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DividendMax Model Portfolio 2013

This is the dividendMax model portfolio.  The model portfolio outperformed the market dramatically in 2012 and also in 2013.

Price Earnings (P/E) data as at time of publication. The P/E is forward looking one year.

Weighting as at time of publication

Dividend Cover as at time of publication

 

Company

Year-end price

End-Q2 Price

Performance

Weighting (£1000 = 1%)

Gain / Loss

Meggitt

527.5

 519  1.6%

0

 £0.00

Diageo

2000

 1876  6.6%

3

 £198.29

Admiral

1310

 1329  -1.4%

5

 -£71.48

BP

488

 454  7.5%

4

 £299.56

Balfour Beatty

287

 238  20.6%

3

£617.64

3i

385

 338  13.9%

4

 £556.21

British Land

629

 566  11.1%

3

 £333.90

Amec

1088

 1006  8.1%

4

 £326.04

BHP Billiton

1869

 1678  11.4%

10

 £1138.25

Carillion

331

 275  20.0%

7

 £1425.45

First Group

124

 96

N/A

5

 £1458.33

Domino Printing

765

 623  22.8%

4

 £911.71

ITV

194

 140  38.6%

5

 £1928.57

Imperial

2338

 2280

2.5%

3

 £76.31

Kcom

98

 81.5

20.2%

5

 £1012.27

Glaxo

1611

 1642  -1.9%

5

 -£94.39

Man Group

85

 83.4  1.9%

4

 £76.70

Marks & Spencer

433

 431  0%

3

 £13.92

RSA

91.5

 119

-23.1%

4

 -£924.37

Reckitt Benckiser

4793

 4648  3.1%

3

 £93.58

Sainsbury

365

 355  2.8%

4

 £112.67

Sage

404

 340.5

18.64%

4

 £745.96

SSE

1370

 1524

 -10.1%

3

 -£303.14

Standard Chartered

1360

 1423

 -4.4%

6

 -£265.63

 

Total Cash

FTSE 100

Portfolio Performance

£100,000.00

£103,432.74

£109,666.35

 

Model Portfolio Q2 performance. Capital performance only. Dividends not included.

 

Company

End Q1 Price

End-Q2 Price

Performance

Weighting (£1000 = 1%)

Gain / Loss

Meggitt

490

 519  5.9%

3

 £177.55

Diageo

2069

 1876  -9.3%

1

 -£93.28

Admiral

1329

 1329  0

5

 0

BP

459

 454  -1.1%

6

 -£54.46

Balfour Beatty

235

 238  1.27%

5

£63.83

3i

316

 338  6.96%

4

 £278.48

British Land

542

 566  4.4%

3

 £132.84

Amec

1059

 1006  -5%

4

 -£200.19

BHP Billiton

1917

 1678  -12.5%

6

 -£1614.98

Carillion

272

 275  1.1%

7

 £77.20

First Group

201

 96

N/A

0

 0

Domino Printing

640

 623  -2.7%

4

 -£106.25

ITV

129

 140  8.5%

9

 £767.44

Imperial

2296

 2280

-0.7%

3

 -£20.9

Kcom

81.5

 81.5

0

5

 0

Glaxo

1538

 1642  6.7%

5

 £338.10

Man Group

89

 83.4  -6.3%

4

 -£251.68

Marks & Spencer

389

 431  10.8%

4

 £431.87

RSA

116

 119

2.6%

4

 £103.45

Reckitt Benckiser

4720

 4648  -1.5%

3

 -£45.76

Sainsbury

378

 355  -6.1%

4

 -£243.38

Sage

342

 340.5

-0.5%

4

 -£17.54

SSE

1484

 1524

 2.7%

3

 £80.86

Standard Chartered

1704

 1423

 -16.5%

4

 -£659.62

 

Total Cash

FTSE 100

Portfolio Performance

£100,000.00

£97,566.00

£99.152.58

 Changes from Q2 to Q3

Meggitt from 3% to 0%

First Group from 0% to 5%

ITV from 9% to 5%

Diageo 1% to 3%

Balfour Beatty from 5% to 3%

BP from 6% to 4%

BHP from 6% to 10%

Marks & Spencer from 4% to 3%

Standard Chartered from 4% to 6%


H2 Performance

Company

Entry Price

End-Q1 Price

Performance

Weighting (£1000 = 1%)

