OLTB's HYP - complimenting Persimmon

[OLTB]

Evening all.

I note that the housebuilding choice in my HYP of Persimmon (PSN) has fallen in value capital wise and could be topped up were it not for the dividend income currently being generated. If I were to top up, the current dividend income from PSN would exceed 10% of overall income, which is more than I'm prepared to do.

As an alternative (just thinking about single company shares, not ITs), I have been considering bringing in Ibstock (IBST) - IBST is a brick and concrete manufacturer (so in the housebuilding realm), is in the FTSE250 and also has outlets in the US (according to HL). In a general downturn for builders, the demand for its products would be reduced, but I'm thinking introducing IBST would reduce the single company exposure to my one house builder that is often in the news for the wrong reasons. Yield is a mediocre 4.48%, but it has just announced a special and I am taking note from other experienced HYPers of not chasing yield (I have plenty of other high yielders).

Just chewing the cud on a bank holiday Monday and thought I'd just pose the question.

Hope you're all having as sunny a day as I have had, and I shall be enjoying a cold Thatchers Haze later.

Cheers, OLTB.

[YeeWo]

I have been considering bringing in Ibstock (IBST)

I've had similar thoughts, the Spirit of Lords Hanson & White must be looking down on us. Tobacco and Bricks were the sought of businesses Hanson loved.

Yield is a mediocre 4.48%, but it has just announced a special

This is one helluva-year for Specials IHG, Coca-Cola HBC, Rio Tinto and others in my portfolio have paid out bumper amounts. I've never known a year like it, is it perhaps the top of the cycle? Opinions gratefully sought!

[Arborbridge]

This is one helluva-year for Specials IHG, Coca-Cola HBC, Rio Tinto and others in my portfolio have paid out bumper amounts. I've never known a year like it, is it perhaps the top of the cycle? Opinions gratefully sought!

Really? I can't recall any unusual ones in my HYP - but then I maybe I haven't been paying attention.

I wonder what TJH's records tell us compared with previous years?


Arb

[kempiejon]

I looked at Ibstock, not a share I'd noticed until pyad bought it to my attention in his new portfolio. viewtopic.php?f=15&t=18808&p=240787&hilit=ibstock#p240787 It only has 3 full years of dividends https://www.dividenddata.co.uk/dividend ... ?epic=IBST but that and the forecast is enough to show a rising trend above inflation. A couple of specials last year and this fattening the income too. As the ftse100 yield is 4.7% it's not a high yielder at 4.6%

[tjh290633]

This is one helluva-year for Specials IHG, Coca-Cola HBC, Rio Tinto and others in my portfolio have paid out bumper amounts. I've never known a year like it, is it perhaps the top of the cycle? Opinions gratefully sought!

Really? I can't recall any unusual ones in my HYP - but then I maybe I haven't been paying attention.

I wonder what TJH's records tell us compared with previous years?


Arb

I will tell you shortly when I get on my PC. From memory, less this year than last. I will provide a list of where they came from in recent years and the proportion of total income that they represent.

Companies like Taylor Wimpey and Admiral have been regular payers of special dividends.

TJH

[Haoma]

- IBST is a brick and concrete manufacturer (so in the housebuilding realm), is in the FTSE250 and also has outlets in the US (according to HL).

Ibstock sold their US business, Glen-Gery, in late 2018:

Disposal of US Brick Business and Trading Update
https://www.investegate.co.uk/ibstock-p ... 00012818I/

Haoma

[tjh290633]

I will tell you shortly when I get on my PC. From memory, less this year than last. I will provide a list of where they came from in recent years and the proportion of total income that they represent.

Companies like Taylor Wimpey and Admiral have been regular payers of special dividends.

TJH

As it happens I have a ready made table going back to year ending 5th April 1988, showing special dividends as a percentage of normal dividends, and the companies that paid them.

Year to      SpD/Ord
05-Apr-88      0.00%
05-Apr-89      0.00%
05-Apr-90      0.00%
05-Apr-91      0.00%
05-Apr-92      0.00%
05-Apr-93      0.00%
05-Apr-94      0.00%
05-Apr-95      0.00%
05-Apr-96      0.00%
05-Apr-97      0.00%
05-Apr-98     14.08% BT.A
05-Apr-99      0.00%
05-Apr-00      0.00%
05-Apr-01      6.18% BCI
05-Apr-02      0.00%
05-Apr-03      0.00%
05-Apr-04     16.37% MAB
05-Apr-05      7.86% IHG
05-Apr-06     31.83% WTB, NGT
05-Apr-07     37.57% SPW, WTB
05-Apr-08     35.64% SGC
05-Apr-09      0.00%
05-Apr-10      0.00%
05-Apr-11      0.00%
05-Apr-12      1.57% VOD
05-Apr-13      9.54% REX
05-Apr-14     12.51% IMI
05-Apr-15     16.93% TW., REX, KGF, CPG
05-Apr-16      4.54% TW.
05-Apr-17      5.13% GSK, LLOY, TW., MKS
05-Apr-18     13.46% LLOY. NG., TW., S32
05-Apr-19      6.64% TW., BHP, S32
05-Apr-20     10.75% RIO(2), TW. (to date)

Those are what I have recorded, and I have had to go through 4 files to confirm those data. Obviously I have not recorded Admiral's as special dividends.

TJH

[Arborbridge]

TJH

Thanks TJH. That explains why I didn't think this year exceptional - I've only had one, BHP, and that was so long ago I've forgotten it! The previous two years had rather more, so from my POV this isn't a heluva year for specials at all!

Arb.