For some time now I have been using the wonderful Stockopedia to create a portfolio of high yielding UK stocks. I only look at the larger stocks, those in the FTSE 350, then within Stockopedia I set several criteria as the first stage of the process. So, dividend cover must be more than 1.25x, the yield must not be so high that it implies it won’t get paid and in this exercise I don’t look at collective investments.
After that initial screen within Stockopedia I download the output, about 200 stocks in total and apply some filters to them. For example, I remove the stocks with the worst one-month momentum since they’ve probably had a specific problem and I won’t touch them until forecasts have settled down. I also get rid of the most highly geared.
Ultimately, I come up with a list of 40 stocks, some yielding amongst the highest on the market and some with more average yields. The current output gives an average yield of just above the ten-year gilt yield but history suggests that the yield of these companies will grow, on average.
The current list is in the attached file. Let me know what you think.
