High Yield Portfolio picks

[vand]

The vand HYP is killing it:

[KDave]

A good selection there vand, I have similar set up but with legal and general instead of Aviva (on the list) and a decent amount in oil and gas but I reckon there will be a better time to buy/add to these sectors if we see debt deflation. 

Infrastructure, telecommunications, insurance will all do well when the taps turn on. It seems daft as these are counter cyclical value, low price to earnings and high yield, yet people are still buying big tech and trackers. 

[vand]

The risks:
https://www.investorschronicle.co.uk/shares/2019/10/23/global-dividend-cover-to-hit-10-year-low/
 

"In the UK, 26 FTSE 100 companies are forecast to yield 6 per cent or more this year, according to AJ Bell research. But those dividends are forecast to be covered just 1.56 times by profits. Overall, FTSE 100 shares are expected to produce a dividend yield of 4.8 per cent in 2019, covered 1.63 times by profits, the investment platform said. That is slightly behind 2018 and down on a multiple of two in 2014 when the index's dividends were last twice covered by profits.  "

 

I dunno.. x1.56 cover seems pretty good to me. I do expect some firms to cut the dividend (some already have done so), but I do think that current yields provide good downside support even factoring in some cuts.

 

more

https://www.trustnet.com/news/7459067/how-investors-can-avoid-dividend-traps/

[vand]

IMB.L added today.

With a 10.9% dividend yield I firmly expect to double my money within 8 years on this one. Tobacco stocks always come in for a drubbing about once a decade when there's a big public but outcry, but they always bounce back. 

[vand]

If individual stock picking still scares you then you can choose from the Funds with the highest exposures to the cheapest FTSE100 stocks:

https://www.trustnet.com/news/7459302/the-uk-funds-that-own-the-cheapest-ftse-100-stocks

[vand]

HSBA.L added this morning

As far as banks go, HSBC is a world leader.

Currently trades on a p/e of 11 with dividend yield of 6.6%.

Along with BATS and IMB, they also pay the dividend quarterly. Which Is Nice.

 

I've now filled 70% of my ISA allowance this year.. well on track to max it out. Plan is to max it out for the next 5 years to build another income stream (all of which will be reinvested within the ISA). 

[vand]

A quarter of the FTSE is currently paying 6%+!

https://www.fool.co.uk/investing/2019/10/23/a-quarter-of-ftse-100-offer-6-plus-yields-what-should-isa-investors-do-next/

[AuricGoldfinger]

Im curious but is it possible to generate an income from ISAs and take them as a tax free income into your own personal account? How would it work if you decided not to reinvest?

I do want to build a significant ISA pot by maximising my allowance but i feel the need to build my knowledge first!

 

[Bullionaire]

25 minutes ago, AuricGoldfinger said:

Im curious but is it possible to generate an income from ISAs and take them as a tax free income into your own personal account? How would it work if you decided not to reinvest?

I do want to build a significant ISA pot by maximising my allowance but i feel the need to build my knowledge first!

Yes. You're taxed on the money before it goes in the ISA (income tax). You therefore get to keep all capital gains and Divi money tax free from the ISA, whether you reinvest it, keep as cash in the ISA or take the cash to your bank account. 

[AuricGoldfinger]

Thanks @Bullionaire i get that but is it a simple case of just transferring it or can you set it up to go directly into your bank account, or does it depend on the platform your using?

[Bullionaire]

1 minute ago, AuricGoldfinger said:

Thanks @Bullionaire i get that but is it a simple case of just transferring it or can you set it up to go directly into your bank account, or does it depend on the platform your using?

It'll depend on the platform I suspect. On fidelity international, it let's you choose where you want the money to go for each investment you have. 

[AuricGoldfinger]

Ahh excellent!! That is exactly what i wanted to know! 

[Bullionaire]

10 hours ago, AuricGoldfinger said:

Ahh excellent!! That is exactly what i wanted to know! 

Good stuff. Another hint - if you are going to use the fidelity platform, go via Cavendish. You get to use the fidelity platform but the platform fees are lower than going fidelity direct

[vand]

Worth a read:

https://wise-funds.co.uk/news/in-the-eye-of-the-storm

 

I'm currently mulling over NewRiver REIT (NRR). It's listed on Fidelity, but it won't actually let me buy any... anyone know what's going on with this?

[Bullionaire]

2 hours ago, vand said:

Worth a read:

https://wise-funds.co.uk/news/in-the-eye-of-the-storm

 

I'm currently mulling over NewRiver REIT (NRR). It's listed on Fidelity, but it won't actually let me buy any... anyone know what's going on with this?

