Share 1

Over the next few weeks I intend to construct a High Yield Portfolio here to show how I do it. I'll choose a new sector quite frequently, every day or few days, based on my personal construction rules for the strategy and using Stockopedia's excellent database as a starting point for each share selection.  

To faciliate this I use the Stockopedia FTSE100 (UKX) ranking it by descending yield and work my way down, rejecting any share from a sector already chosen previously. However no database is adequate alone so I always accompany this by a brief review of the company's original accounts and latest news to establish accuracy and consider other fundamentals that can influence my selection. Thus it's not entirely a mechanical process because I apply some judgement to each share.

For some sectors I may choose more than one share from the same industry where I feel this is apposite.

The main characteristics of my HYP strategy are to choose high yielding UK big caps, widely  diversified with equal investment in each industry and totalling 15-20 sectors. Then just do nothing and enjoy the income, reinvesting as much as possible or withdrawing it according to need. For investors prepared to take the risks of equity income investing, HYPs suit both those building a portfolio for future income and those seeking immediate income, with seamless switching between the two modes.

My first selection is fund manager Standard Life Aberdeen (SLA) which at 271p and a 2019 forecast div of 21.6p has a forward yield of 8.0%.

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