Return of the Dogs!

I can’t think of a better time to post about my Dogs of the FTSE experimental portfolio, just as the markets are apparently tanking!

Is this just a blip, or the beginning of the inevitable end of the bull run?

Whatever, I’m still investing and I intend to document the bad times as well as the good times.

As a reminder, here’s the Dogs of the FTSE strategy:

  1. Choose the ten FTSE 100 shares with the highest yield (subject to my criteria*)
  2. Invest equal amounts in all ten shares
  3. Hold for a year (give or take a week)
  4. At the end of the year, sell the ones no longer in the top ten, replace with new shares with highest yield
  5. 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 2% of my Future Fund.

Here’s how my last portfolio finished in Feb 2019:

Full end of 12-month update is here if you’re interested.

There was a delay in setting up the next portfolio as I had to wait for the 2019 tax year to commence to open my new ISA with a new provider.

So in June, I went about setting up my Dogs of the FTSE 2019/20 portfolio! Been a bit busy so this post has been languishing in my drafts!

So, in accordance with the strategy:

Six Dogs Set Free (Sold):

  • Marks & Spencer Grp plc (MKS)
  • National Grid (NG)
  • Rio Tinto plc (RIO)
  • Royal Dutch Shell plc (RDSB)
  • SSE plc (SSE)
  • United Utilities Group plc (UU)

Total received from sales = £1,333.20

Total Dividends received = £175.90 (note I continued to receive divis until I sold in June)

Profit/Loss from original investment = £57.94 (3.9% gain)

It was not easy at all pushing the ‘sell’ button for some of those but I am committed to the strategy.

Also, it was hard swalllowing the 6 x £9.95 trading fee (with AJ Bell) – if not for the fees, I would have doubled my profit/gain and this is the main reason why I moved to another provider, where the fee for buying/selling will be a big fat zero.

Next, in accordance with the strategy:

Six Dogs Rounded Up (Bought): 

  • Standard Life Aberdeen (SLA)
  • ITV plc (ITV)
  • Aviva plc (AV)
  • British American Tobacco plc (BATS)
  • Direct Line Insurance Group (DLG)
  • HSBC Holdings (HSBA)

I’m not timing the market, just bought at whatever the price was in June.

So here’s how the Dogs of the FTSE Portfolio 2019/20 looks as at today:

Best of breed or mangy mutts? All pretty much looking like they’re the latter right now!

Over this same period, the FTSE 100 Total Return was minus 1.46% so the Dogs are lagging a bit on -5.10% including dividends.

I’m not sure I can do quarterly updates as before – perhaps half-yearly updates on how this portfolio is doing.

Random Shares Portfolio

I’ve been testing Freetrade’s free share referral scheme and now have a bunch of free shares, thanks to those who have clicked on the link and topped up their accounts – hope you were all allocated decent free shares in return.

When I get round to it, I’ll provide an update on what random shares I was awarded and how they are getting on.

If anyone would like to try out Freetrade’s app and bag a free share in the process, drop me a note via @QuietlySaving or my Contact Form.

The free share referral scheme will be rolled out to all shortly, which will allow all Freetrade account holders to be able to refer.

And finally….

Possible Blog Delays in Future…

D-Day is imminent, my living situation will be completely changed from this weekend.

I’m feeling both excitement and dread. And rather stressed.

I have no idea how I will be able to continue to post regularly and keep my blog secret from my family so don’t know when I’ll be able to post again.

I hope I’ll work something out.

Dogs of the FTSE 2018 – final update

Just a quick update to say that I’ve reached the twelve-month mark for my 2nd experimental Dogs of the FTSE portfolio.

So how did the mutts perform with the markets going all pear-shaped towards the back-end of last year?

As a reminder, here’s the Dogs of the FTSE strategy:

  1. Choose the ten FTSE 100 shares with the highest yield (subject to my criteria*)
  2. Invest equal amounts in all ten shares
  3. Hold for a year (give or take a week)
  4. At the end of the year, sell the ones no longer in the top ten, replace with new shares with highest yield
  5. Repeat from step 3

[*criteria being that shares already in my portfolio are not included, nor any where a dividend cut has been announced]

Here’s how the 2018 portfolio looked after a year (as at 11th Feb 2019):

 

A very decent 8.77% gain, but if you include dividends, this becomes a mighty 16% gain for the entire portfolio! Nice!

Over this same period, the FTSE 100 Total Return was minus 2.02% so woo hoo, the Dogs romped home this year! 🙂

Ok, so most of the gains were from just one stock (Evraz) but with some other gains (eg National Grid and United Utilities), the small losses made little impact on the portfolio.

What’s Next?

I do intend to run a 2019 portfolio, or rather a 2019/20 portfolio but there will be a slight delay, because I’m going to wait til next tax year as I plan to use a different ISA account for this experiment.

So for now, I will just hang onto all the Dogs for a while longer and sell/buy when I am able to.

The Dogs will return in April!

Good Riddance Dogs 2017, Hello Dogs 2018

Just my luck that as I reach the twelve month mark for my experimental Dogs of the FTSE portfolio, things go all pear-shaped in the markets!

Whilst I have largely avoided reading all about the hysteria, it was difficult to ignore the headlines describing the small downturn with words such as ‘TURMOIL’, ‘BLOODBATH’ and ‘CARNAGE’!

I didn’t worry about my Future Fund – I’ve no idea how much it’s dropped by as I’ll be running my usual numbers at the end of the month, but I did think about how it was going to affect my little Dogs portfolio.

