The Lemon Fool

Posted: **May 7th, 2024, 3:00 am**

Year Six – 05 May 2024

This is a report on the Drawdown version of the “virtual” HYP constructed by pyad, as recorded on this thread: viewtopic.php?f=15&t=16868&start=140 and subsequently managed by myself.

A thread detailing the progress during the Year One can be found here: viewtopic.php?p=225865#p225865
A thread detailing the progress during the Year Two can be found here: viewtopic.php?p=323586#p323586
A thread detailing the progress during the Year Three can be found here: viewtopic.php?f=15&t=33976
A thread detailing the progress during the Year Four can be found here: viewtopic.php?f=15&t=34668
A thread detailing the progress during the Year Five can be found here: viewtopic.php?f=15&t=39747

Further details of how updates are to be made to this portfolio can be found on this thread: viewtopic.php?p=218513#p218513

Progress Review: 05 May 2024

Current Portfolio: Holdings

EPIC | Company                   | Shares  | Cost (£)   | Price (p)   | Value (£)    | Value (%) | P/L (£)     | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£) | Year Div (%)
IMB  | Imperial Brands           |    988  | 21,739.68  | 1,826.0000  |   18,040.88  |     6.98% |  -3,698.80  |      0.00  |     6,086.43  |   2,387.63  |        8.04% |    1,450.58  |       11.00%
WPP  | WPP                       |  1,780  | 14,997.55  |   812.6000  |   14,464.28  |     5.60% |    -533.27  |      0.00  |     3,018.88  |   2,485.61  |        4.85% |      701.32  |        5.32%
ITV  | ITV                       | 11,652  | 14,999.08  |    72.0000  |    8,389.44  |     3.25% |  -6,609.64  |    384.51  |     2,097.33  |  -4,127.80  |        6.94% |      582.60  |        4.42%
HSBA | HSBC Holdings             |  2,425  | 14,998.27  |   705.5000  |   17,108.38  |     6.62% |   2,110.11  |      0.00  |     2,708.69  |   4,818.80  |        4.52% |      773.27  |        5.86%
ABDN | Abrdn PLC                 |  5,503  | 14,997.65  |   155.2000  |    8,540.66  |     3.30% |  -6,456.99  |      0.00  |     5,189.23  |  -1,267.76  |        9.41% |      803.43  |        6.09%
IGG  | IG Grp Holdings           |  2,762  | 14,999.32  |   769.5000  |   21,253.59  |     8.22% |   6,254.27  |      0.00  |     6,065.29  |  12,319.56  |        5.91% |    1,256.71  |        9.53%
AV   | Aviva                     |  3,141  | 12,830.98  |   472.0000  |   14,825.52  |     5.74% |   1,994.54  |    700.44  |     4,450.24  |   7,145.22  |        7.08% |    1,049.09  |        7.96%
DLG  | Direct Line Insurance Grp |  1,640  |  4,201.94  |   186.5000  |    3,058.60  |     1.18% |  -1,143.34  |     65.60  |       124.64  |    -953.10  |        2.14% |       65.60  |        0.50%
HLN  | Haleon PLC                |    941  |  2,723.59  |   329.9000  |    3,104.36  |     1.20% |     380.77  |     39.52  |        39.51  |     459.80  |        1.82% |       56.46  |        0.43%
GSK  | GSK PLC                   |    752  | 11,986.74  | 1,733.5000  |   13,035.92  |     5.04% |   1,049.18  |      0.00  |     3,155.30  |   4,204.48  |        3.46% |      451.20  |        3.42%
IBST | Ibstock                   |  5,849  | 14,999.47  |   153.0000  |    8,948.97  |     3.46% |  -6,050.50  |      0.00  |     1,813.15  |  -4,237.35  |        4.58% |      409.43  |        3.10%
SMDS | DS Smith                  |  4,310  | 14,997.11  |   361.6000  |   15,584.96  |     6.03% |     587.85  |      0.00  |     2,900.63  |   3,488.48  |        4.98% |      775.80  |        5.88%
BA   | BAE Systems               |  3,043  | 14,995.20  | 1,361.5000  |   41,430.45  |    16.03% |  26,435.25  |    562.95  |     3,764.14  |  30,762.34  |        2.20% |      912.90  |        6.92%
LAND | Land Securities Grp       |    818  |  7,499.19  |   667.0000  |    5,456.06  |     2.11% |  -2,043.13  |      0.00  |     1,349.25  |    -693.88  |        5.92% |      323.11  |        2.45%
BLND | British Land Company      |  1,273  |  7,494.24  |   403.6000  |    5,137.83  |     1.99% |  -2,356.41  |      0.00  |     1,215.33  |  -1,141.08  |        5.75% |      295.33  |        2.24%
BHP  | BHP Grp                   |    838  | 14,992.51  | 2,241.0000  |   18,779.58  |     7.27% |   3,787.07  |      0.00  |     6,410.89  |  10,197.96  |        5.41% |    1,015.43  |        7.70%
BP   | BP                        |  1,717  |  9,379.72  |   510.4000  |    8,763.57  |     3.39% |    -616.15  |      0.00  |     1,842.96  |   1,226.81  |        4.54% |      398.04  |        3.02%
SHEL | Shell                     |    309  |  7,481.66  | 2,858.5000  |    8,832.77  |     3.42% |   1,351.11  |      0.00  |     1,393.25  |   2,744.36  |        3.84% |      338.95  |        2.57%
WDS  | Woodside Energy Grp Ltd   |    151  |  2,565.55  | 1,424.0000  |    2,150.24  |     0.83% |    -415.31  |      0.00  |       491.08  |      75.77  |        7.84% |      168.52  |        1.28%
VOD  | Vodafone Grp              | 10,077  | 14,998.48  |    68.4400  |    6,896.70  |     2.67% |  -8,101.78  |      0.00  |     3,892.64  |  -4,209.14  |       11.26% |      776.68  |        5.89%
CCL  | Carnival Corp.            |    384  | 14,979.79  | 1,059.0000  |    4,066.56  |     1.57% | -10,913.23  |      0.00  |       610.18  | -10,303.05  |        0.00% |        0.00  |        0.00%
PNN  | Pennon Grp                |  1,266  | 10,265.43  |   698.5000  |    8,843.01  |     3.42% |  -1,422.42  |      0.00  |     2,451.07  |   1,028.65  |        6.59% |      582.86  |        4.42%
     |                           |         |            |             |              |           |             |            |               |             |              |              |             
     |                           |         |            |             |              |           |             |            |               |             |              |              |             
     | Sub Total:                |         |            |             | £256,712.33  |    99.32% | -£6,410.82  | £1,753.02  |               |             |        5.14% |  £13,187.31  |             
     | Cash Balance:             |         |            |             |       £0.00  |     0.00% |             |            |               |             |              |              |             
     | Ex-Dividend:              |         |            |             |   £1,753.02  |     0.68% |             |            |               |             |              |              |             
     |                           |         |            |             |              |           |             |            |               |             |              |              |             
     | Current Value:            |         |            |             | £258,465.35  |           |             |            |               |             |              |              |             
     | From:                     |         |            |             |              |           |             |            |               |             |              |              |             
     | Cash In:                  |         |            |             | £254,904.77  |           |             |            |               |             |              |              |             
     | LESS Cash Out:            |         |            |             | -£62,905.01  |           |             |            |               |             |              |              |             
     | Dividends Rec'd:          |         |            |             |  £62,030.89  |           |             |            |               |             |              |              |             
     | Ex-Dividend:              |         |            |             |   £1,753.02  |           |             |            |               |             |              |              |             
     | Realised P/L:             | [2]     |            |             |   £9,092.50  |           |             |            |               |             |              |              |             
     | UnRealised P/L:           |         |            |             |  -£6,410.82  |           |             |            |               |             |              |              |             
     |                           |         |            |             |              |   XIRR    |             |            |               |             |              |              |             
     | Total:                    |         |            |             | £258,465.35  |   5.14%   |             |            |               |             |              |              |

