I could have waited for the bottom of the market, anticipating the coming bear and effect of coronavirus and timed it to perfection; however as my skills aren't up to that I decided that I'm more than happy with the yields on offer on some shares/IT's that I've been keeping an eye on and decided now was the time.
I won't worry if the market plummets soon, these things happen and I'm hopefully going to be invested in these companies for a long, long time.
So, small top-us of the following shares:
BHP Group (BHP)
Lloyds Bank (LLOY)
G4S (GFS)
Royal Dutch Shell (RDSB)
Standard Life Aberdeen (SLA)
Legal and General (LGEN)
BAE Systems (BA)
British Land (BLND)
and much larger top-ups and additions of these IT's (most of the money went here)
Henderson Smaller Companies (HSL)
Henderson Far East Income Ltd (HFEL)
Merchants Trust (MRCH)
City of London (CTY)
F&C Investment Trust (FCIT)
Smithson (SSON)
Murray International (MYI)
I now consider my individual company shares HYP finished and will only invest in IT's going forward for many reasons, including simplicity, reduced volatility and more stable income (hopefully).
My portfolio now looks like this:
Value Div Fcst
Share Epic Sector %Total %Total Yield
BAE Systems BA Aerospace & Defence 4.49% 3.12% 4.00%
BHP Group BHP Mining 3.51% 4.34% 7.10%
BP BP Oil & Gas Producers 2.82% 3.97% 8.10%
British American Tobacco BATS Tobacco 3.47% 4.39% 7.30%
British Land Company BLND Retail REITs 3.47% 3.92% 6.50%
G4S GFS Support Services 1.66% 1.70% 5.90%
GlaxoSmithKline GSK Pharmaceuticals & Biotechnology 3.66% 3.24% 5.10%
HSBC Holdings HSBA Banks 3.47% 4.53% 7.50%
Imperial Brands IMB Tobacco 2.89% 6.82% 13.60%
Legal and General Group LGEN Life Insurance 4.55% 5.69% 7.20%
Lloyds Banking Group LLOY Banks 2.91% 3.54% 7.00%
National Grid NG Multiutilities 4.21% 3.73% 5.10%
Pennon Group PNN Gas, Water & Multiutilities 2.93% 2.19% 4.30%
Rio Tinto RIO Mining 3.26% 4.02% 7.10%
Royal Dutch Shell 'B' RDSB Oil & Gas Producers 3.36% 5.08% 8.70%
Standard Life Aberdeen plc SLA Financial Services 2.63% 3.56% 7.80%
Unilever ULVR Food Producers 3.45% 2.16% 3.60%
Vodafone Group VOD Mobile Telecommunications 2.41% 2.43% 5.80%
BlackRock North America Trust BRNA Equity Investment Instruments 1.52% 1.24% 4.70%
North American Income Trust NAIT Equity Investment Instruments 0.24% 0.13% 3.10%
City of London Inv Trust CTY Equity Investment Instruments 10.54% 8.79% 4.80%
Henderson Far East Income Ltd. HFEL Equity Investment Instruments 6.67% 8.11% 7.00%
Merchants Trust MRCH Equity Investment Instruments 7.42% 6.96% 5.40%
Murray International Trust MYI Equity Investment Instruments 5.11% 4.26% 4.80%
Smithson Investment Trust SSON Equity Investment Instruments 2.01% 0.00% 0.00%
Finsbury Growth and Income Tru FGT Equity Investment Instruments 1.48% 0.51% 2.00%
Scottish Mortgage Inv Trust SMT Equity Investment Instruments 2.01% 0.17% 0.50%
Henderson Smaller Companies In HSL Equity Investment Instruments 1.94% 0.88% 2.60%
F and C Investment Trust FCIT Equity Investment Instruments 1.93% 0.54% 1.60%
Portfolio Running Yield = 5.76%
Value Div
Sector %Total %Total
Aerospace & Defence 4.49% 3.12%
Mining 6.77% 8.36%
Oil & Gas Producers 6.18% 9.05%
Tobacco 6.36% 11.21%
Retail REITs 3.47% 3.92%
Support Services 1.66% 1.70%
Pharmaceuticals & Biotechnology 3.66% 3.24%
Banks 6.38% 8.07%
Life Insurance 4.55% 5.69%
Multiutilities 4.21% 3.73%
Gas, Water & Multiutilities 2.93% 2.19%
Financial Services 2.63% 3.56%
Food Producers 3.45% 2.16%
Mobile Telecommunications 2.41% 2.43%
Equity Investment Instruments 40.87% 31.59%
Total 100.00% 100.00%
Note: 1...'Value %Total' is the portfolio value of the share as a % of the total portfolio
2...'Div %Total' is the expected dividend of the share based on forecast yield
as a % of the total portfolio expected dividend
My focus is a retirement based on a high-ish yield portfolio with some growth IT's.
My wife and I plan to live off the natural yield and my only goal is to achieve the desired level of income in retirement + income growth above inflation.
With regards to income, the investments of the last couple of days have significantly boosted my forecast dividends to the point of reaching a safety margin of 52% (based on required income levels) at the planned date of my retirement.
In the meantime I hope to boost that even more and should be able to retire before I'm 55 at which point I would also have a 3 month float, 2 year income reserve and additional savings for new kitchen/bathroom, etc.
regards,
Darka