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Gerry et al,
"You are the only one that has turned that statement into an assumption that HFEL is paying more out in divis than its earning".
I did not, to be clear HFEL is not paying out more than it is earning. it seems some would like me to state it.
What I stated was the fund pays more than it earns from dividends on the underlying holdings.
To some you say it does not matter to you.
You are not worried about SOI's over distribution then?
Interesting question.
Depends on your objective.
My opinion is that SOI is LIKELY to provide better total returns and dividend growth in the long term.
If you require a higher dividend in the shorter term then HFEL wins hands down. I just think that yield comes with more risk that some people might think.
If HFEL provides a better total return I will be impressed.
Have you heard of efficient market hypothesis?
Gerry
"The distribution isn't more than the earnings though. You appear to be using the term yields to try and justify that it is".
This is not what I mean.
"the 49 holdings yields are less than the actual fund".
This is your quote and you say nobody disagrees.
Gerry,
"I think the mistake is to look at "yield" and work back words"
That is a matter of opinion.
It seems you do not welcome opinions that are different from yours.
In any event this post is not about analysis of the dividend that is probably for another post.
This post is ONLY about the distribution being more than dividends earned by the underlying holdings.
"Websites often make mistakes because they dont get updated in a timely manner. Some are also forward looking and some historic, hence even yield figures can be apples and oranges so you need to check".
Don't see that it matters in this case since almost all websites quote HFEL at 7% + yield.
In any event we all know the historical dividend 23.2p and forward dividend of 23.6p/share price.
Gerry,
"This Edison link is the only one were I quoted the yield at 4.8% current and 5.2% forward written by HFEL themselves."
"It was commissioned by HFEL not written by them. Edision look at HFEL and analyse them and make their expected case for the future".
There was so much detailed information I did not think that article could be written by anyone other than HFEL managers when I have time I will check who are the authors.
Gerry,
However, your yield will fluctuate as the share price fluctuates. If, in example 1 the share price rises by 10% your yield falls to 4.5%.
Of course the yield tells you what you will get per £ invested at that instant.
To all it seems I do not know to calculate yield would you like to help me in HFEL land.
If a share/Investment yields 5% how much will I get for £ invested?
If a share/Investment yields 8% how much will I get for £ invested?
Answers not on a postcard but in replying post.
Hi Gerry
"Looking at the last report for SOI which was the other fund I was considering too and which you mentioned, its earning did not cover its dividend payments". And the yield is much lower.
I thought you said this comparison is meaningless.
Again correct. Same applies to AAIF.
Which is the better investment well that needs a whole new thread.
I can guess what will happen if that debate were to take place on this notice board.
"You have quoted several websites and their take on yield"
Since you mentioned it I have quoted 3 sites 2 for dividend cover which was challenged for being inaccurate and I would agree since they were both different figures.
https://www.edisongroup.com/publication/consistently-high-and-growing-income/29746/
This Edison link is the only one were I quoted the yield at 4.8% current and 5.2% forward written by HFEL themselves.