monabri wrote:I think a comparison of holdings between May 18 and Sep 19 would yield some light on the increase in income /unit.
There has been opportunity to buy some high yielders over the last year or so. The addition of BATS/PSN/CRST/NRR at "opportune times" must surely have increased the div/unit based on the previous core holdings of things like BAE/AZN/BVIC (*). I would suggest that this strategy will amplify div/unit in the short term. Further increases in div/unit will depend on carrying on with the strategy (which I guess ITH will be doing) or obtaining dividend increases from the holdings.
Well I did say:
IanTHughes wrote:With regard to the Income generated it should be noted that as all new monies added to portfolio naturally go to the highest yielders of the day, this action alone flatters the income results year on year. This is especially the case in the early years when the extra funds also make up a significant percentage of the portfolio. All in all though, I am happy with the results so far.
I have not studied it in detail but you are right, the amplification of Dividend per Unit has been quite stark over the recent past.
Here are the details of the purchases made during the past 12 months:
Date | EPIC | Company | Yield
10-Sep-18 | PSN | Persimmon | 9.90%
10-Oct-18 | PSN | Persimmon | 10.38%
12-Nov-18 | PSN | Persimmon | 9.97%
10-Jan-19 | BATS | British American Tobacco | 7.85%
11-Feb-19 | VOD | Vodafone | 9.54%
11-Mar-19 | VOD | Vodafone | 9.68%
10-Apr-19 | VOD | Vodafone | 9.46%
10-May-19 | IMB | Imperial Brands | 8.75%
10-May-19 | NRR | New River REIT | 9.22%
10-May-19 | SLA | Standard Life Aberdeen | 8.07%
10-May-19 | VOD | Vodafone | 9.62%
10-Jun-19 | IMB | Imperial Brands | 9.30%
10-Jun-19 | SLA | Standard Life Aberdeen | 7.85%
10-Jul-19 | IMB | Imperial Brands | 9.67%
10-Jul-19 | ITV | ITV | 7.24%
12-Aug-19 | ITV | ITV | 7.41%
I think I am right in saying that, so far at least, only VOD has cut the dividend, but even then my capital value increased.
Ian