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Darka - Top up

General discussions about equity high-yield income strategies
Darka
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Darka - Top up

#288199

Postby Darka » March 3rd, 2020, 12:16 pm

I had a fairly significant (for me) sum of money (from a pension -> SIPP transfer) and have fully invested it over the last 2 days.

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

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Re: Darka - Top up

#288208

Postby Dod101 » March 3rd, 2020, 12:56 pm

Darka's portfolio is not dissimilar to mine although my IT portfolio is rather different. That looks like a good spread to me though and I wish him luck with it. It should with inevitable occasional tweaking serve him well I would think.

Dod

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Re: Darka - Top up

#288507

Postby YeeWo » March 4th, 2020, 4:29 pm

Darka wrote:So, small top-us of the following shares:
G4S (GFS)

I've just tripled my G4S holding, rationale: -
- 6%+ dividend, well covered by earnings.
- £300 million coming into the business from the Brinks deal. IF this is £100m less than it could've been according to the press, I still feel Mr Market's reaction is too severe.
- Results 12 March.

Any opinions please!

Darka
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Re: Darka - Top up

#288551

Postby Darka » March 4th, 2020, 6:40 pm

YeeWo wrote:I've just tripled my G4S holding, rationale: -
- 6%+ dividend, well covered by earnings.
- £300 million coming into the business from the Brinks deal. IF this is £100m less than it could've been according to the press, I still feel Mr Market's reaction is too severe.
- Results 12 March.

Any opinions please!


My understanding is that they are selling all of their cash handling business, except for the UK - hence the value of the additional £100 million.

I'm not sure it's a fantastic idea as it generates 1/3 of their profit, but with the sale they will have many cost reductions too so who knows.

As for GFS as a business, it's had some ups and many downs.

I'm currently sitting on a -21.6% capital loss, but they do pay their dividends and I've received 23.9% of my purchase costs back in dividends, so kind of sitting on a massive 2.2% gain overall :)

However, they are a very small part of my portfolio (1.66%) so I was happy to top up recently to increase my dividends from them, time will tell if they now have to cut their dividend due to the sale of the cash division....

I've held since 2014 and they've always paid their dividend, just a shame about the share price...

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Re: Darka - Top up

#289140

Postby jackdaww » March 8th, 2020, 9:48 am

Darka wrote:
YeeWo wrote:I've just tripled my G4S holding, rationale: -
- 6%+ dividend, well covered by earnings.
- £300 million coming into the business from the Brinks deal. IF this is £100m less than it could've been according to the press, I still feel Mr Market's reaction is too severe.
- Results 12 March.

Any opinions please!



I've held since 2014 and they've always paid their dividend, just a shame about the share price...


==========================

these stocks are just giving with one hand and taking away with the other .

like so many other higher yielding shares ...

i dont see them as a good investment .

:(

Darka
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Re: Darka - Top up

#289169

Postby Darka » March 8th, 2020, 1:02 pm

jackdaww wrote:these stocks are just giving with one hand and taking away with the other .

like so many other higher yielding shares ...

i dont see them as a good investment .

:(


Completely agree and over the weekend, I've been thinking about getting rid of them and boosting something more reliable, such as Legal & General.

I know i only topped up last week, but only by a very small amount.


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