Current Portfolio: Business Sectors

Business           |  Cost (£)  |  Value (£)  |  Value (%)  |  P/L (£)    |  Ex-Div (£)  |  Div Rec'd (£)  |  Overall (£)  | Y'ld (%) [1] |  Year Div (£)  |  Year Div (%) 
Weapons            | 14,995.20  |  41,430.45  |      16.03% |  26,435.25  |      562.95  |       3,764.14  |    30,762.34  |        2.20% |        912.90  |          6.92%
Gambling           | 14,999.32  |  21,253.59  |       8.22% |   6,254.27  |        0.00  |       6,065.29  |    12,319.56  |        5.91% |      1,256.71  |          9.53%
Oil                | 19,426.93  |  19,746.58  |       7.64% |     319.65  |        0.00  |       3,727.29  |     4,046.94  |        4.59% |        905.51  |          6.87%
Mining             | 14,992.51  |  18,779.58  |       7.27% |   3,787.07  |        0.00  |       6,410.89  |    10,197.96  |        5.41% |      1,015.43  |          7.70%
Tobacco            | 21,739.68  |  18,040.88  |       6.98% |  -3,698.80  |        0.00  |       6,086.43  |     2,387.63  |        8.04% |      1,450.58  |         11.00%
Banks              | 14,998.27  |  17,108.38  |       6.62% |   2,110.11  |        0.00  |       2,708.69  |     4,818.80  |        4.52% |        773.27  |          5.86%
Packaging          | 14,997.11  |  15,584.96  |       6.03% |     587.85  |        0.00  |       2,900.63  |     3,488.48  |        4.98% |        775.80  |          5.88%
Insurance: Life    | 12,830.98  |  14,825.52  |       5.74% |   1,994.54  |      700.44  |       4,450.24  |     7,145.22  |        7.08% |      1,049.09  |          7.96%
Advertising        | 14,997.55  |  14,464.28  |       5.60% |    -533.27  |        0.00  |       3,018.88  |     2,485.61  |        4.85% |        701.32  |          5.32%
Pharma             | 11,986.74  |  13,035.92  |       5.04% |   1,049.18  |        0.00  |       3,155.30  |     4,204.48  |        3.46% |        451.20  |          3.42%
Real Estate IT     | 14,993.43  |  10,593.89  |       4.10% |  -4,399.54  |        0.00  |       2,564.58  |    -1,834.96  |        5.84% |        618.44  |          4.69%
Bricks             | 14,999.47  |   8,948.97  |       3.46% |  -6,050.50  |        0.00  |       1,813.15  |    -4,237.35  |        4.58% |        409.43  |          3.10%
Utility: Water     | 10,265.43  |   8,843.01  |       3.42% |  -1,422.42  |        0.00  |       2,451.07  |     1,028.65  |        6.59% |        582.86  |          4.42%
Fund Manager       | 14,997.65  |   8,540.66  |       3.30% |  -6,456.99  |        0.00  |       5,189.23  |    -1,267.76  |        9.41% |        803.43  |          6.09%
Television         | 14,999.08  |   8,389.44  |       3.25% |  -6,609.64  |      384.51  |       2,097.33  |    -4,127.80  |        6.94% |        582.60  |          4.42%
Telecom: Mobile    | 14,998.48  |   6,896.70  |       2.67% |  -8,101.78  |        0.00  |       3,892.64  |    -4,209.14  |       11.26% |        776.68  |          5.89%
Cruising           | 14,979.79  |   4,066.56  |       1.57% | -10,913.23  |        0.00  |         610.18  |   -10,303.05  |        0.00% |          0.00  |          0.00%
Medical Products   |  2,723.59  |   3,104.36  |       1.20% |     380.77  |       39.52  |          39.51  |       459.80  |        1.82% |         56.46  |          0.43%
Insurance: NonLife |  4,201.94  |   3,058.60  |       1.18% |  -1,143.34  |       65.60  |         124.64  |      -953.10  |        2.14% |         65.60  |          0.50%

