Henderson High Income Share Discussion Threads

[coxsmn] 14/1/2022 14:41

ThanksHfel is one of my others.

[panshanger1] 04/12/2021 09:32

Been watching here but high level of gearing has put me off Can help in good times but can also amplify losses if market turns Got burnt with Glasgow Income years ago !!

[rcturner2] 04/12/2021 06:35

Mainly because I have come more and more to the view that holding direct stocks is too risky. Additionally buying into the investment trust allows you to access the stocks at a discount and the level of the discount seems to me to be a farily reliable indicator as to the market cycle (or sub-cycle). I track all trusts that pay more than 5% and it is relatively easy to look at the discount and I tend to only consider those trusts where the discount is greater then 10%.

[brucie5] 02/12/2021 19:40

speedsgh25 Aug '21 - 12:32 - 86 of 94
0 1 0

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From the link, for which, thanks:

"HHI’s top 10 holdings have changed little since the start of the year. There are two new entries, RELX and AstraZeneca, while 3i and Royal Dutch Shell have been removed. British American Tobacco remains the trust’s biggest holding, despite decreasing by 0.4 percentage points. As at 31 July 2021, HHI’s top 10 represent 28.9% of the portfolio, an increase of 2.4% since 31 December 2020."
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So HHI holds 4% in BATS, which I believe is currently yielding almost 9%.
RC Turner, if you seek dividend as part of a diverse folio, why not go to the source in this case, and hold BATS?

Genuine query: as you know I read your posts with interest!

[north sea boy] 17/11/2021 16:29

Yes Aleman, and I am delighted to see this modest increase in the dividend.

Best wishes

NSB

[rcturner2] 18/10/2021 10:04

The yield is about 6% at the current share price.

The management fee is .5%

[coxsmn] 18/10/2021 09:43

Whats the net yield here including management fee

[rcturner2] 17/10/2021 09:44

I hold AIF, ASEI, EAT, EDIN, HHI, IPU and VIP.

AIF (Acorn income fund) is currently being wound up so cannot be bought.

The others have all proved good investments over time.

I tend to focus on trusts that pay a decent income. IPU is probably unusual for me as it is a small cap fund that does not pay a big dividend, but has still been a good investment.

[coxsmn] 16/10/2021 21:14

RCT,Do you invest in any other trusts?

[rcturner2] 25/8/2021 13:57

Thanks that is a good and detailed article.

I am a long term holder here, it has been a great trust to invest in.

[speedsgh] 25/8/2021 13:32

New QuotedData update...

Henderson High Income: A taste of more to come -

[aleman] 22/7/2021 13:05

21 July 2021

HENDERSON HIGH INCOME TRUST PLC

PAYMENT OF THIRD INTERIM DIVIDEND

Henderson High Income Trust plc announces that a third interim dividend of 2.475p per ordinary share of 5p, in respect of the year ending 31 December 2021, will be paid on 29 October 2021 to holders registered at the close of business on 17 September 2021. This dividend is to be paid from the Company's revenue account. The Company's shares will go ex-dividend on 16 September 2021.

[speedsgh] 24/5/2021 18:32

Dividend Declaration -

Henderson High Income Trust plc announces that a second interim dividend of 2.475p per ordinary share of 5p, in respect of the year ending 31 December 2021, will be paid on 30 July 2021 to holders registered at the close of business on 18 June 2021. This dividend is to be paid from the Company's revenue account. The Company's shares will go ex-dividend on 17 June 2021.

[zac0_4] 04/4/2021 12:23

North Sea Boy - many thanks for posting the update from the annual report. It's quite reassuring.

[north sea boy] 01/4/2021 12:01

From the Annual Report released yesterday:

"The Company is in the fortunate position of being structured as an investment trust and, as such, has the ability to add surplus income to its revenue reserves in the good years and to draw on these reserves to smooth its dividend payments in the more difficult years. 2020 was an extreme example of a difficult year. Unsurprisingly, COVID-19 has impacted the level of dividends received from the Company's portfolio companies in 2020, but as explained earlier, not by as much as the overall market. The Company has needed to draw only GBP1.7 million from its revenue reserves to contribute to its full year dividend of 9.90p per share.

The Company had been building up its revenue reserves in each of the last nine years. At the end of 2019 revenue reserves exceeded GBP10 million, representing nearly 10 months' worth of dividend cover. Having utilised a small portion of these reserves to contribute to the dividend shortfall in 2020, we retained a very healthy balance of almost GBP9 million, well over 8 months' worth of dividend cover at the end of the year.

