlook statement with a decline in orders which may impact 2021, so it is a bit of an act of faith.

If I were the OP and he really wants something else then Admiral would be my choice.

Dod

Bagger46
Lemon Pip
Posts: 84
Joined: August 10th, 2019, 4:40 pm
Has thanked: 73 times
Been thanked: 100 times

Re: Absolutezero's HYP

#340549

Postby Bagger46 » September 16th, 2020, 8:21 am

absolutezero wrote:Thank you all.

The IT angle is also worth a look. City of London is the one that gets mentioned quite a lot on here.

I'm rather loath to hold foreign shares due to tax considerations.
ISA is full! In process of shifting non ISA shares into the ISA but that will take several years yet (assuming they don't cut the ISA subscription amount - a definite maybe).

I also have a SIPP held with Vanguard and that has Worldwide exposure through VWRL.
I know it can be done cheaper by buying different Vanguard funds but I can't be bothered. Just buy VWRL and pay the 0.22% fee.
I'm also about 20 years off being able to access it.

It seems apart from Brewin Dolphin, nobody can really suggest a LSE traded share in a single company that would be suitable for a new HYP share! Unusual times.


You don’t appear to have Private Equity. Could be a useful diversification from your strong FTSE350 presence.

My wife has just topped up her BMO Private Equity (BPET, xd 1/10 IIRC) in her ISA, FWIW. (I hold 3i, but the yield might not suit you).

Bagger

monabri
Lemon Quarter
Posts: 4322
Joined: January 7th, 2017, 9:56 am
Has thanked: 525 times
Been thanked: 1356 times

Re: Absolutezero's HYP

#340550

Postby monabri » September 16th, 2020, 8:26 am

Quick look at Keller...Gross Margin typically 70%...Operating Margin 4%...where does it all go?....they have significant operating expenses..

http://financials.morningstar.com/ratio ... region=GBR

( also check the free cash flow per share versus dividend).

absolutezero
Lemon Slice
Posts: 504
Joined: November 17th, 2016, 8:17 pm
Has thanked: 16 times
Been thanked: 74 times

Re: Absolutezero's HYP

#340593

Postby absolutezero » September 16th, 2020, 11:26 am

Keller doesn't quite pass the 'smell test' for me.
Private equity is a bit of a sealed black box.

I've been having a look at some smaller cap shares. (Yes. I know. Es ist verboten.)

M&C Saatchi. SAA
T Clarke. CTO.

Both cutters but they look alright. (If we exclude cutters then most of the FTSE 350 is off limits too.)
I wonder if a small cap high yield thread might be useful....


Return to “Portfolio Management & Review”

Who is online

Users browsing this forum: No registered users and 2 guests