And finally…

Last trade of the week was a small purchase of Barclays (BARC) shares. Re-investing a dividend payment which appeared in my dealing account this morning.

Bought the extra shares at 153p, and they ended the day at 144p – Typical of my purchases recently!

Still got my eye on more Aviva (AV.) shares, but the news that the Government has confirmed a ban on insurers receiving referral fees from lawyers in personal injury cases has hit Insurers today. Admiral dropped 57p to 1,307p while Aviva ended down 18.1p at 302.7p (within spitting distance of the 300p level I said I would be interested in buying in at earlier this week).

 

Another addition to the High Yield Portfolio

The Amateur Investor made another addition to the High Yield Portfolio today. After yesterday’s addition of Admiral I decided to go defensive again.

With Autumn and Winter just around the corner, before we know it we’ll be putting the central heating back on again so I decided to look for a company that would benefit from a harsh winter like the last two winters we have experienced.

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An early morning trade – Admiral

Despite Admiral announcing record interim results this morning (pre-tax profits grew by 27%, increasing half-year pre-tax profit to £160.6m from last year’s £126.9m), shares in the car insurer lost over 5% this morning.

Turnover jumped 53% to £1.1bn from £720.5m the year before.

The interim dividend was declared at 39.1p, up from 32.6p last year (ex-dividend date 28th September 2011, payment date 21st October 2011). Earnings per share improved to 43.3p from 33.7p last year.

The Admiral board decided to give every member of staff £1,500 in shares, worth over £8m in total.

I managed to buy in at 1,434.75p per share this morning (including Stamp Duty), so the interim dividend I will receive in September represents a yield of just over 2.7%.

The forecast dividend for the year ending 30th December 2012 is 98.54p (according to my Share Centre account) which would represent a yield of 6.87% based on my buying price today.

Another good addition to my High Yield Portfolio?

The shares have dropped to 1,423p while writing this blog entry, but as I wrote in a previous entry, I’m becoming less worried about daily share price fluctuations and more interested in investing for income.

Note: I was already a holder of Admiral, previous to becoming the Amateur Investor, at 1,556p per share, so the shares bought today are just over 120p “cheaper” than the last lot I purchased.

Update at 17:04 – Admiral shares ended the session down 182p at 1,353p (a fall of 11.86%). If they continue to fall I will be looking to buy more at around the 1,200p level.