A thread detailing the progress during the Year One can be found here: viewtopic.php?p=225865#p225865
A thread detailing the progress during the Year Two can be found here: viewtopic.php?p=323586#p323586
A thread detailing the progress during the Year Three can be found here: viewtopic.php?f=15&t=33976
Further details of how updates are to be made to this portfolio can be found on this thread: viewtopic.php?p=218513#p218513
Year Four: Update - 01 June 2022
1 - Aviva PLC (AV): Return of Capital – 19 May 2022
Shares | Special Dividend (p) | Dividend Receipt (£) | Current (#) | New (#) | New Holding (#) | Fraction Left (#) | Price (p) | Fraction Receipt (£) | Total Receipt (£)
4,134 | 101.6900 | 4,203.86 | 100 | 76 | 3,141 | 0.8400 | 428.7000 | 3.60 | 4,207.46
So far, an amount of £4,203.86 has been added to the Portfolio Cash Balance. My own “real” portfolio has yet to receive any cash from the sale of the Fraction of a share left behind. This amount will be calculated and added to the Portfolio Cash Balance when and if it is received by myself, in my “real” portfolio.
2 - BHP Group (BHP): In-Specie Dividend - 01 June 2022
The portfolio has received shares of Woodside Petroleum, the number being calculated as follows:
1 WPL share for 5.534 BHP shares
BHP Shares (#) | WPL Shares (#) | Fraction Left (#) | BHP Price (p) | Fraction Value (£)
838 | 151 | 0.4275 | 2,550.00 | 10.90
Using the closing price of WPL from the 01 June 2022 – A$30.1900 - the value of this In-Specie dividend for BHP has so far been calculated as £2,619.94 which amount has been used as the cost of the new WPL holding. My own “real” portfolio has yet to receive these shares so, when they are received, I shall use the holding cost applied by my broker to recalculate the correct value for this In-Specie dividend.
Also, my own “real” portfolio has yet to receive any cash from the sale of the fraction of a BHP share left behind. This amount will be calculated and added to the Portfolio Cash Balance when and if it is received by myself, in my “real” portfolio.
Current Portfolio: Holdings
EPIC | Company | Shares | Cost (£) | Price (p) | Value (£) | Value (%) | P/L (£) | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£)
BHP | BHP Group | 838 | 14,999.47 | 2,550.0000 | 21,369.00 | 8.59% | 6,376.49 | 0.00 | 3,509.70 | 9,886.19 | 8.14% | 1,740.37
BP | BP | 1,717 | 9,379.72 | 431.3000 | 7,405.42 | 2.98% | -1,974.30 | 75.17 | 1,113.54 | -785.59 | 4.06% | 300.69
SHEL | Shell | 309 | 7,481.66 | 2,361.0000 | 7,295.49 | 2.93% | -186.17 | 61.94 | 810.45 | 686.22 | 3.40% | 247.77
WPL | Woodside Energy Group Ltd | 151 | 2,619.94 | 1,735.0575 | 2,619.94 | 1.05% | 0.00 | 0.00 | 0.00 | 0.00 | 6.24% | 163.45
IMB | Imperial Brands | 988 | 21,739.68 | 1,791.5000 | 17,700.02 | 7.12% | -4,039.66 | 210.14 | 3,241.13 | -588.39 | 7.79% | 1,378.26
WPP | WPP | 1,780 | 14,997.55 | 922.8000 | 16,425.84 | 6.61% | 1,428.29 | 0.00 | 1,717.70 | 3,145.99 | 3.38% | 555.36
ITV | ITV | 11,652 | 14,999.08 | 70.6000 | 8,226.31 | 3.31% | -6,772.77 | 0.00 | 1,316.66 | -5,456.11 | 7.08% | 582.60
HSBA | HSBC Holdings | 2,425 | 14,998.27 | 529.6000 | 12,842.80 | 5.17% | -2,155.47 | 0.00 | 1,294.96 | -860.51 | 3.79% | 486.12
ABDN | Abrdn PLC | 5,503 | 14,997.65 | 192.7500 | 10,607.03 | 4.27% | -4,390.62 | 0.00 | 3,582.39 | -808.23 | 7.57% | 803.43
IGG | IG Group Holdings | 2,762 | 14,999.32 | 714.0000 | 19,720.68 | 7.93% | 4,721.36 | 0.00 | 3,579.51 | 8,300.87 | 6.05% | 1,193.18
AV | Aviva | 3,141 | 12,834.62 | 428.7000 | 13,465.47 | 5.42% | 634.39 | 0.00 | 3,127.89 | 3,762.38 | 5.14% | 692.59
GSK | GSK Plc | 941 | 14,999.37 | 1,707.8000 | 16,070.40 | 6.46% | 1,071.03 | 131.74 | 2,258.40 | 3,461.17 | 4.57% | 733.98
BA | BAE Systems | 3,043 | 14,995.20 | 778.2000 | 23,680.63 | 9.52% | 8,685.43 | 0.00 | 2,592.60 | 11,278.03 | 3.23% | 763.79
