High Yield Portfolio

Very soon after I took on the role of Amateur Investor on 1st August 2011, I decided to separate out shares I buy for their dividend income from shares I buy for other reasons. My account with The Share Centre allows me to have multiple trading accounts so I set one up called HYP (high yield portfolio) into which I would put my, hopefully, high yielding shares.

I quickly realised that my High Yield Portfolio (HYP) is going to be an important part of my overall investing strategy. So as well as the separate HYP trading account I’ve created, I thought it was worth giving the HYP its very own page.

At the outset my HYP contained the following shares:

(The percentages show the yield based on their last published accounts according to my Share Centre information)

Astrazeneca (AZN) – 5.4%
Aviva (AV.) – 6.5%
BAE Systems (BAE) – 5.3%
BAT (BAT) – 4.6%
GlaxoSmithKline (GSK) – 5.2%
iShares Markit iBoxx £ Corporate Bond ex-Financials (ISXF)
iShares FTSE UK Dividend Plus (IUKD)
Legal & General (LGEN) – 4.9%
RSA Insurance (RSA) – 7.0%
Royal Dutch Shell B (RDSB) – 4.9%
Scottish & Southern Energy (SSE) – 5.9%
Vodafone (VOD) 5.0%

These shares provided a good level of dividend income for some time, and while the original holdings have now been sold, the Amateur Investor focus is still on income – albeit now via investing in funds – particularly income funds producing regular income.

This article will be updated once these high income funds have started producing a dividend income stream.

Archived Updates

5/1/2012: Purchase of more Segro shares

16/12/2011: Addition of Co-op Bank 9.25% preference (CPBB) shares

9/12/2011: Addition of MedicX Fund shares

3/11/2011: Various purchases including Go-Ahead Group

1/11/2011: Addition of Ashmore Group (ASHM)

24/10/2011: Addition of Hansteen Holdings (HSTN)

17/10/2011: Addition of Interior Services Group to HYP

14/10/2011: Addition of WH Smith shares to the HYP

3/10/2011: More Merchants and three additions to the HYP

26/09/2011: Purchase of more RSA shares and addition of Game Group to the High Yield Portfolio using some dividend income.

23/09/2011: Addition of more Aviva (AV.) shares

21/09/2011: Addition of more Vodafone and Legal & General shares – reinvesting some dividends from other holdings.

16/09/2011: Purchase of Nat West 9% Preference Shares

12/09/2011: Further purchase of Aviva, reducing average buying price to 330.67p

6/9/2011: Addition of more Aviva and Centrica shares, reducing average buying price of both.

5/9/2011: Addition of Lloyds 9.25% non cum irrd pref.

2/9/2011: Addition of further Vodafone (VOD) and Aviva (AV.) shares.

1/9/2011: Purchase of Amlin (AML) at 313.125p per share.

25/8/2011: Purchase of Centrica (CNA) at 306p per share.

24/8/2011: Purchase of Admiral (ADM) at 1434.75p per share.

16/8/2011: Purchase of Merchants (MRCH) on 16th August 2011 – Last year end yield stated as 5.6% (to 31 January 2011). For details of this addition to the High Yield portfolio visit An addition to my High Yield Portfolio.

 

20 thoughts on “High Yield Portfolio

  1. I note that your high yield portfolio does not contain National Grid. I have recently sold 50% of my own NG hlding – in recent announcements they have not mentioned any commitment to continuing the current rate of dividend increase – and they do have quite a lot of capital expenditure coming up,. Do you not hold NG for the same reason, or do hyou have another? I wouldbe interested to know. . I would also recommend Chesnara for your HY portfolio. Regards, Rex

    • Rex,

      I do actually hold National Grid (NG.) shares in another portfolio. These shares were held prior to starting the Amateur Investor website, so I haven’t included them in the High Yield Portfolio page which focusses on a separate portfolio specifically set up to hold high yield shares.

      I’m pleased to say that I purchased National Grid at much lower than they stand today, so the yield I am enjoying is much higher than would be the case if I bought in at the current share price.

      I also hold a few Chesnara, but again they are in a separate portfolio though I am considering adding some to the High Yield Portfolio.

      Which other high yield stocks are you invested in?

