Hypster's HYP

[Wizard]

Earlier this week I topped up National Grid and ITV so the portfolio now look like this. The forecast yield is 4.9%

Two questions, if I may. If PFG is 0% why is it in the list? Where did you get the HSBA yield from as it looks lower than I would have expected?

Terry.

[Raptor]

Two questions, if I may. If PFG is 0% why is it in the list? Where did you get the HSBA yield from as it looks lower than I would have expected?

Terry.

Because when he brought it the share was a HYP and the idea of HYP is for LTBH. So HYPers will display their total portfolio, wharts and all. Like he has SKY even though the dividend is suspended. VOD with a poor coverage and high P/E is also no. 1 top-up (it is also up there for me).

@hypster

Question, if you had money for a top-up who would you go for. I ask as I have 1 CNA 2 MARS 3 VOD 4 BT? Do not have enough for top-up yet but CNA is out for now as it has held and cut in the last few years, MARS the yield is in my "danger zone" (new criteria after CLLN).

Raptor.

[tjh290633]

Things seem to be very volatile at the moment. My top-up list changes almost daily. From memory, BT.A has been top for some time, but below that, IMB, VOD and BLT keep swapping places.

By the time that December arrives, and I am ready to do another top-up, it could well change again.

TJH

[Wizard]

Two questions, if I may. If PFG is 0% why is it in the list? Where did you get the HSBA yield from as it looks lower than I would have expected?

Terry.

Because when he brought it the share was a HYP and the idea of HYP is for LTBH. So HYPers will display their total portfolio, wharts and all. Like he has SKY even though the dividend is suspended. VOD with a poor coverage and high P/E is also no. 1 top-up (it is also up there for me).

Thanks Raptor, I misread the table as saying that the value weight was 0%, hence I thought a share was in the list that formed no part of Hypster's portfolio, my error

Terry.

[Hypster]

What are your plans going forward?

Hi Ian,

I'll continue to add money every month and either top-up or buy a new holding. I’m not averse to increasing holdings but I don’t see the need to do this for the sake of it. I’d be concerned about picking up more duds through diworsification. Once I got up to 17 holdings I started to allow top-ups. I’m not against doubling up but when it happens it will be because my initial selection is faltering on the income.

For example, I recently doubled-up in media because of the complications at Sky and I am musing about Jupiter to replace lost income from Provident. I recall TJH’s description of how his HYP grew and I’ve no doubt by the time my HYP has been established as long as his my holdings could be up between 30 to 40.

[Hypster]

Where did you get the HSBA yield from as it looks lower than I would have expected?

Hi Terry, my data comes from SharePad. it does look a little low doesn't it? HSBC is currently vetoed from new money because of my cap on capital weightings but I'll investigate that data when it becomes a candidate again.

if you had money for a top-up who would you go for

Hi Raptor, right now, I'd be looking to top up ITV and Hammerson but as TJH says things are quite volatile and things dance around in the rankings so I'll decide later in the month.

[Raptor]

if you had money for a top-up who would you go for

Hi Raptor, right now, I'd be looking to top up ITV and Hammerson but as TJH says things are quite volatile and things dance around in the rankings so I'll decide later in the month.

Can see why. Based on that I would be down to my 7th share, IGG (IG Group holdings), which is not really HYP nowadays. You are right though, things do "dance around", at my current divi income in my ISA it will be December or early next year when I will look again (most income is coming in my SIPP and trading accounts). Never know what it will be like then.

Raptor.

[idpickering]

What are your plans going forward?

Hi Ian,

I'll continue to add money every month and either top-up or buy a new holding. I’m not averse to increasing holdings but I don’t see the need to do this for the sake of it. I’d be concerned about picking up more duds through diworsification. Once I got up to 17 holdings I started to allow top-ups. I’m not against doubling up but when it happens it will be because my initial selection is faltering on the income.

For example, I recently doubled-up in media because of the complications at Sky and I am musing about Jupiter to replace lost income from Provident. I recall TJH’s description of how his HYP grew and I’ve no doubt by the time my HYP has been established as long as his my holdings could be up between 30 to 40.

Hi Hypster, thanks for your post. I do like your attitude regarding your future plans. A wise and adult train of thought, and I wish you well in the future with your HYP.

Ian.

[Hypster]

I'll be investing more money in my HYP on Friday. Here's the top six top-up candidates at the moment:



Greene King, BT, and Royal Dutch Shell are ruled out because of sector limit, Vodafone is still ruled out due to low cover, which leaves ITV and Next. As for new shares, BAE Systems has appeared in my filter this month. I'll ponder these three over the coming days.

[idpickering]

I'll be investing more money in my HYP on Friday. Here's the top six top-up candidates at the moment:



Greene King, BT, and Royal Dutch Shell are ruled out because of sector limit, Vodafone is still ruled out due to low cover, which leaves ITV and Next. As for new shares, BAE Systems has appeared in my filter this month. I'll ponder these three over the coming days.

