PYAD HYP 2019_04 REINVEST – Year Four
Posted: April 8th, 2022, 8:17 pm
Top-Up - 11 April 2022 - Decision
For the activity during Year One of this portfolio please see this thread: viewtopic.php?f=15&t=17908
For the activity during Year Two of this portfolio please see this thread: viewtopic.php?f=15&t=22901
For the activity during Year Three of this portfolio please see this thread: viewtopic.php?f=15&t=33979
Update – 08 April 2022
This is an update on the HYP constructed by pyad, as recorded on this thread: viewtopic.php?f=15&t=16868&start=140 and subsequently managed by myself.
Further details of how updates are to be made to this portfolio can be found on this thread: viewtopic.php?p=218513#p218513
Current Portfolio: Holdings
Current Portfolio: Business Sectors
[1] - Yield and Forecast Income are based on my own Share Database Spreadsheet and are essentially calculated from the dividends that would have been earned over the previous 12 months, unless the company itself has clearly indicated otherwise. I do now believe that the recent dividend suspensions/cancellations, caused by the Covid Pandemic and Lockdowns, have been played out. Consequently, the above Year Div (£) columns can once again be treated as a reasonable estimate.
[2] - Realised Profit and Loss – To Date
Top-Up: 11 Apr 2022
As at the close of business on Friday 8 April 2022, the amount available for re-investment was £3,217.30. This amount will be used to top-up one holding on Monday 11 April 2022.
Candidates
From the point of view of the current “Highest Sustainable Yield” the following candidates were considered:
Decision
While it is the case that PSN has the highest yield, some of that has been described as returning capital to the shareholders over the past few years. Indeed, the company has already stated that there will be a further 110p per share later this year. However, I have been unable to determine what the yield would be without such capital returns. As a result, PSN is rejected for now.
Moving down the list, both RIO and IMB are disqualified, so as to avoid the resulting Business Sector Value Concentration from breaching my limit of 10%.
MNG would of course be next on yield, although only just, but I have decided to go for the added diversification, albeit slight, offered by an entirely new holding and new sector - DLG. The yield offered is, to all intents and purposes, the same as that offered by a further purchase of MNG.
Insurance Non-Life – Direct Line Insurance Group PLC (DLG) – Yield 8.46% - is therefore the decision for this top-up.
The Value Concentration after purchase (1.06%) will obviously leave the Insurance – Non-Life Business Sector holding as the smallest by that measure but who knows, there may be further purchases to come.
As I am not intending to purchase DLG for any of the real portfolios under my control, the price to be applied for this virtual purchase will be the average price reported on the day. I shall post an update when the details of the purchase are known.
Should anyone wish to comment on this or any prior top-ups, as well as any other actions taken in the management of this virtual HYP Portfolio, then please do so but only on this related thread: viewtopic.php?f=15&t=34042
The intention is to keep this thread simply recording the events of the Portfolio during its fourth year.
Enjoy!
Ian
For the activity during Year One of this portfolio please see this thread: viewtopic.php?f=15&t=17908
For the activity during Year Two of this portfolio please see this thread: viewtopic.php?f=15&t=22901
For the activity during Year Three of this portfolio please see this thread: viewtopic.php?f=15&t=33979
Update – 08 April 2022
This is an update on the HYP constructed by pyad, as recorded on this thread: viewtopic.php?f=15&t=16868&start=140 and subsequently managed by myself.
