A very big week. I made a life changing decision.
Having been made redundant in March, I have not yet been able to find a new job. This week, after yet more setbacks, I made a life changing decision.
Although I will still work if an opportunity presents itself, I must assume I could be out of work for some considerable time, perhaps forever. To that end, what's the point in sitting in front of a PC screen all day chasing jobs that never come to anything.
So.... I have decided to enjoy the time I have thrust upon me, and treat it as enforced retirement. I have sold 80% of my shares, and put them into a mixture of high yielding bonds which will give a blended annual income yield of approx 13%. That's fine for us to live on, and I get time to get out and about and enjoy the things I have wanted to do for years.
I've held several smaller holdings which I think will grow, and also British American Tobacco, Scottish & Southern Energy, Shell, BP, Glaxo and Prodesse. Most of the others have gone. But I have income as a subsitiute and I can take up golf again (last played in 1993, how rusty and I going to be!).
The remaining 20% of the portfolio in shares will be used as a springboard to grow my capital again. But in the meantime, I have peace of mind.
One trade this week, I bought into ICAP the day after Michael Spencer sold 2% of his 21% holding - a good time to buy as the shares were down from recent highs. This interdealer broker will be in the first wave of recovery stocks when it arrives I think, and I have bought in time to pick up the increased final dividend.
Dividend income this week - a very healthy £255, including £60 from Chesnara, which I was sad to have sold - but I can always buy back into at a later date.
Friday 22 May 2009
Friday 15 May 2009
Where to go for Income?
It's been another good week for dividends.
First, a capital update. My portfolio, in line with the market, has hardly moved this week. It is down slightly to just 0.1% positive for the year. I think this is due to the market trying to reconcile conflicting signals as to whether there are any strong green shoots of recovery, or if it will be a slow and painful road as the Bank Of England hinted at yesterday.
At the start of the week I had a £3000 1 year cash bond mature from Birmingham Midshires. The cheque for £3160 was most welcome. This was a 7% 1 year fix taken out when things were very different to now.
What to do with the cash? We are taking the interest towards our day to expenses. The £3000? That's the problem. No notice accounts are paying pitiful if no interest.
As we don't need the cash straight away we've decided to put into funds.
Split three ways:
£1000 Invesco Perpetual Monthly Income (yield approx 13%)
£1000 Aviva Managers Managed High Income (yield approx 12%)
£1000 New Star Extra High Yield Bond (yield approx 18%)
This will give us a blended approx yield return of 14.3% on a monthly basis. You could not get that in a bank. BUT there are risks. New Star particularly has performed dreadfully over the last year. But I am happy to take the rough with the smooth and ride out the capital fluctuations as we can hold these for the long term.
Dividend income was also good this week - £138.83. A big chunk of that was from Aviva paid today - £41.81.
The income for the year is ticking up nicely to a total of £2315. That's an average of £115 a week. Very nice.
In terms of shares, no buys or sells. I do have my eye on Lancashire Holdings at the moment, with good quarterly results announced today. If it drops below £4.70 I will buy.
First, a capital update. My portfolio, in line with the market, has hardly moved this week. It is down slightly to just 0.1% positive for the year. I think this is due to the market trying to reconcile conflicting signals as to whether there are any strong green shoots of recovery, or if it will be a slow and painful road as the Bank Of England hinted at yesterday.
At the start of the week I had a £3000 1 year cash bond mature from Birmingham Midshires. The cheque for £3160 was most welcome. This was a 7% 1 year fix taken out when things were very different to now.
What to do with the cash? We are taking the interest towards our day to expenses. The £3000? That's the problem. No notice accounts are paying pitiful if no interest.
As we don't need the cash straight away we've decided to put into funds.
Split three ways:
£1000 Invesco Perpetual Monthly Income (yield approx 13%)
£1000 Aviva Managers Managed High Income (yield approx 12%)
£1000 New Star Extra High Yield Bond (yield approx 18%)
This will give us a blended approx yield return of 14.3% on a monthly basis. You could not get that in a bank. BUT there are risks. New Star particularly has performed dreadfully over the last year. But I am happy to take the rough with the smooth and ride out the capital fluctuations as we can hold these for the long term.
Dividend income was also good this week - £138.83. A big chunk of that was from Aviva paid today - £41.81.
The income for the year is ticking up nicely to a total of £2315. That's an average of £115 a week. Very nice.
In terms of shares, no buys or sells. I do have my eye on Lancashire Holdings at the moment, with good quarterly results announced today. If it drops below £4.70 I will buy.
Friday 8 May 2009
Weekly Dividend Income - 8th May 2009
An excellent week - total dividend income of £283.75.
This was mainly driven by a big £184 dividend from British American Tobacco - a favourite stock of mine for over 5 years.
Today I also received the 2008/9 final dividend payment from Pearson, the education books provider. This was for £31.46.
