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"You could calculate the income from the 49 holdings and compare to the dividend payment outgoings. This would prove one way or another which version is correct".
Per GDP invested yes that is yield.
Yield - cash/capital expressed as a percentage. So yes.
Driftking.
I also have a holding of HFEL.
I think HFEL is over distributing.
The yield is now twice that of SOI and AAIF. After the financial crisis HFEL and SOI had the same yield.
This thread is about SOI.
Personally I am happy with the management and performance of the fund.
It looks like the dividend will soon be covered by earnings.
I will be adding more on weakness.
Gerry,
Since you asked here is the link quoting the yield on the underlying assets of HFEL https://www.edisongroup.com/publication/consistently-high-and-growing-income/29746/
Scroll down to :
Investment Process Income at a reasonable price
"xhibit 12: HFEL portfolio metrics versus indices at 30 June 2021
Metric
HFEL
Dividend yield (%)
4.8
Dividend yield est 12m forward (%)
5.2%"
From the article.
Gerry
I checked the yield on the holdings of the funds.
HFEL issued a document that stated the yield on underlying assets. Not the Final/Interim reports. i am sorry I do not have the link.
I also compared with competing funds Schroders Oriental Income and Aberdeen Asian Income.
All these checks you can do yourself and come to your own conclusion.
When I started investing in this fund it yielded 3,8% and was managed by Micheal Watt. Different style of management obviously. This was more than 20 years ago. Again you can check yourself and come to your own conclusion.
"But you started this thread by casting aspersions on the HFEL yield claiming it is not covered because the (current) yield on the investments HFEL holds are lower than what HFEL pays out. The current yield on any of the investments is irrelevant as all that matters is the cash payout HFEL receives"
Yes this is the main point of the thread.
If you are correct why does Aberdeen Asian Income have a yield of 4% and Schroders Oriental Income 3.7%.
You all don't have to agree with me.
I feel the question is worth asking.
So 24p/240 = 10%. 1s the current yield.
33p/240 = 13.75% = yield on cost.
HFEL 23.5p/293.5 = 7.9% is the current yield for HFEL. By my understanding.
If you buy HFEL today at 293.5p you will get 23.2p in dividends today.
"I have investments made 7 years ago that are yielding 6% at current prices, but are 15% on the price I invested at. I'm getting that real cash, it doesn't drop just because the yield for new investors is lower"?
What yield would you get if you buy those stocks today in the market?
Please list the stocks and we can check the yield.
Or did I get it wrong and you need to quote the yield when you bought the stock either way?
"Because that is pointless! You don't know what price HFEL invested at. The current yield doesn't tell you what they are earning in dividends from their holdings".
They are listed in the reports. Top ten holdings are listed on Trustnet.
Once you know what shares are held there are loads of websites that will quote the yield on those stocks.
"Reported EPS are very tightly regulated. If they report 23.74pps as EPS"
We all know that. I am questioning how they came up with the number given all the points I posted in the OP.
You do not have to be sceptical. It is a free world but I am.
I am concerned that the fund may not be doing what the managers say it is.
Many in these threads say 'just trust the manager'.
The ever rising yield and falling share price suggests some scepticism is warranted.
Should they be able to navigate these markets, keep the dividend intact and return to capital growth we will all be happy but recent performance give some pause for thought.