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Final buy this year

Practical discussions about equity High-Yield Portfolios (HYP) for income
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minerjoe
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Final buy this year

#34750

Postby minerjoe » February 27th, 2017, 8:22 am

I have my final £3k to put into my ISA this year before the season ends, so just looking for some input from the forum.

At the moment I am leaning towards a classic such as NG. or maybe BA. But I am open to suggestions if I am missing something which might be an obvious add at a low price at the moment.

Below is my current holdings - Input welcome!


Raptor
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Re: Final buy this year

#34755

Postby Raptor » February 27th, 2017, 8:33 am

Nice Portfolio. some shares there that I have never seen before as HYP, but not my call. For me NG or BA would be good. My preference is BA, because I hold them.

Raptor.

minerjoe
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Re: Final buy this year

#34758

Postby minerjoe » February 27th, 2017, 8:47 am

Hi Raptor,

Its my whole portfolio, not just my HYP, I can never be bothered to strip out certain shares. That being said I bought them all for yield or growth potential. CAML (a small mining firm) has actually been my best share all in all - but I know some of the guys there and its a solid little company (but little the key word!) its very niche in mining.

toofast2live
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Re: Final buy this year

#34760

Postby toofast2live » February 27th, 2017, 8:51 am

National Grid fits nicely with a good predictable dividend flow.

Miner, could you provide a few words on CAML - it looks like an interesting smaller company pick and I'm assuming from your name that you have some insight.

minerjoe
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Re: Final buy this year

#34762

Postby minerjoe » February 27th, 2017, 9:00 am

sure no problem

CAML is Central Asia Metals - They are a small AIM share which runs a mine in Kazakhstan which processes copper tailings. This means they basically pour acid on the old mine waste and collect the product at the bottom; which then contains copper. They process the copper out and sell it. It's very cheap to run as its basically some pumps.

The issue with this type of mine is, it has a defined resource. They know exactly how much copper they have, once the tailings are processed there isn't any more left - you can't explore for more.

I think from memory the operation has about 10 more years to go and then it'll be done. They have focused on return 2/3 of income back to shareholders and are now looking for another project. From memory again, its copper in Chile.

Personally I think i'll sell in a few more years unless there is some decent news about a new project.

Hope this gives you a bit of insight. Would I buy them now, I'm not so sure - They might be over priced!

77ss
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Re: Final buy this year

#34765

Postby 77ss » February 27th, 2017, 9:05 am

minerjoe wrote:I have my final £3k to put into my ISA this year before the season ends, so just looking for some input from the forum.

At the moment I am leaning towards a classic such as NG. or maybe BA. But I am open to suggestions if I am missing something which might be an obvious add at a low price at the moment.




I wouldn't buy NG right now - preferring to wait until after the dust settles on the impending return of capital. Putting a slug of money in, only to have some of it returned to you seems inefficient.

BA wouldn't be bad, but have you looked at the housebuilders? Significantly better yields on offer from the likes of Crest Nicholson and Galliford Try.

Disclosure: I hold NG, BA, GFRD and CRST.

idpickering
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Re: Final buy this year

#34766

Postby idpickering » February 27th, 2017, 9:10 am

minerjoe wrote:I have my final £3k to put into my ISA this year before the season ends, so just looking for some input from the forum.

At the moment I am leaning towards a classic such as NG. or maybe BA


I'd be inclined to buy a slice of both NG. and BA. This would bring two HYP stalwarts on board rather than trying to choose between them.

HTH,

Ian.

minerjoe
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Re: Final buy this year

#34768

Postby minerjoe » February 27th, 2017, 9:14 am

Its an interesting point and not one which I had really considered.

taking a look it seems the special dividend will be around 80p per share (about 8%) as well as the current yield that puts 10+% back. Question is, will the shares drop by that 8% after H2 2017 when its due to be paid.

Food for thought!

spiderbill
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Re: Final buy this year

#34816

Postby spiderbill » February 27th, 2017, 11:50 am

At the "safe and solid" end of the HYP spectrum an alternative to NG (which I'd be perfectly happy with) might be Hansteen (HSTN) an office property REIT and one of the few old TMF recs that have done well for me.
At the slightly riskier end there's the builders like Taylor Wimpey or the beer and pubs folk like Marstons. Any of these would be an additional sector for you.

monabri
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Re: Final buy this year

#34823

Postby monabri » February 27th, 2017, 12:11 pm

Any thoughts on BT and/or RMG as a bit contrarian?

Perhaps Tesco with a longer view (dividend is definitely currently not HY) but maybe long term there is room for capital growth and a return to a resonable divi?

Moderator Message:
Remember this is the HYP Practical board. Capital return or growth shares are not the domain of this board for "new" shares like Tesco. Raptor.

Dod1010
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Re: Final buy this year

#34830

Postby Dod1010 » February 27th, 2017, 12:50 pm

Firstly I wish posters would use names rather than the EPIC or whatever the abbreviation is called. I did not recognise BA, British Airways BAT or what? It is I have discovered BAE Systems.

Anyway minerjoe has two banks so why not two tobaccos? The only problem is that it is currently yielding only around 3% and I would exclude Unilever for the same reason.

So my choice would be Glaxo.

