High Yield Portfolio picks

[vand]

**Alert**

This thread is for active investors.

Furthermore, this thread is for active paper investments.

**//End Alert**

 

Let's talk high dividend shares. Solid bluechip companies that you can stick in a portfolio and which will pay you to hold.

http://www.morningstar.co.uk/uk/news/132966/top-20-ftse-100-dividend-paying-stocks.aspx/

[vand]

The vand HYP represents 1/3 of my overall investment strategy.

Currently holds:

AV.L
VOD.L
Woodfood Equity Income Fund Acc

Over the next few years this will be built up. All dividends will be reinvested, although not necessarily in the same company that paid them.

Aim is to achieve steady long term growth that outperforms the benchmark FTSE All-Share
 

[gustavus]

Ladder Capital reit is worth to look and study. Very down to earth management and they have own skin in the game.

[Bumble]

I currently own Shell, BP and Glaxo, which are rather boring.
My more interesting holds are:
Highland Gold Mining (HGM.LON) which pays a 6% dividend and is cheap because its assets are all in Russia. 
Anglo Pacific Mining (APF.LON) which pays 4% and is a royalty company.
Pattern Energy (PEGI.NASDAQ) which pays 8%, though some analysts think that might not be sustainable.

[Bullionaire]

My high yielding individuals are Aviva, BT, Mears, G4S and then United carpets for a small cap divi payer

[vand]

On 12/06/2019 at 23:29, Bumble said:

I currently own Shell, BP and Glaxo, which are rather boring.
My more interesting holds are:
Highland Gold Mining (HGM.LON) which pays a 6% dividend and is cheap because its assets are all in Russia. 
Anglo Pacific Mining (APF.LON) which pays 4% and is a royalty company.
Pattern Energy (PEGI.NASDAQ) which pays 8%, though some analysts think that might not be sustainable.

Boring is good in the context of HYP picks.

Boring is perfect!

[vand]

Is anyone considering going anywhere near Centrica with a barge pole?

Dividend will obviously be cut, but the price is at an all-time low and you'd think that turning around a struggling utility company wouldn't be the most difficult task in the modern business world. 

Utility companies have not been doing well in general lately. A big part of this is a the fear of a Corvyn govt and what that would mean for utilities, but maybe that threat is receeding with the liklihood of a PM Boris, who would have charisma to repel the socialist threat.

 

[goluckystayhappy]

I too have been looking at centrica but each day it keeps going lower.

[vand]

1 hour ago, goluckystayhappy said:

I too have been looking at centrica but each day it keeps going lower.

Yeah, I think there's case for including it in a "special situations" type portfolio, but it might be a bit too racy for inclusion in an true income portfolio, at least until it looks like the business has turned the corner.

[kimchi]

On 15/06/2019 at 10:47, Bullionaire said:

My high yielding individuals are Aviva, BT, Mears, G4S and then United carpets for a small cap divi payer

Are BT shares worth holding onto? I know very little about shares but have inherited a few hundred and not sure what to do, the dividends seem quite reasonable and always nice to receive. Any advice appreciated!

[Bullionaire]

17 minutes ago, kimchi said:

Are BT shares worth holding onto? I know very little about shares but have inherited a few hundred and not sure what to do, the dividends seem quite reasonable and always nice to receive. Any advice appreciated!

I'm not an expert by any means. BT was one of my earlier (i.e. less knowledgable) buys as a value pick. I'm down about 15% currently but should have the divi coming in soon.

They are laden with debt which I don't like, but they do seem to have the edge on mobile network - I think they're going to be first to offer 5G for example. Which will hopefully give them a boost. They did just get a new CEO in Feb as well, so will have to see how he does. I'm going to hold for now.

One website I find quite useful to look at for a quick overview of shares is simplywall.st. you can look through BTs page on there for a better breakdown on the sustainability of the divi and their financial health etc (you get a free trial for 2 weeks, then just get another free 2 weeks buy sticking a '+' in the middle of your email to sign up again - makes their website think it's a new email address, but still sends emails to your email address)

 

[kimchi]

Many thanks @Bullionaire. I know very little about shares. BT is one of a smallish portfolio I've inherited but it seems to me that, short to medium ups and downs aside, they are always going to be a/the major player, and that long-term these are probably worth holding. I am here to be corrected though, and appreciate any input

[vand]

there's a valid argument that the entire FTSE 100 is now a high dividend play, yielding close to 5%. It's filled with companies that are paying out solid divis everywhere you look.

