TUK020 Dividend builder portfolio

[TUK020]

This is a Portfolio of predominantly High Yielding equities, and equity Investment trusts. So while the focus is a high yield portfolio, it does not conform to a Purist Bland Annuity Replacement (PooBAR) version of HYP.

Portfolio - Diversification: around 30 equities, across a spread of sectors. Additional diversification sought by use of ITs to get additional geographic spread (eg HFEL, MYI etc) and also some level of income smoothing (gradually building stakes in CTY) as part of a long term plan to make the portfolio more robust against neglect (Dorisian in intent).
High Yield - Tend to use CTY as benchmark for yield, do have a couple of stocks that fall below this (DGE, RB)
Safety Factors - try to apply the same as per PooBAR
Trading - Try to keep this low. Intent is to LTBH. Have been doing a fair amount of trading to top-slice and balance the portfolio this year. Moving toward a system a la TJH, to take advantage of market volatility, and keep the portfolio from getting out of whack.
Exceptions - I have let emotions sway me from my 'system' in that I have acquired small stakes in companies that don't fit for reasons of size (MARS), yield (ROR) etc. I have also taken a couple of overweight positions in a limited number of stocks that I feel are oversold (BATS, VOD, NG. IMB will probably get added to this group).

Management - I am famously impatient in dealing with the minutiae of recording and tabulating. Recently, I switched to using HYPTUSS as the means of recording and tracking my portfolio (held in two different places - SIPP & ISA). This has significantly improved my tracking and visibility, and was instrumental in helping me top slice and re-balance in recent months. I can see the value in unitising, but do not trust that I will stick with the work involved to make it pay off. Did read the FAQs to see if I could understand how to post a table, but............clueless.
About 4% of my portfolio is in GOLD ETF & L&G Global 100 Index. Never managed to work out how to get prices into the HYPTUSS, so these are not recorded there.
Performance/Perspective - Interestingly, putting this into HYPTUSS has also sharpened my focus of what I keep a beady eye on - the total forecast dividend income figure. Useful, and has helped influence some of my top slice/ top up decisions



Comments/insight & critique welcome.
If anyone can advise on how to post a table, that would also be much appreciated
tuk020

[TUK020]

