Prefer to take my divs as new shares via their DRIP so have seen my holding grow 32% over the last five years. That and the fact that I don't really like going abroad - too hot, too many foreigners and you can never get a decent pint of beer - and I live on the coast in the SW so have everything on my doorstep. This is a great stock to own in both the good and the bad times, and has come a long way from its 240p flotation price way back in Dec '89. If only all of my holdings showed 800% growth and paid such a good div. ATB.
29 Jul '14
Tomorrow! Time to book a holiday from the big yield! :)
2 Jul '14
Gas / water multiutilities etc...
This sector looks like its ready to fly, NG. looks ready now UU. & PNN not far behind CNA & SVT need a few more days to set up...
3 Jun '14
Positive Points: In the present low interest rate environment, a progressive dividend policy remains attractive to shareholders. In line with group policy of growth of Retail Price Index (RPI) +3%, the dividend for 2013/14 is set to be 80.40 pence, representing growth of 6% year on year, and forecast a total payout for 2014/15 of 84.9 pence per share. Management reported "constructive engagement" with Ofwat on its 2015-2020 business plan. The company said it remains on track to deliver its leakage reduction target during the current regulatory period. Last year, management rejected a hostile approach led by Borealis Infrastructure Management Inc noting that "it completely fails to recognise the existing and potential value of Severn Trent." The group's defensive nature provides investor attraction when set against an uncertain economic backdrop.
3 Jun '14
Negative Points: Profitability from Severn Trent's core water business is dependent on the group's ability to meet a complex regulatory landscape and efficiency targets. The next regulatory period runs between 2015 and 2020. The group's non-regulated business registered impairment costs of £24.7 million due to "continuing customer project and delivery delays across a number of markets." Operationally, regulatory penalties may be incurred if Ofwat performance targets are not achieved. Management continues to monitor developments such as unemployment levels and changes to the UK benefits system in relation to customer bad debts. An eventual increase in interest rates may reduce the appeal of the group's dividend payment, a key investor attraction.
3 Jun '14
Financial Highlights: Severn Trent unveiled a better-than-expected 7% rise in underlying profits to £269.1 million. Overall group turnover edged 1.4% higher to £1.86 billion. The group's regulated water supply business posted a 4% rise in underlying pre-tax profit of £518.6 million. The firm recorded an impairment of £24.7 million in its services business after what it called a "disappointing" performance.
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