 

http://www.morningstar.co.uk/uk/news/180901/ftse-100-set-to-yield-5-in-2019.aspx

 

[Shergar]

 If you want a nice steady utility with a fair yield check out Northern Electric NTEA.L 

[vand]

Eddie Stobart is an interesting smaller stock yielding 9% and covered x1.8 times.

https://www.ii.co.uk/analysis-commentary/stockwatch-woodford-bargain-now-yielding-9-ii508451

Price has fallen precipitously along with similar players in the sector as Brexit fears continue, but this will surely resolve itself one way or another by this time next year. Woodford holds 25% and if these sort of plays are typical then explains why his fund has been nosediving so badly!

Sometimes you have step back and just ask "is this a sound business?" IMO yes. There's nothing any company can do about Brexit; the market reacting to political uncertainty by wiping >50% off a stock is surely an opportunity.

[vand]

7 minutes ago, vand said:

Eddie Stobart is an interesting smaller stock yielding 9% and covered x1.8 times.

https://www.ii.co.uk/analysis-commentary/stockwatch-woodford-bargain-now-yielding-9-ii508451

Price has fallen precipitously along with similar players in the sector as Brexit fears continue, but this will surely resolve itself one way or another by this time next year. Woodford holds 25% and if these sort of plays are typical then explains why his fund has been nosediving so badly!

Sometimes you have step back and just ask "is this a sound business?" IMO yes. There's nothing any company can do about Brexit; the market reacting to political uncertainty by wiping >50% off a stock is surely an opportunity.

 

Although this is the sort of negative publicity any company can do without: https://www.bbc.co.uk/news/uk-england-oxfordshire-48528088 

😐😣😟😧😐😣😟😧😐😣😟😧😐😣😟😧

[PansPurse]

44 minutes ago, vand said:

Eddie Stobart is an interesting smaller stock yielding 9% and covered x1.8 times.

https://www.ii.co.uk/analysis-commentary/stockwatch-woodford-bargain-now-yielding-9-ii508451

Price has fallen precipitously along with similar players in the sector as Brexit fears continue, but this will surely resolve itself one way or another by this time next year. Woodford holds 25% and if these sort of plays are typical then explains why his fund has been nosediving so badly!

Sometimes you have step back and just ask "is this a sound business?" IMO yes. There's nothing any company can do about Brexit; the market reacting to political uncertainty by wiping >50% off a stock is surely an opportunity.

Worth a punt

(I may have just punted)

[vand]

On 18/06/2019 at 10:52, PansPurse said:

Worth a punt 

(I may have just punted)

couldn't have timed that one better.. +7% today

[Bumble]

If you are happy investing in tobacco, British American Tobacco, Imperial Brands, and Philip Morris pay excellent dividends.

Another company to consider might be Swiss pharma giant Roche. It only pays 3%, but it is very reliable and its share price is denominated in CHF, so you may gain from the strong currency.

[vand]

UK:ITV is looking like the next addition to the vand income portfolio. It has been through a torrid time, but they are offering 7.2% dividend covered by x1.8 earnings. 

Looking at the long term history, its a highly cyclical stock, gaining 900% and then losing 90% over a couple of cycles.

The trouble is that we seem to be in one of the long downtrends. No reason they can't drop another 50% from here if the dividend isn't maintained. I'm keen, but quite cautious, especially with the FTSE itself quite overbought.

[StackerNoob]

I'm thinking of starting up a stocks portfolio. Back in the day it was a pain in the arse, but I hope its easier now. What do you guys use to invest? An online platform of some kind?

[PansPurse]

58 minutes ago, StackerNoob said:

I'm thinking of starting up a stocks portfolio. Back in the day it was a pain in the arse, but I hope its easier now. What do you guys use to invest? An online platform of some kind?

I've got a stocks and Shares ISA with Hargreaves Lansdown, they are pretty well-known and user friendly.

One thing I would highlight is that the cost of a trade is significant (£11 ish IIRC) but there's the monthly savings option (which is mostly what I use) which is a tiny fraction of that, but means you don't get to pick the precise timing of when you buy. It's a pretty good option and accessible from £25 a month IIRC.

https://www.hl.co.uk/investment-services/isa

[AuricGoldfinger]

Im also with H&L for my sipp, looking to open an S&S ISA as soon as I’ve maxed out my premium bonds

[Bullionaire]

Cavendish for me (they use fidelitys platform but are cheaper than fidelity direct) 0.25% annual charge v HL's 0.45%. 

[goluckystayhappy]

Ref ITV, dont you think Netflix and amazon will eventually make them obsolete.