Company Name Ticker Sector Value as % of Total Latest / Forecast Yield Dividend as % of total
BP BP Oil & Gas Producers 2.61% 6.40% 2.94%
AstraZeneca AZN Pharmaceuticals & Biotechnology 2.02% 3.70% 1.31%
BAE Systems BA Aerospace & Defence 1.93% 4.90% 1.67%
Bodycote BOY Industrial Engineering 1.69% 2.70% 0.80%
British American Tobacco BATS Tobacco 3.19% 7.90% 4.44%
BT Group BT-A Fixed Line Telecommunications 2.23% 6.20% 2.43%
City of London Inv Trust CTY Equity Investment Instruments 5.30% 4.60% 4.29%
Diageo DGE Beverages 3.02% 2.30% 1.22%
Galliford Try GFRD Construction & Materials 2.07% 12.90% 4.69%
GlaxoSmithKline GSK Pharmaceuticals & Biotechnology 2.62% 5.30% 2.44%
Henderson Far East Income Ltd. HFEL Equity Investment Instruments 2.62% 6.40% 2.95%
HICL Infrastructure Company Ltd HICL Equity Investment Instruments 2.95% 5.00% 2.60%
HSBC Holdings HSBA Banks 3.37% 6.10% 3.62%
Imperial Brands IMB Tobacco 3.14% 7.90% 4.36%
Legal and General Group LGEN Life Insurance 3.38% 7.20% 4.28%
Marston's MARS Travel & Leisure 2.55% 8.20% 3.67%
ITV ITV Media 2.62% 6.40% 2.95%
Merchants Trust MRCH Equity Investment Instruments 2.03% 5.60% 2.00%
Morgan Advanced Materials MGAM Electronic & Electrical Equipment 1.42% 4.60% 1.15%
Murray International Trust MYI Equity Investment Instruments 3.73% 4.50% 2.95%
National Grid NG Multiutilities 3.56% 6.00% 3.76%
Pennon Group PNN Gas, Water & Multiutilities 2.42% 5.70% 2.42%
Persimmon PSN Household Goods & Home Construction 2.52% 12.40% 5.49%
Reckitt Benckiser Group RB Household Goods & Home Construction 2.51% 2.70% 1.19%
Rio Tinto RIO Mining 3.34% 6.10% 3.58%
Rolls-Royce Holdings RR Aerospace & Defence 2.18% 1.50% 0.57%
Rotork ROR Industrial Engineering 1.31% 2.40% 0.55%
Royal Dutch Shell 'B' RDSB Oil & Gas Producers 2.73% 6.30% 3.03%
Schroders (Non-Voting) SDRC Financial Services 2.68% 5.60% 2.64%
SEGRO SGRO Industrial & Office REITs 1.24% 3.00% 0.65%
Temple Bar Inv Trust TMPL Equity Investment Instruments 1.55% 3.70% 1.01%
Vesuvius VSVS General Industrials 0.78% 4.00% 0.55%
Vodafone Group VOD Mobile Telecommunications 3.57% 8.50% 5.34%
WPP WPP Media 2.66% 6.80% 3.18%
Aviva AV Life Insurance 2.63% 8.20% 3.79%
Land Securities Group LAND Industrial & Office REITs 2.37% 5.80% 2.42%
BHP Group BHP Mining 3.06% 5.70% 3.07%
F and C Investment Trust FCIT Equity Investment Instruments 1.67% 0.00% 0.00%
Law Debenture Corp. LWDB Equity Investment Instruments 0.97% 0.00% 0.00%
River And Mercantile UK Micro Cap Investment Company Limited RMMC Equity Investment Instruments 1.74% 0.00% 0.00%

5.69% Running Yield

[tjh290633]

If you go to http://lemonfoolfinancialsoftware.weebl ... ormat.html you will find the tool for posting tables.

My choice is to use [pre] and to change the separator to 3 spaces.

Presumably you have your data in a spreadsheet. Just highlight what you want to put in the table, CTRL-C, then go to the tool, put the cursor in "Input Text", CTRL-V and then click on "Create Formatted text". Then just copy the formatted text into your post. Preview it before you post.

One hint is to avoid blank cells at the start of lines, as they are ignored. Just put a full stop in them and that should work. Maybe right justify them.

Have a try.

TJH

[TUK020]

[TUK020]

