UK shares have gained ground in recent months, despite the ongoing Brexit saga and the resignation of Theresa May. But how did our high-yield blue-chip portfolio perform against a backdrop of macroeconomic uncertainty and political upheaval?
Dogs of the Footsie
The dramatic rebound in stockmarkets in the first quarter of this year was a surprise — albeit a pleasant one. But for our 2019 Dogs of the Footsie, the year has been all about a race to keep up – one that, so far, they are losing.
It’s time to reset our Dogs of the Footsie portfolio, selecting the 10 highest-yielding shares of the FTSE 100 index. Around half of 2018’s portfolio is carried over on to this year’s list, but there are also new names to get acquainted with. Here are our 2019 Dogs of the Footsie.
The past 12 months have been tough for investors, as Trump’s trade war, US interest rates, Brexit and the slowdown in China have buffeted global stockmarkets. Against such an unstable backdrop, it is no surprise that over the past year most of our Dogs of the Footsie high-yielding shares failed to sparkle significantly – GlaxoSmithKline being a notable exception.
This article was written in November for the December 2018 print edition of Money Observer. Market data and share prices are likely to have since changed.
The valuable income stream provided by dividends has helped our high-yielding Dogs of the Footsie portfolio move comfortably ahead of the pack, in what has been another difficult quarter for global stock markets.
When we last looked at Money Observer’s 2018 Dogs of the Footsie back in May, it was at the end of a rocky period for stock markets. The past three months have been much more stable, despite the ongoing threat of a global trade war.
Money Observer’s 2018 Dogs of the Footsie are proving their pedigree once again. As at 1 May, the portfolio of unloved companies that we lined up in February was ahead of the index in a quite volatile quarter, even though some of the Dogs have failed to keep up with the pack.
Our portfolio spans many sectors, from utilities to telecoms, financials retailers, and drug companies to tobacco firms.
Crisis at Capita neutered the Dogs over the past year, but the pack is still well ahead of the Footsie over the longer term.
The FTSE 100’s high-dividend yielders delivered gains up to 14.4 per cent, giving our Dogs Portfolio a diamond 2017.