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BOARD GUIDANCE (Old Board Guidance - now ARCHIVED)

For discussion of the practicalities of setting up and operating income-portfolios which follow the HYP Group Guidelines. READ Guidelines before posting
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Tight HYP discussions only please - OT please discuss in strategies
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BOARD GUIDANCE (Old Board Guidance - now ARCHIVED)


Postby Clariman » November 26th, 2017, 2:07 pm

The LemonFool has 2 Boards for the discussion of High Yield investments. This post gives guidance on the IMPORTANT distinctions between them. Please abide by this guidance. This board (HYP Practical) has a very specific purpose which is outlined below. If in doubt about where to post, please post on the other board (HY General - Strategies) where the discussions can be more wide-ranging. A post is available in the Biscuit Bar should any comment be needed viewtopic.php?f=21&t=8653 . However, this board definition has been produced after earlier discussion here and a more recent discussion amongst the Moderators. Therefore, do not expect any changes, but we will listen to any comment. Please do not comment or discuss on either of the High Yield boards.

Thank you for your co-operation
Stooz and Clariman

HYP Practical

For the HYP Practical board we define a HYP as a portfolio comprised exclusively of ordinary shares. If selected, such shares should have a dividend yield above the average for the FTSE100 index and be drawn from the constituents of the FTSE 350 index. At its simplest, it will have at least 15 holdings, none of which should be from the same sector. A long term buy and hold (LTBH) of these shares is envisaged.

Investment Trusts or open ended funds should not be included, although REITs are acceptable. So too are 'REIT-like' quasi-REITS that invest in property assets, but which don't have formal REIT status. Examples would be wind farm operators, solar farm operators, and some infrastructure shares. (For the avoidance of doubt, Lemons should note that although many of these are listed by the AIC, which is normally an indicator of Investment Trust status, such quasi-REITs are actually generally Investment Companies, not Investment Trusts.)

Selection criteria may include the yield, the dividend record and a history of increases. Debt level and free cash flow should be considered. Personal feelings can affect the choice, including ethical considerations. Additional criteria may be used by individuals.

When reporting on the performance or constituents of a HYP portfolio, there may at times be occasions when it is difficult for practical purposes to exclude overseas shares, Investment Trusts, or preference shares. In such circumstances it is permissible to include mention of such shares in a post if they make up a very minimal proportion of the portfolio, ie on the order of 5% or so. This is NOT to say that discussion of such shares is permitted, simply to say that it is acceptable to make mention of them, and include them in a published portfolio.

Discussion of potential shares, and of shares which have been selected in the past, is acceptable on the HYP Practical Board. The construction, management and performance of HYPs is acceptable. Discussion of other high yield approaches, including non-ordinary shares and fixed interest securities, is best carried on on the High Yield Share Strategies - General board. If in doubt post on High Yield Share Strategies - General.

This should not be taken as investment advice and individuals should do their own research and decide whether a HYP strategy is appropriate for them, and the "criteria" that they feel appropriate for their personal circumstances. Please note there are many possible investment strategies, and HYP is only one of these, and the performance of any investment strategy cannot be guaranteed.

High Yield Share & Strategies - General

The High Yield Share Strategies board is intended for wide-ranging discussions of ways to obtain high yields from equities. Securities such as preference shares, PIBs, Investment Trusts, ETFs, etc can be considered.

While discussions of such securities in the context of specific high-yield strategies are appropriate here, dedicated boards for Investment and Unit Trusts, REITs, and ETFs also exist, as does a board for Investment Strategies. In considering where a specific topic would be most appropriate, posters should bear in mind that this board is intended for discussing income-oriented equities or income-investment strategies. Other strategies, discussions not related to income, or discussions of non-income-related equities, should be directed to those other boards.

Should I post a news-related item on HYP Practical or the Company News board?

If your company news-related post concerns major pieces of news, then feel free to post on HYP Practical. This particularly applies when the news in question may prompt readers to query the advisability of the company in question as a HYP share. So HYP Practical is the place to post details of annual results, interim results, profit warnings, dividend cuts or increases, and anything that may obviously and directly impact the income that a HYPer can expect. Depending on their nature, corporate actions may also be relevant. The overall intent of this guidance is to ensure that only news items that are likely to impact HYP owners in a practical way should be posted and discussed on the HYP Practical board.

If your news-related item doesn't fall into this category, it's probably best on the Company News board. Here, it may also be seen by readers who don't tend to visit the HYP Practical board.

Note: it is perfectly in order to post a brief message to the HYP Practical board saying that a news item has been posted on the Company News board. If this is done, it is important to include a link to the Company news item, and to make sure that the HYP Practical post's title makes it clear that the news is posted on the Company News board, where further discussion should take place. Some indication of the news in the title is especially helpful. An example might be: "AstraZeneca: stage III drug trial results posted on Company News."

Does an item being posted on Company News preclude it being discussed on HYP Practical? No, of course not, although in most cases this will be unlikely, given the reduced relevance of such news-items to the practical running of a HYP. The correct way to do this is create a thread title that makes any HYP implications clear, link to the either the original RNS or (better still) the Company News thread, and then explain why this particular news item may have HYP implications. DO NOT baldly post the RNS or Company News link without explaining any HYP relevance. An example might be: "AstraZeneca: could the recent stage III drug trial results accelerate dividend growth?"

Again, the smell-test should always be to ask 'Is this news item likely to impact HYP owners in a practical way?', and if that question cannot be answered positively, then Company News is the most appropriate board for discussion of it.

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