Gain / Loss

Meggitt

427

490

14.75%

3

£442.50

Diageo

1808

2069

14.43%

1

£144.30

Admiral

1199

1329

10.84%

4

£336.00

BP

450

459

1.02%

6

£120.00

Balfour Beatty

186

235

26.34%

5

£1,317.00

3i

229

316

37.99%

4

£1,515.60

British Land

579

542

-6.39%

3

£191.70

Amec

1030

1059

2.81%

4

£112.62

BHP Billiton

2145

1917

-10.62%

6

£637.76

Carillion

326

272

-16.56%

7

£1,159.51

First Group

199

201

1.00%

4

£40.00

Domino Printing

599

640

6.84%

4

£273.60

ITV

109

129

18.35%

7

£1,284.50

Imperial

2434

2296

-5.66%

3

£170.09

Kcom

72

81.5

13.19%

5

£659.50

Glaxo

1376

1538

11.77%

4

£470.93

Man Group

89

89

0.00%

4

£0.00

Marks & Spencer

370

389

5.13%

4

£205.20

RSA

126

116

-7.93%

4

£317.46

Reckitt Benckiser

3901

4720

20.99%

3

£629.70

Sainsbury

378

378

0.00%

4

£0.00

Sage

306

342

11.76%

4

£470.40

SSE

1460

1484

1.64%

3

£49.20

Standard Chartered

1680

1704

1.43%

4

£57.20

 

Total Cash

FTSE 100

Portfolio Performance

£100,000.00

£106,370.00

£105,651.73

 


 

Company 3 Div Yield P/E Cover FDI Sector Price Weighting
Meggitt 7.14% 12.4 2.1 4.3% Aerospace & Defence 427.0 0.0%
Diageo 3.08% 17.5 2.0 6.4% Beverages 1808.0 3.0%
Admiral Group 8.88% 13.2 1.1 20.6% Nonlife Insurance 1199.0 5.0%
BP 6.51% 8.0 4.1 16.5% Oil & Gas Producers 450.0 4.0%
Balfour Beatty 6.8% 8.4 2.6 6.5% Construction & Materials 282.0 3.0%
3i Group 4.42% 0.0 2.0 2.5% Financial Services 229.0 3.0%
British Land Co 7.12% 18.9 1.1 1.1% Real Estate Investment Trusts 579.0 3.0%
AMEC Foster Wheeler 4.39% 13.7 2.4 14.8% Oil Equipment, Services & Distribution 1030.0 4.0%
BHP Billiton 4.57% 13.0 3.1 8.5% Mining 2145.0 10.0%
Carillion 7.05% 7.9 2.7 4.7% Support Services 326.0 7.0%
FirstGroup 16.0% 6.7 1.3 7.0% Travel & Leisure 199.0 5.0%
Domino Printing Sciences PLC 4.97% 16.2 1.7 6.7% Industrial Engineering 599.0 4.0%
ITV 3.17% 12.7 4.8 50.0% Media 109.0 5.0%
Imperial Brands 7.51% 11.6 2.1 8.0% Tobacco 2434.0 3.0%
Kcom Group 7.64% 9.9 1.7 11.8% Telecomms 72.0 5.0%
GlaxoSmithKline 7.3% 12.5 1.6 5.7% Pharmaceuticals & Biotechnology 1376.0 5.0%
Man Group 15.05% 18.2 0.7 36.7% General Financial 89.0 4.0%
Marks & Spencer Group 5.5% 11.2 2.0 1.2% Retailers 370.0 3.0%
RSA Group 10.72% 11.3 1.6 3.2% Nonlife Insurance 126.0 4.0%
Reckitt Benckiser 4.87% 15.8 1.9 4.8% Household Goods 3901.0 3.0%
Sainsbury's 6.86% 11.1 1.8 6.8% Food and Drug Retailers 378.0 4.0%
Sage Group 5.39% 14.2 2.4 9.3% Software & Computer Services 306.0 4.0%
SSE 7.27% 12.9 1.4 5.1% Electricity 1460.0 3.0%
Standard Chartered 4.81% 12.6 2.7 9.7% Banks 1680.0 6.0%

Aerospace & Defence

Meggitt

Here we choose Meggitt over BAE systems this year. Meggitt issued a pretty good interim management statement toward the end of 2012 and whilst it does not yield as highly as BAE systems, it has superior dividend cover and a higher forecast dividend increase.

Alternative Energy

No company in this sector meets our criteria

Automobiles & Parts

No company in this sector meets our criteria

Banks

Standard Chartered

Last year we made a pretty good choice in Close Brothers, but this year we are going to go for Standard chartered with a lower yield, but with high exposure to the strong Far East market.

Beverages

Diageo

We went for Britvic last year and it was taken over (or is in the process) This year we will go for Diageo, albeit with a pretty low weighting as this sector looks expensive.

Chemicals

No company in this sector meets our criteria

Commercial Transportation

No company in this sector meets our criteria

Construction & Materials

Balfour Beatty

We are going to stick with last years choice - Balfour Beatty. We will keep a lowish weighting as the sector will remain under pressure due to the governments finances not being great.

