Member Info for Gerry557

Well I have my first dividend bagged.

ade2a, you are comparing apples with oranges. Remember doing fractions at school???? You had to find the common denominator. Well the common denominator is cash not yield.

Either, you dont understand this (which several posters have tried to assist you with) or you do understand but think that the reporting is incorrect, ie the fund manager is telling porkies.

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.

You can lead a horse to water but .................................

You have quoted several websites and their take on yield, which differ. So you know some must be wrong. How have they calculated there different figures? if you dont know its meaningless.

I dont think anyone is disagreeing with you on the point that the 49 holdings yields are less than the actual fund. I dont know if the analogy, " there is no way all these small bricks will make a house" will help you.

Good luck with your investigations and I would be interested to see any findings that you come up with.

ade2a, I think that article helps you out a little. The yield is lower on the shares held because their SP has risen not that they have reduced actual payments. It also states that turnover was 100%. That's quite a lot, hopefully as a long timer, you have seen the changes over time. It states that holdings are generally sold when they reach a pre set value.

So they by some shares 100 at £1 each with a 4% divi. They sell up when £3 and buy different shares yielding 3% although the shares are lower yielding they can afford to pay out more of the fund cos they effectively have 3 times the size in shares at 3%

The higher yielding shares gave 100 x4 =40p the new shares lower yield 300 x3 =90p. Hence why I'm not worried by yields but put more on actual amounts.

Also Edisions "Dividend yield est 12m forward (%)" Note the word estimate. So for this to happen then either the dividend has to be cut or the price has to rise.

They also state "
To date, dividends have been fully covered by income and the trust has a healthy revenue reserve (0.55x the annual dividend at end-H121)." So not expecting a divi cut then.

One final point, that other posters have tried to highlight is what is the yield on amount invested, not what it is right now. Like my eg above.

Any clearer or am I just adding fog

Hi ade2a

Im not sure what conclusion you think I would reach? or trying to achieve. Is it that the yield on the shares held within the fund currently is lower than the yield on the dividend paid by HFEL?

I agree if that is the case. Remember yield is a function of the dividend amount compared to the current share price. As the dividend has been set and is now, baring any major market headaches, fixed at 5.9p x4.

So based on the last set of numbers in the accounts, will pay out £31,651,000 in dividends from a profit of £32,587,000 income. Hence the comment about adding a bit to the reserves. Remember the yield has increased mainly due to the fall in the fund price. You highlighted that yourself.

Im not sure what you are trying to achieve by comparing with SOI and AAIF apart from saying they pay a lower yield. Presumably they add more to the reserve's so as to grow faster. It depends on what you want from your investment. Others dont pay any dividend, zero yield but accumulate for growth.

Can you remember the name of the document HFEL issued regarding the yield on underlying assets, Im sure we can find it.

It sounds like you are unconvinced still by the "yield thing" and have not got your head around it yet, hopefully some actual figures will add another piece to the jigsaw. I also think you need to factor in that it holds reserves to aid payments as well

Happy researching!

by the lack of comment on the new purchase, Springkerse Retail Park, Stirling, for £21.85 million, in an 'off market' transaction. "The price reflects an initial yield of 9.54%". I wonder why it was sold to begin with if its that good.

Apparently it has a Pets at Home. They were looking to cut rents recently so Im not aware if thats the case here.

It should mean an increase in income over the previous Tesco store now sold. Most REITs are moving away from retail, this one toward. Hopefully they can find some gems in the rush to exit by everyone else.

Guitarsolo,
Nothing wrong with boring and predictable imo. Im not sure that this is that steady. I jumps about inter day quite a bit, sometimes 3-5%. On my last purchase it dropped 2p from selecting, to actually getting the buy order. Glad it didnt rise! I suppose I could start a watchlist of shares in the fund, if I could be bothered. Realistically the underlying shares move when the market is open so why not the fund.

I wasnt convinced if ade2a had used a particular website to get a yield figure that was causing the issue. I know myself, websites often dont update information in a timely fashion. Ive had dividend cancellations only to see sites still displaying a yield figure.

I suppose we have to be grateful for any rise under the current circumstances. Happy with little and often on the divi front. The last lot coming close to 8%. Im not sure if you can get charts that show buy yield over time, might be more useful than prices.

ade2a

Did you get this sorted out in your head. Hopefully Guitar has put you on the right path.

Personally I wished they hadn't sold off the other half but first world problems eh. The buy back would have created more but less than anticipated at these high prices. It was as if the buy back was complete.

Even so £11 isnt cheap and the yield would still be blow 3%. Added to that the regulator reducing prices and costs not to mention free shares to customers it doesnt bode well for shareholders. I wonder what will happen to all the 1 2 or 3 share holders over time. How long does it take to build up a meaningful holding as a customer.

With little or no debt, which would be good news generally, there wouldn't be any leverage on the balance sheet. Unless they are lining up something to buy but that boat seems to have sailed.

I think my repurchase is following the ship. I had a good journey but one day my boat might come in or is that back. As long as it brings a decent divi . Good luck all.

I'm not visiting as often either. The price is too high and the yield too low, well for a utility anyway. I can't understand buying back at all time highs.

Yes they are in a strong position but even so, its too high a price for a rosy looking Outlook. National Grid might be a better buy if you want a utility.

My pennon rebuy now looks out of the window. I don't know if it's peaked but it would have to fall quite a bit to entertain me. I suspect we will hit the run up to Christmas soon, I don't know if this will follow but might stop it dropping as much. Maybe a steady set of figures will show that it's looks shinier that it is.

