The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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.
The divi chasers usually push it up to 108 to 110. A sustained higher gas price might help keep it there. At some point it's got to start heading towards 150 IMO.
I currently focus more on capital returns than dividends. Ironically maybe given this is an income stock. But I think the SP will chase the dividend yield and FCF yield down to a more reasonable level.
In the current price basket, the dividend yield to me, after exchange rates and WHT is 9%. I think a reasonable yield is 6%, which would give 140p. I would sell somewhere around there if there were other opportunities. But if I was looking for a steady dividend stream I would be looking at 180p, which is a 5%.
Mrg123, I’m not looking to sell anytime soon from now. I’m thinking 3-5 years. I’m not selling lower than 200p and will enjoy the great dividend yield in those years to come as well. Gas is needed for many more years and I believe they think the need for gas will increase till 2035.
@ Timchecco & ragnarlothbrok What price would you sell at?
They have made it hard for themselves with a name that includes 'diversified' and 'oil'. There is nothing diversified about it and oil is only ~5% of revenue. Investors are looking for growth now which means DGOC just isn't that appealing to many
It's weird how DGOC SP generally climbs when oil price increases rather than gas. I don't think many investors realise its mostly a gas company.
10% divi cannot be ignored. Especially from a company that makes a good profit and has a clear and sensible plan for the future. Once the markets settle down and people stop chasing a quick profit, I believe they will invest heavily into DGOC.
Good spot MrG. NG prices up 16% today!! Some shorts are getting burnt. And more importantly for DGOC, the forward price curve, from which all of DGOCs revenue is fixed to, has also shown significant improvement over the last few weeks. So this would be one of those times when DGOC is opportunistically hedging future production.
https://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html
I took a lot of DGOC from the table in the pursuit of rainbows but still hold a decent amount for the relatively stable dividend. Not many around which can boast a 10%+ quarterly yield unaffected by covid. Really should be much higher but this market just isn't exciting anyone at the moment.
DGOC is my biggest holding and I’m not anywhere near selling the next couple of years! Dividend combined with expected increase of shareprice makes it a great investment if you ask me.
Gas is needed for a while and it is the great ‘in between’ step between coal and solar/wind energy.
Nice climb on the gas price. Hopefully the start of a true recovery.
In a recent interview Rusty mentioned that they’ve enough in the kitty to ensure the dividend remains at today’s levels And is paid for the next Couple of years even in worst case scenarios
Morning. Hosting a webinar with CEO Rusty Hutson Jr. and CFO Eric Williams on Wednesday Aug 12, at 4PM. To register please click here:
https://us02web.zoom.us/webinar/register/3015961866342/WN_qT9gtei1SVOy4CQVQafkTw
Exactly why I'll be trading it from now on. More to be made from that, and if I happen to get a 30 percent taxed dividend four times a year, I be even happier.
yup, I've been with DGOC for a good while now, great dividend share and tend to ignore +/-15% sway in the SP. Sub 100p is not a bad entry level. GLA
Thanks desert1, I topsliced some of my EUA shares to invest here, think I've seen you there also.
Thanks Bob_L - somewhere along the line we discovered that there is some reason that banks who act as brokers are unable to utilise this tax treaty. I don't know what the reason is, but it is obviously the banks who are getting the dividends through with tax already taken off. It's something about the treaty that applies to brokers but not banks, but I know not what.
Financial Ombudsman is a joke. I had a clear cut case against Homeserve some years back and it was a year of stress and arguments to finally be told that they agreed with me but couldn't help.
Bought in yesterday based on the dividend, just hope it's not too good to be true.
Some large borrowings but looks like the SP should be much higher.
Adv11 – I think the type of account is irrelevant. Your argument is that there is a US-UK treaty which states that as a UK Investor you should only pay 15%. You know of other holders who are with HL & ii for example, where withholding tax is 15%. Your question to them is, “You believe that you are being financially disadvantaged when there is a Tax Treaty in place where you are only obliged to pay 15%?”
You could also ask who is financially benefiting from your additional 15%? I’m sure the IRS don’t require it
Thirdly, you are being treated financially unfairly compared to other UK Investors, if they will not resolve, you can state that you will go to the Financial Ombudsman. I personally don’t believe that they have a leg to stand on
Thanks for getting back to me @Bob_L - and I am pleased that you are getting this sorted with HSBC. I'll read the irs links later. I spent hours on their website last year and just ended up with a headache.
