Xmas HYP changes

[seagles]

I have left my HYP portfolio alone during these turbulent times. I noticed my last change was to buy TW (Taylor Wimpey) 17/12/19. Since we seem to be getting back into some form of "normal" I decided the week before Xmas to look at my portfolio and make some changes.

As an aside to this on 4/4/20 my perceived yield for the year was 6.84% (I normally only show my portfolio changes at the end of the tax year thus the date), today my HYPTUSS shows 5.06% (this is for the whole portfolio). Not sure how accurate this is still as BT and MARS (Marstons) show 0% and MKS (marks & spencer) 0.3%, but this is using the "forecast yield" parameter.

Anyway back to what I have done:-



Both RIO and ADM (Admiral) have shown large capital gains and their value was above my 2 X Median value that I feel ok with. This left quite a large amount (for me), if I used that to top up one share it would have skewed the portfolio and exceeded other "limitations" I have set, ie sector and income limits. Using HYPTUSS I worked down my list and AV. (Aviva) and BP made the cut for equal updates. STEM (SThree) I have owned for years and has been static on yield for a while (but a good "capital" earner, thus kept, did top slice previously), decided to sell whilst still showing a small capital profit and buy back into GSK (Glaxo Smith Kline) which I had disposed of previously whilst clearing out my SIPP of Shares. This also allowed me to reduce my holdings outside of my ISA Tax wrapper.

How is stands today;-



It's a start. Large portion of SSE will be going at some point as I have made the decision a while back to make my SIPP ITs only and SSE is the only one left and quite "big". Though I do still have them in my ISA. Will leave it at that to settle for now.

[absolutezero]

You seem to be a tinkerer (like me, so no criticism).

You do look to be over relying on 3 or 4 shares for your dividend income. SSE. BP. LGEN being 3 that jump out.

I (though I don't take my own advice) might be tempted to remedy that - but you have alluded to fiddling about with SSE.

I took the opportunity recently to clear some dead wood from my portfolio - so anything that isn't paying a decent dividend despite having decent enough cashflow (DS Smith I am looking at you) was given the boot and the cash reinvested elsewhere.

[seagles]

You seem to be a tinkerer (like me, so no criticism).

You do look to be over relying on 3 or 4 shares for your dividend income. SSE. BP. LGEN being 3 that jump out.

I (though I don't take my own advice) might be tempted to remedy that - but you have alluded to fiddling about with SSE.

I took the opportunity recently to clear some dead wood from my portfolio - so anything that isn't paying a decent dividend despite having decent enough cashflow (DS Smith I am looking at you) was given the boot and the cash reinvested elsewhere.

Pre-covid the income yield was an important part of my calculations when buying or selling. However, this period has made me realise that I still meet all my needs without the need for anything from my SIPP (off topic but looking at growth ITs here going forward) and even with the reduced income from HYP have managed to build up my savings (whilst still going on holiday and a new granddaughter to spend money on). So although I am wary of having my income in a few shares am not going to dwell on that for the immediate future, just need to take it nice and easy (for now). The money from SSE will not be plowed into HYP though, but may "smooth" the income differences. Yes, I am a tinkerer but still believe in the LTBH approach, just like to keep a balanced portfolio of shares (or aim to keep...)

Have the full State pension and a nice DB pension as well, so am fortunate.

[absolutezero]

Have the full State pension and a nice DB pension as well, so am fortunate.

Hence your being a lot more relaxed about it!

[TUK020]

You seem to be a tinkerer (like me, so no criticism).

You do look to be over relying on 3 or 4 shares for your dividend income. SSE. BP. LGEN being 3 that jump out.

I (though I don't take my own advice) might be tempted to remedy that - but you have alluded to fiddling about with SSE.

I took the opportunity recently to clear some dead wood from my portfolio - so anything that isn't paying a decent dividend despite having decent enough cashflow (DS Smith I am looking at you) was given the boot and the cash reinvested elsewhere.

There are 8 shares giving more than 7.5% of total divi income. That's not horribly concentrated compared to HYP1

[tjh290633]

Interesting. I trimmed ADM, AZN and GSK on 25th March 2020 when overweight. RIO trimmed on 9th July, SGRO on 31st July, WMH on 21st, 28th September and disposed of yesterday, and KGF trimmed on 15th October. GSK were topped up on 21st September, at a slightly higher price than when trimmed, because the most favoured share for topping up.

Plenty more top-ups along the way, and two new holdings, PHP and now IGG has replaced WMH. BP. was topped up twice, on 11th March and 21st August.

I wonder who has made the better decision.

TJH

[seagles]

Interesting. I trimmed ADM, AZN and GSK on 25th March 2020 when overweight. RIO trimmed on 9th July, SGRO on 31st July, WMH on 21st, 28th September and disposed of yesterday, and KGF trimmed on 15th October. GSK were topped up on 21st September, at a slightly higher price than when trimmed, because the most favoured share for topping up.

Plenty more top-ups along the way, and two new holdings, PHP and now IGG has replaced WMH. BP. was topped up twice, on 11th March and 21st August.

I wonder who has made the better decision.

TJH

Time will tell, but what you think is "better" may not be the same "better" for me? For instance I sold out of SGRO in 2016 for a 24.7% profit as at that time was re-doing my HYP to release cash for a building extension, went from 37 to 21 shares and got rid of "deadwood" whilst also making good use of CGT. Have held IGG since 2010 and it has been good, both in steady dividends and currently showing a 68% increase in value. Have looked at PHP a few times but always another share took my eye. I also noticed that selling all of my GSK and TW shares in my SIPP and buying back into my ISA at a later date seems to have been a winner.

