High Yield shares
Discussion
I find this site https://www.dividenddata.co.uk/ quite useful for a quick comparison. Also Hargreaves Lansdown for more detailed info.
I have used this previously.
https://moneyweek.com/prices-news-charts/performan...
However I now just put money into Vanguard's VHYL ETF.
https://moneyweek.com/prices-news-charts/performan...
However I now just put money into Vanguard's VHYL ETF.
Countdown said:
Because sometimes you need a steady reliable income stream?
Income is nice but I was driving at need for income v it looking nice seeing money coming in.Personally I'm not at the need point and whilst it's nice to see the pennies rolling in it does come off the bottom line of the shares on XD day.
There's a good Terry Smith piece out there somewhere that may help 98elise - I mean this in the nicest possible way but he seemed unsure why his funds had taken a kicking so may also be surprised when the share price drops on dividend day.
I'd look on LemonFool to read up on that kind of thing as it's full of people who focus on high yield.
My view as an amateur is stick to some tried and trusted funds or investment trusts unless you like watching individual shares bouncing up and down, of course maybe that's just what works for me
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hstewie said:
hstewie said:Countdown said:
Because sometimes you need a steady reliable income stream?
Income is nice but I was driving at need for income v it looking nice seeing money coming in.Personally I'm not at the need point and whilst it's nice to see the pennies rolling in it does come off the bottom line of the shares on XD day.
There's a good Terry Smith piece out there somewhere that may help 98elise - I mean this in the nicest possible way but he seemed unsure why his funds had taken a kicking so may also be surprised when the share price drops on dividend day.
I'd look on LemonFool to read up on that kind of thing as it's full of people who focus on high yield.
My view as an amateur is stick to some tried and trusted funds or investment trusts unless you like watching individual shares bouncing up and down, of course maybe that's just what works for me
The drop in my funds did not seem to be correlated to the market drops.
By "lemonfool" do you mean the motleyfool? I think they shut their forums down many years ago, but yes they did have a high yield section in their investment strategies forum. I'll check.
I am retiring at Christmas so will have the time to watch individual shares.
98elise said:
No I absolutely understand why they drop XD. Is a really simple concept
The drop in my funds did not seem to be correlated to the market drops.
By "lemonfool" do you mean the motleyfool? I think they shut their forums down many years ago, but yes they did have a high yield section in their investment strategies forum. I'll check.
I am retiring at Christmas so will have the time to watch individual shares.
Honestly I haven't a clue why it's called "lemonfool", maybe there's some link there, but if you take a look you'll see my point, it's full of retired people running DIY portfolios of all kinds of high yield stuff.The drop in my funds did not seem to be correlated to the market drops.
By "lemonfool" do you mean the motleyfool? I think they shut their forums down many years ago, but yes they did have a high yield section in their investment strategies forum. I'll check.
I am retiring at Christmas so will have the time to watch individual shares.
I would still read the Terry Smith piece and if you haven't already done so watch as many of the Fundsmith AGMs as you can.
https://citywire.co.uk/funds-insider/news/terry-sm...
Food for thought at least as I tend to think the more info the better.
bhstewie said:
hstewie said:98elise said:
No I absolutely understand why they drop XD. Is a really simple concept
The drop in my funds did not seem to be correlated to the market drops.
By "lemonfool" do you mean the motleyfool? I think they shut their forums down many years ago, but yes they did have a high yield section in their investment strategies forum. I'll check.
I am retiring at Christmas so will have the time to watch individual shares.
Honestly I haven't a clue why it's called "lemonfool", maybe there's some link there, but if you take a look you'll see my point, it's full of retired people running DIY portfolios of all kinds of high yield stuff.The drop in my funds did not seem to be correlated to the market drops.
By "lemonfool" do you mean the motleyfool? I think they shut their forums down many years ago, but yes they did have a high yield section in their investment strategies forum. I'll check.
I am retiring at Christmas so will have the time to watch individual shares.
I would still read the Terry Smith piece and if you haven't already done so watch as many of the Fundsmith AGMs as you can.
https://citywire.co.uk/funds-insider/news/terry-sm...
Food for thought at least as I tend to think the more info the better.
Edited to add...
Looks like the Lemon Fool was set up when Motley Fool closed their forums.
https://www.fool.co.uk/help/community/closure-of-t...
Many thanks for pointing me to them as it was a great resource when it was MF and the HYP section is exactly what I need.
Edited by 98elise on Saturday 26th October 10:20
IMO "total return" is the key. "Income" can be pretty irrelevant so long as you're "making money".
For many people additional income would be taxed at 40% whereas their capital gains get a tax free annual allowance and any excess gains are only taxed at 20%.
Even for a basic rate taxpayer 10% CGT (once the tax free allowance has been used) is more attractive than 20% income tax.
Obviously if using an ISA the whole lot is tax free.
Obviously if using a SIPP everything is income (after tax free cash used).
Obviously if using BTL you're stuck with income until you sell at which point there's an additional 8% CGT charge above the usual rate (and it's charged on one big lump so only one annual tax free allowance).
For many people additional income would be taxed at 40% whereas their capital gains get a tax free annual allowance and any excess gains are only taxed at 20%.
Even for a basic rate taxpayer 10% CGT (once the tax free allowance has been used) is more attractive than 20% income tax.
Obviously if using an ISA the whole lot is tax free.
Obviously if using a SIPP everything is income (after tax free cash used).
Obviously if using BTL you're stuck with income until you sell at which point there's an additional 8% CGT charge above the usual rate (and it's charged on one big lump so only one annual tax free allowance).
rockin said:
IMO "total return" is the key. "Income" can be pretty irrelevant so long as you're "making money".
