UK-focused Dunedin Income Growth Investment Trust said its net asset value had outperformed the market in the first half, but warned times would remain tough. Net asset value per share was up by 5.9% in total return terms, compared with the company's benchmark, the FTSE All-Share Index, which increased by 1.9%. The firm's share price increased by 11.8% on a total return basis over the six months to the end of July. Chairman Roy Macnamara said that since the rise in the market, Dundein believed company valuations in general were no longer cheap. "The analyst community seems reluctant to look more than twelve months ahead and still expects close to double digit earnings growth in 2013; we consider that this is a somewhat optimistic view," he said. "Companies considered safe and secure which distribute a fair proportion of their profits to shareholders have become 'in vogue' investments in recent times. "While we are inclined to agree with such a stance, we do keep a wary eye on valuations and bear in mind that these will be a key determinate of our investors' long-term returns," he said.
Dunedin Income maintains divi after tax rebate Date: Monday 28 Mar 2011 LONDON (ShareCast) - Dunedin Income Growth, the largely UK-focused investment trust, bested the performance of its benchmark index last year by achieving a 19.6% increase in its net asset value (NAV) per share in total return terms. The FTSE All-Share Index’s total return in the year to 31 January was 18.1%. NAV per share at the end of January 2011 stood at 226.81p from 198.80p a year earlier, calculated on a basis that prices debt at market value. During the course of the year the trust saw the income generated from option writing grow significantly, while it also received a boost to the coffers from the resolution of a long standing dispute with the tax man which resulted in a payment to the company of £2.42m, of which £1.84m was treated as income. With debt valued at par, potential gearing has decreased from 9.9% at the end of the January 2010 to 9.7% and, on a pure equity basis, allowing for the trust’s small bond portfolio and its cash holdings, it now stands closer to 2.7%. The company’s final dividend has been left unchanged, leading to an unchanged full year dividend of 10.25p. The preservation of the dividend level was in some doubt a year earlier as it was unclear whether the payment would be covered by earnings. Thanks to the settlement from the taxman, the fiscal 2010/11 dividend was 99% covered by earnings but without this windfall some 13% of the total dividend payment would have been paid for by dipping into reserves. - - - jh
31 Dec '10
Thats a nice long investment. If you want a quick return XEL could make you @ 3k in less than a month, and a lot more in 1 year MATD will quite possible double in 12 months BLVN keep an eye on it next week, it may fall, if it does, then thats a good time to buy in because next year will be full of good news. CHAR looks goor too for next year (Those are all shares that I am 90% sure you will do OK on) as always DYOR and good luck with whatever you decide to do. Happy New Year
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.