Urbandreamer wrote:Now that is out of the way, we should consider what we want to invest in and why.
I intend to follow my usual procedure for topping up, which is now encapsulated in the HYPTUSS spreadsheet, to which a link is available on this site.
Fundamentally you rank your holdings by weight, the lightest being 1 and the heaviest 36 in my case, then you rank them by yield, with the highest yield being 1 and the lowest 36 in my case. Add the rankings and rank them on that figure. The lowest is the highest rank and the highest the lowest rank. here is my table:
Holding Weight Yld W+Y Rank
ADM 19 4 23 4
AV. 36 11 47 30
AZN 12 30 42 25
BA. 25 18 43 27
BATS 27 5 32 13
BLND 16 24 40 24
BHP 31 2 33 15
BP. 32 16 48 31
BT.A 24 19 43 28
CPG 2 34 36 17
DGE 34 31 65 35
GSK 26 12 38 18
IGG 29 9 38 19
IMB 7 3 10 1
IMI 33 33 66 36
KGF 13 26 39 21
LGEN 22 6 28 9
LLOY 5 28 33 16
MARS 3 36 39 22
MKS 4 35 39 23
NG. 30 13 43 29
PHP 11 14 25 5
PSON 9 23 32 14
RKT 1 27 28 10
RDSB 20 22 42 26
RIO 15 1 16 2
S32 35 29 64 34
SGRO 23 32 55 33
SMDS 8 21 29 11
SSE 17 10 27 8
TATE 14 15 29 12
TSCO 28 25 53 32
TW. 10 8 18 3
ULVR 6 20 26 7
UU. 21 17 38 20
VOD 18 7 25 6
This gives me the top-up ranking, as shown in this table:
Top-up Income Cost
Rank EPIC Rank EPIC % Income Rank Epic % Cost
1 IMB 1 RIO 7.38% 1 IGG 4.69%
2 RIO 2 BHP 6.76% 2 BP. 4.56%
3 TW. 3 ADM 5.33% 3 BT.A 4.39%
4 ADM 4 BATS 4.91% 4 AV. 4.39%
5 PHP 5 LGEN 4.42% 5 VOD 4.13%
6 VOD 6 IMB 4.28% 6 PSON 4.10%
7 ULVR 7 VOD 4.21% 7 RDSB 4.08%
8 SSE 8 AV. 4.06% 8 LLOY 4.04%
9 LGEN 9 IGG 3.92% 9 MARS 4.00%
10 RKT 10 GSK 3.59% 10 MKS 3.69%
11 SMDS 11 NG. 3.57% 11 GSK 3.53%
12 TATE 12 SSE 3.42% 12 PHP 3.50%
13 BATS 13 BP. 3.35% 13 S32 3.41%
14 PSON 14 TW. 3.18% 14 TSCO 3.39%
15 BHP 15 BA. 2.92% 15 BATS 3.36%
16 LLOY 16 BT.A 2.91% 16 BLND 3.33%
17 CPG 17 UU. 2.83% 17 BHP 3.23%
18 GSK 18 TATE 2.59% 18 LGEN 3.14%
19 IGG 19 PHP 2.59% 19 SSE 3.01%
20 UU. 20 TSCO 2.32% 20 KGF 2.89%
I impose a limit on the amount any one share contributes to income and to the share of portfolio cost, 5% in each case. If topping a share up by 20% (my usual practice) would exceed that figure, then the share is disqualified. So you can see that the first 7 ranked by share of income are disqualified, as 4.2% is the effective cut-off point, and likewise the top 4 in share of cost. Consequently TW., Taylor Wimpey are the highest eligible share, but a couple of days ago that was Unilever. The next is PHP, Primary Health Properties. The process combines an element of rebalancing underweight shares and increasing dividend income.
If I have to replace a share, the disposal might be due to non-existant or very low yield, take-over or not being quoted on the LSE, for example, and the replacement would then be chosen from shares with a yield higher then my median yield, currently 4.1%. At times like this I am tolerant of shares which are not paying dividends, but which may well resume once peace breaks out, as it were. That inludes the following shares currently yielding below 2%:
Rank EPIC Yield
31 DGE 1.98%
32 SGRO 1.76%
33 IMI 1.45%
34 CPG 0.87%
35 MKS 0.00%
36 MARS 0.00%
TJH