My April Top ups.

[idpickering]

Morning all, here's a reminder of how my HYP looks as of now;

Admiral Group
AstraZeneca
Aviva
BAE Systems
BHP Billiton
BP.
BT Group
British American Tobacco
British Land
Diageo
Direct Line Group
GlaxoSmithKline
Greene King
HSBC
ITV
Imperial Brands
Legal & General
Lloyds
Marston's
National Grid
Persimmon
Reckitt Benckiser
Rio Tinto
Shell
SSE
Standard Life Aberdeen
Tate & Lyle
Taylor Wimpey
United Utilities
Vodafone
WPP

I dropped Sainsbury's recently as I'd had enough of the lack lustre performance.

Sector spread is like this;

Oil & gas                  9.5%
Household Goods            7.7%
Life Insurance             6.9%
Pharmas                    6.8%
Media                      6.6%
Mining                     6.6%
Non Life Insurance         6.4%
Media                      6.7%
Tobacco                    6.6%
Banks                      6.3%
Utilities (gas & water)    6.2%
Travel & Leisure           5.2%
General Finance            3.3%
Fixed Telcos               3.3%
Food Producers             3.3%
Aerospace & Defence        3.1%
Electricity                3.0%
Mobile Telcos              2.7%
Real Estate                2.6%
Beverages                  1.7%

Tomorrow I'm making small top ups of HSBA, Vodafone and Unilever.

Ian.

[idpickering]

An error on my part, I included Reckitt although I dropped them some time ago, and omitted Unilever. Sorry gang.
Ian.

[Arborbridge]

Selling SBRY is a rational decision. :lacklustre indeed. The only reason my Sainsburys dividend income has increased since 2014 is due to the fact I've put more capital into the pot.

Still, being an avowed "slow tinkerer", for the moment I'm sticking with the program. There's a good chance of an increase in dividend in the next 12 months, and a 4.6% yield which is just enough to make me stay. All three supermarkets are likely to give me an RPI uplift (or more for Tesco), so that degree of lacklustre I can put up with for the moment.



Arb.

[MDW1954]

Your Real Estate sector is low, with arguably bargains on offer. I'd look at BBOX, WHR, ESP, PHP and 3IN, for instance.

Last time I looked, most of these were FTSE 350, and therefore eligible, but I can't be certain in every case.

MDW1954

[idpickering]

Selling SBRY is a rational decision. :lacklustre indeed. The only reason my Sainsburys dividend income has increased since 2014 is due to the fact I've put more capital into the pot.

Still, being an avowed "slow tinkerer", for the moment I'm sticking with the program. There's a good chance of an increase in dividend in the next 12 months, and a 4.6% yield which is just enough to make me stay. All three supermarkets are likely to give me an RPI uplift (or more for Tesco), so that degree of lacklustre I can put up with for the moment.



Arb.

Thanks for your input Arb. I like to think I'm a bit of a Doris nowadays, and don't much like meddling for the sake of it. I've no intention of buying any more retail shares. I've toyed doing a Dod, and dropping Vodafone, but will hold on. Tomorrow's top up of VOD may well be my last for some time.

Regards,

Ian.

[idpickering]

Your Real Estate sector is low, with arguably bargains on offer. I'd look at BBOX, WHR, ESP, PHP and 3IN, for instance.

Last time I looked, most of these were FTSE 350, and therefore eligible, but I can't be certain in every case.

MDW1954

Thanks for your input MDW1954. It is an area I've been mulling over of late, and elected to wait for more certainty regarding the Brexit issue. I'll mull it over though. By the way, talking to you as a mod, I'd run out of time to edit my OP, hence my small corrective post above.

Ian.

[Arborbridge]

Your Real Estate sector is low, with arguably bargains on offer. I'd look at BBOX, WHR, ESP, PHP and 3IN, for instance.

Last time I looked, most of these were FTSE 350, and therefore eligible, but I can't be certain in every case.

MDW1954

3IN is an odd one. Really it can be viewed as an IT - it is an investment company which buys stock in infrastructure companies. It is listed on the AIC site, so that's a good indication it is an IT. The yield is too low for a HYP (around 3%) but you might justify holding it in a basket of ITs, depending what you are looking for.
The price is not in the bargain region at present - in fact it is near a high.

Arb.

[MDW1954]

Your Real Estate sector is low, with arguably bargains on offer. I'd look at BBOX, WHR, ESP, PHP and 3IN, for instance.

Last time I looked, most of these were FTSE 350, and therefore eligible, but I can't be certain in every case.

MDW1954

3IN is an odd one. Really it can be viewed as an IT - it is an investment company which buys stock in infrastructure companies. It is listed on the AIC site, so that's a good indication it is an IT. The yield is too low for a HYP (around 3%) but you might justify holding it in a basket of ITs, depending what you are looking for.
The price is not in the bargain region at present - in fact it is near a high.

Arb.

Arb,

I agree it's an odd one. You say it invests in infrastucture companies. It does, but only really to the extent that those companies directly exist to own assets. So really, it's directly investing in assets. Put another way, it's not a TRY.

This will give you a flavour:

https://www.3i.com/portfolio?sector=&re ... ne=2275&q=

Last I heard, it was relocating from the Channel Islands in order to become a fully-fledged UK REIT as opposed to the Channel Island equivalent. Not heard much about that recently, but I think it is still going ahead.

It is FTSE 250.

By the way, Ian, I forgot to add that I own all those except WHR.

MDW1954

[kempiejon]

I dropped Sainsbury's recently as I'd had enough of the lack lustre performance....

Tomorrow I'm making small top ups of HSBA, Vodafone and Unilever.
Ian.

