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Shelford HYP review

Practical discussions about equity High-Yield Portfolios (HYP) for income
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Shelford
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Shelford HYP review

#166273

Postby Shelford » September 14th, 2018, 11:39 am

Dear All

As an annual poster on the board (I'm a Doris fan - i.e. LTBH), I attach my portfolio below - scroll to right to see individual share dividends.

Since starting on the HYP path ten years ago, the portfolio has grown steadily with very little tinkering, and steady additions over the decade. For back history & 'philosophy', see my wider portfolio reviews here: https://www.lemonfool.co.uk/viewtopic.php?f=56&t=4636

In short, the portfolio is currently delivering a 5% yield.

There have however been a number of changes in past 12-18 months which are less to do with the HYP than with my wider retirement investment concerns.

a) I've have top-sliced quite a few of the individual shares to bring the average holding down to £10K. This is because overall, UK equities as a percentage of my overall pension and likely income (I'm expecting to retire within 2 years) was looking too high, boosted by the Brexit and Trump tax bounces. I took the opportunity around 10 months ago to pare these back, and reinvest the cash in other asset classes

b) I have disinvested in the two oil shares RDSB and BP, and in William Hill. These are due to longer term concerns around fossil fuel use, and the egregious sums WMH has been making from fixed odds terminals. I state these simply as a matter of record and appreciate that many readers here won't agree with these opinions which are in any case off-topic. The sale also helped me rebalance my portfolio away from UK equities on which it was over-reliant.

Overall, I remain pleased with the steady income that the HYP proportion of my portfolio provides, and I'm at the stage in the investment journey where I agree with Rockefeller that one of the great pleasures in life is to see dividends rolling in. I have no intention of investing further in the HYP (it now represents about 15% of my portfolio in capital terms, and 20% in income terms.) The portfolio is well-diversified over 16 sectors. As you'd expect from a portfolio this size, there are a few stinkers: Tesco and FirstGroup among them. Bitter experience has told me however that tinkering is rarely advisable. When I have, I've normally regretted it (sold Persimmon about 5 years ago - natch).

On a practical note, the likely move of Unilever to Netherlands may affect my dividends from this company. This is tedious. I'm reluctant to sell this bell-wether stock, but equally am in no rush to second guess the outcome.

Portfolio Value            |        |                                     |                   |             |               |             100.00% |                 |                         |                         |                       |                 |                 |              |                  
£221,828.52 | | | | | | | | | | | | | | 5.02%
| | | | | | | | | | | | | | £11,135.90
Company Name | Ticker | Sector | Current price (p) | Shares held | Current Value | Value as % of Total | Value Weighting | Latest / Forecast Yield | Latest / Forecast Cover | Latest / Forecast P/E | Yield Weighting | Weighting Total | Top-Up Order | Expected Dividend
Centrica | CNA | Gas, Water & Multiutilities | 143.95 | 4232 | £6,091.96 | 2.75% | 2 | 8.20% | 1.1 | 11.50 | 2 | 4 | 1 | £499.54
BT Group | BT-A | Fixed Line Telecommunications | 225.15 | 3149 | £7,089.97 | 3.20% | 3 | 6.90% | 1.7 | 8.70 | 5 | 8 | 2 | £489.21
SSE | SSE | Electricity | 1105.50 | 793 | £8,766.62 | 3.95% | 7 | 8.70% | 1.2 | 10.80 | 1 | 8 | 2 | £762.70
ITV | ITV | Media | 160.45 | 5745 | £9,217.85 | 4.16% | 12 | 5.00% | 1.9 | 10.20 | 13 | 25 | 11 | £460.89
Aviva | AV | Life Insurance | 478.90 | 1975 | £9,458.28 | 4.26% | 14 | 6.10% | 2 | 8.20 | 7 | 21 | 8 | £576.95
Vodafone Group | VOD | Mobile Telecommunications | 167.84 | 5476 | £9,190.92 | 4.14% | 11 | 7.90% | 0.7 | 18.10 | 3 | 14 | 4 | £726.08
AstraZeneca | AZN | Pharmaceuticals & Biotechnology | 5590.00 | 183 | £10,229.70 | 4.61% | 19 | 3.80% | 1.2 | 21.70 | 17 | 36 | 21 | £388.73
GlaxoSmithKline | GSK | Pharmaceuticals & Biotechnology | 1483.60 | 645 | £9,569.22 | 4.31% | 15 | 5.30% | 1.4 | 13.60 | 11 | 26 | 14 | £507.17
FirstGroup | FGP | Travel & Leisure | 97.85 | 3399 | £3,325.92 | 1.50% | 1 | 1.20% | 11.1 | 7.20 | 24 | 25 | 11 | £39.91
Lloyds Banking Group | LLOY | Banks | 59.18 | 20746 | £12,277.48 | 5.53% | 23 | 5.70% | 2.2 | 7.70 | 10 | 33 | 17 | £699.82
Tate and Lyle | TATE | Food Producers | 632.80 | 1592 | £10,074.18 | 4.54% | 18 | 4.60% | 1.7 | 13.30 | 16 | 34 | 18 | £463.41
British Land Company | BLND | Retail REITs | 617.80 | 2024 | £12,504.27 | 5.64% | 24 | 5.10% | 1.2 | 16.90 | 12 | 36 | 21 | £637.72
Tesco | TSCO | Food & Drug Retailers | 234.70 | 3717 | £8,723.80 | 3.93% | 5 | 2.30% | 2.6 | 16.50 | 22 | 27 | 15 | £200.65
Severn Trent | SVT | Gas, Water & Multiutilities | 1904.00 | 472 | £8,986.88 | 4.05% | 9 | 4.90% | 1.4 | 14.50 | 14 | 23 | 9 | £440.36
HSBC Holdings | HSBA | Banks | 654.80 | 1369 | £8,964.21 | 4.04% | 8 | 6.10% | 1.4 | 11.50 | 7 | 15 | 5 | £546.82
TUI AG Reg Shs (DI) | TUI | Travel & Leisure | 1350.00 | 611 | £8,248.50 | 3.72% | 4 | 4.80% | 1.7 | 12.30 | 15 | 19 | 7 | £395.93
Standard Life Aberdeen plc | SLA | Life Insurance | 318.20 | 3239 | £10,306.50 | 4.65% | 20 | 7.50% | 1 | 12.40 | 4 | 24 | 10 | £772.99
Reckitt Benckiser Group | RB | Household Goods & Home Construction | 6587.00 | 157 | £10,341.59 | 4.66% | 21 | 2.60% | 1.9 | 19.60 | 20 | 41 | 24 | £268.88
National Grid | NG | Multiutilities | 795.10 | 1422 | £11,306.32 | 5.10% | 22 | 5.90% | 1.2 | 14.30 | 9 | 31 | 16 | £667.07
Informa | INF | Media | 742.40 | 1178 | £8,745.47 | 3.94% | 6 | 2.90% | 2.2 | 15.60 | 19 | 25 | 11 | £253.62
Unilever | ULVR | Food Producers | 4267.50 | 233 | £9,943.28 | 4.48% | 16 | 3.10% | 1.5 | 20.70 | 18 | 34 | 18 | £308.24
BHP Billiton | BLT | Mining | 1533.40 | 595 | £9,123.73 | 4.11% | 10 | 6.20% | 1.5 | 11.10 | 6 | 16 | 6 | £565.67
Compass Group | CPG | Travel & Leisure | 1626.00 | 615 | £9,999.90 | 4.51% | 17 | 2.30% | 2.1 | 21.10 | 22 | 39 | 23 | £230.00
Diageo | DGE | Beverages | 2661.53 | 351 | £9,341.97 | 4.21% | 13 | 2.50% | 1.8 | 22.70 | 21 | 34 | 18 | £233.55