Company Name                                                 | 3Ticker | 3Sector                              | 3Value as % of Total | 3Latest / Forecast Yield | 3Dividend as % of total
BP                                                           | 3BP     | 3Oil & Gas Producers                 | 3              2.61% | 3                  6.40% | 3                 2.94%
AstraZeneca                                                  | 3AZN    | 3Pharmaceuticals & Biotechnology     | 3              2.02% | 3                  3.70% | 3                 1.31%
BAE Systems                                                  | 3BA     | 3Aerospace & Defence                 | 3              1.93% | 3                  4.90% | 3                 1.67%
Bodycote                                                     | 3BOY    | 3Industrial Engineering              | 3              1.69% | 3                  2.70% | 3                 0.80%
British American Tobacco                                     | 3BATS   | 3Tobacco                             | 3              3.19% | 3                  7.90% | 3                 4.44%
BT Group                                                     | 3BT-A   | 3Fixed Line Telecommunications       | 3              2.23% | 3                  6.20% | 3                 2.43%
City of London Inv Trust                                     | 3CTY    | 3Equity Investment Instruments       | 3              5.30% | 3                  4.60% | 3                 4.29%
Diageo                                                       | 3DGE    | 3Beverages                           | 3              3.02% | 3                  2.30% | 3                 1.22%
Galliford Try                                                | 3GFRD   | 3Construction & Materials            | 3              2.07% | 3                 12.90% | 3                 4.69%
GlaxoSmithKline                                              | 3GSK    | 3Pharmaceuticals & Biotechnology     | 3              2.62% | 3                  5.30% | 3                 2.44%
Henderson Far East Income Ltd.                               | 3HFEL   | 3Equity Investment Instruments       | 3              2.62% | 3                  6.40% | 3                 2.95%
HICL Infrastructure Company Ltd                              | 3HICL   | 3Equity Investment Instruments       | 3              2.95% | 3                  5.00% | 3                 2.60%
HSBC Holdings                                                | 3HSBA   | 3Banks                               | 3              3.37% | 3                  6.10% | 3                 3.62%
Imperial Brands                                              | 3IMB    | 3Tobacco                             | 3              3.14% | 3                  7.90% | 3                 4.36%
Legal and General Group                                      | 3LGEN   | 3Life Insurance                      | 3              3.38% | 3                  7.20% | 3                 4.28%
Marston's                                                    | 3MARS   | 3Travel & Leisure                    | 3              2.55% | 3                  8.20% | 3                 3.67%
ITV                                                          | 3ITV    | 3Media                               | 3              2.62% | 3                  6.40% | 3                 2.95%
Merchants Trust                                              | 3MRCH   | 3Equity Investment Instruments       | 3              2.03% | 3                  5.60% | 3                 2.00%
Morgan Advanced Materials                                    | 3MGAM   | 3Electronic & Electrical Equipment   | 3              1.42% | 3                  4.60% | 3                 1.15%
Murray International Trust                                   | 3MYI    | 3Equity Investment Instruments       | 3              3.73% | 3                  4.50% | 3                 2.95%
National Grid                                                | 3NG     | 3Multiutilities                      | 3              3.56% | 3                  6.00% | 3                 3.76%
Pennon Group                                                 | 3PNN    | 3Gas, Water & Multiutilities         | 3              2.42% | 3                  5.70% | 3                 2.42%
Persimmon                                                    | 3PSN    | 3Household Goods & Home Construction | 3              2.52% | 3                 12.40% | 3                 5.49%
Reckitt Benckiser Group                                      | 3RB     | 3Household Goods & Home Construction | 3              2.51% | 3                  2.70% | 3                 1.19%
Rio Tinto                                                    | 3RIO    | 3Mining                              | 3              3.34% | 3                  6.10% | 3                 3.58%
Rolls-Royce Holdings                                         | 3RR     | 3Aerospace & Defence                 | 3              2.18% | 3                  1.50% | 3                 0.57%
Rotork                                                       | 3ROR    | 3Industrial Engineering              | 3              1.31% | 3                  2.40% | 3                 0.55%
Royal Dutch Shell 'B'                                        | 3RDSB   | 3Oil & Gas Producers                 | 3              2.73% | 3                  6.30% | 3                 3.03%
Schroders (Non-Voting)                                       | 3SDRC   | 3Financial Services                  | 3              2.68% | 3                  5.60% | 3                 2.64%
SEGRO                                                        | 3SGRO   | 3Industrial & Office REITs           | 3              1.24% | 3                  3.00% | 3                 0.65%
Temple Bar Inv Trust                                         | 3TMPL   | 3Equity Investment Instruments       | 3              1.55% | 3                  3.70% | 3                 1.01%
Vesuvius                                                     | 3VSVS   | 3General Industrials                 | 3              0.78% | 3                  4.00% | 3                 0.55%
Vodafone Group                                               | 3VOD    | 3Mobile Telecommunications           | 3              3.57% | 3                  8.50% | 3                 5.34%
WPP                                                          | 3WPP    | 3Media                               | 3              2.66% | 3                  6.80% | 3                 3.18%
Aviva                                                        | 3AV     | 3Life Insurance                      | 3              2.63% | 3                  8.20% | 3                 3.79%
Land Securities Group                                        | 3LAND   | 3Industrial & Office REITs           | 3              2.37% | 3                  5.80% | 3                 2.42%
BHP Group                                                    | 3BHP    | 3Mining                              | 3              3.06% | 3                  5.70% | 3                 3.07%
F and C Investment Trust                                     | 3FCIT   | 3Equity Investment Instruments       | 3              1.67% | 3                  0.00% | 3                 0.00%
Law Debenture Corp.                                          | 3LWDB   | 3Equity Investment Instruments       | 3              0.97% | 3                  0.00% | 3                 0.00%
River And Mercantile UK Micro Cap Investment Company Limited | 3RMMC   | 3Equity Investment Instruments       | 3              1.74% | 3                  0.00% | 3                 0.00%
                                                             | 3       | 3                                    | 3                    | 3                        | 3                      
                                                             | 3       | 3                                    | 3                    | 3                  5.69% | 3Running Yield

