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Hi Genghis
Yes I am mainly a HY divi investor. Gets me into a lot of trouble at time, tyeing up funds when SP moves against me.
All my shares are in my SIPP - with 90% chasing HY and 10% for fun/trading.
My biggest holding at 17% of p/f is GSK, which has been battered since last summer.
At current level just over £12 it is worth investigating on risk/reward basis.
My two biggest yielders are tobbaco shares - BATS & IMB. I've only just bought BATS by selling some IMB at a loss as been holding IMB for over 3 years.
If you want to view my full p/f - I have it as a discussion on the "General Chat" forum.
Be warned though as any share I purchase is likely to suffer the CSDI curse (Crap Share Dealing Ideas) as
"CSDI has a natural ability to buy shares just before they drop like a stone and then press the "sell" button just before take off" LOL
Cheers & GL - CSDI
"the company pays out all it's capital in dividend" It wouldn't last long if it did that....all its income, of course.
TBh i could always draw from my ISa and put it back as I've not used this years allownce. But its a bit of a faff, and I was thinking of moving some to a couple of other good yielding stocks that might have more capital upside. I have kept a smallish holding here, and hey ho, I might change my mind b4 deadline, if it doesn't close early.
There are plenty of shares offering similar dividends to this, but not many that offer a combination of relatively high yield and relatively low risk. I'm in, hoping the offer isn't scaled back too severely. GLA. K
Perhaps this will cheer people up a bit. From Shares Magazine yesterday, published before the recent offer announcement:
"THE SHARE PRICE return delivered by Supermarket Income REIT (SUPR) over the last 11 months may not be enough to quicken the pulses but a very steady performance along with a reliable inflation-linked income stream looks attractive after the recent volatility in the bond market.
Results for the six months to 31 December 2020 (2 Mar) reflect the series of acquisitions the company has made with rental income up 76% and pre-tax profit increasing 323.1%. The company raised £200 million to invest in a pipeline of assets in October 2020.
The portfolio’s weighting towards omnichannel supermarkets – located in good locations and able to fulfil online orders and serve shoppers in-store – has been a winning strategy during the Covid-19 pandemic.
Investment bank Jefferies says: ‘Earnings per share were up 12% to 2.8p with the dividend per share (DPS) rising with inflation to 2.93p (+1.7%) with progress made on dividend cover, whilst post-period end acquisitions should see DPS
fully covered on an earnings basis which is a positive step.’"
I can appreciate why people are unhappy about this fundraise, I would have preferred to purchase shares through my ISA too. However, the dilution is minimal, and as I assume most people are here for the dividend yield, it gives the opportunity to buy shares (or more shares) at a small discount, thus slightly improving the yield overall. As someone pointed out, the company pays out all it's capital in dividends, so it will always pay to have funds available to take advantage of these offers as they arise from time to time. Longer-term, shareholders should see benefits.
By doing this thru PrimaryBid, they have locked out investors like me who have their funds in an ISA.
Not impressed with this, i would have taken a chunk, but will now invest elsewhere.
disappointing for the small PI who is not liekly to participate, and therefore suffer dilution leading to lower SP.
Why can't they propose at a premium or at least market price, as a position of strength.
Alternatively offer a rights issue so all can fairly participate.
something to be wary of in future as only bought into this on 30th December.
Was Not expecting any great capital gains but was expecting secure income without big down side, subject to market shenanigans like Covid etc which are always a potential threat.
This increase in capital effectively wipes out the SP rise since 31/12/20 - thanks a bunch !
Yours truly Grumpy - CSDI
CJ66, PrimaryBid shares can't go straight into an isa or sipp, so you should be OK. Have had offer email, but not sure yet.
Received my alert message from PrimaryBid at 12.18 so I think they've been a bit slow off the mark! I'll be buying in my Fund & Share a/c then bed & ISA in the next FY.
...haven't had any alert or notice through either - not that I can do anything as mine are in an ISA - and used yrs limit + don't have £1000 minimum purchase required as spare cash at present,
hence my annoyance below.
Feel like Victor Meldrew now....
No worries, it's appeared now.
Yes I know, I want to buy some but I can't find the offer on PrimaryBid.
Not sure LSE will allow me to send the link but here goes...
https://www.londonstockexchange.com/news-article/SUPR/proposed-issue-of-new-ordinary-shares/14887167
and it is 106p.
I was going to put some in here before the PB offer came out so I think I'll be participating.... if it doesnt fall past 106p ;-)
GLA
It’s 106p
Can anybody see the share offer on PrimaryBid? I haven't received an alert so logged in to the site but no sign of it?
Ugh....problem with REIT's is that they pay out all profits as dividends which is nice, but can only really grow by issuing more shares that they invariably do at a discount so people will take them - thus hard pedaling upwards.
Wouldn't mind too much except that I just topped up at £1.09 and now they have sooner than expected offered more at £1.06.
Small beer, but still a Grrr at the timing....!!
In case you missed our webinar with SUPR the recording and stockopedia report can be found here: https://www.sharesoc.org/seminar/sharesoc-webinar-with-supermarket-income-reit-26-january-2021/
To access the recording, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here: hTTps://www.sharesoc.org/membership/
Once you've joined, you'll receive an invitation to register for our "members network" private social network, from where you'll be able to access the recording (and recordings/reports on 100s of other meetings). If you're already a member and have any difficulty accessing the report, please do not hesitate to contact us here: hTTps://www.sharesoc.org/contact-us/
Yes, but on 2 of the last 2 the cap is /%, and i one the yr review is years away.
And if interest rates rise with inflation, as would seem likely, the gearing can quickly become a disbenefit.
On current expectations of inflation/interest rates, everything is fine and dandy. But higher inflation/rates would provide a double squeeze, at the same time as markets would look for higher equity yields. The caps seem to me heavily weighted in favour of the lessees in that scenario.
Appreciate debt gives gearing, but a low inflation cap could make that a net disbenefit if interest rates rise. Current expectations are low, but things change.
Don’t forget that equity gets levered RPI given the 40% LTV. So 4% inflation becomes 6.67% post gearing from an equity holders perspective. On the slightly lower yield you also need to consider timing of the next 5-year rent review.
The net initial yield on the last 2 purchases was only 4.4% which is very low even balanced up with secure nature of income.
It's quite hard pedaling and won't ever overexcite, when set against the riskier office purchases of 7-8%.
Great for pension type income and I am using these along with WHR balancing some RGL / AEWU.
Average life of the portfolio is 16 years. 90% of it is index linked. The average cap is 4.5+%. Inflation expectations are estimated at 2-3% over the next 10 years.
The one concern for me over these acquisistions is the RPI cap.
If inflation takes off the lessee is protected, whilst SUPR's debt costs rise. Would much rather have traded a slightly lower initial yield for better inflation protection.
We are hosting a webinar with SUPR on Tuesday which may be of interest to shareholders or potential investors: https://www.sharesoc.org/events/sharesoc-webinar-with-supermarket-income-reit-supr-26-january-2021/
CSDI,
I am just looking at this for my pension fund. I am already retired, though still working, and just using it as a tax efficient inheritance wrapper. So between CSDI and me, I am sure we can wreck the share price.