Topping up a multiple choice sector

[Inaam Hussain]

Hi Stephen – seems I’m always asking questions about the mathematics of HYP strategy! I have many multiple choice sectors in my portfolio and now that I want to top up, it’s raised a question in my mind. I would like to top up the Mining sector because South32 has the highest yield, is a buy and the sector is below the sector average in my portfolio. Trouble is, BHP Billiton and Anglo American are also held in that sector as a multiple choice. Is it okay to just put the money into South32, to bring the sector up to the current sector average? BHP is low down my list on yield and Anglo American is on Hold anyway so both do not meet the “top up rules”. Thanks in advance

[Jeffrey Beranek]

I believe BHP has the highest yield in that sector and is the share chosen in the letter released today. So the sum held in BHP, AAL and S32 should be the same as other sectors, unless you’ve started a new “portfolio” for HYP8.

[Inaam Hussain]

Thank you for pointing out the error with the highest yielder between BHP and S32. At the time I posted, I did check both forecast yields online, but obviously must have made an error. Can I ask where is a good site to check forecast yields for occasions when it’s not in the current HYP and therefore not listed on the back pages of the most recent newsletter ? I just cross checked all the HYP8 constituent’s forecast yields with the site I normally use (https://uk.webfg.com), and noticed some significant differences.

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