United Utilities - I'm hovering over the sell button

[OLTB]

Afternoon all.

I have a mild flutter in my chest about United Utilities (UU.) and whether I should maintain it in my HYP. With Brexit going so well and an apparent 'hold' on the meaningful vote to be announced later today, I'm worried about Mr McDonnell getting his mitts on the utilities.

If I sold (at a capital loss) and reinvested in ITV and WPP (my chosen recipients), my overall income would increase slightly (about £90 p.a.). The risk about UU. going down the tubes would be gone.

However...I have no idea if ITV or WPP will continue to pay dividends at the current rate (WPP being perhaps a higher risk) and I would have been foolish. Also, I have no idea of the current Labour Party would be elected - the current Labour high ranks may be ousted for a more centrist shadow cabinet and the risk may be over, which would mean a continuing dividend stream from UU. Also, would I be foolish to think that the grand Pooh-Bahs of UU. hadn't already considered this potential risk (with many of them I assume having high financial stakes in the business) and an emergency action plan is waiting in the wings if needed.

I don't wish to tinker at the moment as financially I don't need to, so I welcome any wise words to ponder over.

Cheers, OLTB.

[kempiejon]

Well I'm rarely inclined to sell so will hold mine. UU. was my first ute though these day I prefer Pennon. ITV and WPP might both be at risk of declining TV/advertising revenues, WPP have had recent problems at the top too. There's fires and frying pans but if selling your utilities and switching to advertising helps you sleep that has value.

[moorfield]

I'm worried about Mr McDonnell getting his mitts on the utilities.

You can approach this decision, and mitigate this risk, in different ways.

1. If it comes to it, don't vote Labour (but do vote).
2. Dilute your holdings by simply not topping up any Utilities and putting new money elsewhere, until McDonnell has gone (*)
3. Do a "what if" analysis on your overall income assuming different levels of a UU. dividend cut, eg. 50% to start with. Are you still on track?
4. Do an XIRR analysis on your UU. holding (purchase, dividends, value today). If you are ahead of inflation ~3% and feeling that nervous, then sell if it will help you sleep.

(*) If it does come to nationalisation of Utilities, I think we will all have much bigger things to worry about anyway than flaneuring around here with our HYPs.

FWIW, I'm holding and not topping up. I can't see any new money going into Utilities until 2020 at least tbh.

(Holds SSE, CNA, UU. which account for 14% capital, 17% income overall currently. )

[mike]

For WPP, it may be worth waiting until tomorrow.

https://www.investegate.co.uk/wpp-plc--wpp-/rns/strategy-update-for-investors-and-analysts/201811140920103222H/


I did hold a small holding UU, but as part of my Brexit/Corbyn preparations, I used the sale monies to purchase a Far East income IT. I still do hold Pennon.

[idpickering]

Afternoon all.

I don't wish to tinker at the moment as financially I don't need to, so I welcome any wise words to ponder over.

Cheers, OLTB.

I hold United Utilities, and am fairly relaxed about it. I think you should follow your own advice mentioned above, and not tinker when there's no urgent need to do so.

Ian.

[idpickering]

By the way OLTB, let us know what you decide please.

Ian.

[absolutezero]

I dumped all my utilities, Royal Mail and transport shares about 6 months ago. Just because of worries about Comrade Corbyn getting into Number 10.
I sleep better at night.

[idpickering]

I dumped all my utilities, Royal Mail and transport shares about 6 months ago. Just because of worries about Comrade Corbyn getting into Number 10.
I sleep better at night.

Where'd you redeploy the cash may I ask?

Ian.

[jackdaww]

i dont like the debt , regulation and the political risks.

[absolutezero]

I dumped all my utilities, Royal Mail and transport shares about 6 months ago. Just because of worries about Comrade Corbyn getting into Number 10.
I sleep better at night.

Where'd you redeploy the cash may I ask?

Ian.

I seem to remember new holdings in Manx Telecom, AstraZeneca, GlaxoSmithKline, easyJet, ITV and Taylor Wimpey.
Couple of top ups into Vodafone and Unilever.

[idpickering]

I dumped all my utilities, Royal Mail and transport shares about 6 months ago. Just because of worries about Comrade Corbyn getting into Number 10.
I sleep better at night.

Where'd you redeploy the cash may I ask?

Ian.

I seem to remember new holdings in Manx Telecom, AstraZeneca, GlaxoSmithKline, easyJet, ITV and Taylor Wimpey.
Couple of top ups into Vodafone and Unilever.

Thank you for coming back on this. I hold all of the above, save for easyjet and Manx Telecom (who I've never heard of tbh). As for the untilities I hold, NG., SSE, and UU., I'm going to continue to hold, but am unlikely to top up any of them currently, due to the cloud of uncertainty surrounding them, in relation to a potential Labour government.

Ian.

[absolutezero]

Where'd you redeploy the cash may I ask?

Ian.

I seem to remember new holdings in Manx Telecom, AstraZeneca, GlaxoSmithKline, easyJet, ITV and Taylor Wimpey.
Couple of top ups into Vodafone and Unilever.

Thank you for coming back on this. I hold all of the above, save for easyjet and Manx Telecom (who I've never heard of tbh). As for the untilities I hold, NG., SSE, and UU., I'm going to continue to hold, but am unlikely to top up any of them currently, due to the cloud of uncertainty surrounding them, in relation to a potential Labour government.

Ian.

Manx Telecom is an interesting one. It's not a large cap but yields very nicely. 7+% as I write.

It's the equivalent of 1970s BT on the Isle of Man (but without the state inefficiency) in as much as it has the monopoly for landlines, mobile and broadband.
Fairly secure from nationalisation because it's Manx and not properly British because of the legal status of the Isle of Man.
It's not worth the likes of Vodafone etc getting involved on the IoM because of the high set up costs and the very small population so I can't see it's monopoly status changing. Could be wrong.

Interestingly I note Charles Stanley's nominee service (Rock Nominees Ltd) have breached the 5% share ownership barrier.
Maybe HYPers are becoming interested in Manx Telecom.

Worth a look.

[idpickering]

I seem to remember new holdings in Manx Telecom, AstraZeneca, GlaxoSmithKline, easyJet, ITV and Taylor Wimpey.
Couple of top ups into Vodafone and Unilever.

Thank you for coming back on this. I hold all of the above, save for easyjet and Manx Telecom (who I've never heard of tbh). As for the untilities I hold, NG., SSE, and UU., I'm going to continue to hold, but am unlikely to top up any of them currently, due to the cloud of uncertainty surrounding them, in relation to a potential Labour government.

Ian.

Manx Telecom is an interesting one. It's not a large cap but yields very nicely. 7+% as I write.

It's the equivalent of 1970s BT on the Isle of Man (but without the state inefficiency) in as much as it has the monopoly for landlines, mobile and broadband.
Fairly secure from nationalisation because it's Manx and not properly British because of the legal status of the Isle of Man.
It's not worth the likes of Vodafone etc getting involved on the IoM because of the high set up costs and the very small population so I can't see it's monopoly status changing. Could be wrong.
Worth a look.

Thank you very much for coming back on this, and sharing your thoughts about Manx Telecom. One for the future maybe?

Ian.

[Wizard]

Manx Telecom is an interesting one. It's not a large cap but yields very nicely. 7+% as I write.

Not kidding there, market cap c.£180m

Terry

[absolutezero]

Manx Telecom is an interesting one. It's not a large cap but yields very nicely. 7+% as I write.

Not kidding there, market cap c.£180m

Terry

Hence not worth VOD or similar moving in.
They'd take until we leave the EU to recoup their set up costs....