My portfolio has had a stellar week! I am up 1.4% for the year at £147,644. PNC Financial which I bought back in December is now 60% up and rising, I keep thinking should I sell but this will be a winner now the US bank stress testing is over.
Tullet Prebon, the stockbroker, is also up over 25% on my purchase of only two weeks ago. There is also more mileage in this company.
One big trade today - 700 shares in Intermediate Capital at £5.44 a share. This was a very big tgrade for me, but this mezanine finance provider should continue it's share price recovery now all the bad news is out in the open.
This was mainly driven by a big £184 dividend from British American Tobacco - a favourite stock of mine for over 5 years.
Today I also received the 2008/9 final dividend payment from Pearson, the education books provider. This was for £31.46.
My portfolio has had a stellar week! I am up 1.4% for the year at £147,644. PNC Financial which I bought back in December is now 60% up and rising, I keep thinking should I sell but this will be a winner now the US bank stress testing is over.
Tullet Prebon, the stockbroker, is also up over 25% on my purchase of only two weeks ago. There is also more mileage in this company.
One big trade today - 700 shares in Intermediate Capital at £5.44 a share. This was a very big tgrade for me, but this mezanine finance provider should continue it's share price recovery now all the bad news is out in the open.
Tuesday 5 May 2009
The Return of an old friend
It was like greeting an old friend today who I had not seen in a long while. The overall year to date performance of my portfolio changed from red to black territory and I am now up 0.3%! I have not been in this position since early 2007, and it was hugely satisfying to see.
I spent Bank Holiday Monday afternoon working - after all, New York was open and I am heavy on US shares at the moment. I sold Chevron for a 14% profit since last August, but also sold Sun Trust Banks for a whopping 58% loss. I had tried to hold on, but with the dividend cut last year my own rules said it must go!
In their place I bought into Candadian National Railway Company and Middlesex Water (a stable utility dividend generator).
Having looked at what's taken me into positive territory shows many of my shares doing well, of particular note to Barclays. But Thomson Reuters is the number one driver, closing at £18.45 compared to my purchase price of £15.20 last December. Seems people still need information these days, whether it be good or bad!
I spent Bank Holiday Monday afternoon working - after all, New York was open and I am heavy on US shares at the moment. I sold Chevron for a 14% profit since last August, but also sold Sun Trust Banks for a whopping 58% loss. I had tried to hold on, but with the dividend cut last year my own rules said it must go!
In their place I bought into Candadian National Railway Company and Middlesex Water (a stable utility dividend generator).
Having looked at what's taken me into positive territory shows many of my shares doing well, of particular note to Barclays. But Thomson Reuters is the number one driver, closing at £18.45 compared to my purchase price of £15.20 last December. Seems people still need information these days, whether it be good or bad!
Friday 1 May 2009
Weekly Dividend Income - 1st May 2009
A much better week this week - total dividend income was £128.66 - one of the better weeks this year. That has bought my dividend income for April to a grand total of £534.82.
Highlights this week were £16.73 from Jupiter Monthly Income and £23.03 from General Electric (which I have since sold following their annoucement of a dividend cut for the first time in 32 years for the second half of 2009).
The dividend payments are ramping up even in these troubled times. Next week should be a strong week as well, but I will not be thinking about that until after the Bank Holiday weekend....
Highlights this week were £16.73 from Jupiter Monthly Income and £23.03 from General Electric (which I have since sold following their annoucement of a dividend cut for the first time in 32 years for the second half of 2009).
The dividend payments are ramping up even in these troubled times. Next week should be a strong week as well, but I will not be thinking about that until after the Bank Holiday weekend....
Thursday 30 April 2009
Too good to miss.....
I made a snap decision yesterday. I had £1075 of univested cash in one of my ISA's. I'd had my eye on a couple of US shares (see earlier posts as to why I find them an attractive proposition at the moment).
But I discarded them for the time being, and made another £1000 of an open ended unit trust. The plus points that swung it for me were significant:
1) It's run by Invesco Perputual - one of most reputable UK fund managers
2) The fund is run by Neil Woodford, definitely one of the best fund managers of the last 20 years
3) It provides a monthly (yes monthly!) dividend
4) The yield is in excess of 13%
5) There is a strong possibility of capital gains as the markets recover
6) It has a mixture of shares and bonds - perfect. Some of the shares are overlapping with individual holdings in my portfolio but I am not too concerned about that. The bond element means the dividend payments are tax free - as I have bought in my ISA the tax credit can be claimed back.
7) It only has a minimum top value of £100, with no dealing fees to buy in. I can add light and often.
This is the Invesco Perpetual Monthly Income Plus (Inc) fund. I bought at 71p a unit. I am delighted to have locked into such a strong yield, which will provide extra monthly funds to either top up or for use in other purchases.
