High Yield Defensive Stocks

Thrugelmir

MonroeM said:

Thrugelmir 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?

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

Thanks for this suggestion Thrug, I have taken a look at their website and factsheet and it looks a good option to me.

I would stress it is only a suggestion not a recommendation !  

EdGasketTheSecond

EGL (Ecofin) have latest published NAV of 164.7p (as of 31st Oct) but share price of 184p. Year low of 107p. The yield is not covered either (about 0.85 covered) so looking a bit stretched at current level.

Thrugelmir

EdGasketTheSecond said:

EGL (Ecofin) have latest published NAV of 164.7p (as of 31st Oct) but share price of 184p. Year low of 107p. The yield is not covered either (about 0.85 covered) so looking a bit stretched at current level.

With energy stocks with the exception of one which was forbidden to pay a dividend. All the others that I hold have either paid maintained or increased dividends this year. Far better outcome than the broader markets. 

AnotherJoe

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?

How about TRIG. Covers multiple renewable energy contracts fixed typically for 20-30 years. Dividend 5% or so.

quirkydeptless

AnotherJoe said:
How about TRIG.

StellaN

MonroeM said:

I have a relatively small proportion of my portfolio in cash from a recent pension transfer into a SIPP. I decided I wanted to invest this money into some relatively high yield defensive stocks (3/4 different shares) with some potential for growth.
As an example, several weeks ago I invested in Legal & General at 180.00 and it now stands at 232.00 but also has a yield of 7.5% so it seems to fit in with my requirements. Just recently I also added GSK at 1440.00 so in my view it has growth potential and also a decent yield of 5.6%.
These investments are for the long term so any share price fluctuation or volatility does not particularly matter as long as the yield is fairly reliable. At this stage any yield will not be taken as income so all dividends will be reinvested.
I am still looking for another one or two stocks into to invest in so I am very open to any opinions or suggestions to any shares that fit this criteria? Thank you.

OP, rather than choose individual shares with decent yields, maybe you should just consider increasing either the growth part of your portfolio or the Wealth Preservation part or add a bit to each to suit your risk profile? I’m not against investing in individual shares however I personally feel your total returns would be better with what I am suggesting in the long term. I myself only have a growth portfolio and a WP portfolio and nothing in between because at the moment I don’t require an income from my investments.

Thrugelmir

StellaN said:

MonroeM said:

I have a relatively small proportion of my portfolio in cash from a recent pension transfer into a SIPP. I decided I wanted to invest this money into some relatively high yield defensive stocks (3/4 different shares) with some potential for growth.
As an example, several weeks ago I invested in Legal & General at 180.00 and it now stands at 232.00 but also has a yield of 7.5% so it seems to fit in with my requirements. Just recently I also added GSK at 1440.00 so in my view it has growth potential and also a decent yield of 5.6%.
These investments are for the long term so any share price fluctuation or volatility does not particularly matter as long as the yield is fairly reliable. At this stage any yield will not be taken as income so all dividends will be reinvested.
I am still looking for another one or two stocks into to invest in so I am very open to any opinions or suggestions to any shares that fit this criteria? Thank you.

OP, rather than choose individual shares with decent yields, maybe you should just consider increasing either the growth part of your portfolio or the Wealth Preservation part or add a bit to each to suit your risk profile? I’m not against investing in individual shares however I personally feel your total returns would be better with what I am suggesting in the long term. I myself only have a growth portfolio and a WP portfolio and nothing in between because at the moment I don’t require an income from my investments.

If there's an opportunity for the dividend to grow then on occasions value surfaces. Reinvestment of income is a long and well established way of building a portfolio. Compounding is often refered to as Einstein's 8th Law.   "Growth" can hide a multitude of sins. Not least in whose interests the company management run the company for. 

Sally57

MonroeM said:

I have a relatively small proportion of my portfolio in cash from a recent pension transfer into a SIPP. I decided I wanted to invest this money into some relatively high yield defensive stocks (3/4 different shares) with some potential for growth.
As an example, several weeks ago I invested in Legal & General at 180.00 and it now stands at 232.00 but also has a yield of 7.5% so it seems to fit in with my requirements. Just recently I also added GSK at 1440.00 so in my view it has growth potential and also a decent yield of 5.6%.
These investments are for the long term so any share price fluctuation or volatility does not particularly matter as long as the yield is fairly reliable. At this stage any yield will not be taken as income so all dividends will be reinvested.
I am still looking for another one or two stocks into to invest in so I am very open to any opinions or suggestions to any shares that fit this criteria? Thank you.

OP you seem to have made a good decision/buy with L&G at 180.00 as it’s currently priced at 253.00, however you bought GSK at 1440.00 but it seems to be heading to a year low currently at 1374.00 so not such a good buy but hopefully it should improve in the future. I bought GSK at a higher price of 1475.00 so only time will tell.

MaxiRobriguez

You could always top up your GSK purchases to bring your average purchase price down? I'd be doing that if I hadn't done it already and got to a point whereby I don't want to make it any bigger as a % of my portfolio. 

MonroeM

Sally57 said:

MonroeM said:

I have a relatively small proportion of my portfolio in cash from a recent pension transfer into a SIPP. I decided I wanted to invest this money into some relatively high yield defensive stocks (3/4 different shares) with some potential for growth.
As an example, several weeks ago I invested in Legal & General at 180.00 and it now stands at 232.00 but also has a yield of 7.5% so it seems to fit in with my requirements. Just recently I also added GSK at 1440.00 so in my view it has growth potential and also a decent yield of 5.6%.
These investments are for the long term so any share price fluctuation or volatility does not particularly matter as long as the yield is fairly reliable. At this stage any yield will not be taken as income so all dividends will be reinvested.
I am still looking for another one or two stocks into to invest in so I am very open to any opinions or suggestions to any shares that fit this criteria? Thank you.

OP you seem to have made a good decision/buy with L&G at 180.00 as it’s currently priced at 253.00, however you bought GSK at 1440.00 but it seems to be heading to a year low currently at 1374.00 so not such a good buy but hopefully it should improve in the future. I bought GSK at a higher price of 1475.00 so only time will tell.

Yes, at the moment L&G is working out well and has a good yield but who knows in the future? As I mentioned these investments are long term so with regard to GSK I’m not really concerned about the share price volatility at this stage as long as it still produces the 5.6 per cent yield. I agree the share price is quite low but in my opinion there is some potential for growth.