Taking your last question first, I don’t advocate rebalancing annually or any other frequency. Rebalancing is actually a form of voluntary trading and there is no voluntary trading in the HYP strategy as I promote it. Also, rebalancing will involve costs.
The reason I am anti is that I believe what I call “market trading” will work to the advantage of HYPers long term by enforcing a certain amount of reorganisation but at optimum values, better than is likely to be obtained on balance by HYPers rebalancing or otherwise tinkering. By market trading I mean corporate activity such as bids, cash returns, spin-offs and so on, the market trading for you.
On your first points if you have a complete HYP6, then with new money whatever its source I’d advise prioritising new sectors if you find any in HYP7 or any of my earlier selections as shown on the Dividend Schedule where still Buys at the time you have the cash available. If not, go for top-ups.
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