[1] - Yield and Forecast Income are based on my own Share Database Spreadsheet and are essentially calculated from the dividends that would have been earned over the previous 12 months, unless the company itself has clearly indicated otherwise.

[2] - Realised Profit and Loss & Return of Capital – To Date

Date      | EPIC | Name                      | Real P&L (£) | Event                                                                       
20-Sep-19 | BHP  | BHP Group                 |      550.49  | Return of Capital                                                           
20-Sep-19 | IBST | Ibstock                   |      292.45  | Return of Capital                                                           
09-Oct-19 | GNK  | Greene King               |    4,188.29  | Profit from Sale – Pending Takeover                                         
16-Jul-21 | PNN  | Pennon Group              |    1,612.39  | Return of Capital - Share Consolidation                                     
16-May-22 | AV   | Aviva                     |      150.92  | Return of Capital - Share Consolidation                                     
25-May-22 | BHP  | BHP Group                 |    2,565.55  | Return of Capital - Woodside Energy Group (WDS) shares                      
18-Jul-22 | GSK  | GSK PLC                   |     -275.74  | Return of Capital - Haleon PLC (HLN) shares - Share Consolidation           
24-Oct-22 | WDS  | Woodside Energy Group Ltd |        8.15  | Return of Capital - Woodside Energy Group (WDS) shares - Share Consolidation
          |      |                           |              |                                                                             
          |      | Total                     |   £9,092.50  |

Portfolio Transactions: Year Six

None

Quarterly Portfolio Income: Withdrawn To-Date

Year Start | 05 Jul    | 05 Oct    | 05 Jan    | 05 Apr    | Total       | Year End 
06-Apr-19  | 3,919.13  | 4,576.80  | 3,671.16  | 2,508.15  | £14,675.24  | 05-Apr-20
06-Apr-20  | 1,304.18  | 2,809.72  | 1,954.66  | 2,497.89  |  £8,566.45  | 05-Apr-21
06-Apr-21  | 2,380.96  | 3,470.79  | 2,922.75  | 2,743.56  | £11,518.06  | 05-Apr-22
06-Apr-22  | 3,457.24  | 4,193.51  | 3,136.00  | 2,902.71  | £13,689.46  | 05-Apr-23
06-Apr-23  | 3,480.36  | 4,245.58  | 2,990.75  | 2,538.92  | £13,255.61  | 05-Apr-24
06-Apr-24  | 1,200.19  |           |           |           |  £1,200.19  | 05-Apr-25

Portfolio Income: Forecast Monthly Withdrawals

Date      | Income (£) 
05-Jun-24 |   1,963.58 
05-Jul-24 |   1,025.17 
05-Aug-24 |     740.69 
05-Sep-24 |     405.12 
04-Oct-24 |   2,778.55 
05-Nov-24 |   1,261.98 
05-Dec-24 |     548.02 
03-Jan-25 |   1,119.57 
05-Feb-25 |     758.88 
05-Mar-25 |     374.52 
04-Apr-25 |   1,427.17 
02-May-25 |     783.89 
          |            
12 Months | £13,187.14 
Average   |  £1,098.93

Portfolio Income: Comments

A further £12,803.25 is currently forecast to be withdrawn during this current financial year – to 05 April 2025 – giving a forecast for the whole year of £13,603.44. This full year forecast amount represents an increase over last year’s total of 2.56%. It should also be noted that such a total in Year Six, welcome as it will be, is still short of the amount received in Year One.