I did contact fidelity about REITS a while ago and they said they had made a decision not to offer them (in isas at least, I'm not sure about taxable accounts) due to the taxes / admin associated with them

[vand]

3 hours ago, Bullionaire said:

I did contact fidelity about REITS a while ago and they said they had made a decision not to offer them (in isas at least, I'm not sure about taxable accounts) due to the taxes / admin associated with them

Thanks for that. I have BLND in my ISA, so I guess it isn't a blanket rule.

I guess I'll have to get it through another platform.. any suggestions, anyone? I don't mind if its just in a taxable account TBH. 

[vand]

LOOK.L is an interesting recovery play.

In looking for what to buy I always take note of insider buying... for Lookers it appears as if UK motoring magnate Tony Bramall has been hoovering up as much of these shares as he can get his hands on in the last few months:

https://www.motortrader.com/motor-trader-news/automotive-news/veteran-dealer-tony-bramall-builds-stake-lookers-27-08-2019

http://tools.morningstar.co.uk/uk/stockreport/default.aspx?tab=5&vw=own&SecurityToken=0P00007YXV]3]0]E0WWE%24%24ALL&Id=0P00007YXV&ClientFund=0&CurrencyId=BAS

this guy has been doing this for the last 40 years.. it's a fair bet that he knows a good business opportunity when he sees one.

 

 

[Bullionaire]

43 minutes ago, vand said:

Thanks for that. I have BLND in my ISA, so I guess it isn't a blanket rule.

I guess I'll have to get it through another platform.. any suggestions, anyone? I don't mind if its just in a taxable account TBH. 

I've just re-read the message and yes, it does look like it's only some reits they have. Below is the message I received: 

 

Thank you for your secure message of 20 May, regarding REITs offered on our platform.  
 
 
I have looked and we do not offer the Target Healthcare REIT but we do have the Standard Life Investments Property Income Trust on our platform. You may be able to find this if you search by its ticker code which is SLI or by typing in the full name in the search bar, as I did not find it when using filters on our Investment Finder. 
 
Currently we do not have a large number of REITS on the platform but as our brokerage proposition progresses we may look to add more. Part of the reason for this is because our systems are not set up to be able to offer REITs within an ISA and so they are only available to invest in within an Investment Account. 
 
We only have one nominee account so we have to receive all of the dividends and PID payments with the tax already deducted so we can apply the payments to Investment Accounts correctly. Unfortunately, we do not have the functionality to receive PID payments without the tax deducted. Therefore, if these payments need to be applied to a tax wrapper (i.e. ISA and SIPP) we physically have to reclaim the tax from HMRC, which takes 6-8 weeks to process. 
 
As we do not have any automated process, this would need to be done on a manual basis. Until we have built a way for us to process the sophistication of this, Fidelity has made a business decision to not allow investments into REITs inside of tax wrappers.  

[vand]

I bought more IMB just before it went ex-divi yesterday.

This stock is now yielding 12%.. clearly the market is anticipating a dividend cut, but imo they can afford to trim the diviend by 30-40% to leave them with more cashflow to develop the business and still keep income seekers happy. I would not even be surprised to see them maintain the dividend over the next 12 months.

I think baccy stocks are amongst the biggest bargains on offer right now, and I'm confident that the industry will find new markets to expand in to offset decline in their traditional products. Besides, with 8bn people on the planet and growing, there will always be smokers to see their products to, and they are one of the few businesses that are Amazon-proof.

[Bumble]

Something to remember with tobacco stocks is that many of them are betting their future on vaping products. There is a growing movement that wants vaping banned because of health and safety concerns. It may be an overblown reaction to a few deaths, but it may gain momentum.

[Bullionaire]

Possible future in legal marijuana I suppose. Although I don't think it's anywhere close to being legalised in the UK. 10-20 years down the line maybe

[DoubleEagle]

Looking for a few good UK dividend stocks. ~4% - 6%

One in business / technology

A utility or booze company or tobacco

I can read the financial statements, just need ticker and name of company

I don't usually buy funds, and that's why I am asking! 

[stackspot]

PHNX  Phoenix Group Holdings (Insurance)  ~5.5% is one I use

Check https://www.dividenddata.co.uk/

[vand]

Old stalwart RDSB.L added to the income portfolio. 

p/e 11
divi 6.7%

RDSB holders have not suffered a dividend cut since WWII. #sleepeasy

[vand]

Full portfolio:

IMB.L
BATS.L
HSBA.L
AV.L
RDSB.L
VOD.L
BLND.L
BT.A.L
BARC.L

I'd estimate the portfolio currently yields about 6.5%. 

Almost used my ISA allowance for this year, so I am saving my last bullet in case there is a bigger selloff.