Henderson Far East Income Share Discussion Threads

[superiorshares] 29/6/2022 21:52

I have been invested several times in hfe , In the past . The 8.6 per cent yield is telling you something.
There is trouble ahead !.. it is likely to be focused around the China/Russian allegiance.

[gateside] 23/6/2022 16:18

8.6% yield now!

[danieldruff2] 22/6/2022 07:17

I use this share as a holding pen. Get the regular dividends. When the market goes on a downward spiral like now, it tends to fall around 20%, but other stocks I want to own fall 50%. Once I think the moment is right, I sell here and move across, then buy back on recovery. Don't always succeed, but more hits than misses so far...

[zac0_4] 22/6/2022 00:33

Gateside - unfortunately I've only got past performance as an indicator for future performance. I'm happy to take the 8%+ income but not if I have to give 4 or 5% back in lost capital each year. There's no point. I continue to hold and take my dividend but I'm getting to the point, after 5 years, where I'll have to reconsider my position if the share price continues to decline. As we all should do! Total return is all that matters!!

[tim 3] 21/6/2022 23:11

Was thinking the same certainly plenty of candidates for better total return

[gateside] 21/6/2022 23:09

zac... Best to look forward and not back.

Dividend looks safe in my opinion.
I'm happy to take the 8.4% income from HFEL

[zac0_4] 21/6/2022 22:36

gateside - "what's not to like?" . . . the annual total return, that's what. Here's the last 5 years (from today) total return ie including dividend 1.48%, 10.00%, -3.07%, 4.50% & -5.63%. So, total return over 5 years is 6.71%. So, that's what not to like. This is my 2nd (I think) largest holding and I await a turnaround in the share price. I'm invested here for the dividend but not at the expense of my capital!

[gateside] 21/6/2022 19:04

The directors have declared the third interim dividend of 6.00p (six point zero pence) per ordinary share in respect of the year ending 31 August 2022. The dividend will be paid on 26 August 2022 to shareholders on the register on 29 July 2022 (the record date). The shares will be quoted ex-dividend on 28 July 2022.

[jfinvestments] 21/6/2022 18:23

Is that 6p confirmed? I've not seen anything come through about that - great news!Also, a very interesting shift towards China. I think there's about 8-10@% increase in weighting. They have added China Petroleum and Chemical as well as China National Building Materials. Both now make top 2 holdings. Seems smart with China wanting to enforce growth, US possibly reducing tariffs on goods. building materials/resources seems a safe enough play. And in order to produce anything we still need need petrochemicals.

[tim 3] 21/6/2022 14:49

Added.

Defiantly no more lol

[gateside] 21/6/2022 14:38

There's the increased dividend, up to 6p per quarter. That's what I was hoping for.So 24p per annum is a yield of 8.4% What's not to like?

[zac0_4] 19/6/2022 22:16

panshanger1 - I wish it was a share where you gave up some capital growth in return for a juicy yield. For me, and many others I guess, it's been a share where I've given up capital in return for yield.

I first bought in here in May-17 topping up on many occasions. For me I've seen my capital depreciate by 17% in return for dividends to the value of 20% of my original investment. So a total return of 3% over 5 years!

I'll continue to hold on the basis that at some point (hopefully!) the decline will cease and may even be replaced by some growth and, whilst I'm waiting the dividend will reward my patience.

I'm not adding any more simply collecting the dividend. Good Luck.

[panshanger1] 19/6/2022 17:54

Think this is a share for those requiring income and you give up a some capital growth to get such a juicy yield Even better if your taking it tax free from an ISA or Sipp Has a very good track record in increasing that dividend too

[4spiel] 19/6/2022 16:57

Just collect the dividend for next year or two and add on any signs ant dip because it will go back to 297p

[zac0_4] 19/6/2022 13:26

JF - I like to have a position in both camps. Global equity funds and (various) dividend paying trusts. I agree HFEL has been a fairly safe haven this year so far with a virtual flat total return over the last 6 months. Compared to the 12% loss over the corresponding period from my Vanguard All Cap Index that looks ok. It's the long term return that needs to improve. A total return from HFEL (divs reinvested) over the last 5 years of 8.5% is nothing to shout about compared to the 42% total return from the Vanguard Index fund over the same period. I hold both.

[petewy] 19/6/2022 11:50

Good comment JF.

[jfinvestments] 18/6/2022 10:08

In my opinion, over the next couple of years I think we will see mindsets of investors change. It already has started, with the slowing of growth, there has been a move to safer income trusts. I think this will continue. Offering a return of 6-8% will be something that is sought after and should provide further interest.Also, if you look at the 6 month comparison for this sector (Asian equity income) it has only lost 3.87% - only beaten by Schroder oriental at -2.27%. over a year comparison it does move further down the list however. But the point I am trying to make is that it is fairly steady. And if it offers a good yield and you allow it to compound, then in ten years time there will have been some capital growth (max data shows 27%) but your compounding should do the job of raising your money considerably. I actually like the portfolio although I don't forsee huge capital growth, you have exposure to mining and semiconductor tech and some financials. I think during the change to electric that's a safe bet.

[zac0_4] 18/6/2022 09:49

kaffee - the benefit of investment trusts is that they can hold back revenue received to smooth out dividend payments during poor years ie 2020.

From the latest financial report (full year 2021)HFEL paid out £34.04m in dividends from income generated of £33.77m. The shortfall being met from revenue reserves which currently stand at £25.66m.

The same principle applies to MRCH. They have raised their dividend payment year on year for 39 consecutive years utilising this business model.

[kaffee] 18/6/2022 07:30

>1.2 would be nice though :-)

And there are plenty >6% with coverage >1.6, and good cash flows (acknowledging all figures are historic and can be wiped !!)

My point is, not much fat here to maintain that div although their history shows they have.

[wllmherk] 18/6/2022 07:15

I take your point kaffee but there are not many stocks with a dividend cover of 2 or more and yielding 6%+ so I pay my money and take my chances. I take the view there are no risk-free investments in the stock market, HFEL included.

wllm :)

[kaffee] 18/6/2022 06:37

Forgive me if this question pushes your buttons, but all you "buying for the yield" types - are you not bothered by the div cover of less than 1 ? Or are ADVFN numbers wrong ?

Seeing MRCH mentioned above as well, that coverage is 0.94. Is that sort of average of IT's ?

[tim 3] 18/6/2022 06:01

I agree timing is difficult and predicting markets especially tops and crashes even more so however what we can do is have a plan of what to do based on how the market trades. I am about 50% invested at present as I agree levels particularly in tech look risky and although I think it's unlikely have points where I will add even if the S&P drops below 2000.If you have a plan and invest long term timing becomes less critical.

[wllmherk] 17/6/2022 22:06

I would agree Timbo, I thought the US market was way overvalued and will now correct dragging other markets down in its wake. Timing is the key, but, hard to get right. Big gains to be made for those who do though.

wllm :)

[tim 3] 17/6/2022 19:46

Be surprised if this is the bottom the way the market is behaving is incredibly weak and points to going lower maybe considerably lower imo and we certainly have not had a capitulation sell off yet that often indicates a bottom.