30 favourite HYP shares

[valueinvestor123]

Been long time asleep....

Ftse100 nearing a 10% correction; anyone has 30 favourite candidates to pick from? (or if there was a list posted somewhere recently, I would be grateful for a link).

I usually have no trouble picking but this time, there seem to be a lot of hyper high-yielding shares (10%+) where the yield seems to be...too good to be true...

I am thinking in particular of EVR, CNA, PSN, IMB, SSE etc from Ftse100....and

From Ftse250 universe, there are even more: Plus500, NRR, GFRD, HMSO, RMG, CRST, WMH etc....

What is wrong with those? Are you avoiding them for any particular reason or seeing it as a buying opp?

Thanks in advance....(is this a practical topic or is 'strategies' ok?)

[Breelander]

(is this a practical topic or is 'strategies' ok?)

Probably best as 'strategies' as it could be seen as 'timing the market'. Look for more turbulence ahead....

London stocks finished sharply lower on Monday amid escalating Sino-US trade tensions and speculation that the Prime Minister might be plotting calling snap elections after his majority in the House of Commons was cut to just one seat

https://www.sharecast.com/news/market-r ... 06336.html

[valueinvestor123]

(is this a practical topic or is 'strategies' ok?)

Probably best as 'strategies' as it could be seen as 'timing the market'. Look for more turbulence ahead....

London stocks finished sharply lower on Monday amid escalating Sino-US trade tensions and speculation that the Prime Minister might be plotting calling snap elections after his majority in the House of Commons was cut to just one seat

https://www.sharecast.com/news/market-r ... 06336.html

The only timing that matters is when it's falling!

Anyone here?

[Breelander]

The only timing that matters is when it's falling!

Looks like this knife could fall a lot further, just saying...

[valueinvestor123]

I agree. But I like to get my hands cut early on...
I typically invest when markets fall between 10-20%. And then watch them fall another 50%! (I am an adrenaline junkey Did a lot of it in 2006!

[Alaric]

What is wrong with those?

Even excluding the recent whole market fall, none of the shares you mention has been doing especially well of late. Dividend yields are usually measured on an historic basis, so high yielders are those with price falls.

You didn't mention Vodafone. That had a high yield, only to cut the dividend. The yield is still "high" even after the cut, but there's been a bit of a recovery after they disclosed the possible spin off of a Company to own the infrastructure of masts.

To put it into perspective, investing in a FTSE 100 Tracker would give a dividend yield of around 4.5% if the dividends aren't cut. With the recent falls, it's now up to 4.65%.

[valueinvestor123]

I didn't mean to imply these shares are good buys! I avoid hyper high yielders typically (the first one or two from the list). It's just there seem to be so many of those: I was hoping someone could provide reasons NOT to buy them (because I am uncomfortable buying them and usually purchase shares within a range of 5.5%-8%, during market drops, anything above, seems to have invited trouble, historically).

[Alaric]

It's just there seem to be so many of those: I was hoping someone could provide reasons NOT to buy them

It's quite usual for shares to become "high yield" because the share price has dropped, rather than the dividend has increased.

Clearly the "market" doesn't like them, but as to why? Sometimes the accounts can give indications. If the net asset value is mostly "goodwill", that can disappear in a flash.

A share with a high dividend could be subsiding the dividend out of capital, or even worse, borrowing to pay the dividend.

There are no easy answers as a collapsed share price could equally indicate a recovery stock.

[Dod101]

I didn't mean to imply these shares are good buys! I avoid hyper high yielders typically (the first one or two from the list). It's just there seem to be so many of those: I was hoping someone could provide reasons NOT to buy them (because I am uncomfortable buying them and usually purchase shares within a range of 5.5%-8%, during market drops, anything above, seems to have invited trouble, historically).

It would help readers if you used the full names of the companies rather than just the EPIC, but for instance, SSE has many problems such as very high debt, the non sale of the retail side, and Corbyn's threat of nationalisation to name but three. The tobaccos are out of favour because their main markets are contracting and regulators are becoming ever more demanding and for IMB itself they are about to reduce the very big increases in the dividend.

If CNA is Centrica then you must know the problems it has been having and still has. I guess the same comments more or less could be made with most of your picks. I would not buy them at ordinary times, and doing so when the market may have started its 'correction' , that is not something I would do.

Dod

[Gengulphus]

(is this a practical topic or is 'strategies' ok?)

Could be either, I think, depending on what you want. If you want only reasonably strongly practical answers, such as lists of 30 shares people would consider for a HYP, or reasonably in-depth analyses of individual shares from a HYP point of view, HYP Practical would be suitable. If you want a broader discussion, and especially if you want it to include discussing whether the HYP point of view is the right one, this board is more suitable. One other consideration is that if you want the former, it may prove necessary to report posts to prevent the thread drifting into the latter - or of course to accept it drifting and possibly ceasing to give any answers you want.

Gengulphus

[zharrt]

Been long time asleep....

Ftse100 nearing a 10% correction; anyone has 30 favourite candidates to pick from? (or if there was a list posted somewhere recently, I would be grateful for a link).

I usually have no trouble picking but this time, there seem to be a lot of hyper high-yielding shares (10%+) where the yield seems to be...too good to be true...

I am thinking in particular of EVR, CNA, PSN, IMB, SSE etc from Ftse100....and

From Ftse250 universe, there are even more: Plus500, NRR, GFRD, HMSO, RMG, CRST, WMH etc....

What is wrong with those? Are you avoiding them for any particular reason or seeing it as a buying opp?

Thanks in advance....(is this a practical topic or is 'strategies' ok?)

PLUS500 is bat [expletive deleted] crazy to hold, I've seen days when it has tanked 60-70%, but I am also averaging 38.8% yield on the shares that I hold