Member Info for ade2a

Gerry
"that's why we agree with you that the saying is true but pointless"

It seems I am not allowed to have an opinion different from yours.

Gerry,

Ade2a, yes because we understand that the yields in the underlying shares are different to the yield on the fund and not comparable.

What else is there?

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,

"This is my buy yield on the amount invested. If HFEL's share price doubles the yield will half so 8% to 4% but my dividend remains the same in cash terms".

Of course.

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.

Gerry,

Far better without the coded insults.
"I wanted high income from this sector hence I picked this but I also looked at the others".
Nothing wrong with that.

Gerry,

Another error

Two of the sites I quoted by me use the payout ratio not dividend cover sorry everyone.

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,

Made a mistake in one of my replies
Yield = cash/capital expressed as a percentage.
Gives us dividend per £ invested not (GDP)

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.

Hi Gerry,

My view is simple and you have quoted it.
"the 49 holdings yields are less than the actual fund".
This is your quote and you say nobody disagrees.

"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.

Hi Gerry,

Not sure what you are trying to clear up.
My point is simple.
I supplied the supporting evidence as I see it.

YOU DO NOT ALL HAVE TO AGREE WITH ME.

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.