Ian, thanks for sharing. I thought Sainsbury's weren't doing that bad so prompted by your comment I rechecked and I see you're right. I must have been fooling myself that they'd started on the mend. Seems like the dividend is still languishing or reducing and according to dividendata has fallen over 5, 10 and 15 year sample periods and although the price had risen through some of 2018 it's back down again now. I expect it's that rise last spring/summer that lead me to think it might be on the mend.
You've chosen VOD with it's thinly covered but long inflation beating history of increasing income with a 9% yield, from others on this board I hear that VOD has free cash flow to meet its income commitments. Lower 3% yielder and steady eddy Unilever which I see has churned out an income increasing at 6% annualised for decades and HSBA at 6ish I guess for a blended yield of about 6%. On HSBA, in your HYP, much like my own, the "wider financials group " both insurers life and non, banks and general finance makes up over 20%.

[Dod101]

There's a good chance of an increase in dividend in the next 12 months, and a 4.6% yield which is just enough to make me stay. All three supermarkets are likely to give me an RPI uplift (or more for Tesco), so that degree of lacklustre I can put up with for the moment.

I see very little in the supermarkets that has changed much over the last couple of years to tempt me back into them. Tesco's revival was quite predictable but I wonder how far it will go? Lidl and Aldi still have some way to go I think and the volumes in general do not seem to be expanding at the moment so that the various players are simply taking business from each other.

Dod

[Arborbridge]

There's a good chance of an increase in dividend in the next 12 months, and a 4.6% yield which is just enough to make me stay. All three supermarkets are likely to give me an RPI uplift (or more for Tesco), so that degree of lacklustre I can put up with for the moment.

I see very little in the supermarkets that has changed much over the last couple of years to tempt me back into them. Tesco's revival was quite predictable but I wonder how far it will go? Lidl and Aldi still have some way to go I think and the volumes in general do not seem to be expanding at the moment so that the various players are simply taking business from each other.

Dod

If I did not own supermarkets already, I would not be buying any at present- so I can agree there's not much to tempt you back in!
However, already being "in" there is not too much to make me jump "out" - given that I do not like to tinker very much.
Tinkering for me has about a 50% success rate, so I'm not dead keen on doing it.

Arb.

[Arborbridge]

Arb,

I agree it's an odd one. You say it invests in infrastucture companies. It does, but only really to the extent that those companies directly exist to own assets. So really, it's directly investing in assets. Put another way, it's not a TRY.

This will give you a flavour:

https://www.3i.com/portfolio?sector=&re ... ne=2275&q=

Last I heard, it was relocating from the Channel Islands in order to become a fully-fledged UK REIT as opposed to the Channel Island equivalent. Not heard much about that recently, but I think it is still going ahead.

It is FTSE 250.

By the way, Ian, I forgot to add that I own all those except WHR.

MDW1954

I own 3IN and have been more than happy with it. I decided not to include it in my HYP a) because it is listed as on the AIC and acts more like an IT which "collects other companies" rather than a company which "does things" so to speak, and b) because the yield was too low anyway. At that time, the yield as similar to some of my ITs so I could justify including it in that basket.

With an XIRR of 19% since 2015 and divi increasing around 5% pa - I'm glad I bought it!

Arb.

PS caution about that XIRR as the holding period isn't long enough to be sure about it. But, it's reasonable to good, I'd say.

[midgesgalore]

Your Real Estate sector is low, with arguably bargains on offer. I'd look at BBOX, WHR, ESP, PHP and 3IN, for instance.

Last time I looked, most of these were FTSE 350, and therefore eligible, but I can't be certain in every case.

MDW1954

I own two of those, BBOX and WHR and they are all doing quite well so far.
I also hold RGL, Regional REIT. Combined equate to just over 6% of the portfolio.

Incidentally WHR is in the FTSE AIM and not in the FTSE 350

misgdesgalore

[Dod101]

Last I heard, it was relocating from the Channel Islands in order to become a fully-fledged UK REIT as opposed to the Channel Island equivalent. Not heard much about that recently, but I think it is still going ahead.

Slightly off topic but the latest half year report tells us that it moved its tax residence and management to the UK on 15 October 2018. It remains incorporated in the Channel Islands. Looks interesting. I assume that would give it full REIT status if it wants but I have not pursued that.

Dod

[idpickering]

Further to this, my chosen pick for next month is a top up of my WPP holdings, unless events change my opinion in the meantime.

Ian.

[Arborbridge]

Further to this, my chosen pick for next month is a top up of my WPP holdings, unless events change my opinion in the meantime.

Ian.

More than likely, mine too.

[idpickering]

Further to this, my chosen pick for next month is a top up of my WPP holdings, unless events change my opinion in the meantime.

Ian.

More than likely, mine too.

I’m in good company then. WPP ex div on 13 Jun, for a 37.3p dividend.

Ian.

[Gengulphus]

Slightly off topic but the latest half year report tells us that it moved its tax residence and management to the UK on 15 October 2018. It remains incorporated in the Channel Islands. Looks interesting. I assume that would give it full REIT status if it wants but I have not pursued that.

I don't believe it automatically gives REIT status, because at least last time I looked (and IIRC), converting to a REIT had to be applied for and approved by HMRC, and there was a one-off small-percentage-of-assets conversion fee (which can still be a very large sum...). It might be enough to enable the company to apply, but there are a number of conditions on getting approval. So they might have further conditions to satisfy, they might take some time to put together the application and HMRC might take some time to approve it. I would feel (but don't know for certain) that at least submitting an application for REIT conversion would be regarded as worthy of an RNS, so anyone who is interested might want to take a good look through their RNSes. That doesn't include me, by the way - my HYP already contains enough REITs for my taste!

Gengulphus