Mind you, my forecasts at this early part of the year are mostly an assumption that last year’s dividend will be simply maintained. We shall see in due course.

Portfolio Value: To Date

The value of the portfolio has been recorded at the end of each quarter as follows:

Year Start | 05 Jul      | 05 Oct      | 05 Jan      | 05 Apr      | Year End 
06-Apr-19  | 255,788.16  | 253,439.06  | 282,038.76  | 184,255.31  | 05-Apr-20
06-Apr-20  | 210,241.80  | 199,923.48  | 228,333.53  | 243,598.51  | 05-Apr-21
06-Apr-21  | 251,495.87  | 239,861.05  | 252,613.80  | 255,457.52  | 05-Apr-22
06-Apr-22  | 228,631.50  | 224,572.00  | 247,653.54  | 244,503.41  | 05-Apr-23
06-Apr-23  | 229,945.43  | 224,648.53  | 245,696.34  | 251,547.00  | 05-Apr-24

Portfolio Value: Comments

As a High Yield Portfolio (HYP) the Capital Value is very much of secondary interest.

Next Actions Required

1. - HSBA – HSBC PLC: Special Dividend

I recognise such a payment as a Return of Capital (RoC). The amount to be received, around £450.00, is sufficient in my view to be re-invested within the portfolio. This re-investment will take place on 10 May 2024.

2. - SMDS – DS Smith PLC: All-Share Takeover

New York based International Paper Company (IP) has proposed an all-share takeover of SMDS. As I understand it SMDS shareholders will receive 0.1285 shares of IP for each SMDS share held, giving this portfolio an IP holding of 553 shares, plus a small residue. It is intended that IP will have a secondary listing in London, so this holding will be maintained going forward.

Next Progress Review: Year Ending 05 April 2025 - End of Quarter One

A report on the continuing progress of the portfolio will be produced on, or soon after, the 05 July 2024

Should anyone wish to comment on this review, or any actions taken in the management of this virtual HYP Portfolio, then please do so but only on this related thread: viewtopic.php?f=15&t=43329

The intention is to keep this thread simply recording the events and progress of the Portfolio during its fifth year.

Enjoy!

Ian

Posted: **July 5th, 2024, 9:27 pm**

Year Six: End of Quarter One – 05 July 2024

This is a report on the Drawdown version of the “virtual” HYP constructed by pyad, as recorded on this thread: viewtopic.php?f=15&t=16868&start=140 and subsequently managed by myself.

A thread detailing the progress during the Year One can be found here: viewtopic.php?p=225865#p225865
A thread detailing the progress during the Year Two can be found here: viewtopic.php?p=323586#p323586
A thread detailing the progress during the Year Three can be found here: viewtopic.php?f=15&t=33976
A thread detailing the progress during the Year Four can be found here: viewtopic.php?f=15&t=34668
A thread detailing the progress during the Year Five can be found here: viewtopic.php?f=15&t=39747

Further details of how updates are to be made to this portfolio can be found on this thread: viewtopic.php?p=218513#p218513

