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any dividend triggers a tax event hence buybacks are often chosen since they are more tax efficient
I do understand the principle of buy back and the benefits to shareholders in lesser shares on issue - also understand the buy back is actually in progress
The excess cash could well be distributed as a benefit to shareholders as a special dividend - especially as dividend now is to reduced
This special dividend would reflect a Little more respect for shareholders
I don't think you understand what a buyback does. In theory it should give value back to shareholders albeit the market is often slow to take notice (and it hasn't happened yet anyway). The cash is already there so the asset value of the business is already reflecting the forthcoming action.
Why are management on a buy back programme -whilst shareholders suffer losses on share valuation
Mite a special dividend instead be more appreciated by suffering shareholders who additionally have to accept a divided cut !!
Whose the priory here - management or shareholders ?
They received licensed approval to operate in China in January 2021 maybe this milestone achievement will start bearing some fruit soon. As always it's nice to see management buys shares.
Theres only 2 companies I would touch lgen at 6% roughly and m&g at 8%.
Comments on here about badly run companies being run for the benefit of directors rather than investors has proven so true in 2020,actions speak louder than words and tbe above two have stayed loyal to the shareholder.
Too many companies have happily bowed to the PRA even when making record profits eg aviva.
Income investors have a right to be feeling let down.
Arrived here on the back of the RNS for two decent directors deals.
You say it's worth more. The directors obviously do. The market isn't convinced yet.
I need to dig into what's been said this last week to cause the massive slump, seems like lots of toys have been thrown out the prams, but it's one to watch for a few days.
Thanks for the decent DD on their balance sheet!
I have had a look at the balance sheet and the net assets are £6.8B.
The balance sheet, however, values the HDFC Asset Management stake at £116m. when, at current share values, it is worth £1.39B.
Adding the market value of the HDFC stake puts the neat asset value at £8B.
With diluted shares of 2239M shares, I put the net asset value per share at £3.57.
Further , the capital surplus over regulatory requirements is £2.3B, which excludes the value of the HDFC stake.
Looking at this, it is plainly a value stock, the issue is whether it is a value trap.
To be fair to the board, the return of capital via a share buyback has been value generative as the shares were purchased way below the net value per share (and below the current share price).
The issue now is how value is generated going forward.
The asset management fund performance has been improving (Aberdeen was a dog for years) but am not sure it is enough to trigger a short term SP improvement.
On balance, am reassured by the underlying business value but not massively excited for the shares in the short term.
(Unless the Indian stock market rockets, but I can get shares in an Indian IT for that.)
Any thoughts/comments welcome.
CSDI1962 - I'm down to my last 3 dividend paying individual shares. For income I now use (i) investment trusts paying a dividend / MRCH / HHI / HFEL, or (ii) investment funds for overall capital growth which I simply sell units on a quarterly basis to provide me with a 'pretend' dividend. This method has proven to be by far the best from an overall return point of view.
4 largest holdings are: Fundsmith Equity fund, Rathbone Global Opportunities, Legal & General International Index and LF Blue Whale Equity. Far less stressful, wider diversification (both company and geography) and better returns (to date anyway!) Good luck with your investing.
Yes folks, a bit of a sickener today, and I sold at lucn time @ 306p, wishing I'd acted before going to work as SP was 316 then.
I made a poor mistake buying this last week @ 321, following a good run with Aviva which I sold for 15% afer 3 months (early Dec to early March). I had previous held SLA for nearly 3 yrs from before the consolidation and SD. The divi was reliable but still ended up with smal loss of 3% when sold on 3/12/20.
Like zac0 - my normal routine is to buy HY shares, hence the original purch of SLA, swap to AV and back again.
For a change I've gone for a trading share today and bought MCRO which has a 2% divi this week and I will be looking to trade in and out for a couple of % on a regular basis, taking my idea from other traders.
In search of HY, my p/f includes ASEI, BATS, CEY, GSK, IMB, NG, SSE and SUPR.
Other shares I hold with divis are CMCX, MCRO, RDSB
Non div: PFC
Some others for rearch with HY are: AV, CTY, HHI, LGEN, NCYF, VOD.
Not recomended anything as I am strugling myself - just ideas for consideration
Cheers & GLA - CSDI
LLucan i completely agree with what you have said, but i use the share price as the ultimate guide. the market has not been discriminating between good and bad, only value, tech, reflation, reopening. just about 99% of each group has moved up and down together, bar a few outliers. given a period of solid underperformance by the share price and in an environment where yields are rising as so the reflation trade is intact, i could be persuaded to buy the shares. thats is as far as id go. i still hold positions in aviva and l&g (and dlg fwiw) but i am not prepared to give sla the benefit of any doubt and if involved its only short term where a period of outperformance by the shares is expected.
Yet another UK company run primarily for the benefit of the highly paid BODs.
Do not agree with this.
M&G are up 5% today on the back of an increased dividend and good results.
SLA are down because the results are bad and the dividend has been cut.
For the last 5 years this has beena badly run company.
There is no gurantee and so far no evidence that things will improve.
i think the results come on a bad day for value/financial/reflation plays in that bond yields are lower, techs are higher and the shares have been on a run. what the rally has shown us is that a rising tide lifts all boats and while i think avvia and l&g are better plays, you should still expect SLA to trend with them higher once bond yields begin to move higher again after a pullback. if bond yields dont move higher id expect these to struggle more than the others. for now that doesnt look like a base case so i could be persuade to buy maybe 250-270 depending on where bonds are and how they look to be doing.
This shicked me when I read it too. Holder since float and very good investment and income. Hated the A being added to SL but felt it was fine.
Now they are dropping - selling the SL leaving A?
I really do not care. It seems full on sacrilege.
The SL was the goodwill.
What is left.
Any views on a trading opportunity? I will add at 220p
I feel your pain zac
I'm doing the same. no more individual shares for me. I've been selling down and buying trusts instead for about 6 months.
JPM MATE, Claverhouse & CTY have held or increased their divs thoughout all the covid and Brexit crap.
Just wish i'd sold this dog
Actions speak louder than words
Yet another of my individual dividend paying shares cutting its payout! I don't know why I bother with individual shares for income. It's my own fault. I should have seen this coming. It's been unable to cover its annual dividends for years now. The writing's been on the wall for a long time.
Never mind I'll hold until ex-dividend date and make a decision after that. I can't see me holding onto this as there are plenty of other investments ie trusts and funds, that generate a better all round return for me than this has to date.
Used to trade Standard Life shares before the merger which I didn’t like. Now it seems Standard Life name and everything else to be dumped and back to dodgy Aberdeen now?. No thanks
Mng
Mng
What's their Ticker?
Wake up smell the coffee M&G 210p a share and 18pence dividend.
"Therefore the Board is recommending a final dividend in respect of 2020 of 7.3p per share, bringing the total dividend for the year to 14.6p per share. The Board intends to maintain the total dividend at this level until covered at least 1.5 times by adjusted capital generation, at which point the Board will seek to grow the dividend in line with its assessment of underlying medium term growth in profitability"
The trouble is that the Revenue and profits have been contracting for 5 years. It is possible the dividend will be cut again next year. Or as they say "Re-based lower". Until revenue starts to increase which is off the back of assets under manasgement, you have a company which is getting smaller. Contrast SLA with M&G and a blind beggar can see that M&G is the better company. SLA needs to be taken over. It got too big too many employees on high salaries and no one with any balls to crack the whip. Even now the report today comes up with excuses and promises and the same old hashed line of "lets invest in the far east".