We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Falky wouldn't be the only one pulling something out of the sky if he did.
Boris will soon announce the arrival of the South African 'varient' which will be used to justify mandatory forced vaxxing of everyone with concentration camps for resisters as is happening in Australia, and will follow mandatory vaxxing in Austria and Germany, where they have form on that already.
Could be big investors have got wind of that and found their feet getting cold.
FALKY anyone can pull a number out of the sky and every day flip that coin then claim to be right next week month year 2 years to many variables I could make the same claim with say 210 instead of 175.
IT went way lower with no vaccine and the shock effect of a new virus and dividend was maintained, it not impossible that it could drop to 175 but at the same time it is not impossible to see 210 or even back to 240.
You still have not given your reason on why you think the dividend is a 50/50 chance of being cut when it was not last time .
You are trying to scare people into thinking they will lose money maybe keep flipping that coin you could be right, but in time the share price will come back as it did last time, but if you are wrong people will be sitting on real money losses positions selling now.
Falky
well done for maintaining a positive headline. ho ho
Falky
well done for maintaining a Positive Headline....hoho
Falky
10,000 messages full of CARP
Again I will remind all, he is NOT invested in this stock, but here to quietly de-ramp.
Sad, sad person.
IMHO-DYOR
IMHO-DYOR
IMHO-DYOR
IMHO-DYOR
Laughable !
GLA true investors here.
No offense meant from me falky, but we have money invested here, and coming on to a board, your not invested in scaremongering is never going to go down well
Best of luck to you
Well done guys, let's hope it will hit the 250 not 175
Gla
karv1
Falky- has NO REASONING, has no Rationale, nor Logic.
I knew he was a de-ramper, as he spouted same rubbish on LLOYDS board. IMHO, DYOR
His many years losing at Stock purchases, has made him bitter.
He cannot support any of his wild predictions, but keeps trying to maintain the Wild Headline,
hoping for support from similar chancers.
As he confirms, not invested in this stock, doubt his Pension will allow a £10 flutter, now and then.
Good luck Falky, I really mean good riddance,
GLA true investors here.
Hi falky 50/50 if the dividend Is kept at the current level. what makes you think this?
With 5.2 billion surplus. on 5.14b valuation.
Since half-year results most markets are up.
Average from the group of analysts on MNG page think dividends will go up every year by a small amount
Analysts say they could easily have over billion spare cash next year.
They have increased their self-generating target from 2.2 billion to 2.6 billion.
The dividend was maintained during covid.
whats your reasoning?
Hi falky, so what homework have you done, to make you think this will go to 175 ??
I want the share price to rise myself, so i can break even, hope it starts making some gains
I see people keep dragging the Headline backwards as they need to GAIN a much lower entry level,
wasting your time old timer !
GLA invested here
Falky- I see you have same name on LLoyds-but it WAS different on there ?
Youare still spouting your Dream sp over stocks, so you must be under water here IF invested,
or, are you merely scaremongering to dump your Lloyds POT into this because the Divi has a Greater Yield.
IMHO, DYOR
IMHO, DYOR
IMHO, DYOR
IMHO, DYOR
Find a hobby Falky-stop spouting CARP.
GLA Invested here
Thronegames, you may not be aware of it but IMB don't pay 4 equal dividends over the 4 quarters. I used to be a holder. They always have two small dividends and two larger dividends per year. Watch what happens after they pay the next two large ones, the two after will be nearly half as much. You need to just look at their dividend as an annual dividend and work out the dividend increase from there. Don't ask me why they do this but they just do.
Just taken first position here , hopefully the dividend is progressive GLA
always appreciative of jatw’s posts, & more broadly the interesting
chat on this board … educational, and generally polite. a pleasant
contrast to the chatter on some of the junkier AIM-ish shares.
Thanks for your support BBD and Candid
I wished to add that not all is doom and gloom at MNG.
ESG credentials are being put to the fore.
Investment performance seems to be improving. Institutional cash flow is positive as these should be more critical investors this is encouraging and a lead indicator that retail business will return in time.
Prufund has been remarkably successful and is maturing at over 50bn AUM. As it matures it will throw off more cash to the shareholder as all shareholder cash flows are back ended.