Progress Review: 05 July 2024

Current Portfolio: Holdings

EPIC | Company                   | Shares  | Cost (£)   | Price (p)   | Value (£)    | Value (%) | P/L (£)     | Ex-Div (£) | Div Rec'd (£) | Overall (£) | Y'ld (%) [1] | Year Div (£) | Year Div (%)
IMB  | Imperial Brands           |    988  | 21,739.68  | 2,039.0000  |   20,145.32  |     7.73% |  -1,594.36  |      0.00  |     6,308.23  |   4,713.87  |        7.28% |    1,467.57  |       11.32%
WPP  | WPP                       |  1,780  | 14,997.55  |   743.8000  |   13,239.64  |     5.08% |  -1,757.91  |      0.00  |     3,453.20  |   1,695.29  |        5.30% |      701.32  |        5.41%
ITV  | ITV                       | 11,652  | 14,999.08  |    83.9000  |    9,776.03  |     3.75% |  -5,223.05  |      0.00  |     2,481.84  |  -2,741.21  |        5.96% |      582.60  |        4.50%
HSBA | HSBC Holdings             |  2,425  | 14,998.27  |   673.6000  |   16,334.80  |     6.26% |   1,336.53  |      0.00  |     2,899.11  |   4,235.64  |        4.70% |      767.10  |        5.92%
ABDN | Abrdn PLC                 |  5,503  | 14,997.65  |   159.8500  |    8,796.55  |     3.37% |  -6,201.10  |      0.00  |     5,189.23  |  -1,011.87  |        9.13% |      803.43  |        6.20%
IGG  | IG Grp Holdings           |  2,762  | 14,999.32  |   838.0000  |   23,145.56  |     8.88% |   8,146.24  |      0.00  |     6,065.29  |  14,211.53  |        5.43% |    1,256.71  |        9.70%
AV   | Aviva                     |  3,141  | 12,830.98  |   471.4000  |   14,806.68  |     5.68% |   1,975.70  |      0.00  |     5,150.68  |   7,126.38  |        7.09% |    1,049.09  |        8.10%
DLG  | Direct Line Insurance Grp |  1,640  |  4,201.94  |   196.5000  |    3,222.60  |     1.24% |    -979.34  |      0.00  |       190.24  |    -789.10  |        2.04% |       65.60  |        0.51%
HLN  | Haleon PLC                |    941  |  2,723.59  |   325.5000  |    3,062.96  |     1.18% |     339.37  |      0.00  |        79.03  |     418.40  |        1.84% |       56.46  |        0.44%
GSK  | GSK PLC                   |    752  | 11,986.74  | 1,511.0000  |   11,362.72  |     4.36% |    -624.02  |    112.80  |     3,155.30  |   2,644.08  |        3.97% |      451.20  |        3.48%
IBST | Ibstock                   |  5,849  | 14,999.47  |   179.2000  |   10,481.41  |     4.02% |  -4,518.06  |      0.00  |     2,023.71  |  -2,494.35  |        3.91% |      409.43  |        3.16%
SMDS | DS Smith                  |  4,310  | 14,997.11  |   418.0000  |   18,015.80  |     6.91% |   3,018.69  |      0.00  |     2,900.63  |   5,919.32  |        4.31% |      775.80  |        5.99%
BA   | BAE Systems               |  3,043  | 14,995.20  | 1,262.5000  |   38,417.88  |    14.73% |  23,422.68  |      0.00  |     4,327.09  |  27,749.77  |        2.38% |      912.90  |        7.04%
LAND | Land Securities Grp       |    818  |  7,499.19  |   638.0000  |    5,218.84  |     2.00% |  -2,280.35  |     98.97  |     1,349.25  |    -832.13  |        6.21% |      323.92  |        2.50%
BLND | British Land Company      |  1,273  |  7,494.24  |   415.2000  |    5,285.50  |     2.03% |  -2,208.74  |    135.44  |     1,215.33  |    -857.97  |        5.49% |      290.24  |        2.24%
BHP  | BHP Grp                   |    838  | 14,992.51  | 2,322.0000  |   19,458.36  |     7.46% |   4,465.85  |      0.00  |     6,410.89  |  10,876.74  |        5.18% |    1,007.32  |        7.77%
BP   | BP                        |  1,717  |  9,379.72  |   482.2000  |    8,279.37  |     3.18% |  -1,100.35  |      0.00  |     1,940.52  |     840.17  |        4.77% |      394.86  |        3.05%
SHEL | Shell                     |    309  |  7,481.66  | 2,862.0000  |    8,843.58  |     3.39% |   1,361.92  |      0.00  |     1,476.49  |   2,838.41  |        3.80% |      336.24  |        2.59%
WDS  | Woodside Energy Grp Ltd   |    151  |  2,565.55  | 1,536.0000  |    2,319.36  |     0.89% |    -246.19  |      0.00  |       491.08  |     244.89  |        7.21% |      167.18  |        1.29%
VOD  | Vodafone Grp              | 10,077  | 14,998.48  |    70.3200  |    7,086.15  |     2.72% |  -7,912.33  |    384.29  |     3,892.64  |  -3,635.40  |        8.16% |      578.03  |        4.46%
CCL  | Carnival Corp.            |    384  | 14,979.79  | 1,231.5000  |    4,728.96  |     1.81% | -10,250.83  |      0.00  |       610.18  |  -9,640.65  |        0.00% |        0.00  |        0.00%
PNN  | Pennon Grp                |  1,266  | 10,265.43  |   602.5000  |    7,627.65  |     2.93% |  -2,637.78  |      0.00  |     2,451.07  |    -186.71  |        7.36% |      561.72  |        4.33%
     |                           |         |            |             |              |           |             |            |               |             |              |              |             
     | Sub Total:                |         |            |             | £259,655.72  |    99.57% | -£3,467.43  |   £731.50  |               |             |        4.99% |  £12,958.72  |             
     | Cash Balance:             |         |            |             |     £399.89  |     0.15% |             |            |               |             |              |              |             
     | Ex Dividend:              |         |            |             |     £731.50  |     0.28% |             |            |               |             |              |              |             
     |                           |         |            |             |              |           |             |            |               |             |              |              |             
     | Current Value:            |         |            |             | £260,787.11  |           |             |            |               |             |              |              |             
     | From:                     |         |            |             |              |           |             |            |               |             |              |              |             
     | Cash In:                  |         |            |             | £254,904.77  |           |             |            |               |             |              |              |             
     | LESS Cash Out:            |         |            |             | -£65,895.93  |           |             |            |               |             |              |              |             
     | Dividends Rec'd:          |         |            |             |  £65,021.81  |           |             |            |               |             |              |              |             
     | Ex Dividend:              |         |            |             |     £731.50  |           |             |            |               |             |              |              |             
     | Realised P/L:             | [2]     |            |             |   £9,492.39  |           |             |            |               |             |              |              |             
     | UnRealised P/L:           |         |            |             |  -£3,467.43  |           |             |            |               |             |              |              |             
     |                           |         |            |             |              |    XIRR   |             |            |               |             |              |              |             
     | Total:                    |         |            |             | £260,787.11  |     5.36% |             |            |               |             |              |              |

