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Hargreaves and lansdown always take 15% and not 30% .
With Hargreaves Lansdown i have had to fill in separate W-8BEN forms for my SIPP and my ISA so assume (but will now check) that both DGOC holdings get the 15% saving.
Dont forget to fill out a W-8BEN form if you havent previously, or you'll miss out on 15% saving of the US witholding tax.
Too many articles report the full dividend rate and dont take off the 30% witholding tax (reduced to 15% after doing the form), the full 30% if you hold in a SIPP I believe.
Agreed. The irony is that if anyone were really paying attention, they would realise that low WTI actually works in DGOC's favour as it dampens shale production, which is DGOC's main pricing competitor as gas is a byproduct for the shale guys which gets dumped on the market and depresses US natural gas prices. Anyway, not my problem - sold some of my DGOC at 130 knowing that it wasnt going to hold there so will buy back (more shares) at 1.11. Thank you Mr market .
Oil price will drag this down tomorrow. DGOC hedge aggressively so the almost 10% dividend is safe.
Made my first investment in DGOC after following for a couple of months. Dividend looked irresistible!
Hopefully the capital value holds up or better still increases.
I guess this has been a medium to long term share for most?
Considering how much of their production is hedged, the current price is a cracking buy for a good dividend yield.
Edwina - There is a Withholding Tax Allowance between the USA and UK of 15%. Now, not all platforms honour this treaty and tax you at 30%.
I was with HSBC who withheld 30%. I have since moved to HL who honour the 15%. It was worth me moving as I was losing £100 a quarter.
Depending on who you are with, WHT dividends outside an ISA are taxed at the same level as you ISA. The only income tax you would pay as mentioned earlier is if your non ISA dividends are over £2k per financial year
Best to check with your platform on which tax they apply, 15 or 30%, if your not sure
This has been covered here so it might be a good idea for you to have a look at some of the previous comments. The concensus is that, if held in an Isa, the dividend will have a 15% witholding tax already deducted. Some have had a higher deduction so check once it comes through. Your platform/bank should not make a further charge. If held outside an Isa then normal income tax apply as well.
Edwina - you need to fill in a W-8BEN form (which your ISA provider should give you and hold).
Darren - who knows? Obvious answer is that more people want to sell than want to buy. Might be any of: profit taking (share doesn't like to get over 130), dislike of oil / gas sectors, fear that DGOC business model is not sustainable, concerns about US economy or a move away from natural gas to greener energy sources.
Depends whether you want a stable, high dividend or a rising share price - if you can find both then let me know.
This has raised its head here a few times so it might be worthwhile for you to trace back earlier comments. I think that the concensus is that, if held in an ISA, there is a 15% withholdng tax on the dividend. You should not be paying more. Outside an ISA you pay income tax in addition.
Any thoughts as to why it’s drifting down after the recent rise?
If these are held in an ISA is there any taxes that i should be aware of? I notice in most recent video presentation there was a question about such issues. Thanks a lot in advance, atb.
Short write up on the DGOC webinar available here
https://www.yellowstoneadvisory.com/post/diversified-gas-oil-clear-strategy-consistent-execution-strong-financial-results
What a great company and leadership team. With a focus on low cost, high margin and rewarding shareholders, what's not to like?
Some good hints for the year to come. They are looking for a Market Cap of 2 billion. We can expect some large investments. A mention of a stable SP so I guess they will do a RI to raise some capital.
Yellow - Thanks for link, very informative. Rusty explaining the hedging strategy makes much more sense than the text in the Final Results. Given uncertainty over natural resource pricing over last few years and next few years, it seems a sensible strategy to minimise downside risk - even if it might reduce profit in good years. 90 % hedging for this year and 60% for next year already should ensure dividend security. Lack of Capex and strategy of recycling / improving efficiency of old wells looks like a simple success as long as reserves hold up.
I've been a holder for several years, topping up whenever price below £1 - often tempted to sell at over £1.20 but liking the increasing dividend so still here. Think massive share price rise unlikely as it looks like an Oil company to the uninitiated but happy at 9% return.
Very interesting presentation from management last night at their FY results webinar. The strategy is presented very clearly and they are executing on it brilliantly. Watch the recording here. https://youtu.be/tXHGxjUcE0g
There's a webinar with the mgmt team who will present the FY results this evening at 6pm. Register https://us02web.zoom.us/webinar/register/7216117313646/WN_u6UZAWCXTXaT_8uqF9rPEg
I'm happy to continue picking up dividends here bought my first tranche years ago at 80p and my second batch when the SP fell off a cliff in March last year, but you can't help but feel this share is missing much love from the market, the board might even remove themselves from the LSE to go stateside. It has been said on here recently but the hedging the company does is some of the best in the industry. Would a marketing campaign help or is this just the peak now due to the falling popularity of oil (even though we all know this is a gas company and no amount of electric cars are going to heat homes in the USA). Anyways just some cobbled together musings over what was a decent set of results.
Reliably makes money and looks like it will continue to reliably make money.
One for those of the 'Profits are an Opinion, Cash is a Fact' mindset - 2020 shareholder distributions $115m
Company strategy in a nutshell -
"Protecting our cash flow and its payment of dividends and debt will always be paramount. While hedging may, at times, cause us to forgo upside to commodity prices, we believe our shareholders and lenders value the high visibility into our distributions that hedging affords us."
£DGOC has reported another set of strong results this morning in their FY update providing more evidence that there is an excellent management team in charge. In a nutshell they manage wells (99% gas) more efficiently than industry peers ensuring they last longer and produce at lower cost. On the revenue front they employ a conservative hedging policy to reduce risk from commodity price volatility. This translates into better financial metrics
FY results this morning report Adjusted EBitda of $301m +10% and EBITDA margin 54% . December exit rate production increased to 103 MBOEPD +8% on December year and overall average production was up 18% at 100 MBOEPD.
The company policy is to distribute 40% of FCF to shareholders and today they have announced the Q4 dividend of 4 cents, taking the overall dividend to 15.25 cents, an increase of +10% over the year.
The balance sheet is in good shape with Net Debt of $725m, equivalent to 2.2x ND/EBITDA.
Management will discuss these results at a webinar on 10 March at 6pm Register here
https://us02web.zoom.us/webinar/register/7216117313646/WN_u6UZAWCXTXaT_8uqF9rPEg
Should be interesting.
DGOC deserves more credit than it has been getting. Hopefully that is about to change.
Would help if I included the ink! https://www.ii.co.uk/analysis-commentary/10-shares-give-you-ps10000-annual-income-2021-ii515175
Good article by Interactive Investor calling DGOC out as a reliable dividend play, and one of their top 10 picks for dividend payments for 2021.
Meanwhile you have to wonder what acquisition opportunities are presenting themselves to the board given they finance significant finance available and the move by many oil and gas players to divest themselves of all or part of their assets in the current climate. Any thoughts on this topic?
Lovely channel on the chart with breakout over the last couple of days. Might well have a sprint up from here.