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HYP now in positive territory

Practical discussions about equity High-Yield Portfolios (HYP) for income
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EssDeeAitch
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HYP now in positive territory

#199010

Postby EssDeeAitch » February 5th, 2019, 10:03 am

Well, just ran HYPTUSS and guess what, the capital value of my HYP is in positive territory for the first time since I started the PF in August last year.
Now I realise that it is early days but it is so nice not to see a sea of red!

idpickering
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Re: HYP now in positive territory

#199017

Postby idpickering » February 5th, 2019, 10:20 am

EssDeeAitch wrote:Well, just ran HYPTUSS and guess what, the capital value of my HYP is in positive territory for the first time since I started the PF in August last year.
Now I realise that it is early days but it is so nice not to see a sea of red!


Yes, likewise for me too. Just remember to remain focussed on what HYP is really about, that is, the income, although a rise in capital value is nice too.

Ian.

kempiejon
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Re: HYP now in positive territory

#199020

Postby kempiejon » February 5th, 2019, 10:33 am

From your comments EssDeeAitch I think you are still a builder of your HYP as am I. Why do you want to spend more for the same income? As Ian said don't lose track of the income; focusing on the capital, especially over months is a sure way to frustration with stock market investing. We all know the maxim that the value of your investment can fall as well as rise and generally will.
6 months into a portfolio and spread, stamp duty and dealing fees will default to red type on new buys and eyeballing the FTSE100 is down about 7% over that period so nothing to worry about. With only 6months history you'll have not established a healthy income flow and that's where the fun lies. Seeing those dollops of money turn up is the objective and where I get the pleasure, the capital values can wavier about but income flow will hopefully grow and grow.

idpickering
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Re: HYP now in positive territory

#199021

Postby idpickering » February 5th, 2019, 10:45 am

I agree with kempiejon's post. I also maintain an excel sheet to keep a record of my dividends when received. I maintain a simple bar chart, which over the years I've been HYPing, it is good to see that bar chart rising nicely over time. I do not spend my dividends currently, but reinvest the amassed divis monthly wherever I choose.

Ian.

moorfield
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Re: HYP now in positive territory

#199024

Postby moorfield » February 5th, 2019, 10:49 am

When you say HYP now in positive territory didn't you really mean HYP has produced more income this year than last ? ;)

EssDeeAitch
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Re: HYP now in positive territory

#199026

Postby EssDeeAitch » February 5th, 2019, 10:56 am

moorfield wrote:When you say HYP now in positive territory didn't you really mean HYP has produced more income this year than last ? ;)


Quite right :lol:

vrdiver
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Re: HYP now in positive territory

#199032

Postby vrdiver » February 5th, 2019, 11:14 am

To be fair to the OP, any review of the HYP boards will notice wailing and gnashing of teeth when HYP share prices fall, and celebrations when capital values rise. It's human nature to like the increase in value, and to be worried by any decreases.

However, I agree with the sentiment that for a HYPer starting out, a fall in values is a good thing, increasing purchasing power at a time when the HYP is being built. As time passes, one wants to see dividends at least keeping pace with inflation, if not outpacing them a little, which becomes harder to do if share prices remain depressed, so over time, an increasing share price (at portfolio level) becomes important in maintaining the objectives.

As one approaches or enters the decumulation phase, ideally the underlying share prices of the portfolio rocket skywards, providing a warm glow of capital success, as well as the primary objective of the dividend stream. Failing that, a steady increase in dividends, allowing one to ignore capital gyrations, there being no plan to realise any capital gains (or losses).

For myself, now in the decumulation phase (but still reinvesting some of the dividends) I find a monthly update of the rolling annual dividend forecast of my portfolio has a much bigger impact on my feelings about the success of the strategy than whether the individual shares show green or red at the broker.

When it comes to the sharp end, it really is all about the dividend stream...

VRD

Arborbridge
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Re: HYP now in positive territory

#199045

Postby Arborbridge » February 5th, 2019, 12:14 pm

This is one way I get encouragement!

Image

This shows my increasing income from HYP+funds from 2010. This is a moving 5-month average chart in real pounds, not unitised as I would normally show. This means, of course, that we have combination of increasing income per unit + income from whatever new capital has been input too.
Although I've cut out the left hand scale, the increase is broadly 5:1 across the years. Note the saw-tooth pattern, and also that it appears to have greater amplitude now. The first prominent low is 75% of the previous high, whereas the 2018 low is only 60% of the previous high.

Arb.

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Re: HYP now in positive territory

#199231

Postby funduffer » February 6th, 2019, 9:13 am

Arborbridge wrote:This is one way I get encouragement!

Image

This shows my increasing income from HYP+funds from 2010. This is a moving 5-month average chart in real pounds, not unitised as I would normally show. This means, of course, that we have combination of increasing income per unit + income from whatever new capital has been input too.
Although I've cut out the left hand scale, the increase is broadly 5:1 across the years. Note the saw-tooth pattern, and also that it appears to have greater amplitude now. The first prominent low is 75% of the previous high, whereas the 2018 low is only 60% of the previous high.

Arb.


And presumably the saw tooth pattern is due to taking a 5 month rolling average, and reflects the uneven delivery of monthly dividends over a year?

Arborbridge
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Re: HYP now in positive territory

#199236

Postby Arborbridge » February 6th, 2019, 9:21 am

funduffer wrote:
And presumably the saw tooth pattern is due to taking a 5 month rolling average, and reflects the uneven delivery of monthly dividends over a year?


I'm sure the 5 month rolling average does generate that type of result, but I do not believe it is the sole reason. Whatever period one uses, something of the like occurs. The peaks and troughs are not exaclty 5-months, notice.
Why I chose 5-months originally, I cannot remember! Maybe an attempt to stop it resonating with quarterly cycles??

I have also played around with weighting the earlier months so they are less significant compared with recent ones. but that seemed too indulgent for what was intended as a simple rain check on rising income.

Arb.

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Re: HYP now in positive territory

#199239

Postby funduffer » February 6th, 2019, 9:30 am

Thanks Arb.

I use a 12 month rolling average, and you are quite right, I don't get a very smooth line either. I chose 12 months to eliminate the uneven distribution of dividends through the year. All companies work on an annual cycle, but they have been known to fiddle about with their dividend dates! That, together with cuts, purchases and sales all cause variations of course. Nothing like a smooth geometric progression at ~5% a year or so!

I will publish some day.

Regards

FD


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