idpickering
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Re: Shelford HYP review

#166280

Postby idpickering » September 14th, 2018, 12:00 pm

Excellent post and points Shelford, thank you for sharing your HYP with us. It’s a shame you only post once a year because I think you could teach us a thing or two.

All the best,

Ian.

absolutezero
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Re: Shelford HYP review

#166300

Postby absolutezero » September 14th, 2018, 12:50 pm

A nice HYP there and has some of the more unusual suspects. Not seen Informa before.

Shelford
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Re: Shelford HYP review

#166304

Postby Shelford » September 14th, 2018, 12:56 pm

Yes the obvious FTSE 100 choice hitherto was Pearson.

I know alot about Pearson being in the sector myself, and wouldn't touch the company with a bargepole. It has gone from being the bellweather of the sector to being a national embarrassment. Tragic.

Other media stocks include SKY (I sold as part of my overall divestment in UK equities and because of the recent disposal). I hold company shares in another media stock so don't invest in this sector otherwise for diversification reasons.

absolutezero
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Re: Shelford HYP review

#166308

Postby absolutezero » September 14th, 2018, 1:02 pm

Shelford wrote:Yes the obvious FTSE 100 choice hitherto was Pearson.

I know alot about Pearson being in the sector myself, and wouldn't touch the company with a bargepole. It has gone from being the bellweather of the sector to being a national embarrassment. Tragic.

Other media stocks include SKY (I sold as part of my overall divestment in UK equities and because of the recent disposal). I hold company shares in another media stock so don't invest in this sector otherwise for diversification reasons.

I dumped Pearson late last year. A troubled company. Getting rid of Penguin/FT and trying to bulk up its educational services side. Not a good idea in my view.

I'm going to hang on to Sky til the bitter end. It's now going to a sealed bid situation according to the Investors' Chronicle.

Davidsb
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Re: Shelford HYP review

#166363

Postby Davidsb » September 14th, 2018, 3:41 pm

Not seen Informa before.

Some folks may have acquired Informa because of their recent takeover of UBM.

I spent a fair time pickering about before deciding that Informa was not for me, so I sold my UBM shares in the market. Proceeds were spread between SVT, LGEN and SLA.

Gengulphus
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Re: Shelford HYP review

#166839

Postby Gengulphus » September 17th, 2018, 9:30 am

As much for my own benefit as anyone else's, here is Shelford's table, formatted and somewhat reworded to all be visible without sideways scrolling, at least on wider screens/windows:


Gengulphus

Shelford
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Re: Shelford HYP review

#166918

Postby Shelford » September 17th, 2018, 1:04 pm

Gengulphus: in addition to being one of the most intelligent and prolific of posters on this board, who I always read, you are also a gentleman!

Shelford


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