Further details of how updates are to be made to this portfolio can be found on this thread: viewtopic.php?p=218513#p218513
Current Portfolio: Holdings
EPIC | Company | Shares | Cost (£) | Price (p) | Value (£) | Value (%) | P/L (£) | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£)
IMB | Imperial Brands | 1,283 | 26,121.51 | 1,677.5000 | 21,522.33 | 7.15% | -4,599.18 | 0.00 | 4,585.41 | -13.77 | 8.29% | 1,784.39
BATS | British American Tobacco | 299 | 8,359.04 | 3,291.0000 | 9,840.09 | 3.27% | 1,481.05 | 162.80 | 1,100.76 | 2,744.61 | 6.62% | 651.22
WPP | WPP | 1,780 | 14,997.55 | 989.2000 | 17,607.76 | 5.85% | 2,610.21 | 0.00 | 1,717.70 | 4,327.91 | 3.15% | 555.36
ITV | ITV | 11,652 | 14,999.08 | 79.0800 | 9,214.40 | 3.06% | -5,784.68 | 0.00 | 932.15 | -4,852.53 | 6.32% | 582.60
HSBA | HSBC Holdings | 2,425 | 14,998.27 | 530.0000 | 12,852.50 | 4.27% | -2,145.77 | 332.97 | 959.86 | -852.94 | 3.60% | 462.46
IGG | IG Group Holdings | 2,762 | 14,999.32 | 840.5000 | 23,214.61 | 7.71% | 8,215.29 | 0.00 | 3,579.51 | 11,794.80 | 5.14% | 1,193.18
ABDN | Abrdn PLC | 6,389 | 17,397.08 | 207.9000 | 13,282.73 | 4.41% | -4,114.35 | 466.39 | 3,501.42 | -146.54 | 7.02% | 932.79
MNG | M & G PLC | 3,505 | 7,189.84 | 212.5000 | 7,448.13 | 2.47% | 258.29 | 427.61 | 272.89 | 958.79 | 8.61% | 641.41
AV | Aviva | 4,821 | 19,703.37 | 425.8000 | 20,527.82 | 6.82% | 824.45 | 708.68 | 2,809.68 | 4,342.81 | 5.18% | 1,063.03
DLG | Direct Line Insurance Grp | 0 | 0.00 | 268.4000 | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 8.46% | 0.00
GSK | GlaxoSmithKline | 941 | 14,999.37 | 1,778.6000 | 16,736.63 | 5.56% | 1,737.26 | 0.00 | 2,258.40 | 3,995.66 | 4.36% | 729.27
BA | BAE Systems | 3,043 | 14,995.20 | 743.6000 | 22,627.75 | 7.51% | 7,632.55 | 0.00 | 2,130.07 | 9,762.62 | 3.38% | 763.78
SMDS | DS Smith | 4,310 | 14,997.11 | 308.2000 | 13,283.42 | 4.41% | -1,713.69 | 413.76 | 1,219.73 | -80.20 | 4.19% | 555.99
IBST | Ibstock | 5,849 | 14,999.47 | 177.8000 | 10,399.52 | 3.45% | -4,599.95 | 0.00 | 807.14 | -3,792.81 | 4.22% | 438.67
BLND | British Land Company | 1,273 | 7,494.24 | 530.4000 | 6,751.99 | 2.24% | -742.25 | 0.00 | 624.69 | -117.56 | 3.20% | 215.90
LAND | Land Securities Group | 818 | 7,499.19 | 783.8000 | 6,411.48 | 2.13% | -1,087.71 | 0.00 | 702.23 | -385.48 | 4.21% | 269.94
BHP | BHP Group | 838 | 14,992.51 | 3,001.0000 | 25,148.38 | 8.35% | 10,155.87 | 0.00 | 3,509.70 | 13,665.57 | 6.58% | 1,655.67
RIO | Rio Tinto | 173 | 9,833.07 | 6,138.0000 | 10,618.74 | 3.53% | 785.67 | 609.50 | 391.97 | 1,787.14 | 9.41% | 999.17
SHEL | Shell | 457 | 9,626.22 | 2,168.0000 | 9,907.76 | 3.29% | 281.54 | 0.00 | 980.92 | 1,262.46 | 3.38% | 334.67
BP | BP | 1,347 | 7,496.10 | 391.5000 | 5,273.51 | 1.75% | -2,222.59 | 0.00 | 921.20 | -1,301.39 | 4.26% | 224.40
VOD | Vodafone Group | 10,077 | 14,998.48 | 129.2800 | 13,027.55 | 4.33% | -1,970.93 | 0.00 | 2,335.44 | 364.51 | 5.87% | 764.11
CCL | Carnival Corporation | 384 | 14,979.79 | 1,288.0000 | 4,945.92 | 1.64% | -10,033.87 | 0.00 | 610.18 | -9,423.69 | 0.00% | 0.00
PNN | Pennon Group | 1,316 | 10,670.59 | 1,082.0000 | 14,239.12 | 4.73% | 3,568.53 | 0.00 | 1,447.69 | 5,016.22 | 3.16% | 449.54