[monabri]

Note, there is a "testing 123" area where you can practice your table postings - stuff gets deleted after a while.

/viewforum.php?f=28

Just follow the instructions - in the user guide (especially point 5).

This table was created in about 10 seconds (or less) to create using your data posted above. I used the "table" tag (one of 3 options).




Here's the same data but prepared using the "PRE" tag option - note the slider bar at the bottom of the table.

[monabri]

From a quick look, the portfolio is quite UK 'focused'..including the Investment Trusts such as CTY/MRCH/approx 50% LWDB/TMPL) it's about 87% UK (bit of a guessimate there). Is this deliberate or do you plan to increase your 'international exposure" (perhaps increasing the % of MYI or HFEL?).

It might be worth having at look at the AIC website to perhaps diversify into the US via investment trusts such as BRNA or NAIT..at the right yield (price) and there is certainly volatility in the US markets which might help!

I'd also recommend signing up (supplying email address only) to "Simply Wall Street". You get 10 free searches on a company's info every month (their coverage of ITs is not so good)...(I actually pay for it to remove the restriction).

https://simplywall.st/stocks/gb/utiliti ... ity-shares

[TUK020]

From a quick look, the portfolio is quite UK 'focused'..including the Investment Trusts such as CTY/MRCH/approx 50% LWDB/TMPL) it's about 87% UK (bit of a guessimate there). Is this deliberate or do you plan to increase your 'international exposure" (perhaps increasing the % of MYI or HFEL?).

It might be worth having at look at the AIC website to perhaps diversify into the US via investment trusts such as BRNA or NAIT..at the right yield (price) and there is certainly volatility in the US markets which might help!

I'd also recommend signing up (supplying email address only) to "Simply Wall Street". You get 10 free searches on a company's info every month (their coverage of ITs is not so good)...(I actually pay for it to remove the restriction).

https://simplywall.st/stocks/gb/utiliti ... ity-shares

Monabri,
Thanks for unscrambling my table.
The UK focus is in terms of where stocks are listed, rather than where the economic exposure is.
A lot of my major holdings are international in terms of earnings, BP, HSBC, AZN, GSK etc.
Even some of the nominally UK oriented stocks such as BA & NG have significant USA earnings.
Some are very UK focused - BT, MARS, ITV, GFRD, PSN.

Most of the UK focused stocks are on my veto list for top ups. I am deliberating about future top ups between international focus (HFEL, MYI) and stocks that I feel are value opportunities (SDRC & IMB).
I am wary of the US market, as it has the feel of (still) being expensive.

Thanks for the link to SWS
tuk020

[ReformedCharacter]

Most of the UK focused stocks are on my veto list for top ups. I am deliberating about future top ups between international focus (HFEL, MYI) and stocks that I feel are value opportunities (SDRC & IMB).
I am wary of the US market, as it has the feel of (still) being expensive.

tuk020

Similar thoughts have crossed my mind. But perhaps UK focused companies are where the 'value' lies at the moment? If you're feeling brave. I agree about the US market feeling expensive, but it does seem to be getting cheaper...

