High Yield Portfolio picks

[Bullionaire]

I'm pondering Russia at the minute. The value in their stocks looks incredible. 

The ETF below has a 9.2% dividend, a ~7% PE ratio. I looked into the top 10 stocks and most have more cash/cash equivelants than debt and a low dividend payout ratio (30-40%). Russia as a country also has a very low debt to GDP ratio and a low shiller CAPE. What am I missing? 

https://www.fidelity.co.uk/clients/factsheets/?source=aws&id=0P0000TZLC&idCurrencyId=&idType=msid&marketCode=

[gustavus]

45 minutes ago, Bullionaire said:

I'm pondering Russia at the minute. The value in their stocks looks incredible. 

The ETF below has a 9.2% dividend, a ~7% PE ratio. I looked into the top 10 stocks and most have more cash/cash equivelants than debt and a low dividend payout ratio (30-40%). Russia as a country also has a very low debt to GDP ratio and a low shiller CAPE. What am I missing? 

https://www.fidelity.co.uk/clients/factsheets/?source=aws&id=0P0000TZLC&idCurrencyId=&idType=msid&marketCode=

Rubble, oil price, poor infromation about covid and its long term affect on consumer prices. But high risk, high reward. My friend in customs said that importing cars havent dropped much as expected (standing on border).

[vand]

On 25/04/2020 at 20:43, Bullionaire said:

I'm pondering Russia at the minute. The value in their stocks looks incredible. 

The ETF below has a 9.2% dividend, a ~7% PE ratio. I looked into the top 10 stocks and most have more cash/cash equivelants than debt and a low dividend payout ratio (30-40%). Russia as a country also has a very low debt to GDP ratio and a low shiller CAPE. What am I missing? 

https://www.fidelity.co.uk/clients/factsheets/?source=aws&id=0P0000TZLC&idCurrencyId=&idType=msid&marketCode=

It's definitely a very cheap market.

The problem with a lot of these EMs is the currency risk, which can easily wipe out any local currency growth in their stock market. If you can find a hedged ETF that would probably be a safer bet.

 

[vand]

Bought some more BATS today. The Baccies are proving their defensive qualities in these times, and are still good value for your money.

[gustavus]

My bank offers UK stocks without comission next week. Is there any intresting to look at the moment?

[silvernewbie]

4 hours ago, gustavus said:

My bank offers UK stocks without comission next week. Is there any intresting to look at the moment?

I was looking at shell bp or NG.  Also greatland gold

[vand]

LAND.L bought today.. which rather violates my rules as they have suspended their dividend, although they are by no means alone in this regard. 

The Portfolio has had a bit of rough time lately. The dividend cuts are coming in too fast to keep track of. The forward FTSE divi yield is probably going to fall below 4% even though the index is down 25%. Tough times to be an income investor.. just ask Buffett.

[Bumble]

Gold stocks only for me at the moment. Oils are cheap but it's still too early. Healthcare and pharma are probably OK, but again may be too early. On the London exchange, Highland Gold (HGM.L) and Centamin (CEY.L) are both paying about 5%.

[vand]

An very good discussion on why dividends can be a trap, and why you need to look at total shareholder return,, ie dividend+buybacks+debt payments:

https://mebfaber.com/2016/08/10/9774/

This is an approach I apply, although I call it a High Yield portfolio I'm really using dividend as a proxy for value (although I prefer dividends to buybacks).

[vand]

An update on the HYP.. obviously it has been a bit of a rollercoaster in the last few months. I calculate the total book value as £31.5k and current value (including all reinvested dividends) at about 96% of that, so although we are underwater a few percent, I can still be quite happy I've beaten the FTSE All Share by a large amount since inception. 

I have no idea what the current yield is, but a fair few of my holdings have cancelled or cut their dividend - all banks and financials, REITs, Shell, BT.. all in all I'd be surprised if this year it yields more than 4%, but I shall still be persisting with building the portfolio as I believe its a good strategy despite these inevitable setbacks.

[ZigZag]

On 14/05/2020 at 11:46, Bumble said:

Gold stocks only for me at the moment. Oils are cheap but it's still too early. Healthcare and pharma are probably OK, but again may be too early. On the London exchange, Highland Gold (HGM.L) and Centamin (CEY.L) are both paying about 5%.

So too does junior Anglo Asian (AAZ) and it’s progressive with an expectation of it being around 6.8% from today’s Hardman research note, which I fully expect to be met; then again I would as I’ve held the stock nearly 5 years now and the rewards despite the lull in share price this year, are in my opinion, just poised nicely to get bigger.

[HerefordBullyun]

Was having a look at these

https://www.investopedia.com/investing/technology-penny-stocks/

[Martlet]

7 hours ago, vand said:

An update on the HYP.. obviously it has been a bit of a rollercoaster in the last few months. I calculate the total book value as £31.5k and current value (including all reinvested dividends) at about 96% of that, so although we are underwater a few percent, I can still be quite happy I've beaten the FTSE All Share by a large amount since inception. 

I have no idea what the current yield is, but a fair few of my holdings have cancelled or cut their dividend - all banks and financials, REITs, Shell, BT.. all in all I'd be surprised if this year it yields more than 4%, but I shall still be persisting with building the portfolio as I believe its a good strategy despite these inevitable setbacks.

Is this permanent portfolio strategy and how much cash invested?

[vand]

18 hours ago, Martlet said:

Is this permanent portfolio strategy and how much cash invested?

No, that's a separate strategy I run.. and in any case I've somewhat evolved my thinking on the PP.. While I think it's still a perfectly viable strategy I'm more inclined to allocate less to cash than the PP's 25% and find something else to replace it with. I am personally comfortable handling more volatility than the vanilla PP experiences.

[SilvergunSuperman]

21 hours ago, HerefordBullyun said:

Was having a look at these

https://www.investopedia.com/investing/technology-penny-stocks/

If you like a tech penny stock, check out Brainchip (BRN on the ASX). Currently trading at 0.11 AUD. AI & machine learning, development deals announced recently with Ford and Valeo.  Their new chip currently in production could be a game changer.

[HerefordBullyun]

7 minutes ago, SilvergunSuperman said:

If you like a tech penny stock, check out Brainchip (BRN on the ASX). Currently trading at 0.11 AUD. AI & machine learning, development deals announced recently with Ford and Valeo.  Their new chip currently in production could be a game changer.

Thanks @SilvergunSuperman will do!

[vand]

Don't take his model as gospel - these things tend to work much better with backtested data than they do going forward - but this is a good read

https://alephblog.com/2020/06/16/estimating-future-stock-returns-march-2020-update/

[HerefordBullyun]

Another penny stock pick list @Kman dont know if any use to you?

https://blog.tipranks.com/top-analysts-bet-on-these-3-penny-stocks-see-100-plus-upside-potential/

[vand]

I'm looking to add some more resilience to my portfolio, so aded SBRY.L today.

They're one of the many bluechips who have suspended their dividend for now, but I think this is a relatively safe bet that it'll be reinstated relatively soon.  

New CEO installed last month. Let's hope they do better under his tenure than the outgoing and we can see a long term recovery. 

Selling groceries isn't the most difficult thing in the world - with revenue of 30bn+ and a market cap of just 4bn there is a lot of operating leverage available if they can become more efficient.

 

[vand]

I was surprised to find the vand HYP is up today despite the weakness in the wider market. Seems there is a shift to value going on today:

 

 

[Bullionaire]

2 hours ago, vand said:

I was surprised to find the vand HYP is up today despite the weakness in the wider market. Seems there is a shift to value going on today:

 

 

Yey. Now I'm only 50% down on BT! 😛