Current Portfolio: Business Sectors

Business           |  Cost (£)  |  Value (£)  |  Value (%)  |  P/L (£)    |  Ex-Div (£)  |  Div Rec'd (£)  |  Overall (£)  | Y'ld (%) [1] |  Year Div (£)  |  Year Div (%) 
Weapons            | 14,995.20  |  38,417.88  |      14.73% |  23,422.68  |        0.00  |       4,327.09  |    27,749.77  |        2.38% |        912.90  |          7.04%
Gambling           | 14,999.32  |  23,145.56  |       8.88% |   8,146.24  |        0.00  |       6,065.29  |    14,211.53  |        5.43% |      1,256.71  |          9.70%
Tobacco            | 21,739.68  |  20,145.32  |       7.72% |  -1,594.36  |        0.00  |       6,308.23  |     4,713.87  |        7.28% |      1,467.57  |         11.32%
Oil                | 19,426.93  |  19,442.31  |       7.46% |      15.38  |        0.00  |       3,908.09  |     3,923.47  |        4.62% |        898.28  |          6.93%
Mining             | 14,992.51  |  19,458.36  |       7.46% |   4,465.85  |        0.00  |       6,410.89  |    10,876.74  |        5.18% |      1,007.32  |          7.77%
Packaging          | 14,997.11  |  18,015.80  |       6.91% |   3,018.69  |        0.00  |       2,900.63  |     5,919.32  |        4.31% |        775.80  |          5.99%
Banks              | 14,998.27  |  16,334.80  |       6.26% |   1,336.53  |        0.00  |       2,899.11  |     4,235.64  |        4.70% |        767.10  |          5.92%
Insurance: Life    | 12,830.98  |  14,806.68  |       5.68% |   1,975.70  |        0.00  |       5,150.68  |     7,126.38  |        7.09% |      1,049.09  |          8.10%
Advertising        | 14,997.55  |  13,239.64  |       5.08% |  -1,757.91  |        0.00  |       3,453.20  |     1,695.29  |        5.30% |        701.32  |          5.41%
Pharma             | 11,986.74  |  11,362.72  |       4.36% |    -624.02  |      112.80  |       3,155.30  |     2,644.08  |        3.97% |        451.20  |          3.48%
Real Estate IT     | 14,993.43  |  10,504.34  |       4.03% |  -4,489.09  |      234.41  |       2,564.58  |    -1,690.10  |        5.85% |        614.16  |          4.74%
Bricks             | 14,999.47  |  10,481.41  |       4.02% |  -4,518.06  |        0.00  |       2,023.71  |    -2,494.35  |        3.91% |        409.43  |          3.16%
Television         | 14,999.08  |   9,776.03  |       3.75% |  -5,223.05  |        0.00  |       2,481.84  |    -2,741.21  |        5.96% |        582.60  |          4.50%
Fund Manager       | 14,997.65  |   8,796.55  |       3.37% |  -6,201.10  |        0.00  |       5,189.23  |    -1,011.87  |        9.13% |        803.43  |          6.20%
Utility: Water     | 10,265.43  |   7,627.65  |       2.92% |  -2,637.78  |        0.00  |       2,451.07  |      -186.71  |        7.36% |        561.72  |          4.33%
Telecom: Mobile    | 14,998.48  |   7,086.15  |       2.72% |  -7,912.33  |      384.29  |       3,892.64  |    -3,635.40  |        8.16% |        578.03  |          4.46%
Cruising           | 14,979.79  |   4,728.96  |       1.81% | -10,250.83  |        0.00  |         610.18  |    -9,640.65  |        0.00% |          0.00  |          0.00%
Insurance: NonLife |  4,201.94  |   3,222.60  |       1.24% |    -979.34  |        0.00  |         190.24  |      -789.10  |        2.04% |         65.60  |          0.51%
Medical Products   |  2,723.59  |   3,062.96  |       1.17% |     339.37  |        0.00  |          79.03  |       418.40  |        1.84% |         56.46  |          0.44%

[1] - Yield and Forecast Income are based on my own Share Database Spreadsheet and are essentially calculated from the dividends that would have been earned over the previous 12 months, unless the company itself has clearly indicated otherwise.

