I was at Santander tonight, They went over the share movement changes for the past 4mths, and also the script dividend ( which was 4* 0.15c ), which 80% of retail investors took as script to 20% taken as cash. This had helped the bank to keep good cash balances. As of August, were made aware that this would be changed to a cash dividend after new legislation in Spain has allowed them to change dividend form; 3 cash + 1 script will be this tax years dividend basis. What I would say, this is a sensible move!! If any company has an eye-popping dividend of over 6%, questions must be asked how it is that they can and are doing it. I had my suspicions back when yield stood at 12% alongtime ago. The only thing we took away were good-bags with bendy watches & pocket umbrella's+free liquour and canopies... Waste of time and money... I own shares in HSBC, STAN, GS and don't get invited to no shareholder evenings... Though they did try and make clear, that Santander have made profits every quester since credit crunch no matter how big, and that its dividend has grown as well. Things I will be researching over weekend... Lastly, they showed a google graph on base price of banks (TSB, HSBC, RBS, & BNC). HSBC outperformed over the last 2yrs by miles, while the other mingled together during that period 50bp below or so...
RE: Share price
Probably lots of people getting out because the dividend profile is changing after this one. They announced month ago that the divi was falling to 20c pa so the gravy train has come to an end. The correction is a big one though. Even so the new divi at these prices is a little under 3% which for new investors is better than BARC which is 2.5%. Might be some tax to pay on it now though as 3/4 divis will be cash rather than scrip shares, which could bring the two closer together. Other factors around are, Greece still not settled and let's not forget there is a General Election approaching here which gives markets the jitters until they know the outcome. This one seems less predictable than ever as it appears to be quite tight between the two main parties and we'll have to wait and see who takes the middle ground to become the power maker. For Santander, Brazil is still not comfy and there is a Presidential election in Argentina this year so I think with the divi situation it was right for a lot of long termers to bail. Not been watching the volumes though so interested to see if that was above average which is more indicative of a major shift or opinion than anything else. Wouldn't be surprised if there were a few stop losses hit that triggered sells either so we could be looking at a bottoming out followed by a bumble along with the sector sentiment until the the next results come out. Might be a prolonged buying opportunity soon if you are happy with about 3% but I don't expect major capital growth for the time being. But a short term bounce might be possible. As usual, who really knows......Out of fold, stick or twist I'm in the stick camp for the time being.
17 Apr '15
RE: Share price
POSSIBLY: The large share issue leaving many more shares soaking up the company value. Grexit threat is growing again. Exdiv: paid 4th May, but with 4 divs per year the effect is not usually this severe. The fundamentals seem to me to be sound, so I think this quite severe fall is a 'buying opportunity'. Anyone else got any ideas?
17 Apr '15
Anyone know why share is currently in freefall?
14 Apr '15
That's the last of the €15c divs. 3 x €5c cash from Aug with one €5c scrip.
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