CCL | Carnival Corporation | 384 | 14,979.79 | 969.0000 | 3,720.96 | 1.50% | -11,258.83 | 0.00 | 610.18 | -10,648.65 | 0.00% | 0.00
SMDS | DS Smith | 4,310 | 14,997.11 | 303.2000 | 13,067.92 | 5.26% | -1,929.19 | 0.00 | 1,426.61 | -502.58 | 4.25% | 555.99
IBST | Ibstock | 5,849 | 14,999.47 | 186.3000 | 10,896.69 | 4.38% | -4,102.78 | 0.00 | 1,099.59 | -3,003.19 | 4.03% | 438.67
LAND | Land Securities Group | 818 | 7,499.19 | 766.4000 | 6,269.15 | 2.52% | -1,230.04 | 0.00 | 702.23 | -527.81 | 4.83% | 302.66
BLND | British Land Company | 1,273 | 7,494.24 | 521.2000 | 6,634.88 | 2.67% | -859.36 | 0.00 | 624.69 | -234.67 | 4.21% | 279.04
VOD | Vodafone Group | 10,077 | 14,998.48 | 126.7000 | 12,767.56 | 5.14% | -2,230.92 | 383.54 | 2,335.44 | 488.06 | 6.01% | 767.08
PNN | Pennon Group | 1,266 | 10,265.43 | 1,010.0000 | 12,786.60 | 5.14% | 2,521.17 | 0.00 | 1,392.72 | 3,913.89 | 3.81% | 487.78
| | | | | | | | | | | |
| Sub Total: | | | | £243,572.79 | 97.96% | -£15,695.49 | £862.53 | | | 5.12% | £12,472.81
| Cash Balance: | | | | £4,203.86 | 1.69% | | | | | |
| Ex-Dividend: | | | | £862.53 | 0.35% | | | | | |
| | | | | | | | | | | |
| Current Portfolio Value: | | | | £248,639.18 | | | | | | |
| From: | | | | | | | | | | |
| Cash In: | | | | £254,904.77 | | | | | | |
| LESS Cash Out: | | | | -£37,736.58 | | | | | | |
| Dividends Received: | | | | £36,889.30 | | | | | | |
| Ex-Dividend: | | | | £862.53 | | | | | | |
| Realised Profit/Loss: |[2] | | | £9,411.01 | | | | | | |
| Un-Realised Profit/Loss: | | | | -£15,695.49 | | | | | | |
| | | | | | XIRR | | | | | |
| Total: | | | | £248,639.18 | 3.97% | | | | | |
Current Portfolio: Business Sectors
Business | Cost (£) | Value (£) | Value (%) | P/L (£) | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£)
Weapons | 14,995.20 | 23,680.63 | 9.52% | 8,685.43 | 0.00 | 2,592.60 | 11,278.03 | 3.23% | 763.79
Mining | 14,999.47 | 21,369.00 | 8.59% | 6,376.49 | 0.00 | 3,509.70 | 9,886.19 | 8.14% | 1,740.37
Gambling | 14,999.32 | 19,720.68 | 7.93% | 4,721.36 | 0.00 | 3,579.51 | 8,300.87 | 6.05% | 1,193.18
Tobacco | 21,739.68 | 17,700.02 | 7.12% | -4,039.66 | 210.14 | 3,241.13 | -588.39 | 7.79% | 1,378.26
Oil | 19,481.32 | 17,320.85 | 6.97% | -2,160.47 | 137.11 | 1,923.99 | -99.37 | 4.11% | 711.91
Advertising | 14,997.55 | 16,425.84 | 6.61% | 1,428.29 | 0.00 | 1,717.70 | 3,145.99 | 3.38% | 555.36
Pharma | 14,999.37 | 16,070.40 | 6.46% | 1,071.03 | 131.74 | 2,258.40 | 3,461.17 | 4.57% | 733.98
Insurance: Life | 12,834.62 | 13,465.47 | 5.42% | 634.39 | 0.00 | 3,127.89 | 3,762.38 | 5.14% | 692.59
Packaging | 14,997.11 | 13,067.92 | 5.26% | -1,929.19 | 0.00 | 1,426.61 | -502.58 | 4.25% | 555.99
Telecom: Mobile | 14,998.48 | 12,767.56 | 5.13% | -2,230.92 | 383.54 | 2,335.44 | 488.06 | 6.01% | 767.08
Real Estate IT | 14,993.43 | 12,904.03 | 5.19% | -2,089.40 | 0.00 | 1,326.92 | -762.48 | 4.51% | 581.70
Utility: Water | 10,265.43 | 12,786.60 | 5.14% | 2,521.17 | 0.00 | 1,392.72 | 3,913.89 | 3.81% | 487.78
Banks | 14,998.27 | 12,842.80 | 5.17% | -2,155.47 | 0.00 | 1,294.96 | -860.51 | 3.79% | 486.12
Bricks | 14,999.47 | 10,896.69 | 4.38% | -4,102.78 | 0.00 | 1,099.59 | -3,003.19 | 4.03% | 438.67
Fund Manager | 14,997.65 | 10,607.03 | 4.27% | -4,390.62 | 0.00 | 3,582.39 | -808.23 | 7.57% | 803.43
Television | 14,999.08 | 8,226.31 | 3.31% | -6,772.77 | 0.00 | 1,316.66 | -5,456.11 | 7.08% | 582.60
Cruising | 14,979.79 | 3,720.96 | 1.50% | -11,258.83 | 0.00 | 610.18 | -10,648.65 | 0.00% | 0.00
[1] - Yield and Forecast Income are based on my own Share Database Spreadsheet and are essentially calculated from the dividends that would have been earned over the previous 12 months, unless the company itself has clearly indicated otherwise. I do now believe that the recent dividend suspensions/cancellations, caused by the Covid Pandemic and Lockdowns, have been played out. Consequently, the above Year Div (£) columns can once again be treated as a reasonable estimate.
