Henderson Far East Income Share Discussion Threads

[tim 3] 11/1/2023 15:26

Bareknee.

Thanks for your reply.

[bareknee] 11/1/2023 14:16

Tim

Re "someone was saying that basically the yields of the company's held came to quite a bit less than the amount these pay."

HFEL generates revenue, distributed as dividends to shareholders, from a combination of dividends received from stock the trust owns and income from derivatives. The vast majority comes company dividends, but the derivatives generate the extra income.

So, if you tot up all the dividends HFEL receive, it might be less than what's paid out to shareholders, but the total revenue ( divis + derivatives ) means the dividend paid to shareholders is almost always fully covered.

[purplepelmets] 11/1/2023 08:12

Best course of action when encountering uninformed chatter on BBs is treat it like GOLD. Count on it with your offsprings lives.

[woodhawk] 11/1/2023 00:57

Tim3,

As for your comment that 'the total return' has been poor for years... well that's subjective isn't it? Perhaps I bought my shares cheaper than you did, so I have a different view, as I am already in decent profit. If you're not happy with the Fund, you always have the option of taking your loss and investing elsewhere.

Regarding "on one of the other boards someone was saying"... perhaps try doing your own research and maybe your investments might be more successful in future?

[tim 3] 10/1/2023 21:32

Not sure how much validity it had but on one of the other boards someone was saying that basically the yields of the company's held came to quite a bit less than the amount these pay.

[njb67] 10/1/2023 20:54

I suspect general market sentiment amplified by forced liquidation/over-reactions has led to the current yield, and not just here.

Worth keeping an eye on how much dividend cover HFEL has so if some companies do cut their dividend HFEL can still maintain their dividend payout. Most Investment Trusts add to reserves in good years to cover shortfalls in bad years, so the investor experiences steadily increasing and predictable income.

HFEL reiterated their commitment to this approach in their last set of results, so for next year or so, I would be confident in them at least maintaining current dividends.

I also think there is a fair chance of capital appreciation as the markets slowly move beyond Covid, Ukraine and concerns over recession. I am not convinced sentiment will turn quickly, this could be quite protracted, but a reduction in negative sentiment will help.

[tim 3] 10/1/2023 20:53

Even with the dividend re invested the total return track record of these has been poor for years and I own plenty.Most of my other investments have significantly out performed them.

[woodhawk] 10/1/2023 20:40

Scruff1, that's quite true. Dividends may be reduced. About one 1.5per cent of mine have been in the last 12 months. The other 98.5 were all paid. I expect the forthcoming year will be little different, although I am expecting, overall, a single digit increase in the already massive yield I have achieved this year. Any capital gains are an additional bonus which, in view of currently low expectations, I am also anticipating. But I always was an optimist.

[scruff1] 10/1/2023 20:04

Superior
That may be true but imo it would be a tad unrealistic not to expect a number of co.s cutting their dividends in the not too distant future. I see TW have lost ground today on expectations of a cut to dividend. It wont be the last. It could be a choppy year ahead.

[superiorshares] 10/1/2023 19:02

History will show show you . When you have an enormous amount of companies paying high dividends . A huge amount of those companies in the not too distant future, cut their dividend.

[scruff1] 10/1/2023 18:14

You can say that again Woodhawk. Bbox is 40% discount and it hasnt put a foot wrong yet. Its only crime is the perception by fickle investors. But thats how it is with the markets. Theres a logic to the lack of logic somewhere. One day I will work it out to my advantage !! At least with HFEL its a tad easier to understand the nervousness

[petewy] 10/1/2023 17:02

Agreed. I hold all these (your) shares and more (BBOX SBLK SRE) all for the dividends.

[woodhawk] 10/1/2023 16:25

As far as I'm concerned, almost every share I hold is currently undervalued. Across my entire portfolio, my average yield is over 7%. There are loads of great, solid shares currently yielding over 7% (LGEN, PHNX, M&G, DEC, DLG to name but a handful). I'm glad to add at these sorts of yields. If every share was fully valued, it would be a very dull and dangerous market, imo.

[8gggggggg] 10/1/2023 15:39

Can someone explain what is the problem with HFE.....it's yield of 8% is fantastic, I have bought and Divi never missed , .....Furthermore their largest holdings seem to be in OZ and NZ....I would like to add a lot more , but fear there is problem I have not seen .... Any ideas???Dakas

[panshanger1] 09/1/2023 11:14

Thanks @zac0_4 but everything in ISA or SIPP at this stage ( as am now retired )and l am drawing down from bothKeep a bit of cash on hand though

[woodhawk] 09/1/2023 11:10

Having used my full ISA allowance every year for as long as I can remember, I now only have about £75K in non-ISA'd shares, so just another 3 years or so and I'll have everything dividend and capital gains tax free.

[zac0_4] 08/1/2023 22:37

panshanger1 - I hope you're not taking money out of your isa if you've got any holding outside of it!!

[panshanger1] 05/1/2023 23:11

Been adding over the last few months with that expectation but to be honest I'm here for the dividends really as taking the income from my ISA now So sustainability of said dividend is important too

[scruff1] 05/1/2023 21:49

True panshanger but this surely is a case of where the egg comes before the chicken (I think its that way round!!)The price is based on perception/anticipation at the moment but if things do turn around in China then the FE will follow as will HFELs NAV so it shouldnt cause too much of a drag. Thats my opinion at least. Would it be yours?

[panshanger1] 05/1/2023 20:56

Premium been getting bigger here though scruff !What I like here is the dividend record,little gearing, no performance fee and the fact that this region generally must improve in the not too distant ..GLA

[scruff1] 05/1/2023 19:31

Yes I did. I didnt notice the connection. Anyway its looking like we are on a bit of a roll which is very welcome. Gets a tad tiresome seeing all your dividends go to covering the capital loss. Hopefully the situation in China is on the mend which is a blessing cos if we aint gonna be dependent on Russia for our future fossils we will be dependent on China for our windmills, solar panels and batteries. Our politicos are not happy if they have to sort summat themselves. At the moment it seems Putin and Xi will decide for them what will be renewable - our heroic leaders dont seem to have much of a say. Talking of which I really am tempted to have another punt on ITM. I sense a bit of momentum gathering for hydrogen of one form or another. Its the increasing cash burn and the lack of progress with sales thats the real worry of course

[skinny] 05/1/2023 16:21

Scruff - if you mean my post, it was just that I happened to see the spike down and noticed the NAV RNS at that time - a 4p rise over yesterday and the price spiked down @7p - I tried to buy, but the price was already back to 277 - possibly just a timing coincidence or 'fat finger'.