Annuities need capital and as the book runs down at 2-3% pa it releases capital which becomes available to the shareholder….the bump caused by covid will accelerate this in the short term.
The run off of heritage savings business creates WP terminal bonuses and more shareholder cash. THis cash gives management options to pay down debt, invest in the business or pay dividends if they can’t invest it more profitably.
The acquisitions of ascentric and sandringham are in the wealth business which carries a higher valuation multiple than asset management or life and pensions. Making a success of this business will be a key element of MNG in 10 yrs time. I predict more acquisitions in this space.
Prufund in Europe (and why stop there) will eventually happen. It must be nearly ready to go.
I think the current 200p level is a good entry point, particularly within a tax efficient wrapper. The dividend should protect or compensate for potential downside….if the acquisitions go well and the growth in AUM returns then there is the prospect of a rise in the share price too.
Overall MNG has a place in my portfolio…..providing a good yield on a high single figure % of my investments.
Yes Blah..I agree Jatw's contributions to this board are in my view excellent . He has taught me lots about the industry in a very short time and has enabled the level of debate between us all to a much higher level
Let's keep it this way
Regards all
Jatw's last post was the best on this board for some time, imo. Credible explanation for the relatively low SP and the challenges M&G face. Signs of growth seem pretty hard to detect lately, but look key to understanding long term prospects. Thanks for the heads up Jatw, and candid for pertinent questions.
Very insightful JatW thank you ..
I hadn't thought about the rundown of the heritage assets , yes this means they have to grow just to stand still
I sense from the share price that the jury is out as to whether they will be able to do this .
I think the easiest way to achieve this will be to acquire smaller investment companies and buy the growth
They do seem to be heading in the right direction wrt green / climate change approved investments which I see as a potentially huge and growing market
If they are cash rich , then it maybe a useful trade off between dividend distributions and growth £450 million is a lot to give back ..it might better be served going for acquisitive growth
Regarding the Barclays note ..take a look at the Hargreaves Lansdowne web page for MNG and click on all company news and you will see it there
Regards
I have not seen the Hsbc note but it is evident that the current holding company cash will pay the dividend until 2023. It will need topping up with dividends from the operating companies.
My post about concerns seems to have gone into the ether…..I have one word for you Growth is my concern
Assets under management need to grow substantially to negate margin erosion in the asset management side.
Growth is needed to create a scale wealth business
Prufund in Europe is needed to replace heritage run off business
Investment performance is needed to drive new asset growth
Pensions admin needs to be sorted out to stop haemorrhaging Business
Look out for signs of growth.
Blah ..ok understood..very attractive yield isn't it .
JatW. Yes the dividend funding isn't explicit..more work is needed .
With regard to funding of future dividend HSBC did a broker note back in June saying that looking forward the dividend payout would absorb over 90% of available cash , leaving little room for further dividend increases beyond 2023
They downgraded the share from buy to hold but then raised the price expectation ..!!
Usually , I ignore broker notes as their purpose is to get their names ' out there ' rather than any credible research but I did pick up on that comment and wondered if it could be verified in any way
Apologies for lack of clarity Candid. My "well over 6%" referred to a notional SHORT TERM yield for M&G based on assumptions about the final dividend. It's derived by dividing the predicted dividend by the current asking price. For example, assuming a 12.4p dividend next April, buying now at 199.45 would yield 6.2% when paid. To be absolutely clear, it is NOT the annual yield, which, as you say, is much higher. You might call it a five-and-a-half-month yield? ( :
Re dividend funding….we need to do some work as it is not explicitly set out.
Looking at the YE presentation in March there are various slides to reference
Underlying profits and capital cash remittances come from the operating businesses.
Capital generation from annuities and WP….showing 400-500m pa for the next decade.
Asset management was a £300m contribution and is facing into margin pressures.
Corporate cash position is where the dividend is paid from…
Current dividend costs about £450m. If this is 70% of underlying profits they have to be £650m. Dividend for 2020 was 57% of Adjusted Operating profit so there is some margin before there is pressure on the dividend.
Yes I think you are right Blah about the likely level of the future dividend
Also regarding IMB..they are loaded with debt so they can't really afford to pay any dividend
Blah .the M&G dividend is 9.2 %. Where did you get the 6 % figure from ?