During the course of the year we have been monitoring the level and sustainability of dividends received from our portfolio companies. David has run frequent stress tests of the Company's revenue account under different scenarios looking several years ahead. Although the outlook for dividends is gradually improving, it is clear that it will take time for income to return to the levels enjoyed in 2019 and we anticipate a continued shortfall this year. Nonetheless, David's medium-term forecasts and the relative robustness of the Company's current reserves gives the Board reassurance that, barring unforeseen circumstances, the Company's dividend can be maintained at the current level, utilising revenue reserves where necessary. It remains, therefore, our intention to continue to pay at least the current level of dividend for the foreseeable future.

As we emerge from COVID-19, the Board's ambition remains to increase the Company's dividend gradually, but it will be subject to investment conditions at the time and whether we determine such an increase to be sustainable in the future."


On this basis, I have taken the personal assumption (IMHO) that the dividend will be at least maintained at current levels for next 12 months, which again in my view, is very satisfactory..

NSB

[speedsgh] 24/3/2021 13:25

Doubtless further guidance will be given on the dividend going forward when they publish annual results in the near future (last year published on 16 April). My own view FWIW is that maintaining the first interim dividend at the same level as recent quarterly payments should not be viewed as confirmation that they continue to pay out at the same level going forwards.

This was from the Interim Results released in Sept 2020...

"The first interim dividend of 2.475p per share was paid on 24 April 2020 and the second interim dividend for the same amount was paid on 31 July 2020. At the time that the second interim dividend was announced the Board recorded its current intention to use its revenue reserves where necessary to maintain the quarterly dividend of 2.475p per share for the remainder of this financial year. This continues to be our intention.

The Company's revenue stream this year has, of course, been adversely impacted by the recent dividend suspensions, deferrals and cuts by its investee companies. So far 24% of the Company's portfolio have made such announcements. However, the Company is in the fortunate position of being able to draw on revenue reserves which have been deliberately built up over the past 9 years for future "rainy days" and frankly it has been pouring this year! A third interim dividend of 2.475p per share was therefore announced on 23 July 2020, to be paid on 30 October 2020, and the Board currently anticipates a fourth interim dividend for the year at the same level, providing a total dividend for the year of 9.90p per share representing a 1.0% increase over the previous year.

It is difficult in these uncertain conditions to forecast the Company's revenues with much accuracy for the years ahead. David Smith, the Fund Manager, runs frequent stress testing of the company's revenue account under different scenarios and this gives the Board reassurance of the relative robustness of the company's revenue reserves in the medium term. As the timing and the level of investee companies' dividends become clearer in the future, we will be able to provide further guidance on the Company's dividend."

[rcturner2] 23/3/2021 16:40

Excellent.

[aleman] 23/3/2021 16:01

23 March 2021

HENDERSON HIGH INCOME TRUST PLC

PAYMENT OF FIRST INTERIM DIVIDEND

Henderson High Income Trust plc announces that a first interim dividend of 2.475p per ordinary share of 5p, in respect of the year ending 31 December 2021, will be paid on 30 April 2021 to holders registered at the close of business on 6 April 2021. This dividend is to be paid from the Company's revenue account. The Company's shares will go ex-dividend on 1 April 2021.

[quepassa] 20/3/2021 04:38

I see RCTurner still haunts this thread like a bad smell.

[rcturner2] 19/3/2021 20:13

These are the top 25 holdings:

BRITISH AMER TOBACCO GBP0.25
RIO TINTO ORD GBP0.1
GLAXOSMITHKLINE ORD GBP0.25
DIAGEO GBP28.93518
UNILEVER GBP0.031111
RELX GBP14.4397
ANGLO AMER USD0.54945
TESCO ORD GBP0.05
ROYAL DUTCH SHELL B SHS EUR0.07
VODAFONE GRP USD0.2095
NATL GRID ORD GBP0.12431289
3I GRP GBP0.738636
BP USD0.25
PHOENIX GRP HLDGS PLC GBP 0.1
IMPERIAL BRANDS GBP0.1
SEVERN TRENT GBP0.9789
HILTON FOOD GRP ORD GBP0.1
JOHNSON MATTHEY GBP1.101698
ST.JAMES'S PLACE ORD GBP0.15
INTERMED CAP GRP ORD GBP0.2625
M&G GBP0.05
UNITED UTILITIES GRP GBP0.05
HCA 5% 15/03/24 USD
SSE GBP0.5
TEXAS INSTRUMENTS USD1
BRITVIC GBP0.2

I don't see anything in there that gives rise to any dividend worries.

[north sea boy] 19/3/2021 17:15

Thanks for that bit of detail that I had missed Aleman.

Holding a reasonable chunk of these now, and as an income investor, I never feel comfortable until the divi has been announced.

NSB

[aleman] 19/3/2021 15:44

Last year, 1st interim dividend was announced March 12th and annual report April 16th.