A good HYP return

[kempiejon]

Wait, are you saying that the yield on a portfolio that is carefully selected to have a high yield, is higher than the yield on a portfolio that is not?

and it stays higher

[grimer]

I hold UK, US and Global trackers in my company pension funds. They've done very well this year, but I think there is a lot to be said for the less volatile nature of dividends. If we see a downturn in the market this year, and dividends are maintained, my forecast 5% yield could effectively be 6.5% or more (as an example) in terms of what it can buy during the downturn. That might then give my portfolio a boost if/when the recovery/rebound occurs.

Also, market downturns tend to see a flight to defensive stocks, so I'd expect HYP shares to suffer less shorting than momentum shares.

[staffordian]

T

To return to the original posts, I've just put the old abacus away after some calculations.

Taking my holdings as at 31/12/2015, and ignoring dividends, the capital value of those holdings were up 10.5% at 31/12/2016.

By my reckoning the FTSE100 was 14.4% up so a little disappointing, but as ever, it's not the capital that matters (much )

Staffordian

Such sums could make a fella think about throwing it all in for a tacker, but a year doesn't really tell one much. My HYP capital is up around 6% this year but is yielding 4.5%, the FTSE will give 3.7% yield, what's your HYP offering?

I'll start off by saying that in all honesty, the relative performance of my HYP v the FTSE100 over a single year is neither here nor there. I posted the above simply to add to the debate. I simply know that for me, unless the financial landscape changes beyond recognition, an HYP is my best option.

I have reviewed my portfolio here and it's forecast yield is currently showing as 5.7%. A read of my post will explain why I'm comfortable with a higher than average yield. My CAGR is 11.9%.

I'm not sure how relevant it is, but since I started this portfolio in 2013 my capital is about 7% up if I exclude the value of dividends received (all of which are re-invested) and 16.8% up if those reinvested dividends are included.

I also unitise the portfolio. The unit values were set at £1.00 in August 2013 and as at the end of December 2016 income and accumulation unit values were £1.39 and £1.64 respectively. However over the last twelve months, income per (income) unit has actually fallen slightly; from 6.08p to 6.058p.

I hope the above might go a little way towards helping others who might be trying to see how their HYP's performance fares compared to others.

Staffordian

[staffordian]

For the sake of completion; I just realised I didn't quote unit values a year ago in the post above.

At the end of December 2015 my income unit value was £1.302 and the accumulation unit value was £1.451.

Staffordian