Consumer Staples

No company in this sector meets our criteria

Electricity

SSE

Price earnings ratios remain high compared to the yields on offer, but this year, we will take a small position in SSE, with its consistent track record of dividend increases.

Electronic & Electrical Equipment

No company in this sector meets our criteria

Although Halma has a magnificent record of increasing its dividend, we have gone for Dominos Printing sciences, which also has a very good recent track record.

Equity Investments

No company in this sector meets our criteria

Financial Services

3i Group

There is a great deal of choice in this sector, but in the end, we went for 3i because it allows the investor to spread his or her investments across the globe and across sectors. Add to that the massive increase in the dividend promised for this year and 3i looks good value at these levels.

Food and Drug Retailers

Sainsbury's

It is difficult to choose between the big three, but in spite of it's lower dividend cover, we have just gone with the optimizer. At 6.5%, Sainsbury is yielding more than rivals Tesco and William Morrison. The gap has narrowed from last year though, showing that we made the right choice.

Food Producers

No company in this sector meets our criteria

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

Forestry & Paper

No company in this sector meets our criteria

Gas, Water & Multiutilities

No company in this sector meets our criteria

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

General Financial

Man Group

After the success of Hargreaves Lansdown last year, this year we go for a recovery play with Man Group

General Industrials

No company in this sector meets our criteria

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

Health Care Equipment & Services

No company in this sector meets our criteria

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

Hedge Funds

No company in this sector meets our criteria

Household Goods

Reckitt Benckiser

It pays to have something from this sector due to the global coverage and exposure to the BRIC economies where Reckitts products are in a growth phase. The P/E says fair value, but the yield is unusually high for this sector.

Household Goods and Home Construction

No company in this sector meets our criteria

Industrial Engineering

Domino Printing Sciences PLC

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

Industrial Metals

No company in this sector meets our criteria

Industrial Transportation

No company in this sector meets our criteria

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

Investment Trusts

No company in this sector meets our criteria

Leisure Goods

No company in this sector meets our criteria

Life Insurance

No company in this sector meets our criteria

Take your pick. The sector is crammed with high dividend payer's. We are tempted to select more than one stock from this sector. This year we choose RSA Group over Aviva. The sector has been hit hard by the level of natural disasters this year. Agreed, that this is bad in the short term, but insurance companies have a habit of putting up their premiums. Then, next year when things are not so bad, funny how the premiums do not come down.

Media

ITV

ITV was a recovery play for last year. We believe it has a way to go.

Mining

BHP Billiton

The mining sector has shown good recovery of late as it becomes apparent that China is still doing O.K. BHP Billiton is our choice.

Mobile Telecommunications

No company in this sector meets our criteria

Nonlife Insurance

Admiral Group, RSA Group

Catlin, Admiral and Amlin all pay big. Admiral is our choice this year.

Oil Equipment, Services & Distribution

AMEC Foster Wheeler

AMEC has a fantastic track record of increasing dividends. We will stick with Amec for another year.

Oil & Gas Producers

BP

The baggage from the deep water horizon spillage is abating slowly, so we go for BP, which has strong dividend cover and therefore scope for decent dividend increases.

Personal Goods

No company in this sector meets our criteria

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

Pharmaceuticals & Biotechnology

GlaxoSmithKline

Glaxo is a dividend paying giant with a long time track record of increasing the payout year in, year out and almost always accompanied by share buybacks. With it's new strategy of focussing on growth markets and reducing exposure to the high litigation Pharmaceutical sector, this is a must for any portfolio.

Property

No company in this sector meets our criteria

British Land is our pick from the property / REIT sector.

 

Real Estate

No company in this sector meets our criteria

Real Estate Investment & Services

No company in this sector meets our criteria

Real Estate Investment Trusts

British Land Co

We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.

 

Retailers

Marks & Spencer Group

There were some real highs and low last year giving some great capital gains opportunities, which were seen in the trading portfolio. However, Home retail and Halfords have recovered substantially. In spite of the recent slightly disappointing trading update, we feel we are playing safe this year with Marks and Spencer.

Software & Computer Services

Sage Group

Logica was taken over last year. This year we are going for Sage.

Support Services

Carillion

This year we go for the highest yielder in the sector, which is Carillion, which has a great track record.

Technology Hardware & Equipment

No company in this sector meets our criteria

We see no value in this sector after doing extremely well with ARM last year.

Telecomms

Kcom Group

TalkTalk was a standout performer last year, almost doubling. The choice is not so straightforward this year but we are going for minnow, Kcom.

 

Tobacco

Imperial Brands

Imperial Tobacco is our choice here

Travel & Leisure

FirstGroup

First Group is the clear winner here, although beware the issues surrounding rail franchises.