Topped up Vodafone

[tjh290633]

Having sold my DS Smith nil-paid rights, the proceeds were ploughed back into some more Vodafone, at 1.8454p, adding 18% to my holding. This brings the holding up to 92% of the median. It puts the income generated by VOD at 4.2% of the total, so adding any more would take it past my arbitrary 5% limit. Despite this top-up, VOD remains top of the eligible shares for topping up and, since I have decided to make it ineligible, that puts BT.A as top of the top up list, itself perilously close to the cut-off point.

Here is the top-up list and the associated parameters:

Top-up          Income                     Cost                
Rank     EPIC   Rank     EPIC   % Income   Rank   Epic   % Cost
     1   MARS*       1   TW.       5.65%      1   GSK     4.52%
     2   VOD*        2   MARS      4.30%      2   MKS     4.35%
     3   BT.A        3   RDSB      4.29%      3   PSON    4.12%
     4   NG.         4   IMB       4.24%      4   RDSB    4.12%
     5   BATS        5   SSE       4.23%      5   LLOY    4.08%
     6   UU.         6   VOD       4.18%      6   MARS    4.01%
     7   LLOY        7   RIO       4.17%      7   SSE     3.87%
     8   SSE*        8   BT.A      4.07%      8   AV.     3.87%
     9   S32         9   GSK       3.93%      9   BT.A    3.86%
    10   TW.*       10   MKS       3.84%     10   BLT     3.64%
    11   ADM        11   BP.       3.78%     11   VOD     3.63%
    12   TATE       12   AV.       3.69%     12   LGEN    3.52%

The starred shares are those disqualified. The portfolio now looks like this:

Value                
Rank    EPIC   Weight
    1   RDSB    3.89%
    2   RIO     3.69%
    3   GSK     3.60%
    4   AZN     3.53%
    5   BP.     3.41%
    6   SGRO    3.41%
    7   CPG     3.30%
    8   IMB     3.22%
    9   WMH     3.22%
   10   DGE     3.15%
   11   SMDS    3.10%
   12   AV.     3.07%
   13   TW.     3.06%
   14   MKS     3.01%
   15   BA.     3.00%
   16   LGEN    2.94%
   17   PSON    2.91%
   18   ADM     2.90%
   19   SSE     2.88%
   20   ULVR    2.75%
   21   BT.A    2.74%
   22   BLND    2.71%
   23   VOD     2.67%
   24   MARS    2.65%
   25   IMI     2.51%
   26   UU.     2.48%
   27   BLT     2.46%
   28   NG.     2.37%
   29   RB.     2.36%
   30   S32     2.36%
   31   TATE    2.35%
   32   BATS    2.21%
   33   LLOY    2.19%
   34   KGF     2.09%
   35   TSCO    1.84%

Next top up will be in August, unless something unexpected turns up. The trigger point for trimming is 4.35% weight, which is 1.5 times the median. Currently no share is anywhere near. The ranking by yield is:

Rank   EPIC   Yield
   1   TW.    8.60%
   2   MARS   7.54%
   3   VOD    7.30%
   4   BT.A   6.92%
   5   SSE    6.83%
   6   IMB    6.13%
   7   MKS    5.95%
   8   ADM    5.85%
   9   AV.    5.60%
  10   LGEN   5.51%
  11   UU.    5.41%
  12   NG.    5.36%
  13   RIO    5.26%
  14   BP.    5.17%
  15   RDSB   5.14%
  16   GSK    5.08%
  17   BATS   4.97%
  18   S32    4.90%
  19   LLOY   4.89%
  20   BLND   4.72%
  21   TATE   4.48%
  22   WMH    4.41%
  23   BLT    4.39%
  24   AZN    3.68%
  25   KGF    3.51%
  26   IMI    3.46%
  27   BA.    3.25%
  28   ULVR   3.07%
  29   SMDS   3.00%
  30   RB.    2.54%
  31   SGRO   2.46%
  32   DGE    2.26%
  33   CPG    2.08%
  34   PSON   1.87%
  35   TSCO   1.17%

My low yield threshold is half the market average, just under 2%, and Tesco needs to buck its ideas up.

TJH

[idpickering]

Thanks for sharing this Terry, I look forward to your offerings to the HYP Board. Funnily enough, BT Group are my chosen pick for this month, and the top up will occur on this Thursday. That'll bring BT Group up to 2.8% in capital value of my 32 share HYP.

Ian.