Strategy: June 2022

 While this week is likely to end slightly lower, I remain optimistic that we will end the year at a higher level. Therefore, my strategy is to continue to DCA in June. 

As mentioned earlier, I had £10k+  from my Aviva return of capital and I have been using it to buy more Aviva despite the fact that it rallied almost 10% from last month. 

The Aviva vs Prudential question is an interesting one. My Prudential holding is much smaller than my Aviva holding. I confess that I have been attracted to Aviva because of its higher dividend payout ratio. Prudential's dividend yield is currently much lower so maybe I made a good choice. Aviva's share price also seemed to be holding up much better (maybe investors that buy Aviva to collect dividends are 'buy and hold investors?)

Comparative charts are a bit tricky because of various corporate actions. Aviva returned capital and sometime back, Prudential issued shares from a spinoff. But here's a 1 year chart anyway. As you can see, Aviva was doing ok but suddenly fell off a cliff (either that or it has something to do with the return of capital).

Given the not so fantastic dividend, I will probably need a bigger discount to persuade me to buy more Prudential. For the record, in terms of UK insurance stocks, my 2nd largest holding is the Motley Fool favourite Legal & General which many have not heard of but currently has higher market cap than Aviva. This stock has been doing very well but I am not sure how much more upside it has. Still, I may pick up more if the price is right.

Moving to the advertising/media sector, I bought WPP. Is this 'old media' like SPH and therefore a sinking ship that I shouldn't board?  The cashflow/Revenue/Income statements seem to suggest that it is still viable so to cut a long story short, I'm adding to a tiny position that I had. I am punting with this one and maybe it will help me learn how to press the 'sell' button.