I’m repeating the sleight of hand made with the first purchase for my fourth high yield portfolio, BP, in that I’m jumping out of the descending yield list of FTSE100 shares to pick for my third choice F&C Asset Management (LSE: FCAM), a member of the FTSE250. My reason is similar to the BP selection, namely that I think FCAM shares have been pushed down rather a lot in the last few days for no particular reason I can see other than poor sentiment and I am taking advantage of that because it increases the yield. It wasn’t going to be my third choice, a more obvious share was earmarked to fill the slot, but I couldn’t resist the slide in FCAM.
The company is a fund manager, a business I don’t mind having in an HYP if there is one available at a decent yield. And FCAM certainly delivers that on a forecast chunky 5.7% based on a dividend of 11p at my buying price including costs of 192.2p. At this level it’s up there with the highest yielders in the market amongst big caps….
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