alarmbells

I have always said "nasty cyclicals" play no part in an eternity HYP that will cover many economic cycles.

How do you define a "nasty cyclical"? Specific sectors or companies with specific traits within a particular sector? Is there such a thing as a "non-nasty cyclical"?

What is it about cyclicals which bans them from your HYP? When viewed across a number of economic cycles, do they tend to return less to shareholders in the form of dividends in your opinion/experience? Or, is it about the volatile nature of their dividend stream? If the dividend stream became more predictable due to a clearer dividend policy which takes into account the underlying business model and cyclic nature of the business, would that turn a "nasty cyclical" into a "non-nasty"?

Degsy