Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Income producing ITs instead of HYP

General discussions about equity high-yield income strategies
Charlottesquare
Lemon Quarter
Posts: 1775
Joined: November 4th, 2016, 3:22 pm
Has thanked: 105 times
Been thanked: 560 times

Re: Income producing ITs instead of HYP

#503803

Postby Charlottesquare » May 30th, 2022, 4:18 pm

Dod101 wrote:
Charlottesquare wrote:
Dod101 wrote:The problem with income producing ITs is that often you just get more HYP shares with the same outcome, or something like HFEL, all dividend and a negative share price growth so you need to be very careful.

Nearly all ITs will produce income, but very often at a much lower yield than a HYP portfolio. I am on the whole happy with that and so I hold Murray International and Murray Income for instance. I like to see a half decent yield but also the potential for some growth in the share price.

Infrastructure ITs or at least those with the same benefits, are good but mostly on premiums to NAV and so the yields can be quite modest. I do not see ITs as a real answer to the dilemma but at least we get wider diversity in the holdings and they have the ability to increase their dividends by distributing some capital in the form of their realised capital gains.

Dod


HFEL is not always negative price movement, my holding is up 4.06% (purchases 23/3/20, 25/3/20, 4/5/21,1/2/22 and 1/3/22) Now appreciate not stellar given 1/2 bought in 2020,1/6th in 2021 and 1/3 in 2022, but given dividends received over the period not woeful)


As always it depends on the timescale and the period we are discussing. I could of course counter what you are claiming (over a different period) but there is no gainsaying that the income sort of makes up for the poor capital showing.

Dod


Even with its yield I have never viewed it as a star performer, that laurel (used to be SMT) currently rest with JPM Growth and Income, yield currently 3% (was higher when I bought) and up 50.51% from March 2020/Nov 2020 purchases. Murray International is neck and neck, maybe actually better, yield over 4%, gain just over 50% (purchases March and May 2020 plus small top up March 2022)

I have found that outlier dividend yields re ITs may do fine but those with div yields nearer 2-4% tend to do a bit better on an I & G basis.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Income producing ITs instead of HYP

#503807

Postby Dod101 » May 30th, 2022, 4:30 pm

Charlottesquare wrote:
Dod101 wrote:
Charlottesquare wrote:
Dod101 wrote:The problem with income producing ITs is that often you just get more HYP shares with the same outcome, or something like HFEL, all dividend and a negative share price growth so you need to be very careful.

Nearly all ITs will produce income, but very often at a much lower yield than a HYP portfolio. I am on the whole happy with that and so I hold Murray International and Murray Income for instance. I like to see a half decent yield but also the potential for some growth in the share price.

Infrastructure ITs or at least those with the same benefits, are good but mostly on premiums to NAV and so the yields can be quite modest. I do not see ITs as a real answer to the dilemma but at least we get wider diversity in the holdings and they have the ability to increase their dividends by distributing some capital in the form of their realised capital gains.

Dod


HFEL is not always negative price movement, my holding is up 4.06% (purchases 23/3/20, 25/3/20, 4/5/21,1/2/22 and 1/3/22) Now appreciate not stellar given 1/2 bought in 2020,1/6th in 2021 and 1/3 in 2022, but given dividends received over the period not woeful)


As always it depends on the timescale and the period we are discussing. I could of course counter what you are claiming (over a different period) but there is no gainsaying that the income sort of makes up for the poor capital showing.

Dod


Even with its yield I have never viewed it as a star performer, that laurel (used to be SMT) currently rest with JPM Growth and Income, yield currently 3% (was higher when I bought) and up 50.51% from March 2020/Nov 2020 purchases. Murray International is neck and neck, maybe actually better, yield over 4%, gain just over 50% (purchases March and May 2020 plus small top up March 2022)

I have found that outlier dividend yields re ITs may do fine but those with div yields nearer 2-4% tend to do a bit better on an I & G basis.


I agree entirely and sold HFEL some time back but hold JPM Growth and Income, Murray International and indeed Murray Income. Caledonia and Alliance should not be altogether discounted as a source of steady if modest income as well.

Dod

Arborbridge
The full Lemon
Posts: 10369
Joined: November 4th, 2016, 9:33 am
Has thanked: 3601 times
Been thanked: 5227 times

Re: Income producing ITs instead of HYP

#503813

Postby Arborbridge » May 30th, 2022, 4:56 pm

Dod101 wrote:
Charlottesquare wrote:
Dod101 wrote:
Charlottesquare wrote:
Dod101 wrote:The problem with income producing ITs is that often you just get more HYP shares with the same outcome, or something like HFEL, all dividend and a negative share price growth so you need to be very careful.

