The Lemon Fool

In the spirit of "Be greedy when others are fearful"...

Against a bit of a sell off today I couldn't resist taking the opportunity to top up my Income IT portfolio with a good tranche of HFEL at 3.39p. A 52 week low and at a small discount. A forward yield of 6.53% is very welcome, and going ex-div in a couple of weeks.

Also keeping an eye on MYI which seems to have a widening discount and a forward yield of 4.87%.

Now I just need to ignore the inevitable continued drop and count the income!

Juan.

nice yield to be had.

the whole market is sliding now .

i hold and will wait a bit longer to add .

MYI is already my largest holding, with HFEL my fourth. despite that I'm tempted to add to them currently.

PLI is also looking attractive IMHO.

Any other relative bargains for the LTBH income seekers anyone's noticed?

BrummieDave wrote:MYI is already my largest holding, with HFEL my fourth. despite that I'm tempted to add to them currently.

PLI is also looking attractive IMHO.

Any other relative bargains for the LTBH income seekers anyone's noticed?

A few to be going on with:
In the UK G&I sector: Temple Bar (TMPL) and Shires (SHRS). Econ Global Utilities & Infrastructure (EGL) in the Utilities sector.

And In the Asian Pacific sector: AAIF (Aberdeeen Asian Income) and JAI (JP Morgan Asian Income).

LWI forward yielding about 3.88% today. Pretty good if it keeps up its 8-10% dividend growth rate of recent years. I was very tempted but didn't pull the trigger.

I wonder how LWI are achieving that divi growth rate fishing in the usual pool of uk large caps? Dividend seems to be covered although only just last year. Doesn’t seem like that trend can continue.

JuanDB wrote:I wonder how LWI are achieving that divi growth rate fishing in the usual pool of uk large caps? Dividend seems to be covered although only just last year. Doesn’t seem like that trend can continue.

Their remit is not just large cap. They had a lot of mid and smaller but I think they've recently reposition at least a bit towards more larger.

It looks like they must be ok for this year since they seem to be on course for a rise of 10%. Already paid 13p, 13p, 14p so the final dividend will be at least 14p. From 49p in 2017 to at least 54p in 2018. So I presume they wouldn't raise the dividend by a higher % than last year unless they have the revenue to justify it. But I agree the more larger cap higher yielding shares it could well restrict dividend growth going forward.

Never underestimate Mr Markets ability to make one feel a fool.

If someone could call bottom so I can put the other half in?

Juan

Doubled my holding this morning, Looked like a good entry point

Part of my core ISA Portfolio along with MYI, MERCH, FGT and SDV

Thx for drawing attention to this. I've made a small top-up with some spare cash at £3-38.

Best wishes,

Steve

Nice to see a bounce back from the horror show of the opening price.

Congratulations to anyone who got in at £3.16!

Juan

JuanDB wrote:Nice to see a bounce back from the horror show of the opening price.

Congratulations to anyone who got in at £3.16!

Juan

Two top ups of HFEL , £3.18 (8:24am) and £3.22 (8:30am) (two different accounts - one of which would not let me buy until 'later').

JuanDB wrote:I wonder how LWI are achieving that divi growth rate fishing in the usual pool of uk large caps? Dividend seems to be covered although only just last year. Doesn’t seem like that trend can continue.

In the recent half year report they said that instead of charging management fees/costs only to the revenue account they would in future charge them 50/50 between the revenue and capital accounts. This will allow them more space to continue dividend increases in the short term.

Regards, Puffster

monabri wrote:

JuanDB wrote:Nice to see a bounce back from the horror show of the opening price.

Congratulations to anyone who got in at £3.16!

Juan

Two top ups of HFEL , £3.18 (8:24am) and £3.22 (8:30am) (two different accounts - one of which would not let me buy until 'later').

Congratulations monabri a nice 7% yield locked in at that price!

Thanks. A chance to average down a little! HFEL is my largest IT holding (4.5% of p/folio). I'm hoping they'll continue to grow the Divi at 6% p.a. as they've managed in the past.

By way of update I topped up four of my six largest holdings (within my LTBH income generating portfolio): LWI, MYI, STS and HFEL.

Happy with the price and yield on each of them, and happy to let the dividends reinvest a little longer before I turn the tap on.

https://www.londonstockexchange.com/exc ... 67300.html

"Henderson Far East Income Increases First Interim Dividend By 4%"

"Henderson Far East Income Ltd on Wednesday declared a first interim payout of 5.50 pence a share for the year to the end of August.

The investment company said the dividend will be paid on February 28. For its financial 2018, the trust had paid a first interim dividend of 5.30p per share."

monabri wrote: "Henderson Far East Income Increases First Interim Dividend By 4%"

Correct, but rather disingenuous wording !

The quarterly dividends are regularly increased at the Third Interim Dividend paid in August, and was so increased from 5.3p to 5.5p back in August 2018.

This is the first "First Interim Dividend" since that increase, so technically they are correct. But disingenuous !

Very welcome, and I've pencilled in 5.5p in May and 5.7p in Aug and Nov this year. They are my 11th largest holding be value in my HYP[*] at 3.4%, but the largest by income at 4.9%


[*] Yes, yes, I know