The North American Income Trust (NAIT) has been on my watch-list for some time but too expensive at the moment. Unfortunately I dithered some time ago when it was yielding c. 4% but maybe...

RC

[Itsallaguess]

The North American Income Trust (NAIT) has been on my watch-list for some time but too expensive at the moment. Unfortunately I dithered some time ago when it was yielding c. 4% but maybe...

Not as expensive as it used to be, mind - currently around it's 12-month low, and nearly the lowest it's been for two years -

https://www.sharesmagazine.co.uk/shares ... 1%26SV%3D0

Currently yielding around 3.2% -

https://uk.webfg.com/equity/North_Ameri ... _Trust_The

Cheers,

Itsallaguess

[Dod101]

Well done TUK. I must say I rather envy you with the spread you have although City of London is surely a bit of an anomaly, because it must be duplicating quite a lot of the UK registered high yield shares which you already hold.

You have more holdings than I would want, so I cannot have that spread that I envy although I do hold quite a lot of your directly held shares.

Murray International and Schroders N/V would be my choice for top ups.

Dod

[OhNoNotimAgain]

Why reinvent the wheel?

viewtopic.php?f=8&t=15417&p=189703#p189703

[TUK020]

Why reinvent the wheel?

viewtopic.php?f=8&t=15417&p=189703#p189703

I think what you mean by your question is: Why not just buy a low cost index tracker?
Possibly a strange question for this website, but a valid challenge, and I shall endeavour to answer it courteously.

Higher Yield: A chap called Munroman posted on the old site, and came up with a beautifully simple statement "Dividends keep a company a bit more honest". I am looking for a mix of companies that pay higher dividends that the index as a whole. The safety factors are to try and screen for those that are doing so sustainably.

Portfolio Diversification: Same chap said that "Diversification reduces risk". Indices tend to be skewed by two things a) mix of companies in e.g. the FTSE are unrepresentative of the mix of sectors available - overweight in Oil, Banks etc, and b) are dominated by a few large companies. Therefore the FTSE 100 is not an optimum risk reduction; I rather choose more equally weighted investments in sectors that are diverse and less correlated. My portfolio selection of stocks is higher yield than the FTSE100, and arguably has better diversification.

Cost: Directly held stocks (particularly if not traded much) are very low cost method of holding them.

My very long term gaga plan for the days when I am not able or willing to pay much attention to manage the portfolio is to gradually transition it to the nearest equivalent - which seem to be conservatively managed ITs (the closest would appear to be CTY). These are probably not the lowest cost approach, but have the benefit of lower income volatility.
tuk020

[OhNoNotimAgain]

I am looking for a mix of companies that pay higher dividends that the index as a whole. The safety factors are to try and screen for those that are doing so sustainably.

Indices tend to be skewed by two things a) mix of companies in e.g. the FTSE are unrepresentative of the mix of sectors available - overweight in Oil, Banks etc, and b) are dominated by a few large companies.

Cost: Directly held stocks (particularly if not traded much) are very low cost method of holding them.

tuk020

The UK index pays out £110 billion in dividends, you cannot get a bigger share of that pot by holding fewer stocks. I think you might be talking about yield.

Big resource companies are very profitable. If you want income you have to accept it.

Questionable when compared to low turnover rules-based funds. And you still have to deal with corporate actions which on their own typically affect about 3% of the market every year.

[TUK020]

The UK index pays out £110 billion in dividends, you cannot get a bigger share of that pot by holding fewer stocks. I think you might be talking about yield.

Big resource companies are very profitable. If you want income you have to accept it.

Correct. My sloppy use of terminology.
Agreed, but I want to control my level of risk/dependence that goes with it. Same could have been said about financials in 2007.