High Yield Portfolio picks

[Bumble]

Money Week rate ITV a sell. Too much competition.

BP and RDSB look good. The worry in the back of my mind is that cities and states in the USA will target oil companies for compensation for causing global warming. They will be looking to milk the oil sector like they did tobacco a few years back.

If a recession looms, staples like ULVR might be worth considering.

[vand]

It’s difficult to know what to make of the FTSE100 right now. The last time the index yielded more than current level was during the 2008-09 meltdown which as we know was a pretty good time to be buying, but then otoh global markets look like they are about to roll over I expect Mr Buffett to be looking in our direction like an oversexed man in a brothel. 

[vand]

Been reading some seriously epic financial blogs recently. 

Here is a great post from a great blog:

http://multifactorworld.com/when-value-performs-poorly/

[vand]

European banking stocks have been absolutely hammered in the last few years.

UK banks like BARC and LLOY look cheap.. but the whole sector looks like it is likely to break key support levels:

 

A good time to buy?

https://www.ft.com/content/27d54524-bde1-11e9-b350-db00d509634e

 

[vand]

BARC.L added to the income portfolio today.

Dividend yield of 6.5%, Forward P/E of 6.5 and Price to Book  of 0.4 is my triple margin of safety.

 

Current holdings:

VOD.L

AV.L

BLND.L

BARC.L

 

Early days, but the Portfolio is doing pretty good so far. 

 

 

[5huggy]

First Majestic Silver Corp (FR)   😉

[5huggy]

 

2 hours ago, 5huggy said:

First Majestic Silver Corp (FR)   😉

BUT WHAT DO I KNOW!!

 

[Bumble]

High yield means companies paying a big dividend. First Majestic does not pay a dividend. You are right that many gold and silver stocks are flying at the moment.

[5huggy]

14 minutes ago, Bumble said:

High yield means

producing a large amount; giving a high return. -

does NOT specify dividend yield or capital growth !!

bUT WORT DUZ i no!?

 

[vand]

Looks like Woodford has been getting "back to basics" and chosen solid high yield bluechips to rebuild his battered fund. Exactly my own strategy!

https://citywire.co.uk/funds-insider/news/woodford-buys-bat-bt-and-iag-in-ftse-100-spending-spree/a1263441

[vand]

I dunno what all the other value investors have been playing at in the last few years, because the vand HYP has been absolutely flying in the last month:

VOD +8%
AV +8%
BARC +13%
BLND +18%

I basically split my investmenting between 3 separate strategies:

Global macro Portfolio
High Yield Portfolio
Permanant Portfolio

So as the precious metals have been in correction mode in the last couple of weeks which has seen a fall in my global macro fund, the high yield strategy has kicked in a delivered great performance to pick up the slack. 

The PP ticks along steadily in the background for steady wealth accumulation.

 

Overall these diversified strategies help me charter a much smoother path to wealth accumulation.

 

[vand]

"Value outperformed momentum by 9% in Sept"

https://www.barrons.com/articles/value-stocks-momentum-growth-economic-expansion-correlations-russell-1000-51568663103

 

[KDave]

The rotation is upon us, the old cycle in action. 

[vand]

BATS.L added to the portfolio today.

 

[Bullionaire]

31 minutes ago, vand said:

BATS.L added to the portfolio today.

 

Never fancied them. Don't even like it that my value funds hold them in large amounts. Lots of debt and a product that kills people.

 

United carpets went ex divi today. Rock steady share price over the last few months and an 8% divi.

[vand]

13 hours ago, Bullionaire said:

Never fancied them. Don't even like it that my value funds hold them in large amounts. Lots of debt and a product that kills people.

 

United carpets went ex divi today. Rock steady share price over the last few months and an 8% divi.

UCG to me seems a value trap.

A low margin business with no real competitive advantage that is highly leveraged to the fortunes of the property market and the economic cycle in general, these could easily get wiped out in an economic downturn. similar to TPT which got crushed in the last recession too.

[Bullionaire]

4 hours ago, vand said:

UCG to me seems a value trap.

A low margin business with no real competitive advantage that is highly leveraged to the fortunes of the property market and the economic cycle in general, these could easily get wiped out in an economic downturn. similar to TPT which got crushed in the last recession too.

The fact that UCG has no debt and a good balance sheet makes me sleep well at night. 

[silvernewbie]

This might be outside peoples risk tolerance, but read about Turkish bond (corporates) as a good high yield option, with the stabilising Turkish economy and bonds paying 10%+.  Obviously to reduce risk an etf/fund is better to hold than buying individual corporate bonds

[vand]

Taken advantage of recent market wobble to take a position in BT.A

CEO has bought in for £3m's worth of stock in the last few month. 

[KDave]

21 minutes ago, vand said:

Taken advantage of recent market wobble to take a position in BT.A

CEO has bought in for £3m's worth of stock in the last few month. 

I did the same a few weeks ago, it was my list of shares that will survive the deflationary crash and do well when the reflationary printing starts. Spoilt for choice at the moment. 

[JB3]

On 03/10/2019 at 11:30, silvernewbie said:

This might be outside peoples risk tolerance, but read about Turkish bond (corporates) as a good high yield option, with the stabilising Turkish economy and bonds paying 10%+.  Obviously to reduce risk an etf/fund is better to hold than buying individual corporate bonds

You are pretty much always better off buying bonds through a fund. Bonds are not like stocks - they have a limited upside.

 

If you buy a bond from a single borrower and it does good business, you'll make a little money. If it goes bankrupt, you'll make a 100% loss.

 

The way to avoid this - to 'guarantee' the income while 'avoiding' the loss - is to spread your investment across many bonds from many borrowers. I.e., through a fund.

[vand]

The big risk with something high yielding foreign bonds is the currency risk.

Interest rates are 65% in Argentina right now. Good place to park your money, right? Except you need your money to be at least doubling every year to keep up with the collapsing currency:

https://www.xe.com/currencycharts/?from=USD&to=ARS&view=5Y

It's the same for Turkish bonds and many other of these apparently high interest bearing assets. There's no free lunch.

 

https://www.xe.com/currencycharts/?from=TRY&to=USD&view=5Y

 

TRY has lost well over half its value in the last 5 years. You need some pretty stonking returns to make up for that.

that said, if you expect that the currency has bottomed out and a reversal is on the cards, then it would be a good risk/reward play.

[vand]

A big cycle into value stocks seems to be underway today in what is an otherwise ho-hum day for the market in general

BARC.L +4.8%
AV.L +3.9%
BT.A +4.9%

IAG +5.9%

.. it goes on

[Bullionaire]

1 hour ago, vand said:

A big cycle into value stocks seems to be underway today in what is an otherwise ho-hum day for the market in general

BARC.L +4.8%
AV.L +3.9%
BT.A +4.9%

IAG +5.9%

.. it goes on

Yes. Bt.a up over 6% now. I believe their 5g is launching today in a few cities. Looking good after the slow slide over the last year (plus) anyway

[Bullionaire]

G4s up about 8% as well