High yield FTSE 100 stock recommendations?

rated

Linton wrote: »

What High Yield ETF would you recommend?

Nothing specific, just noting that you will miss out on the benefits of diversification by picking single stocks.

Linton

Rollinghome wrote: »

With every man and his dog on the internet wanting to buy high yielding income stocks, you might want to consider whether following the crowd is always the best way to invest.

Normally, unless you're sure an even bigger crowd will be following you to push up prices further then it isn't. Of course, this time it might be different, or not, and may depend on the time horizon you have in mind.

High yield shares havent had the same bubble as the safer income from low risk bonds such as gilts. Dividend yields really arent very different from normal.

Linton

coastline wrote: »

like this.??

http://www.moneyweek.com/investment-advice/how-to-invest/strategies/three-great-reasons-to-buy-the-ftse-dividend-plus-56021

Ah yes IUKD, one of my favourites. But you're not looking at things in the right way. Its charges are only 0.4% - what more do you want to know?

And its still carrying on in the same way. I notice it's top holding is MAN. A good dividend yup, but a good safe investment - mmmm.

Thrugelmir

With 20 stocks accounting for 70% of total dividends paid from FSTE 100.

Go international. Plenty of world class companies with good yields.

As for the FTSE. Vodaphone may well have passed its peak and we'll see revenues/ profit per customer in decline.

BAT and Imperials customers are dying off. So other companies whose longer term prospects are in relative decline.

mania112

Rollinghome wrote: »

With every man and his dog on the internet wanting to buy high yielding income stocks, you might want to consider whether following the crowd is always the best way to invest.

Normally, unless you're sure an even bigger crowd will be following you to push up prices further then it isn't. Of course, this time it might be different, or not, and may depend on the time horizon you have in mind.

http://en.wikipedia.org/wiki/Contrarian_investing

That itself is a recognised strategy.

Ifts

cashbackproblems wrote: »

Am happy to take some risk and less yield for share growth potential so its not about income solely.

I think this is the way to go, as well as dividend stocks you should also look for growth stocks.

Sometimes a company paying little or no dividend is not always a bad thing, this in turn gives the company more money to improve their business make acquisitions and expand. And hopefully the company can get a better return on that money invested to expand resulting in you earning more from growth than you would get from annual dividends.

Along with dividend stocks I also have a few stocks that I hang onto for growth.

One is Sports Direct International (SPD)* that I bought in 2010, its has paid no dividend since then but the group has used the money well and expanded its business. Earlier in the year I used up last years CGT allowance and took some profit, but still have 10650 shares @ £1.45 each, today they closed at over £4 each (gain of over ~180%, better than a 10% annual dividend stock). Think I will hold on to these for a while, SPD recently had an analysts visit day to their Shirebrook HQ, and they received positive broker re-ratings in the days/wks following the analysts visit and also with their competitor JJB going into administration. A number of brokers re-rated at +£4, Goldman Sachs has a Conviction Buy - price target £6. With the way SPD stock price is going, they will be knocking on the door of FTSE-100 soon (hopefully!), meaning the tracker funds will be buying into the stock.

Don't overlook share growth potential in the search for high yielding stocks.

*The above is not a recommendation to buy (just an example of how a growth strategy can also work well), as always DYOH and best of luck with your investments.

newfoundglory

I have long term hold of shares in SSE, which does have a good yield. But I don't buy shares like this any more.

My current investment setup is organised like:

20% in Emerging markets
20% in Energy
20% in tracker (ftse)
15% in selection of high income funds
15% in selection of growth funds
10% in gilt/bond

coastline

Linton wrote: »

Ah yes IUKD, one of my favourites. But you're not looking at things in the right way. Its charges are only 0.4% - what more do you want to know?

And its still carrying on in the same way. I notice it's top holding is MAN. A good dividend yup, but a good safe investment - mmmm.

I've invested in the ETF for the FTSE 100...ISF.L....but haven't used any high yield funds....the links may have been usefull to the OP.
As a small part of my funds I do buy stocks online....especially if its a major company beaten down a bit with a steady dividend....this is my fun part of things.

grey_gym_sock

Thrugelmir wrote: »

BAT and Imperials customers are dying off.

this was also true 10+ years ago, and the shares have given an outstanding return since then, especially BAT. lower turnover has more than been compensated for by higher margins. such high returns can't go on for ever, but it's far from obvious that the good times (for shareholders) are over. (full disclosure: i hold some of BAT.)

i do agree that it's worth looking at international dividend payers, too.

Reaper

My biggest single ordinary share holding is RSA which is paying 8-9% dividend if you are willing to brave the financial sector.

I also hold their preference shares which yield 6.9% (it was better previously but their price has been rising steadily recently). They provide a pretty reliable income in exchange for limited growth potential and of course risk from inflation being a fixed income product.

I also hold some Aviva ordinary & preference shares but consider them riskier as they have more exposure to wobbly European countries.