For many people additional income would be taxed at 40% whereas their capital gains get a tax free annual allowance and any excess gains are only taxed at 20%.
Even for a basic rate taxpayer 10% CGT (once the tax free allowance has been used) is more attractive than 20% income tax.
Obviously if using an ISA the whole lot is tax free.
Obviously if using a SIPP everything is income (after tax free cash used).
Obviously if using BTL you're stuck with income until you sell at which point there's an additional 8% CGT charge above the usual rate (and it's charged on one big lump so only one annual tax free allowance).
It would mostly be in SIPP and ISA's. I have BTL which pays my bills, but we're moving out of that.For many people additional income would be taxed at 40% whereas their capital gains get a tax free annual allowance and any excess gains are only taxed at 20%.
Even for a basic rate taxpayer 10% CGT (once the tax free allowance has been used) is more attractive than 20% income tax.
Obviously if using an ISA the whole lot is tax free.
Obviously if using a SIPP everything is income (after tax free cash used).
Obviously if using BTL you're stuck with income until you sell at which point there's an additional 8% CGT charge above the usual rate (and it's charged on one big lump so only one annual tax free allowance).
Edited by 98elise on Sunday 27th October 08:24
98elise said:
I'm looking to diversify my stocks and shares into high yield rather than just growth.
98elise said:
I am retiring at Christmas so will have the time to watch individual shares.
I've seen HYP mentioned a couple of times this week.For anyone in the run up to retirement planning on using this I think it might be worth researching and comparing alternative strategies and ensuring you are happy with whichever path you are choosing.
With HYP (at least the implementation I am familiar with), you are buying a basket of FTSE 100 high yielding stocks.
The portfolio contains 100% equities so doesn't benefit from the dampening effect of having something like bonds in the portfolio. It might be worth understanding what the HYP portfolio performance would've been around 2008-2010 and ensure you are happy with potential falls of that magnitude (including dividend cuts if that's important)
The strategy has a FTSE 100 focus - there is a whole world out there - the portfolio takes on potential country specific risk that you might not be rewarded for.
Does the strategy hold sufficient shares to reduce share specific risk that (again) you might not be rewarded for? I recall it typically has 20 - is that sufficient?
High yield investing is a form of value investing - nothing wrong in that but it is again taking a more concentrated subset of the market which could mean long periods of underperformance, as well as (hopefully) outperformance.
Bogleheads is a great resource to post questions and understand what other people do.
https://www.bogleheads.org/forum/index.php
Some related links
https://en.wikipedia.org/wiki/Value_investing
https://en.wikipedia.org/wiki/Concentration_risk
https://en.wikipedia.org/wiki/Diversification_(fin...
https://en.wikipedia.org/wiki/Idiosyncrasy (Economics)
Best of luck with whatever you decide to do.
drmotorsport said:
I find this site https://www.dividenddata.co.uk/ quite useful for a quick comparison. Also Hargreaves Lansdown for more detailed info.
Should this site https://www.dividendyields.org/dividend-yields-top... give the same answers as your site for FTSE 250, and if not, why not? Asking as an amateur (lost more than I've made) investor!S6PNJ said:
drmotorsport said:
I find this site https://www.dividenddata.co.uk/ quite useful for a quick comparison. Also Hargreaves Lansdown for more detailed info.
Should this site https://www.dividendyields.org/dividend-yields-top... give the same answers as your site for FTSE 250, and if not, why not? Asking as an amateur (lost more than I've made) investor!98elise said:
I am retiring at Christmas so will have the time to watch individual shares.
Never ever watch them as they will only ever drop! Best thing to do is buy and forget about them for a year and just enjoy the dividends rolling in. Occasional pruning is only needed if there's interesting corporate actions or the divi is stopped altogether.98elise said:
I'm looking to diversify my stocks and shares into high yield rather than just growth.
Does anyone know where I can get a table of FTSE100 (and Ideally 250) shares with 2019 Dividend Yield, Yield Coverage, P/E, EPS etc?
My google-fu seems to be letting me down.
The Dividenddata.co.uk site as mentioned is probably the best. Does anyone know where I can get a table of FTSE100 (and Ideally 250) shares with 2019 Dividend Yield, Yield Coverage, P/E, EPS etc?
My google-fu seems to be letting me down.
I would think that the key to making it work is a complete comprehension of the fundamentals of each potential holding so that you know precisely why it is offering a higher yield than it needs to and what the risks are of change. To me the risk is that there are cuts and an associated erosion of share premium as well as yield.
I think it’s an interesting point to discuss though and a colleague and old friend whose views in this area I respect greatly might be able to add proper responses so I’ve pinged him an email to try and get him to start posting on here as he will have some interesting insights.
DonkeyApple said:
I think it’s an interesting point to discuss though and a colleague and old friend whose views in this area I respect greatly might be able to add proper responses so I’ve pinged him an email to try and get him to start posting on here as he will have some interesting insights.
Would be interesting to see his views on the upsides of this approach vs a globally diversified portfolio.Derek Chevalier said:
Would be interesting to see his views on the upsides of this approach vs a globally diversified portfolio.
That’s my thinking. He will come at this from a different angle, one of accepting that some end clients want to actively self manage and tinker and that guidance towards blue chip investments is better than the inevitable investment into penny shares, invisible bamboo farms, fune whines or lead coins. I’ve been trying to get him to write a blog for years as I see mostly the self execution client type and they have such a strong tendency to go punting instead of investing. He’s a perma bear and risk averse so I’d be surprised if he doesn’t have a view on a high yield, blue chip portfolio.
The last time I talked to him about this subject I was asking him of the merits of creating an OTC basket of these stocks and offering it via a spreadbet.
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