| | | | | | | | | | | |
| Sub Total: | | | | £294,882.14 | 97.90% | -£1,464.26 | £3,121.71 | | | 5.18% | £15,267.55
| Cash Balance: | | | | £3,217.30 | 1.07% | | | | | |
| Ex-Dividend: | | | | £3,121.71 | 1.04% | | | | | |
| | | | | | | | | | | |
| Current Portfolio Value: | | | | £301,221.15 | 18.17% | | | | | |
| From: | | | | | | | | | | |
| Cash In: | | | | £254,904.77 | | | | | | |
| LESS Cash Out: | | | | £0.00 | | | | | | |
| Dividends Received: | | | | £37,951.65 | 14.89% | | | | | |
| Ex-Dividend: | | | | £3,121.71 | | | | | | |
| Realised Profit/Loss: | | | | £6,707.28 |[2] | | | | | |
| Un-Realised Profit/Loss: | | | | -£1,464.26 | | | | | | |
| | | | | | XIRR | | | | | |
| Total: | | | | £301,221.15 | 5.61% | | | | | |
Current Portfolio: Business Sectors
Business | Cost (£) | Value (£) | Value (%) | P/L (£) | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£)
Mining | 24,825.58 | 35,767.12 | 11.87% | 10,941.54 | 609.50 | 3,901.67 | 15,452.71 | 7.42% | 2,654.84
Tobacco | 34,480.55 | 31,362.42 | 10.41% | -3,118.13 | 162.80 | 5,686.17 | 2,730.84 | 7.77% | 2,435.61
Gambling | 14,999.32 | 23,214.61 | 7.71% | 8,215.29 | 0.00 | 3,579.51 | 11,794.80 | 5.14% | 1,193.18
Weapons | 14,995.20 | 22,627.75 | 7.51% | 7,632.55 | 0.00 | 2,130.07 | 9,762.62 | 3.38% | 763.78
Fund Manager | 24,586.92 | 20,730.86 | 6.88% | -3,856.06 | 894.00 | 3,774.31 | 812.25 | 7.59% | 1,574.20
Insurance - Life | 19,703.37 | 20,527.82 | 6.81% | 824.45 | 708.68 | 2,809.68 | 4,342.81 | 5.18% | 1,063.03
Advertising | 14,997.55 | 17,607.76 | 5.85% | 2,610.21 | 0.00 | 1,717.70 | 4,327.91 | 3.15% | 555.36
Pharma | 14,999.37 | 16,736.63 | 5.56% | 1,737.26 | 0.00 | 2,258.40 | 3,995.66 | 4.36% | 729.27
Oil | 17,122.32 | 15,181.27 | 5.04% | -1,941.05 | 0.00 | 1,902.12 | -38.93 | 3.68% | 559.07
Utility - Water | 10,670.59 | 14,239.12 | 4.73% | 3,568.53 | 0.00 | 1,447.69 | 5,016.22 | 3.16% | 449.54
Packaging | 14,997.11 | 13,283.42 | 4.41% | -1,713.69 | 413.76 | 1,219.73 | -80.20 | 4.19% | 555.99
Real Estate IT | 14,993.43 | 13,163.47 | 4.37% | -1,829.96 | 0.00 | 1,326.92 | -503.04 | 3.69% | 485.84
Telecom - Mobile | 14,998.48 | 13,027.55 | 4.32% | -1,970.93 | 0.00 | 2,335.44 | 364.51 | 5.87% | 764.11
Banks | 14,998.27 | 12,852.50 | 4.27% | -2,145.77 | 332.97 | 959.86 | -852.94 | 3.60% | 462.46
Bricks | 14,999.47 | 10,399.52 | 3.45% | -4,599.95 | 0.00 | 807.14 | -3,792.81 | 4.22% | 438.67
Television | 14,999.08 | 9,214.40 | 3.06% | -5,784.68 | 0.00 | 932.15 | -4,852.53 | 6.32% | 582.60
Cruising | 14,979.79 | 4,945.92 | 1.64% | -10,033.87 | 0.00 | 610.18 | -9,423.69 | 0.00% | 0.00
[1] - Yield and Forecast Income are based on my own Share Database Spreadsheet and are essentially calculated from the dividends that would have been earned over the previous 12 months, unless the company itself has clearly indicated otherwise. I do now believe that the recent dividend suspensions/cancellations, caused by the Covid Pandemic and Lockdowns, have been played out. Consequently, the above Year Div (£) columns can once again be treated as a reasonable estimate.