[2] - Realised Profit and Loss & Return of Capital – To Date
Date | EPIC | Name | Real P&L (£) | Event
16-May-22 | AV | Aviva | 151.09 | Return of Capital - Share Consolidation
06-Jun-22 | AV | Aviva | 0.00 | Share Consolidation - Fractional Share Sale
20-Sep-19 | BHP | BHP Group | 550.49 | Return of Capital
25-May-22 | BHP | BHP Group | 2,619.94 | Woodside Energy Group (WPL) shares
06-Jun-22 | BHP | BHP Group | 0.00 | Woodside Energy Group (WPL) shares - Fractional Share Sale
09-Oct-19 | GNK | Greene King | 4,188.29 | Sale – Pending Takeover
20-Sep-19 | IBST | Ibstock | 292.45 | Return of Capital
16-Jul-21 | PNN | Pennon Group | 1,604.18 | Return of Capital - Share Consolidation
16-Jul-21 | PNN | Pennon Group | 8.21 | Share Consolidation - Fractional Share Sale
| | | |
| | Total | £9,414.65 |
Top-Up: 10 Jun 2022
An amount of £2,148.89, the proceeds received from Ordinary and Special Dividends between Friday 06 May and Wednesday 01 June 2022 inclusive, was withdrawn as Portfolio Income on the 01 June 2022. The remaining cash, being the proceeds from the AV Return of Capital Dividend - £4,203.86 – will be used to top-up one holding on Friday 10 June 2022.
Candidates
From the point of view of the current “Highest Sustainable Yield” the following candidates have been considered:
Top-Up | | | | |
Business | EPIC | Company | Yield (%) | Decision | Comments
House Builder | PSN | Persimmon | 10.76% | Selected | New Business Sector
Mining | RIO | Rio Tinto | 10.03% | Rejected | Resultant Sector Value Concentration (10.14%) too high
Insurance: Non-Life | DLG | Direct Line Insurance Grp | 8.91% | Selected | New Business Sector
Fund Manager | MNG | M & G PLC | 8.46% | Selected | Resultant Sector Value Concentration (5.79%)
Mining | BHP | BHP Group | 8.14% | Rejected | Resultant Sector Value Concentration (10.14%) too high
Tobacco | IMB | Imperial Brands | 7.79% | Selected | Resultant Sector Value Concentration (8.66%)
Insurance: Life | PHNX | Phoenix Group Holdings | 7.72% | Selected | Resultant Sector Value Concentration (6.94%)
Fund Manager | ABDN | Abrdn PLC | 7.57% | Selected | Resultant Sector Value Concentration (5.79%)
Decision
While it is the case that PSN has the highest yield, some of that has been described as returning capital to the shareholders over the past few years. Indeed, the company has already stated that there will be a further 110p per share later this year. However, I have been unable to determine what the yield would be without such capital returns. As a result, PSN is rejected for now.
Moving down the list, a new holding of RIO is rejected because a purchase with the amount of cash currently available would take the value attributed to the Mining sector just over my concentration limit of 10%.
I have therefore decided to go for the added diversification, albeit slight, offered by another entirely new holding – Direct Line Insurance Group (DLG) – which is also a New Business Sector – Insurance: Non-Life. The yield offered – 8.91% - is not far off that offered by a purchase of RIO.
Insurance Non-Life – Direct Line Insurance Group PLC (DLG) – Yield 8.91% - is therefore the decision for this top-up.
The Value Concentration after purchase (1.50%) will obviously leave the Insurance – Non-Life Business Sector holding as the smallest by that measure but who cares about that?
As I am not intending to purchase DLG for any of the “real” portfolios under my control, the price to be applied for this “virtual” purchase will be the mid-price reported on the day. I shall post an update when the details of the purchase are known.
Should anyone wish to comment on this or any other actions taken in the management of this virtual HYP Portfolio, then please do so but only on this related thread: viewtopic.php?f=15&t=34669#p504419
The intention is to keep this thread simply recording the events of the Portfolio during its fourth year.
Enjoy!
Ian
