November purchase - Arb HYP

[Arborbridge]

WPP is company I've been interested in, but it never seems cheap enough. Now it's cheap enough and all the usual doubts creep in: is it a busted flush?; why has it fallen so much? etc. Well, with the forecast yield now in the region of my average (4.7%) I decided to take the plunge anyway, adding a holding of 0.57x median. It won't be yield enhancing, but the company history suggests it could be more stable than the likes of Carillion - or so the script says The top eleven shares in the HYP in top-up rank are now as follows:-



The HYP is now 39 shares, and I have no plans to alter that. It may well be that in the next year, battle will be joined over CLLN, Interserve or Pearson, which could affect that number downwards - but if there's a spin off of SSE, it might go the other way. WPP will get a further top up when cash is available to bring it up to full strength.

Arb.

[monabri]

I hold WPP, bought at an average of £14.52 (59.75p divis received) - no intention of selling - possibly topping up next year (if the price/yield is right

I hold at 2.8%HYP.

The figures from DL look ok going forward.

http://www.digitallook.com/equity/WPP

If WPP is "a worry" then there are others that I would suggest are more so.

[tjh290633]

Arb, I deleted your triplicate postings.

WPP is underwight, so it makes sense to top that one up. BT.A is my current one for topping up, but probably after Christmas. However the situation is very fluid, with little between my next 5 or 6 options.

Like you say, we could lose the odd one or gain one. I like odd numbers in the portfolio, as you then have a median share, not one each side of the median point.

TJH

[Arborbridge]

TJH thanks for the deletions. My PC did not report that attempts had been posted and I ended up with the "wait" circle endlessly gyrating. I assumed there was a fault with the website, so posted again.... and again...

[tjh290633]

It's a cross we have to bear. I find that a refresh seems to cure the problem.

TJH

[bluedonkey]

Arb,

I've had similar thoughts to you about WPP for some time. It puts me in mind of several shares I have bought in the past, traditionally low yielders, "quality" shares, now with a near-HYP-ish yield. Bargain! Snap it up! etc.

Glaxo. Bought it in July 2007 at 1257p when the yield had risen to 4%. 10 years later it's now 1318p. Dividend has been rather static but maintained, so a bit of a heigh-ho and mustn't grumble.

Tesco. Bought it in 2011 and 2012 when it dipped below 400p. You know the rest.

Diageo. This one I looked at buying when it was 800p in about 2009. Chose not to! Damn. My Vodafone at 100p moment. The yield at that time was just for a short time creeping into HYP territory.

It's confusing isn't it?!

[MDW1954]

Arb,
Diageo. This one I looked at buying when it was 800p in about 2009. Chose not to! Damn.

My advice: wait. Its turn will come, and then don't hesitate. Lots of people thought RDSB was expensive at £22, and then didn't buy when it was £12, just 18 months ago.

MDW1954