      • Well I am in GSK and AZN as almost everyone would be, if they are seeking incoem. I also have Shell, Cineworld, Aviva, RSA, Vodaphone, Murray International, Henderson Far East Income, First Group, New City High Yield, Ecclesiastical Prefs. Paypoint, Morgan Sindall, Hansard Global, Phoenix,Anglo Pacific (for commodities exposure). If you are interested in preference shares take a look , well Google Collins Stewart fixed interest prerference shares, click onm leading pref. shares and there is a comprehensive list, with yiels etc. NatWest are non-cumulative by the way. I also have Standard Chartered Prefs – a great bank and no risk.. Primary Health Properties is also a secure dividend payer. Just a few thoughts forn you. Regards, Rex

      • I bought BAE at 262.18 Murray at 867 and have since sld them both at a profit. I bought Chesnara at 193 so I am showing a capital loss at the moment but will be holding forn the dividend. One to look at is S & U (SUS) – similar to Prov Finacial but smaller and very tightly run, and less debt I believe. I recently bought United Utilities – ultrav defensive!

        • Are you buying Tesco – a bargain for the long term at 330, plus a secure and rising dividend.
          Centrica . also looks cheap at 283 Do not recall if you ave Close b ut it is well recommended and has a 6% plus dividend.
          Re preference shares, I recently read that the 2 most in demand are the CWS B ank,which you have and also Standard Chartered, which I do not think you hold.WEll worth a look, great banbk and 7% yield. Regards , Rex

          • I’ve been very tempted to top up my Tesco (TSCO) holding, but I was waiting to see if the share price continues to drift.

            Next week maybe…

            I have a small holding in Centrica and Close Brothers.

            I will look into Standard Chartered prefs…

  2. One tolook at is Intermediate Capital (IPC) i have held itn for a few years and currently pays 7.3% and had a very positive update to day. I also have Restaurant Group RGP – omly pays 4.1 but is an excellent business – has branches in all the airports under the brand name Garfunkels and also in theme parks, cinemas – anywhere where there is a captive clientele.

  3. Presently holding the following, any opinions/views ?
    Shares:
    AV, SVT, UU, NG , SSE , ISG , SL, GSK, RDSA, ICP, CGL, AML, MGNS, RSA

    Inv Trusts:
    CHY, MRCH, SDV, ILH, iUKD, iAPD

  4. The most obvious thing I should comment on is that if you are in the UK you should hold RSDB rather than RDSA because RDSA is a Holland stock and there is a witholding tax deducted from the dividend.

  5. I recently bought the prefs of RSA (RSAB) – 6.8% yield. I would like to buy RSL if it falls near to 250. Do you hold PHP? Very secure dividend and pays equal amounts twice per year. Glaxo at 1416 now looks near to a buying price – to be held long term.

      • Neither lack of ideas or lack of cash……lack of time!

        I did make some purchases on Friday, but haven’t blogged yet. Watch this space…

        Don’t hold RSL, but do have holdings in other insurers. Nothing against RSL, just don’t really want more exposure to insurers.

        I’ve also got some decisions to make about some holdings which are showing healthy gains. Sell or hold, that’s the big question.

        • I would suggest holding those with potentially more upside = like Shell for example but taking profits on the slightly lower quality stocks. We have had a rising market for some tme = a correction is very possible. Even if there is no correction there are plenty of high yielders out there to invrest in. Recently bought Hansard Global = though it went x!d today, also Interserve . Voda is looking good at 170.3 also. Even if you have enough Voda, you should be able to sell on a a profit sometime soon..

  6. Since Jan I sold the RDSA, never quite seemed to perform as initially expected, and a few others that were for growth and added to the Inv Trusts.Thinking of First group and Kellner (or is it Keller) in a few months time. Getting a fairly steady stream of returns.

  7. Lots of good stock here. Have virtually given up dealing and have now settled for some dividend shares investing for income and others for long term growth but smaller divi. Currently, Aviva, Amlin, Catlin, Rsa, Beazley for growth and good divi averaging 7.82% combined. Quarterly divi stocks are Glaxo, RDSB, Medix fund.
    Income, Nat West 9% prefs , Yorkshire BS 13.5% cocos 2025, LLoyds 9% prefs, Lloyds 11.25% Cocos 2020. Long term, Halma, Pru, Provident, Melrose, SSE, Arbuthnot, Hargreaves Lansdown, Interserve, Vodaphone, Nat Grid. I have done well out of Medix and Glaxo, that bit extra they give to buying 4 times a year , particularly as helps reduce the dealing costs over the years and the difference is now showing as I only buy ex divi drop normally. Happy investing, remember a 5% winner is better than the 9% you did not buy.

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