Arb's WyfHyp apres top up

[Arborbridge]

I do not often mention the Arb's Wife's HYP, but thought I would post it today. Her November top ups were Centrica, Pennon and Amec Foster Wheeler. Following my usual practice, I list the shares in top up ranking order. The yield is forward yield from DL, capital weight is expressed so that the median = 1. I find this a convenient way of spotting the relative sizes, whereas the income furnished by each share is left as a percentage. In my spreadsheet, I have these factors colour coded using conditional formatting. For example, income % would turn orange if greater than 1.5x median, etc - you get the picture.

Well, here is the complete HYP -

Code: Select all

Company Name                 Ticker  Yield    Cap wt .    % by inc.
Vodafone Group               VOD     6.30%    0.74        3.75
Aberdeen Asset Management    ADN     6.80%    0.95        5.23
Ashmore Group                ASHM    5.60%    0.91        4.12
Phoenix Group Holdings (DI)  PHNX    6.40%    1.05        5.41
Royal Dutch Shell 'B'        RDSB    7.17%    1.07        6.17
GlaxoSmithKline              GSK     5.40%    0.95        4.13
Mitie Group                  MTO     5.70%    0.99        4.55
Centrica                     CNA     6.10%    0.99        4.88
SSE                          SSE     6.20%    1.05        5.25
Smith (DS)                   SMDS    3.70%    0.85        2.55
National Grid                NG      4.80%    1.00        3.87
Whitbread                    WTB     2.70%    0.85        1.86
Unilever                     ULVR    3.50%    0.90        2.54
Amec Foster Wheeler          AMFW    4.80%    1.03        4.00
Legal and General Group      LGEN    6.20%    1.18        5.92
Standard Chartered           STAN    0.70%    0.66        0.37
BHP Billiton                 BLT     2.00%    0.82        1.32
AstraZeneca                  AZN     5.10%    1.10        4.53
Tesco                        TSCO    0.00%    0.76        0.00
WH Smith                     SMWH    2.90%    1.00        2.34
Kier Group                   KIE     4.60%    1.12        4.15
Pennon Group                 PNN     4.50%    1.13        4.10
Morrison (Wm) Supermarkets   MRW     2.40%    1.09        2.12
Greene King                  GNK     4.40%    1.26        4.47
Imperial Brands              IMB     4.50%    1.45        5.26
Relx plc                     REL     2.50%    1.24        2.51
Reckitt Benckiser Group      RB      2.20%    1.14        2.02
RPC Group                    RPC     2.30%    1.39        2.58

In the past few days I've been thinking of my "TMF years" - 17 in all. Those years and my cyber friends have had an continual influence, which can be seen in the above table. The fingerprints of well known HYPers are all over it, (in the methods, the spreasheet software etc) including Luni, who announced recently that he will not continue his detailed research postings. In this HYP there are RELX and RPC Group, both shares I would almost certainly not have bought without Luni highlighting them. More recently, I acquired Phoenix thanks to Dod's writing about it. Less happily, I bought Tesco years ago as posters proclaimed it as a share with a wonderful dividend paying history - OK the yield was low, but it was so, so, so dependable, and Morrisons, promoted by F958B.

The WyfHYP is more tolerant of lower yielders, and I doubt we will be changing much for the moment. My wife does not need income and so reaching for the highest yield was never a top priority for her. Income and growth has been reasonable, despite the obvious banana skins - maybe one day I will link to some graphs showing that.

Arb.

[idpickering]

Hi Arb,

Thank you for putting up Mrs Arb's HYP. It's always interesting to see what other HYPers (I nearly said Fools LOL) are doing. There's a few in there that I don't have much knowledge of, such as ASHM,PHNX, REL, and RPC, so shall have a look at what they're about.

Best regards,

Ian.

[Raptor]

Hi Arb,

Strangely this HYP has not many shares from my own HYP (VOD, GSK, CNA, SSE, AMFW, TSCO). Nowadays I look at HYP's posted and there is a semblance to my own, OK, there are the "you chose RSDB and I chose BP etc". Here there are a few that have never crossed my path, maybe worth a look at, mind you have refrained from buying a "new" share recently as have made the effort to try to balance what I had after inheriting a "portfolio" and taking control of my pension in a SIPP.

Keep up the posting, always interesting to see how others have selected.

Raptor.

[Arborbridge]

Strangely this HYP has not many shares from my own HYP

There's a few in there that I don't have much knowledge of

Ian, Raptor - I think I can explain that. When I formed this HYP, it was some years after starting my own and I was deliberately trying avoid the obvious ones which I already had. The other influence was that I felt a slightly lower yield with a preception of lower risk might suit her - she seems to live perfectly well on her pension without needing to draw income from this HYP - whereas I needed max income from mine to live on. Or. perhaps being more honest, I didn't want to lose too many brownie points by having high profile failures on my conscience.

Therefore, low yield additions such as Whitbread, Unilever or Reckitt made appearances. The average yield, I should have mentioned, is 4.32%, whereas the "Arb Hyp" is 5%. Given that yield quite probably and broadly, indicates risk, that's probably appropriate for our risk profiles. Not that I've managed to avoid that sinking feeling with some of hers.
The mandate started off requiring a HYP of steady eddies, but ended up with some horror stories: BLT, Standard Chartered and Tesco!