Edinburgh Investment Share Discussion Threads

[kiwi2007] 23/9/2020 06:52

Too heavy in financials (banks and ins) and oil majors. Over 20%
No wonder it's going nowhere. Just tracking the 100 index.
If it wasn't for the discount to NAV it'd be better in the long term to buy a FTSE100 index tracker and save on the fees.

[chc15] 22/9/2020 12:03

I topped up earlier, but tbh I'm not sure abt Majedie, jury's out still.

[ec2] 21/9/2020 22:27

Today's market down day coupled with EDIN's 14% discount seemed like a good entry point. Appreciate the div likely to be reduced going forward but even so it was a good way to pick up some quality underlyings on the cheap. I think the discount should slowly reduce to reflect the new management.

[essentialinvestor] 21/9/2020 18:06

EDIN gets hit because of high liquidity, if you need to raise cash then
it's usually possible to sell in quantity here. Had a few today, not sure on
my timing.

[chc15] 21/9/2020 08:48

This always seems to get hammered more than other UK its. Might have to top up again.

[essentialinvestor] 17/9/2020 22:19

Expecting progress here as the new Manager amps up the focus on total return.

[essentialinvestor] 17/9/2020 15:04

Had a few, 14% discount with a portfolio that is nicely taking shape
under the new Manager.

[essentialinvestor] 06/9/2020 15:32

It's usually appears amoung those hit hardest on any equity weakness.

[bluemango] 04/8/2020 13:16

Thank you Goldpig, much food for thought there.

It's been an 'interesting' time for those of us dependant on dividend income. PHNX is the only non IT in which I've taken an overweight position. Their interim results are due this Thursday, when I'm hoping they announce at least continuing dividend at current level.

I respect your views and followed you by building a holding here in EDIN. For which I take full responsibility, whatever happens btw!

[goldpiguk] 04/8/2020 13:07

Hi bluemango,

My watchlist for potential future purchases only consists of Investment Trusts. I am aware of PHNX as they have appeared on IT holdings lists. Outside my ISA I hold shares in nine individual companies and within my ISA five IT's.

Income from shares in individual companies looks set to more than halve this year. BP cut today, but not as much as I feared.

The dividend outlook within my individual company portfolio has slightly improved over the last month, which bodes well for IT's being able to sustain or slightly increase dividends this year (including utilising some of their reserves).

Being self employed I consider myself extremely lucky to have received money from the SEISS, as my income from self employement averaged about 52% against 48% from dividends (outside my ISA) over a three year period. If my dividend income had been a bit more I would have got nothing. If either my earned income or dividend income had been a bit more I would have exceeded the £150,000 three year total limit, again getting nothing. The Brexit hit I took, through lost work (in 2017 & 18) has actually turned out to my financial advantage!

A lot of self employed people must have fallen though the net and now face real financial difficulties. Many employed people currently on furlough will lose jobs over the coming months.

Closing down the economy was quick and easy, getting it back up and running is going to take much, much longer and be very costly to us all.

Personally, I don't expect income from my self employment to fully recover until at least the second half of 2021, which is why I am taking an ultra cautious stance on invesment plans.

Goldpig

[bluemango] 04/8/2020 11:24

Thanks Goldpig. Understand your caution about further investments at present, but did you ever consider PHNX? Legacy life insurance acquirer, yield 7%, no staff furloughed, business model relatively immune to Covid disruption.

[goldpiguk] 04/8/2020 11:08

Hi kiwi2007,

Thanks. I have just watched the 'spare bedroom' presentation. Well worth watching.

With dividend cuts at RDSB, BP. and the suspension of LLOY dividend, EDIN is now the biggest dividend payer in my overall portfolio.

A very positive presentation with interesting comments on Rio Tinto. Currently I am not making any further investments, but if I were, I would consider adding to these.

Goldpig

[kiwi2007] 03/8/2020 22:54

Contains AGM video (23rd July) - worth a watch if you're an investor.

[aurelius5] 17/7/2020 19:12

De Uphaugh's report in the recent full-year results was the most wide-ranging and perceptive I've seen so far from a fund manager. As for the portfolio, time will tell. It's something of a mixed bag and already contains a few divi cutters. I'm surprised he's not fully used his 20% overseas allowance.

[bluemango] 06/7/2020 09:01

After-market notification on Friday, Portfolio Manager James de Uphaugh bought 5000 shares, total outlay £23,000.

[bluemango] 30/6/2020 13:50

Fair point, thanks for the correction.

[orinocor] 30/6/2020 13:47

I don't think that is right blue. Its 12%-13.5% depending on which NAV you use. I always use the debt at fair value, not debt at par value when I do this calculation

[bluemango] 30/6/2020 13:12

Discount around 15%, yield just over 6%.

Have been adding here, including today (shown as a sell).

[bluemango] 12/6/2020 10:30

From that list of top 10 holdings, reasonable scope for AZN in particular to increase divi over next couple of years.

Good, clear statement of intent from management. Very comfortable to be holding this and agree with comments above re taking the opportunity to switch around.

[spectoacc] 12/6/2020 10:21

Their Top 10 really doesn't look too bad for divis - ULVR, AZN, TSCO, SN, MNDI etc.

Not packed with the divi cutters like some of their peers.

[poikka] 12/6/2020 09:46

Going into this year, Revenue Reserves total £81.8m, against Dividends of £53.1m; so 1.5 years of reserves.

That's enough to keep us going until the picture becomes clearer.

The virus is throwing up opportunities to pick-up some companies that have ditched/deferred their divis at attractive prices, well I have, anyway, and that would pay-off in terms of income next year, or the year after. A lot of those companies will have benefited from lower debt in the meantime.

But still, having a high yielding IT can be a real constraint on growth, so it'll be interesting to see what they come up with in November.

[poikka] 12/6/2020 09:32

"While we have some short-term flexibility to support dividends through use of its distributable reserves, we will be working with the Board in the months ahead to help the Board decide what might be a sustainable level payout for shareholders. We expect to be able to say more about this by the time of the Interim results in November."

We have been warned, but that was expected.

[chc15] 14/5/2020 10:14

Good comments on here re EDIN and DIG, although this seems to be hit much harder when mkt drops, DIG more resiliant, why is this?

[andycapp1] 30/4/2020 16:48

Ahh I’ve the benefit of having run an inv trust for 20 years and they will distribute substantially all income save for a v modest reserve over time to help interims etc. So they should achieve £42-44m v £47m cost or say £50m before man fees (assume some are capitalised) audit, board, other advisors. So they need £47m to maintain and I think they’ve got £42-44 so net say £40m. Hence the 15% cut. Maybe 20% tops. Won’t be more unless world craters.

[steve3sandal] 30/4/2020 14:11

AC1 thanks for your calculations. I completely agree regarding the better portfolio but I’m expecting a lower reset that’s all. I’m leaning more towards the Majaedi mandate for Dividend growth and something more like 16p / 450p share price If we get some capital return too that would be a nice change. I’m minded to top up having sold 2/3rd a while ago. My current general U.K. favourite is DIG which has a similar outlook to New Edinburgh and another of the few dividend reserves aristocrats still on a discount.