Monthly Purchase : HFEL

[Darka]

With it being payday today, I invested my usual monthly savings along with some built up dividends.

I decided to buy some nice Henderson Far East Income (HFEL) shares today to add to my collection.

They were yielding over 8% which is nice and now form 7% of my portfolio which is my limit for them until I bring other things up with my next purchase.

I personally would prefer the market to stay where it is for a little while, so I can get some more bargains (hopefully).

I'm aiming to cover most of the dividend cuts this year (British Land and G4S so far) with new dividends so that hopefully I'll still have more income than last year - that's the theory anyway....

[monabri]

With it being payday today, I invested my usual monthly savings along with some built up dividends.

I decided to buy some nice Henderson Far East Income (HFEL) shares today to add to my collection.
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I personally would prefer the market to stay where it is for a little while, so I can get some more bargains (hopefully).

I'm aiming to cover most of the dividend cuts this year (British Land and G4S so far) with new dividends so that hopefully I'll still have more income than last year - that's the theory anyway....

I think investing in ITs is a good strategy in these "divicull-t" times. Where next for the next top up..certainly NOT individual shares? I'd also be tending to look outside of the UK too!

I share your sentiment on prices / yields and I'm guessing we will not see any recovery til year end. Hopefully divis from some shares and ITs will follow and provide funds for top ups.

[Darka]

I intend to focus on mainly IT's for the next 6-12 months but would also be tempted to top up BAE Systems.

Now that it looks like the banks have all cancelled their dividends, I'm going to have to work harder to regain those losses this year.

[digitaria]

I have a substantial (for me) HFEL holding, both in ISA and in SIPP.

It remains on my buy list, since it appears that the Far East will emerge from the current crisis before everyone else. OTOH, a weakness in demand from the West is likely to impact HFEL's holdings. And I would not be confident that the 8% yield will sustain through all of this market weakness.

[JuanDB]

HFEL do have form for cutting their dividend, I believe 2007 was the last time. They also don’t have a particularly large reserve at just 0.8 years.

With that said, dividend growth in the Far East has been strong and will hopefully offer some resilience.

If I wasn’t already overweight HFEL I’d be topping up as well. Thankfully in capital terms it’s one of my least affected ITs having fortuitously been bought in large part on the market dip late 2018.

Cheers,

Juan