Capita (CPI) in particular suffered in a spectacular fashion – I know it hasn’t been in the FTSE 100 for a while but they were one of the top yield stocks when I started the portfolio so I was committed to purchase and hold them for the year. Oh dear, indeed!

As a reminder, here’s the Dogs of the FTSE strategy:

  1. Choose the ten FTSE 100 shares with the highest yield (subject to my criteria*)
  2. Invest equal amounts in all ten shares
  3. Hold for a year (give or take a week)
  4. At the end of the year, sell the ones no longer in the top ten, replace with new shares with highest yield
  5. Repeat from step 3

[*criteria being that shares already in my portfolio are not included, nor any where a dividend cut has been announced]

Here’s how the 2017 portfolio finished:

Not pretty – Capita wiped out my total gains all by itself, yet back in July, it was showing a 25% gain, not including dividend paid. Gosh, I probably doomed the stock by saying that it was ‘showing its pedigree’ in that post – little did I know how the mighty would fall!

So, including dividends, only a paltry 1% gain for the entire portfolio! OUCH!

However, over this same period, the FTSE 100 Total Return was only 0.81% so despite the Dogs being a disappointing let down, they marginally did better, haha! Without dividends though, they seriously under-performed with a 4.35% loss.

What’s Next?

What’s next is the 2018 portfolio!

Oh yes, I’m going to put myself through this again in the name of err, ‘financial science’ and hope there won’t be Turmoil, Carnage or Bloodbaths this time round, nor any spectacular Capita-style demises!

So, in accordance with the strategy:

Dogs Set Free (Sold):

  • AstraZeneca plc (AZN)
  • Capita Plc (CPI)
  • HSBC plc (HSBA)
  • Intu Properties plc (INTU)
  • Royal Mail plc (RMG)
  • Standard Life Aberdeen plc (SLA)

Total received from sales = £1298.38

Total Dividends paid out = £76.96

Profit/Loss from original investment = -£92.45 or -6.3% – ouch!

It was not easy at all pushing the ‘sell’ button for some of those but I am committed to the strategy.

Dogs Rounded Up (Bought): 

  • BT Group plc (BT.A)
  • Imperial Brands Group (IMB)
  • Evraz plc (EVR)
  • National Grid (NG.)
  • United Utilities Group Plc (UU.)
  • Rio Tinto plc (RIO)

Wrong time to sell, right time to buy? Who knows!? I’m not timing the market.

So here’s how the Dogs of the FTSE Portfolio 2018 starting lineup looks as at 12th Feb 2018:

Best of breed or mangy mutts?

Hmmm…for some reason I don’t feel quite as confident as I did this time last year, but we shall see in 12 months time and as before, I’ll be doing quarterly updates.

Lessons Learned?

I’m not sure I’ve learned anything from running this experiment after just one year, though I must say that I thought the portfolio was going to do better. I guess if I hadn’t been following the strategy, I’m not sure I would have sold some of those stocks.

Let’s see how it goes after a few more experiments.

Shared Listening

The boss announced the other day that he’d just started converting his garage into a ‘cinema room’, splashing out on a high-end projector, getting the whole garage sound-proofed. Once done, I’m sure he’ll be buying an expensive sofa in there so he can watch movies comfortably.
This is despite the fact that he has no less than three television sets in his house (including a 55′ and a 3D set).  A few other colleagues joined in on the conversation and I realised that I was the only person there who has just the one television set in their house – in my living room. I don’t need one anywhere else!
However, what I do have is a radio in my kitchen, bedroom and bathroom. I often listen to the radio on my pc while I’m surfing the net/blogging. Oh, and of course, there’s the radio in my car.
Radio Gaga
It’s funny how in this age of technology that the humble radio is still so popular after its invention over a 100 years ago.
Of course, it’s radio’s versatility that has maintained its popularity – you can listen via digital (DAB) technology, online (streaming or podcasts) as well as via good old normal radio waves (FM/AM). Plus of course, listening to the radio costs you nothing (although it may cost if you listen on your mobile).
My radio listening consists of a mixture of music, sport and news.  However, this past year, I’ve been listening more and more to Share Radio, which is a UK radio station dedicated to financial related stuff.

 

The station covers a lot of topical and financial related current affairs (politics), plus also (from its website):

• Banking
• Budgeting
• Markets
• Property
• Investments
• Insurance
• Small businesses
• Ethics
• Children’s finances

The station broadcasts on Greater London DAB and broadband internet (which is how I listen to it). On my tablet, I listen to it via the TuneIn radio app (the basic free one works well for me).

There’s pretty much something for everyone, including shows aimed at young people/students and others targeted at women.  Plenty more for investors (both experienced and non-experienced) or people just interested in finance or interested in learning more about finance.
Sometimes, I just listen to whatever is being broadcast live but mostly, I dip in and out of the podcasts, of which there are many.
Recently, I’ve caught some of the ‘Managing My Money’ series, which is in conjunction with the Open University  – an audio course of sorts where you can answer a quiz after listening and get an OU course completion certificate.
The series I think is aimed at 20-30 somethings, it’s presented in a non-serious way (with music and comedy sketches) – quite a different and amusing way of ‘teaching’ about finance stuff.
Recent podcasts I’ve listened to have been about the trend of robo-advice and the impact of robots/automation on jobs.  Other podcasts I’ve listened to have been about crowdfunding, investment trusts and some case studies for small businesses.
Anyway, I think it’s worth checking out Share Radio as there could be something there you find interesting. There are the occasional adverts but they’re not half as annoying as the ones that you usually get on commercial radio.
Not yet, anyway!
[Note, I am not affiliated to Share Radio, just thought that people might be interested in something different to listen to that they could find educational!]