High dividend

EdInvestor

dunstonh wrote:

You mention Russia as being mostly oil and that is a good reason why the UK doesnt give decent global coverage. Old Russia was mainly oil but they have a number of emerging industries which are not oil and the UK companies just do not have exposure on that front.

Could it be that you mean err, booze? If so, may I suggest a well known UK global high yield share, Scottish and Newcastle, already active in that market, among others.

But do you focus on high yield, fairly high but not excessive or rising income?

The idea of the High Yield Portfolio is that the overall yield of the 15 diversified shares is high compared with the market - currently around 4.5-4.7% can be achieved without undue risk.But some shares may produce as high as 6%+ (eg Lloyds) while others will be below 4% (eg Shell/BP) - but still above the market average.

A key positive indicator for a share choice is a history of rising dividends, but obviously not all will provide this.

However, that said, in the short term, there has been capital growth at a greater level than historical levels would suggest there would be.

It is interesting I agree, any thoughts on why this should be so? The combination of the general defensive nature of these shares in the context of the TMT/dotcom crash, plus the later perceived attraction of the companies (the high divi being an indicator of value) to takeovers may be relevant.There has been a lot of M&A among HY shares in the past year or so.

High yield has always been a main criterion for value investing strategies of course - along with low debt, another HYP risk filter.

Jake'sGran

jamesd wrote:

Just 16% of the holdings are in the UK, so dunstonh is right about your comment actually supporting dunstonh's argument.

I can see that now. Dunstonh and Ed Investor are obviously professionals who know what they are talking about and I should probably not comment during one of their exchanges.

Chrismaths

Well, dh is at least...