Boredom is a great problem for the DIY Income Investor. 2017 has generally been quite tedious, with not much to do with the portfolio but watch the money roll in - apart from the occasional 'sell' when something has increased enough in value.
But come April and the new ISA and SIPP season and there are new choices to be made. And there is always the temptation to 'try something new' rather than add to existing holdings...
My first 'port of call' for new investment is usually to add to something that I already hold - on the basis that I've done a bit of research on it. But - as I said - that gets a bit boring. So then I turn to my 'Toolbox' page (see the link above) and have a look at the FTSE 250 and (even the Small Caps - but that is a separate story). By clicking on the Div Yield column you can rank them in descending order of dividend yield. Then I look for a new name.
In this case I looked at - and discarded:
- Petrofac looked possible but is embroiled in bribery allegations
- Centamin has a low forecast yield
- Redefine International I hold already but is looking a bit shaky - with forecast eps only just covering forecast dividend
- Carillion I hold already (and am ready to dump if the price recovers - because of the big pension over-hang)
I am not overly exposed to the minerals sector, although I hold Anglo Pacific (mainly coal) and BP (oil/gas) - I expect a possible significant upgrading if the world economy takes off again. But there are all sorts of potential problems that could scupper that.
Anyway, I've bought a chunk of Vedanta and I'll wait and see...
[Purchase price: £6.494]
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.