Henderson Far East Income Share Discussion Threads

[kenmitch] 24/4/2024 17:03

Thanks for the good wishes Hastings. Not well but hopefully getting there.

Fair point about HFEL share price performance being enhanced by reduced discount. NAV is up around 10% from the low though, so definite hints of improvement.

There are STILL so many shares and Investment Trusts paying huge and often sustainable dividends, reflecting the undervaluation of a lot of UK shares. E.g just today Serica surprised by paying a 14p final (7% just for that 1 dividend) and the overall dividend is 11.5% and higher than last year.

Here’s a bit of info for those keen on seeing dividend cuts and more buybacks. Our portfolios have now reached the stage where all new investments can be paid for from the dividend income month after month.

AND it means the portfolios now fund themselves too.

And right now is still a good time to build a portfolio of shares and Trusts paying exceptionally high and sustainable dividends. It’s only when the dividends flow in like the current 10.4% HFEL yield, that we investors seem to realise what a bonus they are.

[2sporrans] 24/4/2024 14:13

kenmitch

you have to factor in that that 12% share price uplift was accompanied by a shift [mostly the past few weeks] from 4% discount to 2% premium; therefore just a 6% rise in NAV over those 6 months.
Some investors pay close attention to the NAV performance.

On the +ve side, you could argue that HFEL is yielding about twice what av. of peers payout; so maybe, as much as 3% EXTRA yield over 6 months, had one bought at last autumn lows. [HFEL yielded ~12% at its October nadir.]
Taking your 12% cap. gain and adding 6% for 2 divvis makes a TR of 18%, from the nadir.

It will be interesting to see how close to 6p the share price drops at tomorrow open; moreso if the premium fades over the next week or 3.
Perhaps it will......maybe it won't.

[brucie5] 24/4/2024 14:08

HFEL going great guns; and BRWM looking distinctly promising as well.

[hastings] 24/4/2024 13:31

Good post Ken, nice to see you here and hope you're keeping well.

[kenmitch] 24/4/2024 13:25

The dividend looks secure. Read page 3 of the factsheet for why.

What many investors might have missed is that this year HFEL has gone from being by far the worst sector performer to the BEST performer. It’s up 12% over 6 months and next best AAIF is up 10%. HFEL has also outperformed them all over 1 month and year to date.

And the dividend is still 10.4% with next ex 6.1p quarterly dividend tomorrow.

[carpingtris] 24/4/2024 12:46

If the share price and NAV increase then the yield comes down naturally and therefore a rebase isn't needed? Am I missing something?

[bluemango] 24/4/2024 12:43

If they rebase the dividend, you can say goodbye to the current momentum and uptrend.

[speedsgh] 24/4/2024 12:25

Encouraging share price performance since end of last year but we have been here before (cf. Q4 2022) so not out of the woods yet. Really need to break out of the long term downtrend dating back to the high in mid-2019 to confirm reversal.

I would be happy for the dividend to be rebased to a more sustainable level if required, even if it means giving up their 'Next Generation of Dividend Heroes' status. While income will be a primary focus for many here, it seems sonewhat pointless if the income consistently forms part of a negaive total return.

Fingers xxd that the current momentum can be maintained.

[panshanger1] 24/4/2024 11:16

That's a fair call I've also held AAIF for many years aswell as DIG and MUT from an old Aberdeen investment trust plan which did very well for me Does look like the holdings here are being reshaped Can't help thinking the yield will be rebased at some stage - still have a reasonable holding though and hoping for better times (TR)

[panshanger1] 24/4/2024 11:09

Ex div tomorrow

[2sporrans] 24/4/2024 11:04

panshanger

now on a premium of ~2%.

sp risen to 234p; NAV declined a little further to 226p.


decided, this am, to sell ~45% of my holding; the above being the immediate spur.
tbh, i remain skeptical that Sat [Durha] is going to do much to improve the relative performance of the fund, which in Total Return terms has been abysmal over any timeframe of a year or more since the pandemic collapse, early 2020.

trade was lucky enough to coincide with a bit of a dip in AAIF; so i reallocated 90+% of the HFEL proceeds into that.
AAIF also goes XD tomorrow.
A mere 5.7% yield but the divi has been rising much faster than HFEL's and far better TR.
Plus, its on about 11% discount to NAV.

Still have over £45k in HFEL.
See how it goes over the next year, especially relative to peers.

[carpingtris] 24/4/2024 10:46

Looking better here finally. Let's hope it lasts!

Do worry abit about that 10%+ dividend but if the share price rises that falls abit and might not put some investors off.

[panshanger1] 19/4/2024 19:12

NAV was up to 234 but dropped back somewhat Still a much better trend here

[panshanger1] 19/4/2024 19:11

Yes I saw that discount closed again now

[bluemango] 16/4/2024 10:08

Well, 'only' 10.8% if you calculate using the offer price, but yes - excellent yield.

And for chart enthusiasts, on the lower trendline of the uptrend.

[brucie5] 16/4/2024 09:57

So this is yielding just over 11%.

[bluemango] 16/4/2024 09:49

Good, dividend declared sticking to new quarterly level 6.10p, payable 31st May.

[superiorshares] 16/4/2024 07:50

The problem is going to be housing.
I understood China has allowed excess capacity to be built, 30 years of it!
This will Impact on the whole region for decades.

TRUMP2024
SS

[aleman] 11/4/2024 10:24

Philippines exports +15.7% in Feb from +9.1% in Jan and -0.5% in Dec. Most of 2023 was negative. So the Philippines are late to the party but joining a growing number of Asian countries that seem to be booming. Asia Development bank has just reiterated growth of 6.0% this year abd 6.2% next for Vietnam, after 5.05% in 2023.

[brucie5] 08/4/2024 17:50

njb678 Apr '24 - 14:12 - 1889 of 1891
--------------------------------
Thanks.

[carpingtris] 08/4/2024 17:43

TSMC news might have helped here a little?



Certainly won't hurt.

[speedsgh] 08/4/2024 14:55

Yes, I would agree with all of that @njb67

[njb67] 08/4/2024 14:12

Within Asia Pacific, I mainly hold AAIF. Share price and NAV have beaten benchmark over 1, 3 and 5 years. Pays 5.7% yield and has increased dividend for last fifteen years.

HFEL dividend is imv more a sign of poor management over recent years than a reflection on the health of the underlying business. HFEL appear to have chased annual dividend increases to the detriment of total share price and NAV return. Recent acknowledgment of this issue and a commitment to change approach have brought me back to HFEL. I have for now a small position and will wait and see if overall performance improves. I would prefer to see the dividend consistently fully covered by income, even if this means a reset of the dividend to something more sustainable. A 7% yield would still be sector leading.