[2] - Realised Profit and Loss & Return of Capital – To Date

Date      | EPIC | Name                    | Real P&L (£) | Event                                                                
20-Sep-19 | BHP  | BHP Group               |      550.49  | Return of Capital                                                    
20-Sep-19 | IBST | Ibstock                 |      292.45  | Return of Capital                                                    
09-Oct-19 | GNK  | Greene King             |    4,188.29  | Profit from Sale – Pending Takeover                                  
16-Jul-21 | PNN  | Pennon Group            |    1,612.39  | Return of Capital - Share Consolidation                              
16-May-22 | AV   | Aviva                   |      150.92  | Return of Capital - Share Consolidation                              
25-May-22 | BHP  | BHP Group               |    2,565.55  | Return of Capital - Woodside Energy Group (WDS)                      
18-Jul-22 | GSK  | GSK PLC                 |     -275.74  | Return of Capital - Haleon PLC (HLN) - Share Consolidation           
24-Oct-22 | WDS  | Woodside Energy Grp Ltd |        8.15  | Return of Capital - Woodside Energy Group (WDS) - Share Consolidation
21-Jun-24 | HSBA | HSBC PLC                |      399.89  | Return of Capital                                                    
          |      |                         |              |                                                                      
          |      | Total                   |   £9,492.39  |

Portfolio Transactions: Year Six

None

Quarterly Portfolio Income: Withdrawn To-Date

Year Start | 05 Jul    | 05 Oct    | 05 Jan    | 05 Apr    | Total       | Year End 
06-Apr-19  | 3,919.13  | 4,576.80  | 3,671.16  | 2,508.15  | £14,675.24  | 05-Apr-20
06-Apr-20  | 1,304.18  | 2,809.72  | 1,954.66  | 2,497.89  |  £8,566.45  | 05-Apr-21
06-Apr-21  | 2,380.96  | 3,470.79  | 2,922.75  | 2,743.56  | £11,518.06  | 05-Apr-22
06-Apr-22  | 3,457.24  | 4,193.51  | 3,136.00  | 2,902.71  | £13,689.46  | 05-Apr-23
06-Apr-23  | 3,480.36  | 4,245.58  | 2,990.75  | 2,538.92  | £13,255.61  | 05-Apr-24
06-Apr-24  | 4,191.11  |           |           |           |  £4,191.11  | 05-Apr-25

Portfolio Income: Forecast Monthly Withdrawals

   Date   | Income (£) 
05-Aug-24 |     731.50 
05-Sep-24 |     383.97 
04-Oct-24 |   2,779.00 
05-Nov-24 |   1,261.98 
05-Dec-24 |     548.02 
03-Jan-25 |   1,116.56 
05-Feb-25 |     565.14 
05-Mar-25 |     374.52 
04-Apr-25 |   1,421.28 
02-May-25 |     782.35 
05-Jun-25 |   1,963.58 
04-Jul-25 |   1,030.66 
          |            
12 Months | £12,958.56 
Average   |  £1,079.88

Portfolio Income: Comments

A further £9,181.97 is currently forecast to be withdrawn during this current financial year – to 05 April 2025 – giving a forecast for the whole year of £13,255.61. This full year forecast amount represents an increase over last year’s total of 0.89%. It is noted that such a total in Year Six, welcome as it will be, is still short of the amount received in Year One.

Mind you, my forecasts at this early part of the year are mostly an assumption that last year’s dividend will be simply maintained. We shall see in due course.

Portfolio Value: To Date

The value of the portfolio has been recorded at the end of each quarter as follows:

Year Start | 05 Jul      | 05 Oct      | 05 Jan      | 05 Apr      | Year End 
06-Apr-19  | 255,788.16  | 253,439.06  | 282,038.76  | 184,255.31  | 05-Apr-20
06-Apr-20  | 210,241.80  | 199,923.48  | 228,333.53  | 243,598.51  | 05-Apr-21
06-Apr-21  | 251,495.87  | 239,861.05  | 252,613.80  | 255,457.52  | 05-Apr-22
06-Apr-22  | 228,631.50  | 224,572.00  | 247,653.54  | 244,503.41  | 05-Apr-23
06-Apr-23  | 229,945.43  | 224,648.53  | 245,696.34  | 251,547.00  | 05-Apr-24
06-Apr-24  | 260,787.10  |             |             |             | 05-Apr-25

Portfolio Value: Comments

As a High Yield Portfolio (HYP) the Capital Value is very much of secondary interest.

Next Actions Required

1. - HSBA – HSBC PLC: Special Dividend

I recognise such a Special Dividend as a Return of Capital (RoC).

https://www.investegate.co.uk/announcem ... te/8253764

Dividends payable in cash in Hong Kong dollars or sterling were converted from United States dollars at the forward exchange rates quoted by HSBC Bank plc in London at or about 11.00 am on 11 June 2024 (US$1=HK$7.806880 and £1=US$1.273458).

The Portfolio, with a holding 2,425 shares, would have received an amount of £399.89 on 21 Jun 2024, which is sufficient in my view to be re-invested within the portfolio. This re-investment will take place on 10 July 2024.

2. - SMDS – DS Smith PLC: All-Share Takeover

New York based International Paper Company (IP) has proposed an all-share takeover of SMDS. As I understand it SMDS shareholders will receive 0.1285 shares of IP for each SMDS share held, giving this portfolio an IP holding of 553 shares, plus a small residue. It is intended that IP will have a secondary listing in London, so this holding will be maintained going forward.

