My last update on my Dogs of the FTSE experimental portfolio showed just how badly this strategy can perform in certain markets.
Whatever, I’m still following the strategy as an experiment and I intend to document the bad times as well as the good.
As another reminder, here’s the Dogs of the FTSE strategy:
- Choose the ten FTSE 100 shares with the highest yield (subject to my criteria*)
- Invest equal amounts in all ten shares
- Hold for a year (give or take a week)
- At the end of the year, sell the ones no longer in the top ten, replace with new shares with highest yield
- Repeat from step 3
[*criteria being that shares already in my portfolio are not included, nor any where a dividend cut has been announced]
Note that this is my ‘fun’ portfolio and represents less than 1.5% of my Future Fund.
Time to set up my new Dogs of the FTSE 2020/21 portfolio!
So, in accordance with the strategy:
Eight Dogs Set Free (Sold):
- Evraz plc (EVR)
- Imperial Brands Group (IMB)
- Persimmon plc (PSN)
- Direct Line Insurance Group (DLG)
- Aviva plc (AV)
- HSBC Holdings plc (HSBA)
- ITV plc (ITV)
- BT Group plc (BT.A)
Total received from sales = £1,518.96
Total Dividends received = £185.26
Loss from original investment = £295.78 (14.7% loss) – ouch!
It was horrible pushing the ‘sell’ button to ditch those stocks at a loss but I am committed to the strategy so did it in an ‘unemotional’ way (although in my mind, I was screaming “Noooooooo!”)
Also, it was really difficult swalllowing the 3 x £9.95 trading fees (three of the Dogs were still with AJ Bell).
Ok, next, in accordance with the strategy:
Eight New Dogs Rounded Up (Bought):
- National Grid (NG)
- Rio Tinto plc (RIO)
- United Utilities Group plc (UU)
- M&G plc (MNG)
- Phoenix Group Holdings plc (PHNX)
- BHP Group plc (BHP)
- Vodafone Group plce (VOD)
- Anglo American (AAL)
Hmm…pretty much miners, insurance and utiilities.
The first three are Dogs which made an appearance back in my 2018 portfolio – can these old Dogs be taught new tricks in this current market climate?
So here’s how the Dogs of the FTSE Portfolio 2020/21 looks as at today:
Best of breed or mangy mutts? Pretty much looking like they’re the latter right now but it’s early days yet!
I think I should still manage quarterly updates as before so those interested can see how the portfolio is doing.
At least finally, the entire Dogs portfolio will now be on Freetrade, so I can buy and sell without any fees.
Speaking of which, my Random Share Portfolio is made up of free shares awarded to me whenever someone signs up to Freetrade* via my affiliate link, bagging us both a random free share (worth between £3 and £200) in the process.
Here’s the full portfolio – it’s gotten a bit too big to do a full copy and paste.
Own a Piece of Tesla!
To celebrate Freetrade’s 200,000th customer, anyone signing up to Freetrade before the end of the month via my link* will get the chance to receive a piece of Elon Musk’s company for free – each share is currently worth just under £1,300!
All you need to do is sign up via my link, fund your account with £1 and complete a W-8BEN form (to declare you don’t pay US taxes).
Good luck! 🙂
Thanks to all who have signed up via my link in the past – hope you all got a decent free share!
Until next time – hope you’re all keeping well, keeping calm and still investing!