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BOI 13 3/8 - What to switch to?

Gilts, bonds, and interest-bearing shares
Kr1ck
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BOI 13 3/8 - What to switch to?

#365140

Postby Kr1ck » December 11th, 2020, 2:54 pm

I've got far too many of these bonds and whilst I have enjoyed the income I'd welcome any advice on a switch to other investments with a similar yield. Doesn't have to be a bond, will entertain the idea of equity (might be a good time). Thanks in advance for any input.

johnhemming
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Re: BOI 13 3/8 - What to switch to?

#365142

Postby johnhemming » December 11th, 2020, 2:54 pm

DGOC?

Kr1ck
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Re: BOI 13 3/8 - What to switch to?

#365167

Postby Kr1ck » December 11th, 2020, 3:44 pm

Diversified Gas and Oil? Was thinking finance sector but that doesn't produce a similar income does it?

88V8
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Re: BOI 13 3/8 - What to switch to?

#366665

Postby 88V8 » December 16th, 2020, 10:17 am

BOI to sell, yielding 6.5% this morning.
Hard to replicate that, which perhaps says something about the market's perception of BOI.

In FI, there's IPF2 but that redeems 2023. Still, decent yield.

In income ITS, there's MRCH, ASEI, NCYF.

In HYP shares there's BATS, IMB, BP, RDSB, and LGEN, and indeed DGOC if you're feeling bold.

Haven't sold my BOI although we are overweight.

I hold all the above. Bought a few DGOC this morning.

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johnhemming
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Re: BOI 13 3/8 - What to switch to?

#366676

Postby johnhemming » December 16th, 2020, 10:29 am

Kr1ck wrote:Diversified Gas and Oil? Was thinking finance sector but that doesn't produce a similar income does it?


DGOC currently has a yield of 11% according to Stockopedia,but you need to be careful about the impact of US withholding taxes.

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Re: BOI 13 3/8 - What to switch to?

#366699

Postby 88V8 » December 16th, 2020, 11:46 am

johnhemming wrote:
Kr1ck wrote:Diversified Gas and Oil? Was thinking finance sector but that doesn't produce a similar income does it?

DGOC currently has a yield of 11% according to Stockopedia,but you need to be careful about the impact of US withholding taxes.

Yes, despite the UK listing, they're furrin.
But even after 15% wht (W8-BEN) they offer about 8.5%.
Dollar rate also comes into play.
I didn't buy a full holding. A fun portfolio embellishment.

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Re: BOI 13 3/8 - What to switch to?

#366964

Postby hiriskpaul » December 17th, 2020, 10:58 am

johnhemming wrote:DGOC?

These appear to be ordinary shares, or have I missed something?

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Re: BOI 13 3/8 - What to switch to?

#366970

Postby johnhemming » December 17th, 2020, 11:20 am

hiriskpaul wrote:
johnhemming wrote:DGOC?

These appear to be ordinary shares, or have I missed something?


Kr1ck wrote:Doesn't have to be a bond, will entertain the idea of equity (might be a good time). Thanks in advance for any input.


DGOC have a strategy of setting up long term hedges to guarantee some free cash flow beyond paying off debt and then paying out 40% of that.


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