Return of Capital (RoC): Re-Investment

   Date   |         Item             | Amount 
10-Jun-24 | HSBA Special Dividend    | £399.89

The amount of £399.89 will therefore be invested as follows:

Candidates

I am not one to place a limit on the yield being purchased. HYP is first and foremost an income strategy, so I do not countenance any idea of limiting the yield purchased to twice the number you first thought of, after stepping off the scales this morning! I am simply looking for the “Highest Sustainable Yield”.

However, in this instance, in view of the small amount being re-invested, I shall not be looking to create a new holding. If I were setting up an HYP from scratch, or indeed building an HYP income stream with dividends being re-invested, Phoenix Grp Holdings (PHNX) and M & G PLC (MNG) would certainly be considered candidates. For this “drawdown” portfolio, such a candidate, if subsequently selected, would simply create a separate small holding, which I am not prepared to do. Not least when some current holdings present near as high yields themselves.

To this end, the following candidates from within the portfolio were initially listed for consideration:

EPIC |   Company    | Reward (%) | Decision |           Comments                          
ABDN | Abrdn PLC    |      9.13% | Possible | Resultant Sector Value Concentration (3.39%)
VOD  | Vodafone Grp |      8.16% | Possible | Resultant Sector Value Concentration (2.73%)
PNN  | Pennon Grp   |      7.36% | Possible | Resultant Sector Value Concentration (2.94%)

Abrdn PLC (ABDN) – Yield 9.83%

What can one say?

A look at the dividend history ……

Year End  | Dividend | 1 Year  | 3 Years | 5 Years | 10 Years
31-Dec-23 | 14.6000  |   0.00% |   0.00% |  -7.53% |   -0.79%
31-Dec-22 | 14.6000  |   0.00% | -12.24% |  -7.28% |   -0.07%
31-Dec-21 | 14.6000  |   0.00% | -12.24% |  -5.93% |    0.57%
31-Dec-20 | 14.6000  | -32.41% | -11.83% |  -4.48% |    1.17%
31-Dec-19 | 21.6000  |   0.00% |   2.91% |   4.87% |    5.84%
31-Dec-18 | 21.6000  |   1.41% |   5.57% |   6.45% |    6.91%
31-Dec-17 | 21.3000  |   7.47% |   7.74% |   7.70% |    6.36%
31-Dec-16 | 19.8200  |   7.95% |   7.85% |   7.51% |         
31-Dec-15 | 18.3600  |   7.81% |   7.69% |   7.15% |         
31-Dec-14 | 17.0300  |   7.78% |   7.26% |   6.83% |         
31-Dec-13 | 15.8000  |   7.48% |   6.72% |   7.37% |         
31-Dec-12 | 14.7000  |   6.52% |   6.29% |   5.03% |         
31-Dec-11 | 13.8000  |   6.15% |   7.62% |         |         
31-Dec-10 | 13.0000  |   6.21% |   4.17% |         |

….. shows exactly why, in March 2019, ABDN looked such a good income prospect. Unfortunately, the very next year, the dividend was cut by a third!

At the time, I believed that such a cut would be temporary – COVID? – but, although the dividend has not been further cut, neither has it been increased. A brief look at the Earnings over the period, and the effect on Cash Flow, does go some way to explain the reticence to raise the dividend. However, it can be argued that the downturn was somewhat reversed during last year. A return to the good times?

Almost all forecasts are for more of the same, meaning a continued improvement in Earnings, leading to more cash being available, but no increase in the dividend – repairs still underway?

This is my first review of the financials pertaining to ABDN for quite a while, and for some time I have been saying that “it looks ok”. After my now more detailed investigation, I must confess to being a little concerned. However, for now I am going to plump for that 9.75% yield in the belief that, while a dividend increase might still be another year away, a cut also looks unlikely.

Famous last words? We shall see.

I will be having a further quick review next week – 08/09 July 2024 - but for now …..

Fund Manager – abdn PLC (ABDN) – Yield 9.13% - is the decision for this small RoC re-investment.

The Sector Income Concentration after purchase (6.20%) will leave the Fund Manager Business Sector holding as number seven by that measure, and well below the maximum allowed – 10%.

I am not intending to purchase ABDN for any of the “real” portfolios under my control, and therefore the price to be applied for this “virtual” purchase will be the Mid Price reported on the day. I shall post an update when the details of the purchase are known.

Next Progress Review: Year Ending 05 April 2025 - End of Quarter Two

A report on the continuing progress of the portfolio will be produced on, or soon after, the 05 October 2024

Should anyone wish to comment on this review, or any actions taken in the management of this virtual HYP Portfolio, then please do so but only on this related thread: viewtopic.php?f=15&t=43329

The intention is to keep this thread simply recording the events and progress of the Portfolio during its fifth year.

Enjoy!

Ian

The Lemon Fool

PYAD HYP 2019_04 DRAWDOWN – Year Six: Progress Review

PYAD HYP 2019_04 DRAWDOWN – Year Six: Progress Review

PYAD HYP 2019_04 DRAWDOWN – Year Six: Progress Review