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Todays trading update seems very positive (only one royalty partner still unable to pay)........though it was a bit unlucky to have Pearl and Dean cinema advertising and a river cruise company during covid!
Enhanced equity stakes in all companies that needed forbearance agreements bar one it seems.
Positive results from other royalty partners.
Dividend planned to go back to previous levels which could be >15% so I may increase my investment here as that is worth buying for the long term.......
Anyone have contrary views?
For those that use RSS, then you might find the AltiFi - Duke Royalty feed a useful addition.
Lots of people cashing in their scrip dividends today, but with the current and potential yields on offer plus growth once this Covid hysteria blows over I'm holding firmly on to mine, wish I could add more at these levels.
The advantages of the scrip dividend aren't obvious apart from, optically, giving the impression of a stable dividend record. Sadly this is looking like a company that has lost interest in its retail investors. If you would like a few clues to what they have been discussing on their (institutional?) investor roadshow there is a presentation at https://www.dukeroyalty.com/investors/aim-26-checklist#reports
CJ66 I thought I was only one who likes to hold a round number of shares, triggers me too, must be our mind set. ;)
Personally I don't like scrip dividends but the theory is that if you like to take your divi then sell the shares. If like many, you reinvest the divi's do nowt - net result on % ownership is the same.
I do think we will bve back to full divi soon however and this will have been an uncomfortable blip / buying opp.
NtD
Hmm... what about if I had 100 shares and £10 loss ?
What about in a years time, when the price gets back up to 50p and I have an extra 400 "free" shares that the have given me and I sell them for double the notional price they were given to me for ?
Afraid I stopped reading IC thirty five years ago when the first two companies they advised me to buy went bust shortly afterwards.
Hi adv11
to make my point simple - if you have an all in total of 100 shares and £10 profit = 10p eps
they then give you in all a total another 100 'free' shares you now have 200 shares but still only have £10 profit = 5p eps.
So you have double the shares but in essence half the value x2
If next year you make a doubled £20 profit it is still the same split 20p / 10p eps
and if they paid out the same total £ value of dividends it would be 2 to 1 (i.e. you get the same)
If they kept the cash and didn't issue all these shares it would all still be the same overall total value of company and shareholder split.
To my mind a Tommy Cooper conjuring trick - and pointed out as so by the IC a couple of weeks ago as various companies are using it to show a nice warming feeling for investors without actually providing any benefit - "Just like that!!"
Hello CJ66. Are you sure it dilates my holding ? Surely we still have the same percentage holding as we all get the same percentage dividend shares ? Maybe it is one of those mathematical formulas which can prove what you want it to prove ?
I can see their point that it keeps cash in the company, and even at the reduced level it's a great yield.
Like yourself I prefer cash and then I can choose which of my holdings to top up. Last quarter I added in Duke to keep my round number holding, and at this price, you get a lot for your money.
I still think Nelson didn't see the dividend RNS - I didn't get it via my usual source, so it was easily missed.
Hi adv11 - Nelson probably means the dividend that is not a dividend!
The scrip issue is an illusion and waste of time - basically they are offering you more shares that in turn increases the number in issue and dilutes your holding = a zero sum game.
It also triggers me as I like to hold a round number of shares - just a personal thing....
Like the company, but lets have real cash next time
Presumably Nelson you have read the 2020 Final results and missed the Dividend Declaration ?
Seems like a decent dividend to me - especially for anyone buying in at this price.
A bit of a dual message here - strong cash generation, business returning to normal and a bullish view of the management teams confidence on the one hand; on the other - no resumption of the dividend for the sake of prudence.
Not sure we will rise significantly without that resumption but happy to wait another quarter or so as I think in the long-term this is very cheap.
Ive not factored a payback in but a resumption. These results should see us clear the 30p hurdle swiftly
Seems that business is returning to normal -- what we don not know yet is whether the customers that took payment holidays during shut down will be able to pay back money owed to Duke.
Share price should move upwards as we head into Q3 and Q4
It is positive, but there's a lot of hope and uncertainty there. No forecast for the divi, either, which is what most are here for.
And there it is, positive statement from the board!
As I have read others mention, it would be nice to get some company updates at some point soon, unless I have missed it! I very much like the prospect of their business model moving forward for growth, I wonder what specific issues are currently being faced with clients and more importantly how it’s been tackled/managed.
Never mind, I'll keep adding a few. If we ever get back to pre-covid levels we'll be on a fantastic yield.
Wow, look at that one post from me and someone sells 300k shares! I’m a mover and a shaker ( I wish...)
Hmm, you tempted that big sell @Thejenks
More than twice as many bought than sold yet price is falling? At least folk are buying so many must feel we’ll get back to pre virus levels eventually.
Definitely second this, we need some news. They need to up their news game generally.
Scrip div was a bad decision, makes them look weak....'uniterrupted div' at any cost.
I think the company owe its shareholders an up-date soon, it’s been a while since April and much may have happened,
It will be interesting to see when/if brokers get round to dealing with the scrip shares. Anything slightly new or different usually results in my broker "losing them in a back room".