Nearly all ITs will produce income, but very often at a much lower yield than a HYP portfolio. I am on the whole happy with that and so I hold Murray International and Murray Income for instance. I like to see a half decent yield but also the potential for some growth in the share price.

Infrastructure ITs or at least those with the same benefits, are good but mostly on premiums to NAV and so the yields can be quite modest. I do not see ITs as a real answer to the dilemma but at least we get wider diversity in the holdings and they have the ability to increase their dividends by distributing some capital in the form of their realised capital gains.

Dod


HFEL is not always negative price movement, my holding is up 4.06% (purchases 23/3/20, 25/3/20, 4/5/21,1/2/22 and 1/3/22) Now appreciate not stellar given 1/2 bought in 2020,1/6th in 2021 and 1/3 in 2022, but given dividends received over the period not woeful)


As always it depends on the timescale and the period we are discussing. I could of course counter what you are claiming (over a different period) but there is no gainsaying that the income sort of makes up for the poor capital showing.

Dod


Even with its yield I have never viewed it as a star performer, that laurel (used to be SMT) currently rest with JPM Growth and Income, yield currently 3% (was higher when I bought) and up 50.51% from March 2020/Nov 2020 purchases. Murray International is neck and neck, maybe actually better, yield over 4%, gain just over 50% (purchases March and May 2020 plus small top up March 2022)

I have found that outlier dividend yields re ITs may do fine but those with div yields nearer 2-4% tend to do a bit better on an I & G basis.


I agree entirely and sold HFEL some time back but hold JPM Growth and Income, Murray International and indeed Murray Income. Caledonia and Alliance should not be altogether discounted as a source of steady if modest income as well.

Dod



I still have a chunk of HFEL which was bought to add some heft to my income side. Until the past two years, I could say that it did a good job, my not being bothered about capital growth too much. The TR was showing double figures so the capital growth was definitely there, but from 2019 the TR has dropped to the point where I've been considering ditching it. However, my instinct is to do nothing revolutionary, but more evolutionary - slow churn. Look what happened when I ditched MUT because it had a bad period - it promptly perked up relative to other holdings more affectd by Brexit.

Arb.

Charlottesquare
Lemon Quarter
Posts: 1775
Joined: November 4th, 2016, 3:22 pm
Has thanked: 105 times
Been thanked: 560 times

Re: Income producing ITs instead of HYP

#503818

Postby Charlottesquare » May 30th, 2022, 5:27 pm

Arborbridge wrote:
Dod101 wrote:
Charlottesquare wrote:
Dod101 wrote:
Charlottesquare wrote:
HFEL is not always negative price movement, my holding is up 4.06% (purchases 23/3/20, 25/3/20, 4/5/21,1/2/22 and 1/3/22) Now appreciate not stellar given 1/2 bought in 2020,1/6th in 2021 and 1/3 in 2022, but given dividends received over the period not woeful)


As always it depends on the timescale and the period we are discussing. I could of course counter what you are claiming (over a different period) but there is no gainsaying that the income sort of makes up for the poor capital showing.

Dod


Even with its yield I have never viewed it as a star performer, that laurel (used to be SMT) currently rest with JPM Growth and Income, yield currently 3% (was higher when I bought) and up 50.51% from March 2020/Nov 2020 purchases. Murray International is neck and neck, maybe actually better, yield over 4%, gain just over 50% (purchases March and May 2020 plus small top up March 2022)

I have found that outlier dividend yields re ITs may do fine but those with div yields nearer 2-4% tend to do a bit better on an I & G basis.


I agree entirely and sold HFEL some time back but hold JPM Growth and Income, Murray International and indeed Murray Income. Caledonia and Alliance should not be altogether discounted as a source of steady if modest income as well.

Dod



I still have a chunk of HFEL which was bought to add some heft to my income side. Until the past two years, I could say that it did a good job, my not being bothered about capital growth too much. The TR was showing double figures so the capital growth was definitely there, but from 2019 the TR has dropped to the point where I've been considering ditching it. However, my instinct is to do nothing revolutionary, but more evolutionary - slow churn. Look what happened when I ditched MUT because it had a bad period - it promptly perked up relative to other holdings more affectd by Brexit.

Arb.


HFEL and EAT let me have very low yielders like JPM Indian/Berkshire (0% div yield) and still get to a circa 3.5% yield for the portfolio overall. (But it likely is cheating when posting under a thread titled Income producing ITs instead of HYP)


Return to “High Yield Shares & Strategies - General”

Who is online

Users browsing this forum: No registered users and 6 guests