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To deliver a long-term, stable income to shareholders from a diversified portfolio of infrastructure investments positioned at the lower end of the risk spectrum.
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This is ex dividend now but still seems to bve struggling. Broker forecast though looks ok.
Started: Ed1Mil, 22 May 2024 16:41
Last post: Tom78, 22 May 2024 18:10
About time it started they have been twiddling thier thumbs for about 3 months since it was announced.
Around 6% annual div plus 14.99% share buy back launched. Interesting update. Gla
First glance results look ok.
Started: spindok, 17 May 2024 13:44
Last post: Tom78, 20 May 2024 22:17
HFEL is a very different beast to this as it holds equities mainly far east which have rallied strongly with world markets, so its bound to have risen in line. Infrastructure is still in the doldrums and gilt yields remain high historically (5 year timeframe) so until interest rates fall and gilt yields fall this will remain depressed.
I think trusts are suffering because of interest rates. Many are putting thier money into safe havens and getting a return
which almost matches. I never even spotted the dividend rns so I am on the ball....These are difficult times for investors. I have UKW and it has been really good. Just keep taking the dividends and hold.. I am taking in shares at the moment because the sp of most is low..
Started: driftking27, 17 May 2024 12:30
Last post: driftking27, 17 May 2024 12:30
Is this just the market for TRUSTS at the moment, or is there something wrong here?
CTY , HFEL, MUT & HFEL has outperformed HICL so has
Started: driftking27, 30 Apr 2024 14:38
Last post: driftking27, 30 Apr 2024 14:38
Hopefully picks up in May,
Signals still have this as a BUY.
Though HFEL went a similar way before 2020
Riskingit, Tom,
Thanks for the info, bit of a schoolboy error on my part., atb
You should definitely get both payments totalling 2.06p. The amount of interest and dividend varies each time but makes no difference as both come in just like a normal dividend.
Have you checked your account properly? Typically you will get two payments on the pay day - A div payment and an interest payment equal to 2.06
Less than half....clearly rattled.
Looked forward to the 2.06 dividend pay out this a.m. and I find it's .85, half of what I expected. Hicl refer you to the prospectus of 4/3/19 where it states that a divi portion will go for tax purposes.....should have done my homework! gl
Started: driftking27, 19 Mar 2024 18:21
Last post: driftking27, 19 Mar 2024 18:21
BRITISHBULLS has this this morning updated from stay in cash yesterday to STRONG BUY.
Bought in with £5k
Started: driftking27, 17 Mar 2024 15:08
Last post: driftking27, 17 Mar 2024 15:08
This looks a great LONG term play.
I’m selling my SHELL shares next week, had enough of them, keeping BP & CVX as my oilies
On HICL how Many often does top 5 holdings change, if anyone has noticed any changes?
Network Rail must be most heavily indebted co if top 5.
Bouygues 16.99%
Network Rail 7.00%
Mitie 5.00%
Sodexo 4.00%
Siemens 3.00%
Found this on Citywire on Friday.
I wonder when they will commence the buyback? No time like the present I think.
Yeah Tim nice jump following the news - Pretty relaxed hanging on here whilst re-investing the juicy div. Bank rate looks like sticking here for a while so a little patience required.
By the way you from Tickhill near Doncaster?
Excellent news.Repaying expensive debt.Sharebuy back programme should improve share price.Great long term hold for the divi.
All we have is hope.. performance this month has been abysmal. Looks like rates will not be coming down as soon as hoped.
I think this is a good long term hold... I just keep taking the div...
Started: Hope1815, 16 Feb 2024 12:45
Last post: Hope1815, 16 Feb 2024 12:45
Well I have added this morning, with interest rates set to fall in comijg months and the Dividend expected come next month I added more on the outlook.
Happy Investing.
Started: riskingit, 12 Dec 2023 08:17
Last post: riskingit, 12 Dec 2023 08:17
Decent half year results - Bit of patience required whilst interest rates are high but the dividend makes sitting on my hands easier.
Started: Rylander, 25 Oct 2023 20:30
Last post: Rylander, 25 Oct 2023 20:30
Well seems somebody thinks it's worth a go.
https://www.thearmchairtrader.com/hicl-infrastructure-the-byword-for-low-risk-stable-income/
Started: spindok, 3 Oct 2023 13:44
Last post: Poolefox, 11 Oct 2023 18:05
Same for most infrastructure funds and renewable ITs but yes if we are at peak rates this is the time to add
My £10k is now worth £7.8k. And that is with income reinvested over the last few years. What a load of rubbish. Just pray that it will recover as interest rates gradually reduce.
Of HS 1 1/2....
Y, good ol' banging around btw 125 - 121p. Doesn't change the long-term view.
My money would have been better in the building society..
That's the main problem, apart from the last 6 months or so the last decade gave almost zero returns on no risk cash so everybody piled into bonds and infrastructure funds delivering a stable 5% PA. Sadly the worm has turned.
This share is acting more like an AIM than a F 250.... Its lost over 25% in recent weeks....My money would have been better in the building society..
I don't think it's in a 'death spiral', but the narrative that it's 'safe', because of income rising with inflation yadda yadda yadda is very misleading. The divi growth puts me to sleep.
It's failed to attract me in the past, but with the yield now approaching 7% it starts to look like an attractive (small) addition to a conservative portfolio.
Personally, I see Gilt yields going higher and staying their for a very long time, so I doubt that this will see any rapid rise in the near future, but at least the divis look relatively safe? That said, the cover is not very good.
I agree Simon. Sadly until interest rates come back down significantly I can't see this returning to the previous 160-170p range and I think that could be a long time away if ever. HICL is not offering any dividend growth either which is also a negative for the share price.
