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HYP1 is 19

Practical discussions about equity High-Yield Portfolios (HYP) for income
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Tight HYP discussions only please - OT please discuss in strategies
pyad
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HYP1 is 19

#263959

Postby pyad » November 13th, 2019, 1:05 pm

Yet another record income year

Here is the data for the year ended 12 November 2019, the nineteenth year of this non-tinker portfolio.

..........................................Income......................Value
Anglo American              432.87              9,714
BA Tobacco 1,735.06 25,290
BT Group 875.03 11,195
Dixons Carphone 83.77 1,568
Glaxo 281.60 6,102
InterCon Hotels 379.76 19,851
Land Sex 309.49 6,033
Lloyds 250.82 4,586
Mitch & But 0.00 3,065
Persimmon 2,483.95 25,981
Pearson 169.29 6,203
RD Shell B 578.94 9,141
Rio Tinto 2,547.00 21,445
RSA 101.12 2,613
United Utilities 328.59 6,895

Total £ 10,557.29 159,682


Cost                                           75,000

Gain 84,682 112.9%


FTSE100 at start 6,274.8

Now 7,365.4

Gain 1,090.6 17.4%

HYP1 capital outperformance 81.3%



Income History

2001 3,451
2002 3,474
2003 3,197
2004 3,205
2005 3,546
2006 4,131
2007 4,452
2008 5,040
2009 3,187
2010 3,297
2011 3,843
2012 4,289
2013 5,828
2014 5,601
2015 6,093
2016 6,124
2017 7,327
2018 8,882
2019 10,557

Total to date £ 95,524



Events in year
InterContinental Hotels made a cash return of £882 with a consol down to 411 shares. The money was reinvested in Lloyds.

Income
This is the purpose of HYPs and the £10,557 for this year was another record by a long way, up 18.9% on last year and making it the third highest ever annual rise, crushing inflation. From year one, the increase is 205.9% over the 18 years.

Total income thus far is £95,524 over the 19 years, averaging £5,028 per year which is 6.70% pa on the £75,000 cost.

Rio Tinto was the single largest income contributor with 24.1% of total income, assisted by two large specials in the year. Second was Persimmon with 23.5%, both of these knocking BA Tobacco into third place on 16.4% after having been the record holder for a long time up to a couple years ago. At the other end, the smallest sums arose from Mitchells & Butlers with zero and Dixons Carphone 0.8%.


Capital

This is irrelevant or very much secondary depending on your viewpoint.

The value is up 2.6% from last year to £159,682 and continues to massacre the FTSE100 over the 19 years, up 112.9 4% against an index up 17.4% and thus outperforming it by 81.3%. This is without reinvesting dividends.

In the last twelve months the FTSE100 has risen 4.4% whilst HYP1 is up 2.6%, thus slightly underperforming the index this year.

Persimmon is now the larget holding at 16.2% of portfolio value with BA Tobacco a close second at 15.7%. Not far behind are Rio Tinto at 13.4% and InterContinental Hotels at 12.4%. Smallest holdings are Dixons Carphone at 1.0% and RSA at 1.6%.

moorfield
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Re: HYP1 is 19

#264014

Postby moorfield » November 13th, 2019, 4:16 pm

pyad wrote:
Income
This is the purpose of HYPs and the £10,557 for this year was another record by a long way, up 18.9% on last year and making it the third highest ever annual rise, crushing inflation. From year one, the increase is 205.9% over the 18 years.


Ok I’ll bite. Knee jerkers and finger twitchers take note, and that despite the MAB dividend cut.

Thank you pyad. Impressive, most impressive (to quote the man in the black suit).

funduffer
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Re: HYP1 is 19

#264028

Postby funduffer » November 13th, 2019, 6:12 pm

I agree, very impressive.

I also have a non-payer in my HYP (Capita), and, although I don’t usually tinker, I was intending to ditch it.

Switching M&B to Marstons in HYP1 would boost income next year, and I would have thought ditching a non-payer was justified, even for a nominal non-tinker HYP.

I can understand though, that any tinkering of HYP1 after 19 years would fill the columns of this blog with essay upon essay of the pros and cons of tinkering, so pyad is probably wise to leave well alone!

FD

NB why did my autocorrect change ‘pyad’ to ‘payday’? Prophetic!

PinkDalek
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Re: HYP1 is 19

#264036

Postby PinkDalek » November 13th, 2019, 6:59 pm

funduffer wrote:[I can understand though, that any tinkering of HYP1 after 19 years would fill the columns of this blog with essay upon essay of the pros and cons of tinkering, so pyad is probably wise to leave well alone!


Such as here:

HYP1 is 18
viewtopic.php?p=180276#p180276

Only 7 pages long. I haven't read it again but it was eventually locked.

Itsallaguess
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Re: HYP1 is 19

#264041

Postby Itsallaguess » November 13th, 2019, 7:44 pm

Well done pyad - another year of rising income and a great on-going experiment for those interested in a completely hands-off approach to income-investment.

For anyone interested, I've started a separate thread looking at the income and capital concentration-risk using the HYP1 '19th birthday' data -

https://www.lemonfool.co.uk/viewtopic.php?f=15&t=20386

Cheers,

Itsallaguess

Gengulphus
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Re: HYP1 is 19

#264094

Postby Gengulphus » November 14th, 2019, 2:09 am

funduffer wrote:Switching M&B to Marstons in HYP1 would boost income next year, and I would have thought ditching a non-payer was justified, even for a nominal non-tinker HYP.

Yes, it's quite easy to justify selling a non-payer from a HYP - but if one actually does it, the HYP becomes a tinkering HYP and so is no longer a non-tinkering HYP!

Gengulphus

Arborbridge
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Re: HYP1 is 19

#264113

Postby Arborbridge » November 14th, 2019, 7:20 am

funduffer wrote:I agree, very impressive.

I can understand though, that any tinkering of HYP1 after 19 years would fill the columns of this blog with essay upon essay of the pros and cons of tinkering, so pyad is probably wise to leave well alone!



We don't need essay after essay. HYP1 was maintained as a non-tinkering portfolio in order to see what would happen. There's simply no point in corrupting the experiment by tinkering. End of.

Arb.

ayshfm1
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Re: HYP1 is 19

#264246

Postby ayshfm1 » November 14th, 2019, 1:30 pm

Scary concentration now
A pretty wild ride if you had to live off the income, makes a strong case for having a cash reserve to smooth over the bumps

But overall impressive.


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