Rate my SIPP - ITV high conviction

Juno_Moneta

Ok I’ll do the update today as it’s been an interesting day for my pension. 

So first of all since page 1 - I’ve managed to add approx 70,000 shares. 

This was achieved through a combination of small monthly employer contributions plus some speculative trading (with a small portion of the holding not the whole lot), selling into strength and buying back on weakness.

So total SIPP holding is now 1,121,992 ITV shares.

At current 5p a year annual dividend this produces about £56k.
Dividends are not guaranteed although ITV has paid 5p for 3 or 4 years now. 

This could of course all change if part of the business is sold. 

There is also the potential for a ‘special dividend’ if funds arise from such a sale…

In addition to the value below there is a pending dividend of about £19k, so total value just north of £900k. 

Still below the elusive £1m pension that was one of my earlier stated goals!
It’s a shame the HL website doesn’t show ‘pending dividends’ as part of the portfolio view. 

I did intend to simply reinvest this dividend like I always do. Although I would have preferred to do so under 70p on the recent weakness - never mind can’t have it both ways.

Well that’s about it, not much else to say. Still holding, still watching the news with interest. Will keep adding and trying to grow my SIPP. 

phlebas192

To put this into context, your SIPP has risen by about 8.9%, including some new money, since your first post in February. Over the same period the FTSE All Share Total Return index has risen by 13%. You are running significantly higher risk and yet achieving significantly lower returns. 

Juno_Moneta

phlebas192 said:

To put this into context, your SIPP has risen by about 8.9%, including some new money, since your first post in February. Over the same period the FTSE All Share Total Return index has risen by 13%. You are running significantly higher risk and yet achieving significantly lower returns. 

Sure, they are clearly different investments.

i suspect the yield on the FTSE All Share TR is something like 3.5% perhaps vs ITV’s 6%+ (not guaranteed).

And I doubt the FTSE All Share TR offers me the possibility of a high value corporate action like ITV does. 

Yes I am running higher risk, but therefore I have the opportunity for higher reward. This is my choice and TBH if I’d only ever invested in FTSE index trackers I doubt I’d be where I am today.

But … once I start diversifying sure this could well be something in my portfolio, thanks.