I am having a great dividend income week this week - I will post the figures tomorrow. Also, the portfolio value this morning stands at £143,767, up over £2500 on this time last week. I am feeling more optimistic on my portfoolio possibilities than at any time over the last two years.
Now if I can just find a new job all will be well.......
But I discarded them for the time being, and made another £1000 of an open ended unit trust. The plus points that swung it for me were significant:
1) It's run by Invesco Perputual - one of most reputable UK fund managers
2) The fund is run by Neil Woodford, definitely one of the best fund managers of the last 20 years
3) It provides a monthly (yes monthly!) dividend
4) The yield is in excess of 13%
5) There is a strong possibility of capital gains as the markets recover
6) It has a mixture of shares and bonds - perfect. Some of the shares are overlapping with individual holdings in my portfolio but I am not too concerned about that. The bond element means the dividend payments are tax free - as I have bought in my ISA the tax credit can be claimed back.
7) It only has a minimum top value of £100, with no dealing fees to buy in. I can add light and often.
This is the Invesco Perpetual Monthly Income Plus (Inc) fund. I bought at 71p a unit. I am delighted to have locked into such a strong yield, which will provide extra monthly funds to either top up or for use in other purchases.
I am having a great dividend income week this week - I will post the figures tomorrow. Also, the portfolio value this morning stands at £143,767, up over £2500 on this time last week. I am feeling more optimistic on my portfoolio possibilities than at any time over the last two years.
Now if I can just find a new job all will be well.......
Friday 24 April 2009
Weekly Roundup - 24th April 2009
This has been my poorest week for dividend income so far in 2009. To date, my total dividend income has been £1744.87, an average of £109.05 a week. This was was a desert in terms of dividend payers, with a total of only £19.55 hitting my broker accounts.
I should not complain - stocks should not be bought solely on the dates they pay a dividend, but it is a little comforting to know in these difficult times that a steady income stream is trickling through!
All this weeks dividends were from US stocks - £10.90 for Medical Properties. Assuming the same dividend payments for the other three quarters this makes a yield of 14.6% against my purchase price. Very nice.
£3.87 received from DTE Energy - giving an annualised yield of 5.2%, and finally £4.78 from Realty Income, the monthly paying REIT (giving an annualised yield of approx 5.74%).
All these three are producing income far in excess of current interest rates and I am pleased with the income so far.
Three trades to report this week - all top up buys.
Interior Services Group - bought more at £1.20 to add to my existing holding. This business has been quietly winning 2012 contracts, and are trading on a ridiculously low PE of 3.4. At my purchase prtice, I expect a yield in excess of 11% in the next year based on the forecast dividend of 13.4p, which is comfortably covered by earnings.
The other two were top ups in my ISA - GlaxoSmithKline and Royal Dutch Shell. Both are mega caps and still increasing their dividends. Glaxo have just increased their quarterly dividend by 8% to 14p, and Royal Dutch Shell are expecting to lift their dividend by 5% this year. I bought both at good prices - Glaxo at £10.03 (yield forecast 6.05%) and Shell (forecast yield 7.8%).
I am expecting a lot more dividends next week which is good news.
One final note, my portfoilio at Friday lunchtime stands at £141,444 - up for the week which started at £139444, and I am down -3.1% YTD, which is a lot better than just a few weeks ago.
The Architect
I should not complain - stocks should not be bought solely on the dates they pay a dividend, but it is a little comforting to know in these difficult times that a steady income stream is trickling through!
All this weeks dividends were from US stocks - £10.90 for Medical Properties. Assuming the same dividend payments for the other three quarters this makes a yield of 14.6% against my purchase price. Very nice.
£3.87 received from DTE Energy - giving an annualised yield of 5.2%, and finally £4.78 from Realty Income, the monthly paying REIT (giving an annualised yield of approx 5.74%).
All these three are producing income far in excess of current interest rates and I am pleased with the income so far.
Three trades to report this week - all top up buys.
Interior Services Group - bought more at £1.20 to add to my existing holding. This business has been quietly winning 2012 contracts, and are trading on a ridiculously low PE of 3.4. At my purchase prtice, I expect a yield in excess of 11% in the next year based on the forecast dividend of 13.4p, which is comfortably covered by earnings.
The other two were top ups in my ISA - GlaxoSmithKline and Royal Dutch Shell. Both are mega caps and still increasing their dividends. Glaxo have just increased their quarterly dividend by 8% to 14p, and Royal Dutch Shell are expecting to lift their dividend by 5% this year. I bought both at good prices - Glaxo at £10.03 (yield forecast 6.05%) and Shell (forecast yield 7.8%).
I am expecting a lot more dividends next week which is good news.
One final note, my portfoilio at Friday lunchtime stands at £141,444 - up for the week which started at £139444, and I am down -3.1% YTD, which is a lot better than just a few weeks ago.
The Architect
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