Back to the OP
micrographia wrote:You wouldn't buy them for your HYP and you would get more income if you sold and bought a genuine HYP candidate instead, but given the size of the holding in the context of my portfolio I'm happy enough to hold on to them while we see how the divi grows from here. They are a big beast - £30bn market cap.
EEM
Quite.
moorfield wrote:Lest we forget HYP1 continues to hold Haleon which contributed 0.2% of overall income last year.
I think this thread well illustrates what has become a lost HYP art over the years, that of sitting on one hands. It seems to me the reason that theme has largely been abandoned boils down to folk here either thinking they know better, or having a bad case of dontjuststandtheredosomethinganythingitis. HYP wasn't aimed at them. I suggest Arb is suffering from the latter, am I being unreasonable?
Perhaps Arb shouldn't have been the subject, after all he wasn't the first to moot doing something.
For me HYP isn't about selling, that's what attracted me to it. I like that I don't need to make that decision. Clearly plenty of HYPers do so it is discussed here and from this boards guidelines
It is acknowledged that individual HYP investors may from time to time see the need to sell individual HYP stocks, perhaps in response to adverse performance, portfolio imbalance, or a corporate action, e.g. takeover. It is further acknowledged that it would be unrealistic to rule that discussion of such actions is outside the board’s remit. It is also acknowledged that it may be rational to "top slice" an overweight low-yield share and consequently, following normal HYP practice, reinvest the proceeds in a higher yielding share, thereby automatically ratcheting a portfolio's income up above the natural growth rate. It is stressed, however, that HYP investing was always intended to be a LTBH strategy.
And in respect of doing nothing there Arbs anecdotal evidence of frying pans and fires and generally no better nor worse and the perhaps apocryphal story
From an analysis of client portfolios between 2003 and 2013, Fidelity found that their best investors were those who never touched their shares. But these weren’t investors with nerves of steel or those that somehow managed to pick winning shares from the outset. Fidelity’s most successful investors were already dead.
We see TJH has already bought his holding up to a decent weight. A bit low yield for some purists here...