[2] - Realised Profit and Loss – To Date
Date | Epic | Name | Amount | Comment
20-Sep-19 | IBST | Ibstock | 292.45 | Return of Capital / Special Dividend
09-Oct-19 | GNK | Greene King | 4,188.29 | Sale – Pending Takeover
16-Jul-21 | PNN | Pennon Group | 1,676.05 | Return of Capital / Share Consolidation
21-Sep-21 | BHP | BHP Group | 550.49 | Return of Capital / Special Dividend
| | | |
| | Total | £6,707.28 |
Top-Up: 11 Apr 2022
As at the close of business on Friday 8 April 2022, the amount available for re-investment was £3,217.30. This amount will be used to top-up one holding on Monday 11 April 2022.
Candidates
From the point of view of the current “Highest Sustainable Yield” the following candidates were considered:
Top-Up | | | | |
Business | EPIC | Company | Yield (%) | Decision | Comments
Home Construction | PSN | Persimmon | 10.72% | Selected | New Sector / New Holding
Mining | RIO | Rio Tinto | 9.41% | Rejected | Resultant Sector Value Concentration (12.89%) too high
Fund Manager | MNG | M & G PLC | 8.61% | Selected | Resultant Sector Value Concentration (8.18%)
Insurance - Non-Life | DLG | Direct Line Insurance Grp | 8.46% | Selected | New Sector / New Holding
Tobacco | IMB | Imperial Brands | 8.29% | Rejected | Resultant Sector Value Concentration (11.21%) too high
Decision
While it is the case that PSN has the highest yield, some of that has been described as returning capital to the shareholders over the past few years. Indeed, the company has already stated that there will be a further 110p per share later this year. However, I have been unable to determine what the yield would be without such capital returns. As a result, PSN is rejected for now.
Moving down the list, both RIO and IMB are disqualified, so as to avoid the resulting Business Sector Value Concentration from breaching my limit of 10%.
MNG would of course be next on yield, although only just, but I have decided to go for the added diversification, albeit slight, offered by an entirely new holding and new sector - DLG. The yield offered is, to all intents and purposes, the same as that offered by a further purchase of MNG.
Insurance Non-Life – Direct Line Insurance Group PLC (DLG) – Yield 8.46% - is therefore the decision for this top-up.
The Value Concentration after purchase (1.06%) will obviously leave the Insurance – Non-Life Business Sector holding as the smallest by that measure but who knows, there may be further purchases to come.
As I am not intending to purchase DLG for any of the real portfolios under my control, the price to be applied for this virtual purchase will be the average price reported on the day. I shall post an update when the details of the purchase are known.
Should anyone wish to comment on this or any prior top-ups, as well as any other actions taken in the management of this virtual HYP Portfolio, then please do so but only on this related thread: viewtopic.php?f=15&t=34042
The intention is to keep this thread simply recording the events of the Portfolio during its fourth year.
Enjoy!
Ian