Dod

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Re: Final buy this year

#34834

Postby kempiejon » February 27th, 2017, 1:00 pm

You have pretty good diversification there so topping up is always an option but if you're looking for other options and more diversification how about the water utilities, or BT. which has been a better yield these recent month than I have seen in years. Support is a wide sector and there are some options there. Most housebuilders fall down on income history for my HYP but another property option is British Land. Does Marks and Spencer still have a good income history? In drinks either Marston or Green King have come across my desk along with Britvic.
I think I'd seriously consider BT.a as my top choice at these levels if didn't already have a large amount.

monabri
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Re: Final buy this year

#34852

Postby monabri » February 27th, 2017, 1:58 pm

As a newbie Hyper I bought into Interserve, Connect Group and Carillion ...All in the "Support" sector, all with wonderful high yields and many positive reports (TMF , Stockopedia, Daily Mail broker summaries) . All 3 have taken a good kicking recently with Carillion apparently being the most shorted company in the FTSE, Interserve being a basket case who can't even appoint a replacement for Mr Ringrose calling for a teleconference 1 week before reporting...My message would be avoid anything in the "support" sectors.

I believe Marks and Sparks still has a yield of over 5% (but where is the company going?). British Land could be a contender. With British Telecom , the directors have been hoovering up shares after the Italian Job! How about Standard Life to compliment Legal and General?

Lots of choices!

p.s. I think BA. and NG. are clear enough - as I said, even a newbie like myself recognises BAE SYSTEMS (capital letters !!!) and National Grid from their tickers.

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Re: Final buy this year

#34862

Postby moorfield » February 27th, 2017, 2:45 pm

minerjoe wrote:Its my whole portfolio, not just my HYP, I can never be bothered to strip out certain shares.


Without wishing to drift OT, I agree with you there ....

If you run your holdings through TJH's "smallest value-highest yield" ranking table I think you'll come up with the following for top-ups (assuming you don't want to go above 20 holdings).

1 BP.
2 VOD
3 PHNX

kempiejon
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Re: Final buy this year

#34881

Postby kempiejon » February 27th, 2017, 3:39 pm

Not all companies in the Support Services are bad. Some are a little smaller than the standard HYPer's FTSE100 but there are some respectable yields and history. PayPoint 5% and Group4 4.2% are good forecasts with good history. Essentra and Capita came on a filter recently, again good history and cover but I think it's recent share price falls have pushed yield towards HYP territory. For those wanting to widen diversification that's 4 pretty different businesses. I'm not sure I've given up on Carillion yet either, the money looks like it's there for this year and next we'll hear more when they report next month.

monabri
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Re: Final buy this year

#34886

Postby monabri » February 27th, 2017, 4:02 pm

Kempiejon
Possibly regarding Carillion (I hope so!) - but for me the bad news for all 3 of my "support" choices seemed to come more or less straight after I selected them (especially Interserve)!

Maybe as a newbie I'm a little bit sensitive as I don't have years of experience and the robustness of mind that comes after seeing shares peak and trough and I perhaps got a little bit unlucky with shares such as IRV that were being touted as a strong buy and seemed to check out when it came to P/E, Dividend cover and gearing (lesson learned there.!).

tjh290633
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Re: Final buy this year

#34887

Postby tjh290633 » February 27th, 2017, 4:06 pm

Minerjoe, follow your own instincts. They are likely to be as good as any suggestions that you.

You have built a nice portfolio, with a couple of odd choices which is your prerogative. NG. or BA. would fit nicely (National Grid and BAE Systems for Dod's benefit.) 20 holdings so far, so you could do a bit of rebalancing if you felt that CAM (Central Asia Metals) was starting to run away from the others, although 10% would be a reasonable limit at this stage.

As long as you can find new shares which fit, keep on building. If you can't, then top up selectively.

Good luck with it.

TJH

tjh290633
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Re: Final buy this year

#34889

Postby tjh290633 » February 27th, 2017, 4:07 pm

kempiejon wrote:I'm not sure I've given up on Carillion yet either, the money looks like it's there for this year and next we'll hear more when they report next month.


They report on Wednesday, which admittedly is March 1st.

TJH
Last edited by tjh290633 on February 27th, 2017, 4:08 pm, edited 1 time in total.
Reason: Replacing tag

OLTB
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Re: Final buy this year

#34892

Postby OLTB » February 27th, 2017, 4:23 pm

monabri wrote:As a newbie Hyper I bought into Interserve, Connect Group and Carillion ...All in the "Support" sector


Hi monabri

As a new HYPer myself (started in August 2016) I have followed pyad's (and most others) advice into investing in one share per sector, rather than multiple shares in one sector. Therefore, I also have exposure in the 'support' sector with Carillion - I have an 18 sector HYP with 19 companies (the two main oilies). I also don't know why the Carillion shares have been hammered lately and not really bothered as I'm topping up each month until either dividends affected or HYPTUSS says, 'no'.

Apologies if you're aware that it's sector diversification that is key rather than company diversification within the same sector, it's just that the comment above seemed to suggest otherwise.

Cheers, OLTB.

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Re: Final buy this year

#34893

Postby 77ss » February 27th, 2017, 4:24 pm

monabri wrote:As a newbie Hyper I bought into Interserve, Connect Group and Carillion ...All in the "Support" sector, all with wonderful high yields and many positive reports (TMF , Stockopedia, Daily Mail broker summaries) . All 3 have taken a good kicking recently with Carillion apparently being the most shorted company in the FTSE, Interserve being a basket case who can't even appoint a replacement for Mr Ringrose calling for a teleconference 1 week before reporting...My message would be avoid anything in the "support" sectors.



Are you drawing the right message? Did you not know that CLLN was heavily shorted?

My take would be that paying attention to TMF and the Daily Mail
Moderator Message:
comments removed as not fitting TLF rules. Raptor.
and broker summaries is a profoundly unwise way of going about things.

DYOR!!!!!

As it happens, I hold CLLN and CNCT. I don't regard either of them as basket cases - nor do I regard either of them as being properly in the unhelpfully named rag-bag sector of 'support' . CLLN I see as being in construction and CNCT in distribution.


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