Invesco Perpetual Income
So the only “Fund” in my portfolio. This was setup when I originally setup my ISA and took control of my finances. I purchased it as this was the same as I had had in my old ISA, and I wanted something to pay out a steady income, so I plumped with the popular one. At the minute it more than covers the platform fee for holding Funds, and gives a bit of extra cash out from the Dividend above that. Would I buy more? Probably not. Would I sell it? Yes I will eventually – for now the holding is relatively small so its not worth the extra commission to sell it given it still pays out some funds, and has seen good capital appreciation. Having seen that TD Direct have sold out their offering, then I am expecting some changes to my trading platform then this may influence my decision (for what its worth the total cost of my portfolio for this tax year (7 months) has been 65p. If I include trading costs, it would £13.15 – I made one trade that wasn’t free so far, and as an ETF it cost no stamp duty).
Hold for now.
The majority of the return has been through capital gains, but it has still handed out just over 24% of the initial investment in dividends to date of publish on this post.
Stock Purchase – BAE
Another stock that always seems to feature in the Funds list of top 10 holdings. I don’t have any compulsion against holding this stock, and it has done very well for me so far – although some see it as a “Sin Stock” I am a capitalist at heart, I want the money! I do believe that we will continue to spend on defence, and this amongst others, will continue to benefit. The pension deficit is a minor concern, but not enough for me to trade out of yet. I could sell now for a pretty good profit, but given it pays out a good steady income, I will continue to hold. I added further to my holdings in 2014. I would add more to it, but not at current valuations. Given the steady rise up I am wondering if I should profit, but then what would I buy instead, with the markets this high? Ill just keep banking the dividends.
Hold for now.
As well as some substantial capital gains, BAE has paid back 30% of my original investment in dividends
Stock Purchase – AZN
Again, another stock that regularly appears in various funds top 10 holdings. I will be honest, the dividends have been a little disappointing as not growing as fast as I would have liked, but given the capital appreciation I have seen (although its only a “paper” profit rather than “cash in hand”) I suppose I can’t complain too much. Previously I did dividends reinvestment for a few years which meant that my holdings continued to tick up, but I have stopped this to allow me to concentrate my purchases on what I think will do well. For now they pay out a steady income and continues to help build my ISA – I added further to my position in 2012. Given the global aging population, and the need for medical and innovation, as a steady long term one, I am happy to hold for now – if the stock dropped a lot in a major crash I would probably top up, but then that applies to a lot of the other shares in here as well! Would I sell them? For now I don’t see any point, and if the share price shoots up to say £65 per share I would only sell if the dividend hadn’t increased.
Another good run for capital gains, but also returned 31% of my original cost in dividends.
Investment Trust Purchase – JFJ (JP Morgan Japanese Fund)
So I wanted to get a bit more exposure to other markets, and knowing Japan and the stories around it I thought why not. I drip fed some money in and so far its done me very well. Capital appreciation and regular dividends have helped continue to fill my coffers in the ISA. Its still a relatively small holding but I wish I had added more. If the opportunity arises I will add further to this. If I was able to reinvest the dividends to buy more then I would, but unfortunately it doesn’t meet the criteria of my broker to allow me to do this. It’s nearly doubled in price since I bought it which means I am reluctant to add to it now, but I do want to get some more exposure to Japan, I guess I need to wait for a big crash.
Nearly all capital gains here, but still 10% back on original investment in the form of dividends.
Investment Trust Purchase – JRS (JP Morgan Russia Fund)
So another Investment Trust to the portfolio, although I accept that Russia is not a popular market, and it is high risk given the alleged corruption and murky dealings that are rumoured to be going on. It regularly appears as one of the cheapest markets out there for some reason, but with the election of Trump and his affection for Putin, this may prove a real turning point. I topped up my holdings further in 2014 to add to the collection, although I missed calling the bottom of the market on it, a shame but then I didn’t really have the spare cash. Right now its back in profit, and it has continued to drip feed some dividends into my account, so I can’t really complain. I would buy more, but not until after Japan and other investments, so its a low on my priority list.
To date its paid about 9% of my original investment back in dividends.
Stock Purchase – BP
Another standard that appears in most Funds, ETFs and one that it appears everyone ought to hold (for some reason). The Deepwater Horizon didn’t help things at the time, however given that it forced them to cut costs and make cutbacks, when the big slump in oil came along they were well prepared. There is concern over the dividend payment going forward, especially as it depends on the oil price so much, but this is a cyclical business. Right now everyone has hunkered down and aren’t spending, so eventually the supply will run down and people will need to invest, and because there wont be the stock or supply, the prices will go up (in my opinion), but it requires patience. I also topped up in 2013, several times in 2014 and again in 2015. Right now if the price dropped a bit I would be tempted to add more however its one of my larger holdings at present so diversification rules that this will have to wait (although I may commit one of the cardinal sins and override if the opportunity looks too good to pass on).
To date it has paid back approximately 13% of my original investment in dividends.
Stock Purchase – SSE
I topped up my SSE holdings further in 2011, more than doubling my holdings.