High Yield Defensive Stocks

Another_Saver

Linton said:

DiggerUK said:

Defensive is as defensive duz. I see no clear idea of what anybody here is claiming they are wanting to defend against, so why use the term.
If you are looking for investments that are not going to go tits up, what do you suggest are the conditions that would lead to which sectors that would be affected so.
If you are looking to maintain income, what dangers are you worried about that would damage that income.
If you are just worried that the value of what you have may go down and you may not get back all you invested, then why are you worried.

It's becoming a non question, meaning this thread has neither substance nor sense and ensuring it has no purpose, because nobody knows what to look for, because nobody is describing the danger they may need to defend against.

It may  as well be asked if insuring against unicorns damaging the shrubbery is a good idea..._

"Defensive" is a commonly used investment term for companies whose returns are relatively unaffected by economic booms and busts.  In particular, companies selling the basics that are going to be needed no matter what happens to the wider economy  will not be subject to over-enthusiasism on the part of investors.  For example utilities and household product manufacturers.

The idea is that the slow and steady win the race.  This was the case 20 years ago, but the effect has disappeared since the tech boom.  However circumstances may change again.  A properly balanced portfolio should include these as well as the more exciting growth companies.

"This time is different" said everyone ever

Another_Saver

OP - I would argue that the least risky/safest/most secure and amply yielding stock would be UK plc in the form of a FTSE all share index fund.
Prior to this year's cuts, we had -11% in 2009, -3.4% in 2000-2001, -14% in 1998, -5% in 1992-3, -2.5% in 1967, -6.9% in 1962-3, -7.7% in 1948. In the second works war the peak to trough cut was -8.5%.
UK plc has a long track record of paying out dividenda that at least keep up with inflation.
Almost all of these cuts were accompanied by the markets going up (all except the early 2000s and 1948), thua offsetting the cuts loss.

Sue58

I’m looking at SSE and other utilities such as NG and UU. However, does anybody know if there is a generic Utilities fund/IT or ETF that I could consider?

[Deleted User]

Sue58 said:

I’m looking at SSE and other utilities such as NG and UU. However, does anybody know if there is a generic Utilities fund/IT or ETF that I could consider?

EXH9?

Thrugelmir

DiggerUK said:

So, a defensive portfolio  is as mystical as a unicorn. No need for complicated portfolios then, just buy defensive.....erh defensive what exactly? 

Enjoy the Unicorn Gymkhana..._ 

Every dog has it's day. 

EdGasketTheSecond

DiggerUK said:

So, a defensive portfolio  is as mystical as a unicorn. No need for complicated portfolios then, just buy defensive.....erh defensive what exactly? 

Enjoy the Unicorn Gymkhana..._ 

Linton already explained above what a defensive portfolio is; no myth about it. Yes you can just buy defensive if that is what you are looking for, other investors want growth or a higher capital return than is typically possible with defensive stocks.

Thrugelmir

Sue58 said:

I’m looking at SSE and other utilities such as NG and UU. However, does anybody know if there is a generic Utilities fund/IT or ETF that I could consider?

Ecofin Global Utilities and Infrastructure Trust. Targets yield of 4% on net assets. 

DiggerUK

EdGasketTheSecond said:

DiggerUK said:

So, a defensive portfolio  is as mystical as a unicorn. No need for complicated portfolios then, just buy defensive.....erh defensive what exactly? 

Enjoy the Unicorn Gymkhana..._ 

Linton already explained above what a defensive portfolio is; no myth about it........

Nobody has explained what the current 'defensive du jour' is. Every dogs breakfast does indeed have it's day.

Nobody can agree what is the appropriate 'jeu défensif' at this moment. 

Nobody can say what they are defending against. 

Nobody has said anything other than present a fine example of 'distinction sans différence'

Nobody has attempted to explain why it would be appropriate to put up defences at this time. Is it different this time.

What's being trotted out is a mantra of gobbledygook without any comprehendible explanation..._

Another_Saver

DiggerUK said:

EdGasketTheSecond said:

DiggerUK said:

So, a defensive portfolio  is as mystical as a unicorn. No need for complicated portfolios then, just buy defensive.....erh defensive what exactly? 

Enjoy the Unicorn Gymkhana..._ 

Linton already explained above what a defensive portfolio is; no myth about it........

Nobody has explained what the current 'defensive du jour' is. Every dogs breakfast does indeed have it's day.

Nobody can agree what is the appropriate 'jeu défensif' at this moment. 

Nobody can say what they are defending against. 

Nobody has said anything other than present a fine example of 'distinction sans différence'

Nobody has attempted to explain why it would be appropriate to put up defences at this time. Is it different this time.

What's being trotted out is a mantra of gobbledygook without any comprehendible explanation..._

Certain equities can maintain a high but sustainable yield and so be seen as defensive, regulated utilitkes are an example. All you're buying is an RPI linked dividend, no more, and very probably no less. That's why the yield can be so high in spite of its defensive nature. Whereas consumer staples can achieve above inflation growth and attract corresponding valuations, with utilities you shouldn't expect the real total return to exceed the prevailing dividend yield.

Sue58

Deleted_User said:

Sue58 said:

I’m looking at SSE and other utilities such as NG and UU. However, does anybody know if there is a generic Utilities fund/IT or ETF that I could consider?

EXH9?

How do you compare past performance of EXH9 against the Ecofin Global Utilities and Infrastructure Investment Trust? Are they both relatively new funds?