I don't think I will get any further with Halifax/I-web - I got compensation of the tax I had paid but had to agree that I realised that future dividends would be taxed at 30 percent, and so it was my choice whether to continue with the investment on that basis. It isn't Halifax/I-web who stop any tax - they receive the dividend net of 30 percent withholding tax from Computershare. I don't really have the technical knowledge to argue this anymore, or indeed any place to go. DGOC told Computershare to sort this out for me, Computershare refused to help because my shares are in a nominee account, and my broker compensated me but made the future terms clear.
Basically I now only invest in quarterly dividend companies and have 70+ investments in these plus a few AIM oil companies just for a bit of a gamble. I'm almost at break-even with DGOC, so I'm going to reduce my holding and treat it more of a trading stock in future, there are plenty of companies I want to top up.
@MrG123 - Degiro look interesting, but a bit complicated at first viewing. I certainly don't want to change brokers - I have done that a few times over the years and it's never simple. I like to have all my investments in one place and am happy with I-web for the price they charge. It takes a long time to argue things with them, talking to the correct person is impossible, but at least I always get somewhere, which I never did with HL who just will never discuss anything - they have such a superior attitude, they must always be right. I have a few shares with another broker which I can't wait to get rid of, and another two accounts I no longer use. I'll certainly have a more in depth look at Degiro though.
MrG123 – It’s not so much as a broker issue, but who they use as the custodian of the shares, in HSBC’s case HSS. I’m assuming that any broker can use the same?
I opened an HL account a month or so ago and added DGOC into it to test whether 15 or 30% would be withheld. The fact that only 15% is withheld gave me additional evidence that HSBC & HSS had got it wrong. My portfolio is now in the process of moving from HSBC after a year of raising this issue
So its a broker issue and not a problem with DGOC. No issues with my dividend via Degiro. Easy solution for you is to change brokers.
This was my main argument, the US_UK Tax Treaty
I have also done some digging on the IRS web site and have attached 2 links and noted the key points (in my opinion) from Article 10 Dividends
2. https://www.irs.gov/businesses/international-businesses/united-kingdom-uk-tax-treaty-documents
3. https://www.irs.gov/pub/irs-trty/uk.pdf
a. UNITED STATES-UNITED KINGDOM INCOME TAX CONVENTION
b. ARTICLE 10 Dividends
c. (2) (b) (ii) in all other cases, the tax charged by the United States on payment of a dividend to a resident of the United Kingdom shall not exceed 15 per cent of the gross amount of the dividend
adv11 – Received the following from HSBC today, they acknowledge there is a problem with the 30% tax as shown below. My argument with them was around the US-UK dividend treaty and my entitlement to pay only 15%. HSS are the custodian of the shares for HSBC, if they are all custodian for your broker, you may be in for a pleasant surprise.
The HSS tax team have now come back to say that the assets are held in a UK custody account and tax is paid at source, hence the 30% rate. The team haven’t taken into consideration underlying client tax status and so we’re reviewing whether this needs to move to a US custody account and preferential rates applied. There’s a bit of paperwork to get through on this, and clearly we’ll need to consider financial remediation. Still not resolved yet unfortunately but we are gaining traction.
Indeed, what tax problems are you referring to?
First investment of Warren Buffett since Corona. Warren Buffett's Berkshire Hathaway struck a $10 billion deal to buy Dominion Energy's natural gas transmission and storage business. Berkshire's energy unit will pay about $4 billion in cash and shoulder $5.7 billion in existing debt in exchange for over 7,700 miles of pipelines, 900 billion cubic feet of storage, and other assets. "We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business," Buffett said in a press release on Sunday. The deal is Berkshire's biggest since its takeover of Precision Castparts in 2016, and comes after Buffett was panned for his inactivity during the pandemic. Buffett is also sticking to his value-investing philosophy rather than giving up and paying higher prices. Natural gas futures tumbled to a 25-year low in June, allowing Buffett to buy Dominion's assets at a discount.
What complicated tax problem?