OLTB's HYP - Topped up SSE

[OLTB]

Morning all - I topped up SSE last Thursday (HYPers are meant to be contrarian right? ) - we'll see what plays out with the split (if it proceeds) later this year. HYP now looks like this:



Cheers, OLTB

[Gengulphus]

Morning all - I topped up SSE last Thursday (HYPers are meant to be contrarian right? ) - we'll see what plays out with the split (if it proceeds) later this year. HYP now looks like this:

Is Diageo really 0.0% of the portfolio??? The corresponding entry for Carillion is entirely understandable :-(, but that one looks like a mistake of some kind...

Also, I don't really see the point of the "Cumulative dividends received to Original Cost" figure (which is presumably a percentage?), at least on its own. If accompanied by some sort of indication how long the shares have been owned (preferably as a number-of-shares-weighted average if there have been multiple purchases), it would tell me something about how successful the company has been for you as a HYP holding. But without that, I can't really see anything that it tells me...

Gengulphus

[OLTB]

Morning all - I topped up SSE last Thursday (HYPers are meant to be contrarian right? ) - we'll see what plays out with the split (if it proceeds) later this year. HYP now looks like this:

Is Diageo really 0.0% of the portfolio??? The corresponding entry for Carillion is entirely understandable :-(, but that one looks like a mistake of some kind...

Also, I don't really see the point of the "Cumulative dividends received to Original Cost" figure (which is presumably a percentage?), at least on its own. If accompanied by some sort of indication how long the shares have been owned (preferably as a number-of-shares-weighted average if there have been multiple purchases), it would tell me something about how successful the company has been for you as a HYP holding. But without that, I can't really see anything that it tells me...

Gengulphus

Hi Gengulphus - thanks for your comments and hope the following explains the madness:

I originally dipped my toe into the water of self-investment by reading '5 stocks you can retire on' when promoted by TMF about five years ago and invested £2,000 each into Glaxo, Tesco, Diageo, Unilever and National Grid. Then, when Diageo and National Grid had made a capital profit I sold them (along with Tesco when it had it's accounting issues) - I hadn't really grasped the idea behind HYP at that point. You can see that Glaxo and Unilever still are included.

In August 2016 I started my HYP proper, but because I had received a little income from Diageo at that point, kept the records. It isn't part of my HYP now (as Carillion isn't) so perhaps I should just remove them because as you quite rightly say, it does look confusing.

As for the "Cumulative dividends received to Original Cost" figure, that is just a record that is of interest for me - I'm hoping that at some point the dividends that accumulate over the years will exceed the capital invested and I'm just interested to see which holding it will be. Yes, it is a percentage figure.

When I run my performance figures at the end of the 2nd year that the HYP has been running for (in August 2018), I shall be able to put a bit more information down to highlight how the individual holdings have performed.

Thanks again, OLTB.

[idpickering]

Morning all - I topped up SSE last Thursday (HYPers are meant to be contrarian right? ) - we'll see what plays out with the split (if it proceeds) later this year....

OLTB

Thanks for sharing this OLTB. I must admit that I might top up my SSE holdings next month myself. We'll see nearer the time.

Ian.

[funduffer]

Morning all - I topped up SSE last Thursday (HYPers are meant to be contrarian right? ) - we'll see what plays out with the split (if it proceeds) later this year....

OLTB

Thanks for sharing this OLTB. I must admit that I might top up my SSE holdings next month myself. We'll see nearer the time.

Ian.

For me next top up is a choice is between SSE and National Grid. A difficult one.

[moorfield]

Am avoiding until the dividend policy of the spun off company becomes clearer!

[idpickering]

Morning all - I topped up SSE last Thursday (HYPers are meant to be contrarian right? ) - we'll see what plays out with the split (if it proceeds) later this year....

OLTB

Thanks for sharing this OLTB. I must admit that I might top up my SSE holdings next month myself. We'll see nearer the time.

Ian.

For me next top up is a choice is between SSE and National Grid. A difficult one.

I topped up my National Grid holdings last month. For this month it looks like a top up of British American Tobacco, the last time with them was way back on 18 May 2007, then next month top ups of both Sse PLC and BT Group.

Ian.

[moorfield]

For me next top up is a choice is between SSE and National Grid. A difficult one.

Won't SSE essentially be "Mc National Grid" next year? A nice bit of diversification there?

[pyad]

For me next top up is a choice is between SSE and National Grid. A difficult one.

Shouldn't be that difficult. 2019 forecast yields are:

SSE 7.1% based on their own forecast of a 97.5p dividend on 1,373p.

NG. 5.6% based on external forecasts of 46.9p on 840p.

So for '19 SSE is far more attractive.

For '20 the worst case for SSE, assuming the divestment proceeds, is that the newco (known as SSEES) pays no dividend. SSE say they will pay 80p which still makes 5.8% forecast and investors will have the SSEES shares in addition. And in my unshort market experience, divested shares over time are likely to do well but no guarantees of course.

For NG. in '20, the forecast yield is 5.8% based on the external prediction of an 48.8p dividend.

So SSE wins again for '20 having at worst the same forecast yield as NG. but with the sweetener of additional shares in SSEES.

Assuming you see no other distinctions between SSE and NG. which seems to be the case from your message, it's no contest.

Further out, Strategic Ignorance takes over and none of us knows dick about anything.

[idpickering]

Great to have your input Stephen. I agree with you, particularly your last comment.

Ian.

[blobby]

For me next top up is a choice is between SSE and National Grid. A difficult one.

Assuming you see no other distinctions between SSE and NG. which seems to be the case from your message, it's no contest.

PYAD, I don't interpret funduffer's post in the same way as you (maybe funduffer can clarify).

It seems obvious that SSE is more attractive than National Grid from a yield point of view. However the choice is probably "difficult" because funduffer can see distinctions between the two.

For me I lost faith in SSE recently as I could not see how SSE have been making sufficient profit to afford the dividend over the past few years. If I'm right then something will have to change in the future to correct for the things that I have seen in the past. I'm guessing National Grid does not have this problem and this explains why they have a better rating in the market than SSE shares.