The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Charlie and a few others please read this! Taken from Q2 results!
‘’ On average, based on bp’s current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp expects to be able to deliver buybacks of around $1.0 billion per quarter and have capacity for an annual increase in the dividend per ordinary share of around 4%, through 2025. Other elements of the financial frame are unchanged.
The board will take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and the maintenance of a strong investment grade credit rating in setting the dividend per ordinary share and the buyback each quarter’’
So anything above $60 for the quarter and it’s more than likely we’ll see a divi increase + buyback increase! It’s in black and white! There’s so many on here who fail to acknowledge it. I don’t know why?
It was noted on here, maybe by HappyInvestor, I did not verify myself at the time, although the comment was that after the Buy Back Programme, there would be something like 10% less Shares in Issue..
Anyone verify / confirm or clarify this ?
IMO, for the LTH's in BP, further buy backs are more beneficial and should continue.. It's easy for the Behemoths like BP to constantly increase through Options, bonuses etc.
IMO less Share's in issue now and a further reduction through buybacks are better to increase the floor of the SP, and even the 4% increase in Divi's could be justifiably improved on, as less shares to pay out on.
Keep buying your own BP, keep buying while it's under £4.00
Some rough back of the envelop numbers. With 9 trading days till results, BP has spent £852 million on 273 million shares at an average price of £3.12.
Riddle of The Buy back shares: - all calculations and extrapolations as to their effect on the current SP are purely academic - until they actually cancel the shares bought back.
No its not his strategy and fwds earnings guidance was based on $60 people. We are now 40% above that
No its not his strategy and fwds earnings guidance was based on $60 people. We are now 40% above that
Charlie156 - "With 9 trading days till results, BP has spent £852 million on 273 million shares at an average price of £3.12 . . ."
I agree with your average price per share but they appear to have bought back 382m shares at a cost of £1,196m year to date. So, about 1.9% of shares in issue at the start of the year.
Zac there have been 2 separate buyback schemes this year. The first one related to shares issued to employees. Are you combining the two?
Charlie156 - Hi, I've used the following data:
Q1 - 0m
Q2 - 115m
Q3 - 221m
Q4 - 46m
Ytd - 382m
Cheers
Not as many as I thought.. And someone mentioned the BB's are not even being cancelled ? ? ?
https://www.bp.com/en/global/corporate/investors/information-for-shareholders/shares-in-issue-and-share-buybacks.html
It doesn''t matter whether they cancel them or not, once the shares are bought back into treasury they don't get dividends anyway.
Companies tend to only cancel them all once the buybacks are finished so they only have to do the paperwork once. It really doesn't matter.
Let’s wait a few days then - until the dividend arithmetic confirms that the BB shares are included in the denominator (or not).
Roll on April I need the get some of these baby’s in my isa before they hit £10
Paying a dividend to treasury shares is a violation of section 726 of the companies act. It doesn''t happen, there's no need to wait and see.