Itsallaguess wrote:I've just re-ordered your first table in descending order of expected-percentage of dividends, and found that you've got nearly 10% of current HYP capital delivering just 1.1% of your expected HYP income -
Rhinestone's portfolio is not unusual in this respect. Those of us around in 2008-10 will remember well the carnage among some of the less reliable dividend payers. Some of them took an inordinate length of time to return to the ranks of dividend payers.
At that time I started out on a major rebuilding exercise. An early casualty was HBoS, sold before it got swallowed by Lloyds. Mapeley was dumped before it delisted. Then DSGI (now Dixons Carphone) went, replaced by Diageo; Trinity Mirror, replaced by Pearson; Anglo American, Rentokil and Premier Foods departed, replaced by BHP Billiton, BATS and Unilever; Prudential proposed a massive rights issue and were sold in favour of Brit Insurance, itself to be taken over a few months later and replaced by Aviva; Yule Catto and ITV went, replaced by Glaxo and the now SSE; Tomkins was taken over, to be replaced by British Land; Northern Foods went, replaced by Marstons; Reckitt Benckiser was added.
Looking at your list of non-payers, Dixons Carphone appears. There are some anomalies in that you attribute yields to some currently non-payers, like LLoyds, for example. My list of non-payers is:
Rank EPIC Yield
28 S32 1.71%
29 WMH 0.00%
30 MKS 0.00%
31 MARS 0.00%
32 TW. 0.00%
33 BT.A 0.00%
34 CPG 0.00%
35 KGF 0.00%
36 LLOY 0.00%
Of those, William Hill is soon to depart. Most of the others will resume dividends as Covid subsides, but I may dump any laggards. I think that he ought to be prepared to cut out some of the deadwood. Indivior, and Centrica are two that I would give the heave-ho, possibly NatWest as well. It's that old problem of "Forecast dividends" again. I just do not trust them. A lot of the "yields" are fiction. I fear that the data source cannot be relied on. Better to go back to first principles and only count what the company itself is saying.
TJH