Next purchase, Advice please

[evilbungle]

Hi,

I am looking to make a next purchase with a combination of proceeds from GNK and some Dividends but am not sure who would be a good candidate to investigate.

I will post my current holdings below, although before anyone else says it I will get in first and agree that it is a mess, my selection criteria was to buy shares in trouble so as times went on I have been considerably over weight in industries that have had bad times recently (Banking, Oil and Tesco) I am now trying to sort things out and follow a less risky strategy.



Are there any big misses that you would consider a HYP must have?

Here I have sorted it by categories (Using my own as I didn't find grouping Marston, Greene King and IAG into the same category very useful.)



Other than a new holding I am also considering top-ups and could top up Marstons and BAE to Average holdings instead (I wouldn't top up IAG as I only hold them due to having worked for them and am not 100% on them going into a good period.) I am also weary of putting money into anything with a lot of political risk at the moment (SSE, Centrica, Water Companies) or though with the current Labour manifesto I guess I would need to include BT, SKY, News Companies, Train Companies etc... so perhaps trying to guess what they don't want to nationalise is a fools errand?

I am still in the build phase for another 25 years or so, therefore can afford a bit less on Yield if it comes with a bit more on long term prospects but would appreciate any advice on where to look as no where really seems like a safe investment at the moment (I would also be interested on views on if I should be looking at other asset classes or not, even though I know it may get me shunned from the Hype community!)

Thanks for any advice you can give.

Eb

[Bouleversee]

" even though I know it may get me shunned from the Hype community!)

Freudian slip there?

[idpickering]

Morning. I don’t think there’s such a thing as a HYP must have, each to their own and all that. May I offer Admiral Group and IG Group for your consideration? I hold both. You might like to cut back on Lloyd’s maybe, but not necessary if new monies are going to be invested elsewhere thereby lowering your exposure to it.

Ian.

[kempiejon]

Checking down a ftse100 yield list for sectors not covered the first companies I see with what I think is acceptable dividend record and high yield are WPP, ITV TUI then Kingfisher, then I'd have to look at their cover, debt and other financials.

[monabri]

Noting that you won't get the quoted yield ( link below) on Tui due to German withholding plus solidarity tax...knock off approx 20% .

https://www.dividenddata.co.uk/dividend ... y?epic=TUI

[monabri]

Hello OP,

Welcome to this nest of wasps, I have replied by PM so that I can freely tell you what I think.

Bagger

A sad state of affairs indeed, that a poster feels the need to do that, rather than post here.

Ian

I'm guessing that the recommendation might be to look elsewhere with a timeframe of 25 years and to suggest a different approach...
Being open (and replying to idpickering), I suggested that EB should consider some of the bigger growth ITs ( WTAN, Bankers, SMT, FCIT) with a non UK bias ( UK growth? ) and I linked to a Schroders review of FTSE100 company members since 1984.

[BrummieDave]

https://www.schroders.com/nl/insights/economics/how-the-ftse-100-has-changed-over-33-years/

Not sure if I'm allowed to say this on the hallowed turf, but I found that article very interesting. Given the dominance of banks and energy companies that we constantly read about, I'd have never have thought that "The financial sector, made up largely of banks, and energy stocks, including BP and Royal Dutch Shell, are still among the biggest components but their importance has waned over the last decade."

The graphic showing FTSE 100 Exposure by Geographic Revenue v Domicile was also informative.

Perhaps another board would be more appropriate for the link you posted and my reply so I may have to report myself.

[PinkDalek]

Bagger46's views on HYP etc are available via the link below (over at High Yield Shares & Strategies - general).

viewtopic.php?f=31&t=18986&p=245051#p245051

Maybe Bagger46 may be willing to share the contents of the PM over there, in a new Topic, for all to see.

[evilbungle]

Thanks all, A good few choices in Hyp shares (and otherwise) to consider so I will get my research hat on.

Very grateful for all opinions that have been kindly shared.

[kempiejon]

Noting that you won't get the quoted yield ( link below) on Tui due to German withholding plus solidarity tax...knock off approx 20% .

https://www.dividenddata.co.uk/dividend ... y?epic=TUI

Ah good point, thanks monabri, I must remember that if I ever shortlist them for my own purchases.

[monabri]

The withholding tax looks to be 26.375%...(!) So that would reduce the 5.91% yield on Tui AG to 4.35% .

( share price 1042p, exchange rate 1 euro = £0.8557 , dividend of 0.72 euro). There is also the consideration of the effect of exchange rate on the sum that finally lands in ones account.

[TUK020]

Are there any big misses that you would consider a HYP must have?

Comparing with my portfolio, I note:

Asset management (Schroders non voting SDRC is my favourite), but you are overweight in financials and very heavy in Banks, so maybe not.

Fixed line telecoms; BT is interesting, in that the nationalisation of Open Reach isn't necessarily a negative, but depends on the terms of the deal - where does the pension deficit go? has this saved BT from having to fund a massive capex on fibre roll out?

Other Utilities; take your point about political risk. I hold NG & Pennon. These maybe safer now that Corbyn has committed to spending billions he doesn't have on OpenReach, and making it free to all comers.

General Industrials: I have a smattering of smaller stakes in general industrials such as Bodycote, Rotork, Vesuvius, DS Smiths, not all of which fit the HYP mold.

If this had been posted on High Yield General, or Portfolio Review, then I might have talked about seeking wider diversity using ITs into geographic (HFEL for far east) or other sectors (HICL for infrastructure), but as this is on the purist Bland Annuity Replacement board, I shall keep quiet.

Moderator Message:
*** EDITED OUT **** I would rather you don't all waste my time by perpetuating mess that needs to be dealt with. dspp