Hi Hypster, thanks for keeping us up to date. Of your three potentials, I don't hold Next, but do the other two. In your shoes I'd bring in newbie BAE Systems.

Ian.

[Hypster]

I added a new share yesterday, BAE Systems. While I'd have preferred a higher yield, I thought this was a rare opportunity to pick up while the yield nudged the 4% territory. It also improves the diversification of the portfolio, taking me up to 19 shares and adds a new sector. The portfolio now looks like this. The forecast yield is 5.0 %

[idpickering]

I added a new share yesterday, BAE Systems. While I'd have preferred a higher yield, I thought this was a rare opportunity to pick up while the yield nudged the 4% territory. It also improves the diversification of the portfolio, taking me up to 19 shares and adds a new sector. The portfolio now looks like this. The forecast yield is 5.0 %

Good job Hypster! I don't think you'll regret the purchase, and have picked up a great share for a long term hold.

Regards,

Ian.

[Hypster]

December didn’t get off to a great start: In the week I would have received the since-cancelled Provident Financial dividend I panicked into selling it for a 75% capital loss - my worst single loss in 23 years of stock-market investing. The rump is now held in cash and will be added to accumulated dividends for future re-investment.

I’ll be topping up two shares in January. I’m ruling out Vodafone because of the low cover so will invest into ITV and Greene King instead.



I’ll be posting an annual review later in January; I’d like to wait until the December Retail Prices Index is published so I can measure against that (SPOILER ALERT: my income didn’t keep up with inflation!)

[Hypster]

February is fast approaching so I’m just reviewing the portfolio to see where next month's investment should be directed. I don’t see any new shares worth adding so I’ll be topping up two existing ones. Here’s how the rankings look.



I'm ruling out Vodafone because of the low cover. United Utilities is acceptable; and in topping up I then rule out National Grid because of the sector cap. SSE, BT, and Imperial Brands are excluded because of the weighting cap, which means Hammerson is next in line.

I'll be topping up both Untied Utilities and Hammerson at the end of next week.

For those that are interested, my 2017 review can be found here

[tjh290633]

Is that your ranking, or produced by HYPTUSS?

It seems odd that high weight shares feature in the list.

TJH

[Hypster]

Hi Terry,

It's my own spreadsheet, created using your ranking methodology. I think the problem is that each top-up is quite a large proportion of the portfolio, around 2%. I just have to live with this until my portfolio grows in size.

Name              | Value Weighting
HSBC              |            7.8%
Green King        |            7.3%
Legal & General   |            7.3%
BHP Billiton      |            6.4%
ITV               |            6.3%
Persimmon         |            6.1%
Imperial Brands   |            6.0%
SSE               |            5.8%
BT                |            5.8%
Royal Dutch Shell |            5.7%
Median            |            5.7%
National Grid     |            5.4%
AstraZeneca       |            5.3%
BAE Systems       |            5.3%
Hammerson         |            4.2%
United Utilities  |            3.9%
Next              |            3.7%
Sky               |            3.1%
Vodafone          |            3.1%

[tjh290633]

Thanks for that. I see that IMB and SSE are just above the median, and I know from past experience that such a situation can lead to a share becoming top of the rankings. Usually I would not top up a share already above median weight.

TJH

[Hypster]

I noticed that the accumulated cash in my HYP had reached a level equating to an economical top-up so this morning I added to United Utilities. This takes it up to 5.6% weighting and nudges the sector over my 10% cap and thus excluding further top-ups for a while. United Utilities was second in the top-up rankings, behind Vodafone, which I vetoed because of the continuing low cover. Looking ahead to March's investment, I'm considering top-ups of BT and Hammerson.



[Note to self for when I look back on this in the future; this purchase included the cash raised from selling Provident Financial Group holding, which I sold in December]

[idpickering]

Looking ahead to March's investment, I'm considering top-ups of BT and Hammerson.

Thanks for the update Hypster, and your top up plans look sound to me. Good luck.

Ian.

[Hypster]

I made a mistake. I've been away travelling with work a lot recently, in fact I'm jet-lagged as I write this having flown home from the most recent trip yesterday. I only mention this because I think the travelling was a contributing factor to my cock-up. Anyway, back in February I topped up Hammerson and United Utilities but I discovered this week that I never updated my spreadsheet with these purchases. This lead to both shares still being ranked as optimum top-up candidates. As a result, when I used my accumulated cash later in February I topped up United Utilities again and in my regular monthly top up at the start of March I again topped up Hammerson. This means I've doubled up my top-ups for both United Utilities and Hammerson. Ah well, c'est la vie. However, by a lucky twist of fate, HMSO jumped almost 25 % this week so my portfolio benefitted from my having a bigger holding than planned. Both shares are now overweight being the largest two holdings in the portfolio. They won't need topping up for a while.