I admire the way you stick to your "beliefs", I have similar "rules" in place but am much more likely to just let them run. I suppose that is due to not really needing the income anymore (it is nice to have and does pay for those nice little luxuries and allows me to be a bit more generous to my Daughter and now my Granddaughter).

[tjh290633]

Interesting. I trimmed ADM, AZN and GSK on 25th March 2020 when overweight. RIO trimmed on 9th July, SGRO on 31st July, WMH on 21st, 28th September and disposed of yesterday, and KGF trimmed on 15th October. GSK were topped up on 21st September, at a slightly higher price than when trimmed, because the most favoured share for topping up.

Plenty more top-ups along the way, and two new holdings, PHP and now IGG has replaced WMH. BP. was topped up twice, on 11th March and 21st August.

I wonder who has made the better decision.

TJH

Time will tell, but what you think is "better" may not be the same "better" for me? For instance I sold out of SGRO in 2016 for a 24.7% profit as at that time was re-doing my HYP to release cash for a building extension, went from 37 to 21 shares and got rid of "deadwood" whilst also making good use of CGT. Have held IGG since 2010 and it has been good, both in steady dividends and currently showing a 68% increase in value. Have looked at PHP a few times but always another share took my eye. I also noticed that selling all of my GSK and TW shares in my SIPP and buying back into my ISA at a later date seems to have been a winner.

I admire the way you stick to your "beliefs", I have similar "rules" in place but am much more likely to just let them run. I suppose that is due to not really needing the income anymore (it is nice to have and does pay for those nice little luxuries and allows me to be a bit more generous to my Daughter and now my Granddaughter).

Of course we are all individuals, with different objectives. Like you, I don't really need the income, except for special events or occasions.

Because I tend to be trimming overweight shares from time to time, and reinvesting the proceeds and accumulated dividends along the way, very few of my holdings have no action while I hold them. I just looked at William Hill, which I first bought in 2008. The IRR is 9.15%, but for a single share it works out at a mere 2.87%, reflecting the share price fall from 377p to 270p over that period, with a few ups and downs along the way and rights sold in 2009 and 2013. 17 transaction in total, including the rights which I took up in 2009 but sold in 2013.

It's unlikely that anyone would have had a similar number of transactions as me.

TJH

[YeeWo]

Anyway back to what I have done:-

Confirmation Bias is a dangerous thing in this game, however, the above Table confirms to me that my hunch to trim Rio Tinto and Top Up GSK is the correct course of action tomorrow morning. Thanks!

[seagles]

Lost patience with Marstons only share left that shows no "yield" and no idea when Pubs will resume trading. Imperial Brands (although a "cutter) still looks to be a buy in my portfolio, though dangerously close to being "too" large for me, but I am in no place to judge the markets going forward. GlaxoSmithKline's "split" and dividend changes are down the line and am happy, at the monent, to give them a bit more cash for the current yield.



Will still be getting rid of SSE from my SIPP at some point. HYP as it now stands:-



Sectors, Utilities will be ok once I have got rid of SSE in my SIPP. Need to keep an eye on life insurence but no rush for now.

[teecee90]

I would be a bit concerned about the over-concentration in 'financials' if it were me. Taking, banks, insurance, asset management and financial services together as a group, they amount to almost 43% of your portfolio.

[seagles]

I would be a bit concerned about the over-concentration in 'financials' if it were me. Taking, banks, insurance, asset management and financial services together as a group, they amount to almost 43% of your portfolio.

Point taken, but I am happy that they are all diverged enough not to be "too" intertwined. But, that is only my opinion.

[Arborbridge]

I would be a bit concerned about the over-concentration in 'financials' if it were me. Taking, banks, insurance, asset management and financial services together as a group, they amount to almost 43% of your portfolio.

Point taken, but I am happy that they are all diverged enough not to be "too" intertwined. But, that is only my opinion.

This is perennial problem as many useful HYP shares are in the financial sector. It's difficult to avoid but provided they are ploughing different areas of the financial field, I'd be sanguine about it - although 43% is perhaps a little high. Many ITs have 25-30% in financials, so I think they struggle too.

I believe Admiral has quite different risks to banks and other insurance companies, so can be regarded separately. But then, if Banks go - we all go together!

Arb.

Just checked mine, and I'm at 31%.

[tjh290633]

Just checked mine, and I'm at 31%.

I have 1.89% in banks (LLOY) and 9.88% in insurance (AV., ADM and LGEN). I have put IGG in Leisure, but perhaps it should be Financial Services. They are at 2.50%. That's about 14.3% total for financial sectors.

The breakdown is:

Sector      Weight 
Banks/Fin     1.89%
Bldg          2.85%
Eng           6.28%
Food          7.94%
Leisure       8.89%
Insur         9.88%
Media         3.52%
Mining        9.87%
Oil/Gas       5.11%
Pharm         5.56%
Property      8.47%
Retail        6.58%
Support       4.94%
Telecom       4.73%
Tobacco       4.59%
Utils         8.89%
                   
Totals:     100.00%
Medians:      5.92%

TJH

[teecee90]

I'm currently at 17% in financials, with a self imposed limit of 20% (IGG, EMG, HSBA, RSA, AV, LGEN). I know that classifications are relatively subjective and that PYAD classifies IGG as gambling for example. RSA is obviously expected to disappear at some stage and likely to be replaced by MNG or ADM.