Trimming time for AZN

[tjh290633]

AZN has now broken through my trigger point for trimming back twice in the last few days, falling back in between. Last night it did so again and maintained the level today, so I have sold 25% of my holding at £62.52. The proceeds have gone into BATS at £27.01, adding 22% to my holding, and WMH at £1.71, adding 19% to my holding.

My top-up table now looks like this:

Top-up          Income                     Cost                
Rank     EPIC   Rank     EPIC   % Income   Rank   Epic   % Cost
     1   BLT         1   TW.       6.21%      1   WMH     4.57%
     2   SSE         2   BLT       5.43%      2   GSK     4.50%
     3   TW.         3   VOD       4.51%      3   MKS     4.34%
     4   BATS        4   IMB       4.13%      4   PSON    4.11%
     5   LLOY        5   RIO       4.04%      5   RDSB    4.11%
     6   WMH         6   RDSB      3.95%      6   LLOY    4.07%
     7   VOD         7   WMH       3.93%      7   MARS    3.99%
     8   AV.         8   MARS      3.91%      8   SSE     3.86%
     9   MARS        9   SSE       3.89%      9   AV.     3.85%
    10   S32        10   BT.A      3.65%     10   BT.A    3.84%
    11   KGF        11   GSK       3.57%     11   BLT     3.63%
    12   IMI        12   BP.       3.57%     12   VOD     3.62%

As I have said before, I disqualify shares where topping up by 20% would take the share of Income or the share of cost above 5%, so TW., BLT (BHP from Monday), VOD, WMH, GSK and MKS are all now disqualified . SSE is also on hold pending its demerger. So BATS remains favourite at the moment, followed by LLOY then Aviva.

Portfolio composition is now:

Value                           
Rank    EPIC   Weight   % Median
    1   GSK     3.88%     135.9%
    2   RIO     3.74%     130.9%
    3   RDSB    3.66%     128.1%
    4   CPG     3.56%     124.6%
    5   DGE     3.39%     118.7%
    6   BT.A    3.37%     117.9%
    7   BP.     3.33%     116.6%
    8   SGRO    3.27%     114.4%
    9   AZN     3.24%     113.6%
   10   UU.     3.23%     113.0%
   11   PSON    3.22%     112.9%
   12   ADM     3.16%     110.6%
   13   IMB     3.09%     108.2%
   14   MKS     3.05%     106.9%
   15   NG.     3.03%     106.0%
   16   ULVR    3.01%     105.2%
   17   VOD     2.86%     100.1%
   18   LGEN    2.86%     100.0%
   19   MARS    2.82%      98.8%
   20   WMH     2.80%      98.0%
   21   TATE    2.77%      96.9%
   22   AV.     2.73%      95.5%
   23   TW.     2.72%      95.1%
   24   RB.     2.58%      90.4%
   25   BLND    2.56%      89.6%
   26   BLT     2.54%      88.8%
   27   SSE     2.51%      87.7%
   28   BA.     2.44%      85.5%
   29   BATS    2.42%      84.6%
   30   SMDS    2.30%      80.6%
   31   S32     2.26%      79.1%
   32   IMI     2.17%      75.9%
   33   LLOY    2.08%      73.0%
   34   KGF     1.79%      62.6%
   35   TSCO    1.58%      55.2%

So AZN dropped to 113% of median weight, WMH has risen to near median and BATS remains at 85% below median holding weight.

TJH

[moorfield]

Last night it did so again and maintained the level today, so I have sold 25% of my holding at £62.52. The proceeds have gone into BATS at £27.01, adding 22% to my holding, and WMH at £1.71, adding 19% to my holding.

Out of interest TJH, how much have those transactions cost you? (I count 3x dealing charges and 2x stamp duty, and possibly PTM levies if large enough). I suppose you could express as a %age of value moved (the 25% of AZN), and/or as a multiple of your annual portfolio custody/service charge (if there is one), if you don't want to disclose the nominal amounts. Edit: or as a %age of (forecast) income gained might be another way of looking at it.

[tjh290633]

The fee for each trade was £11, and there is the usual stamp duty on the purchases.

I'll have to calculate the effect on income generated, but offhand the extra income from BATS next dividend exceeds the dealing costs.

TJH

[kempiejon]

Last week I sold all my unsheltered AZN, about half my total holding - I set a limit order - not something I'd usually do- and when it tipped 6225 it was out. I moved the cash into the ISA, Astra Zenneca's 3.5% yield has been more than doubled (for now) by my top up of BATS and VOD. AZN has a flat dividend in its local currency for 5 years and I can see the replacements have a good recent record of increasing.
There was some capital gains harvesting from the unsheltered account, my first buy was back in 2010 and I've doubled my money.

Moorfield, It cost me under 1% and like TJH BATS' next dividend should cover it.

[tjh290633]

I've just had a few moments to do the calculations.

Income Change is an increase of 0.68% of the total income for 2017-18.

Brokerage and stamp duty is 0.24% of the total income for 2017-18.

In 2017-18, Brokerage, stamp duty and fees were 0.072% of portfolio value at the 5th April 2018. They were 1.38% of the income in that year (excluding special dividends). Obviously these depend on the number of trades in the year, 20 in 2017-18.

TJH

[moorfield]

Thanks vm TJH.