{"id":123721,"date":"2025-03-10T08:02:48","date_gmt":"2025-03-10T08:02:48","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/retirement-investing-today-2019-hyp-review\/"},"modified":"2025-03-10T08:02:48","modified_gmt":"2025-03-10T08:02:48","slug":"retirement-investing-today-2019-hyp-review","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=123721","title":{"rendered":"Retirement Investing Today: 2019 HYP Review"},"content":{"rendered":"


\n<\/p>\n

\n
\nIt\u2019s now a little over 8 years ago that I started to build my UK High Yield Portfolio (HYP).\u00a0 It was a much talked about strategy back in the Motley Fool forum days and today still gets plenty of attention on the Lemon Fool forums today<\/a>.\u00a0 I built the portfolio between November 2011 and July 2015 by which time I\u2019d amassed 17 shares across multiple sectors.\u00a0 That included a token amount of Royal Mail Group (ticker: RMG) during the initial public offering in 2013 and the spin-off of S32 by BHP in 2015.<\/p>\n

Today the portfolio is down to 16 shares because of the forced Amlin sale in 2016.\u00a0 It was set up to be close to a low tinker portfolio with only a few mechanical rules that would trigger a sale if there were big changes to a share.\u00a0 For example if the actual value of a holding became 50% larger than the median share holding I would sell 25% (I\u2019m looking at you Astra Zeneca, ticker: AZN, who is now 2.4 times the median) or if the actual dividend yield dropped below 50% of the FTSE All Share.<\/p>\n

As it\u2019s turned out to date I\u2019ve done precisely zero tinkering unless forced by corporate events.\u00a0 This means in 2019 there were again no buys or sells.\u00a0 The complete HYP and the respective values of each share are shown in the chart below.\u00a0 The purchasing rule that I followed while building the HYP was the amount of the next purchase was the median share value of the current portfolio (with the exception of RMG and S32).<\/p>\n

\n\"Retirement<\/a><\/div>\n

\nClick to enlarge, Retirement Investing Today High Yield Portfolio<\/i><\/p>\n

\nSainsbury\u2019s, Astra Zeneca and SSE were all bought on the same day back in late 2011.\u00a0 The big divergence in values continues to nicely demonstrate why I no longer actively trade or invest.\u00a0 I\u2019m rubbish at it…\u00a0 The annualised capital gains\/losses of my complete HYP shown in the chart below further demonstrate this.<\/p>\n

\n\"Retirement<\/a><\/div>\n

\nClick to enlarge, Retirement Investing Today HYP Annualised Gains\/Losses<\/i><\/p>\n

\nI stopped adding to the HYP in 2015 with my overall investment strategy, as my wealth and knowledge grew, simply moving on to be a mechanically diversified collection of low expense, physical (as opposed to synthetic), income based (as opposed to accumulation) ETFs tracking enough indices to give me diversification across asset classes and countries held within low expense SIPP\/ISA\/Trading Account wrappers.\u00a0 That said I never sold the HYP as to date it has formed an important part of my overall portfolio, although admittedly as time has progressed and as my total portfolio of dividend paying assets has grown it\u2019s becoming less important, because while it\u2019s only 4.9% of my wealth in 2019 (8.0% of my dividend paying wealth) it delivered 13.1% of my total dividend income.\u00a0 In investing total return (dividends plus capital gains) is what matters but this over performance in dividend yield has served\/s the following purposes:<\/p>\n