I was calculating my yield on 5.9 x1 and 5.8 x3 past dividends. The norm appears to be x4 equal payments based on past history so I'm going to adjust my figures accordingly. I might be counting chickens etc but I will risk it.

Well I have added some more. The dip helped although it dropped a bit more afterwards. I will have a dividend payment to come shortly too and the next one should be bigger.

The yield on these will be slightly higher than the last lot although the payment will most likely be the same per share. I thought I'm missed the chance to buy under 300p

Hi Loggylogbot. Unfortunately this came across my bows recently and a buy was initiated pretty quickly without too much research. More luck that any special research although I do have others in the same arena so it wasn't totally out of field.

I struggle with the sell side of things, so the income resolves that side for me as I only have to concentrate on more buying from the small "effective" sells that is the dividend. I was hoping this would remain under the radar a little longer but realise that the big seller looks to have sold. Maybe I should be looking at why they sold?

This impulse buy has, at the moment, done well. Maybe I should be more impulsive or look at the person who pointed this out to me a bit more

Wasn't really expecting 13 quid

LoggyLogbot.

I think I focus on the now too much rather than think where we might be in say 5 years time. Now 75p "seems" expensive even with a 15% discount. Hindsight will probably say you shudda just sucked it up!

I wonder if the recent dip in the share price was correlated with the Chinese market sell off. I forget what holdings this actually has, some dont even mean much too me as I have a hard enough time trying to figure out my own UK holdings hence why I pay the fund manager to sort the details for me

The biggest holding, China Construction Bank is down over 10% this month. I just looked. I suppose I could set up a watch list of some of its holdings.

Anyway things creeping back up.

LoggyLogbot, or last years price!

Well I have received my first EPIC divi but haven't bought any more as the price rose, then kept on rising. Its doing it again today.

No problems with broker payments generally who do you use that causes you an issue.

Well I was expecting a lower SP this morning and with the equity issue I'm quite surprised that buying pre divi was, at this moment in time, the better decision.

I also think that this is an "income" investment rather than much capital return type thing. If that's what you really want then I would sell and move to something else, with a lower divi yield. Id be happy if it stayed this price for the next 10 years providing the income increases over time. You could of course calculate the XIRR which would account for time a bit better.

I think this is a tool in a tool box, you dont always need a dumpy screwdriver but they are handy for some occasions and invaluable at times. You wouldn't want a tool kit without it. For me it was also about balance with my UK investments.

It is still proving you with income so there is much more to come even if you dont add any more of these.

Thechukkers yes you are correct there are many perspectives. I suspect in time 80p might look cheap. I remember watching PNN drop to 631 and waiting for it to reach my limit order set at the nice round number of 630. I refused to just hit the buy button because of a penny Then it drifted up and away. Hindsight is always great though and I have probably done the same again here. Most people would be happy to be 10% up in a matter of days.

zac0_4, its not just HFEL that suffered. Lots of dividend/high yield stocks, cut or reduced payments and their share prices tumbled. Look at the banks that were forced to stop dividend payments.

There are times when the market drags everything down, Covid and financial crash are examples. If you understand why and its temporary issue then it is a good time to buy as longtimeinvestor highlights. The problem is most people dont cos it looks bad and by the time things look better the SP has risen. When things are rosy you pay a much higher price. Hence buy the dips, saying.

If you were happy before, then buying 17% cheaper looks good to me whist it climbs that wall of worry. The lower the entry point the more flex you have when future dips come. That dividend also gives you the cash to buy more cheaper shares thereby reducing your over all costs, increasing the portfolio and having even more cash for the next time. I like lower prices but Im a buyer. Things might change one day then Ill want all the spare prices to rise cos then Ill be a seller. Still with this you can take the divi without having to sell so its probable better with time in the market than actual timing of the market. A low price doesn't mean the lowest price. So funkhouser I would be too worried as it likely to look like a blip in 10 years time

My initial plan was to top up after the ex divi date as I expected it to be 5.9p lower, then the equity issues kicked in which I think had an effect. We should still get the dip tomorrow but will it drift lower over time without the divi support. Ill keep watching but suspect we will be back in the 320s in time.

I suppose the premium on the price needs to be accounted for and might take a while to feed through so now to wait and see where we go. I think my account will be in the red for a little while until Ive had a few dividends coming in. Will winter cause another covid bout and another market dip who knows but there is always a black swan somewhere, so be a boy scout and be prepared

In the end tried a limit order in case the shenanigans sorted itself out. That didnt work but was able to grab some this morning whilst out n about. I dont normally like trading on my phone, in case I miss read something.

The equity releases at a small premium should aid current holders but there is normally action to control the premium -discount. Has not been 350 for a while now but the lower price gives you a bigger buy yield. I think this is more about the yield rather than capital gain.

I suspect compounding will make a bigger difference if you can do that to get the same as capital gain.

Anyway happy to get a few extra and a bigger bump to the divi. I wasnt expecting that either but I shouldnt be surprised by Mr Market

Yes and its not encouraging me to get back in. I though things would be different. Im not sure this share price has been higher. Whats that saying "buy high ........"

I suppose they have money to burn, have told the market in advance and cant do much about it. Maybe they should have overpaid by 44% for another company instead of the buy back or better still pay it to the shareholders so they can decide when to buy. Most would do a better job than the board acting as investors.