One positive is plenty of recent director buying so they obviously see upside from here.
Hi there,
Following on from the last comment, I've just come back from my desert island adventures. With good dividends paid out over the last five years and reinvested into the holding, I realise I am still 10.83% down on my original investment. To my mind that isn't a case of ''doing ok''...........far from it.
I think HICL has done all its ever been asked to do. Like Gilts and Bonds infrastructure products became overpriced as every man and his dog piled in. The natural process is then the price falls as those disappointed bail out with their losses. Still a share you could go away to a desert island for 5 years and come back and anticipate it'll still be doing ok
I'm disappointed in the big drop in valuation. I misunderstood the reasoning in investing in these types of funds.
I thought most infrastructure investments were 'relatively' safe because the underlying contracts were inflation linked, so that the income the trust derived would rise proportionally. To me, it was sold (through press commentary and various sites) as a fairly safe bet re yield, but with the prospect of a little capital growth.
I now realise that the price changes a bit like bonds do. If one has high interest rates, the price reduces. As interest rates fall, the sp should recover. Nevertheless, I am annoyed that the 'experts' in the investment industry 'mis-sold' these types of share. Clearly they didn't understand the product themselves!
Started: spindok, 24 Jul 2023 11:07
Last post: Tom78, 14 Aug 2023 18:21
Back down to 125p again. Ten years of share price growth gone in no time at all. until Gilt yield come down this has absolutely had it.
Yes it is currently a boring share but since my last post the sp has risen about 10p. There are loads of hot tips around but years of investing make me very wary. I am just going to hold for the dividends and be patient. You can get 6% on some building societies now but there is no growth. If you want a real boom youhave to gamble on a pharma. Oild stocks are now old hat..
No logic... Still enjoy it while it lasts
I think i read that 80% of hicl income is linked to inflation so long term it should go up. Meanwhile I suppose shareholders have to take it on the chin, as always jam tomorrow.
I understand the falling share price reflects the interest rate rises, but perhaps it is exacerbated by the static dividend. I thought the earnings of most infrastructure investments would rise with inflation, but this does not seem to of been the case for a few years and no sign of a rise in the future.
This is certainly getting hit very hard. Then so are all my renewables. Oil is no better and builders are avoid at all costs.
I am taking dividends in cash and sitting on my hands but with 5.5% being offered on cash it is seen as less risky. You still lose though.
When markets go into reverse nowhere is easy to ride it out but as yet I am not in panic mode.....Will post if I see any new opportunities
Did you add any more spindok? what is your take on this disaster of a share price right now?
I never thought it would go lower than my first 2013 buy of 131p but here we are. All infras and renewables have been massacred of late. What a mess and these are generally considered lower risk!. At least the 2.07p dividend is paid on Friday but it won't be going in here that's for sure.
The dividend is paid on Friday. This always slips just before. May add some but not happy at the market sentiment at present. Time costs little at the moment..
Last post: Mr.Flibbles, 6 Jun 2023 08:51
You'll need to buy inflation-linked bonds. HIC does have options for growth as well as income and asset appreciation. It will be a challenging period but much is factored in now and while interest rates will not go back to zero they could come down as goods inflation comes down. I am sure core will eventually come down.
Discount is at 9.7% on NAV 165p last quoted. Hasn't been like this since the mini budget or covid. Wish I had sold more at 165 now. Any ideas, UK gilt bond yields are still less than yield here 5.5%
Don't blame you. I have held and added for over a decade here but trimmed a few at 165p for better opportunities. Higher interest rates and bond yields have hit the infrastructure funds which are seen as a reliable income stream in a low interest rate environment. Now this has not got much going for I'm afraid. Never quite recovered from the Truss mini budget debacle.
I think I may jump ship soon as I break even 162 and put the money into Greencoat wind as I have a few other infrastructure funds and a pure renewable share might be a more balanced option for me. :-). Not saying that there is anything wrong with HICL .
They can renew the contract at "twenty or so years". I know its not quite the same as for example "twenty or so years" for a windfarm having to replace all its parts including the turbine blades. At least I the "taxpayer" and the income will pay for the re-surfacing of the road etc... Its all factored in and everything nicely goes up with inflation.
Tbh, I dont really understand this business. They buy a road or something and get an income stream for twenty or so years. At the end of twenty years they have no asset because they hand it back to the "taxpayer".
It's not like the dividend is awesome. The dividend doesnt really compensate for the fact that the eventual value of the assets is zero.
I can buy shares in PHP and get a 6% dividend. However at the end of the lease PHP still own the asset and can rent it out again.
Last post: Cardinal3, 21 Dec 2022 18:54
According to the Kepler Research the div is forecast at 8.25p to 2024 ie unchanged. It's only covered 1.03x so dont expect any inflationary uplift any time soon.
Next quarter Q2 dividend declared at 2.06p, same as the last few years. Usually the Q4 dividend is bigger so we will have to wait and see if there is any inflationary increase then.
Inflation in the UK has only been an issue for the last 12 months, so probably takes a while to impact increases in the charges for infrastructure and i think HICL set there dividend payments on an annual basis. Based on that I hope to see an increase in dividends soon, otherwise my theory will start to be disproved by reality
The dividend here has not risen with inflation so far, maybe in the future but things don't look great right now. Had a recent small top up at 153p last week that already looks like a mistake. Those recent participants in the fund raise at 172p must be absolutely kicking themselves.
I think the advantage of infrastructure shares is that income will rise in inflationary times, as most of the contracts allow prices to rise with inflation, so yield should be on the way up?
Last post: riskingit, 23 Nov 2022 11:27
Steady as she goes given the current economic backdrop