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Started: Krustysmegma, 7 Jun 2024 09:18
Last post: Krustysmegma, 7 Jun 2024 09:18
Piece in this week's Shares Magazine highlighting the case for JEGI on the basis of a strong £ and the discount to NAV. Could equally apply to EAT.
Started: silverknight, 16 Jan 2024 18:23
Last post: Middleground, 16 May 2024 15:26
13% discount to NAV of 103.55p with SP @ 90p, hopefully get SP back to £1 soon if NAV continues to improve
NAV gradually recovering and the SP is trying its best to follow suit, hope it will continue.
Divi is locked at 5.9pps for the year giving a current yield of 7%. Acceptable but can the sp hold?
Started: johnjunior, 2 Jan 2024 14:03
Last post: Krustysmegma, 16 Jan 2024 16:16
Thanks for useful comments guys. Apologies for my paranoia re winding up, just seems to be happening all too regularly now across my portfolio. Agree no reason to suspect it might happen here though, I certainly hope not.
What a difference a day makes! The net asset value has fallen 4p between the end of December and the start of January; the difference between an annual dividend of 5.9p (declared today) and 5.7p!
The distributable reserves are irrelevant. The trust has a current NAV of 94.7pps and if you allow for selling and winding up costs, investors would do well to receive the current market price of c87.6pps. Where's the gain in that?
Couple of interesting numbers here:
Distributable reserve £289m (at half year); market cap £319m.
With the current vogue for winding down relatively successful Trusts (e.g. VSL, TENT, HDIV, RMII) one wonders if questions have been asked by the larger shareholders?
Well, they did round up last year, so it's possible.
Final NAV 98.33 multiplied by 6 = 589.98 ..I wonder if they will round it up to 5.9 pence for the year to make a quarterly payment of 1.4725 p.......Please??
Started: silverknight, 12 Jan 2024 09:57
Last post: silverknight, 12 Jan 2024 09:57
Trotsky. Yes, I'm aware that the d reserves aren't all cash. The fund holds a diverse portfolio of quality companies but with generally low dividends. As such the sustainability of EATs dividend's going to rely on their trading skills otherwise the fund's going to cannibalise itself. They've done a pretty good job up to now
Started: silverknight, 5 Jan 2024 18:33
Last post: TheTrotsky, 11 Jan 2024 13:19
Silvernight, Don't get distributable reserves confused with cash. The distributable reserves have been reinvested into new investments. As at 30 June 2023, EAT had c£12m of cash and c£17m of bank loans. EAT currently generates c£8m of income before costs and pays c£21m in dividends. The annual dividend isn't covered by net income and EAT therefore needs to sell investments to maintain its dividend. The distributable reserves do give EAT the capacity to continue paying dividends but, without investment growth, those distributable reserves are likely to be progressively eroded.
Distributable reserves gives the trust flexibility to maintain a dividend at 6% of NAV even if not covered by earnings. I see no reason for winding this down. It's been going for 40 years and I'm happy to add on weakness
Started: silverknight, 16 Oct 2023 18:30
Last post: silverknight, 16 Oct 2023 18:30
As it stands the yield (based on todays sp and nav) will be about 6.75% from January. I like the geographical diversity and the strong revenue reserves.
Started: silverknight, 8 Jan 2023 10:40
Last post: Nthoftheriver, 14 Mar 2023 16:48
Decided to add a further 3K shares this morning.
Looking to steadily build on my existing position here as long as the yield is greater than 6% and at a discount to NAV.
Not expecting much either in capital appreciation this year, but live in hope.
zac. I hold these in my ISA . Don't expect much capital appreciation in 2023 but prefer exposure to Europe rather than UK. You know what income you're getting for the next 12 months.
Started: jonathb, 6 Jan 2023 08:57
Last post: Krustysmegma, 9 Jan 2023 15:24
...might be achievable by the end of the week zac but yes, I understand what you are saying & on that basis I think it's still worth a shot. I'm certainly holding for now.
Although I'm currently well out of pocket here it doesn't alter my thinking. What return can I reasonably expect from here over the next 12 months?
I tend to ask myself this question of all of my holdings at the end of each year. Providing the answer is a double digit total return then I'm ok with that irrespective of my previous performance.
On that basis I think a share price of 95p by the end of the year should be achievable. Shouldn't it?!!!!!!
I invest in high div stocks and although the current nav has dragged the dividend down, the holdings in this fund are well poised for a europe wide recovery this year if the. I consider the European recovery will be stronger than the UK one so I remain invested here and continue to add.
6% plus potential good capital growth in a well managed fund is exactly what I am looking for.
Yep, see my posts of 29th Dec & yesterday (below). 6% of NAV (which sets the dividend for the year) is a lot less this year than it was last. K
To answer my own q a guy on the ADV board seems to approx concur. If that's the only bad news from EAT.L I'm ok. .. or?..
Started: Krustysmegma, 5 Jan 2023 09:02
Last post: Krustysmegma, 6 Jan 2023 08:55
Sounds like a plan zac. I think it's been a tough year for many investors, I know it has been for me. Investing is about the long-term though, so you have to take the rough with the smooth. Let's hope prospects for 2023 soon start to look a bit better.
Currently sitting with an average price of £1.48! So, up to now not one of my better buys. With the exception of energy and infrastructure pretty much everything outside the UK has taken a hammering, particularly small cap stocks.
So, whilst I'm far from happy with my investment here to date, I'll probably add as dividends become available from here and other holdings.
I won't go silly but will keep this for the foreseeable future as part of my global equity portfolio. I've 22 holdings of which only 8 didn't fall in value over 2022. As a side I had 3 holdings that performed worse than this over the last 12 months! Not one of my better years!!!!
We'll never agree on everything adv11, and it's been a tough year all round. My average is 116 so it's not great for me either. EAT maintain the dividend at 6% of NAV so they can't directly control the value. The difference for me is that I expect EAT to make a slow & steady recovery from here, with increasing dividends in future years, whereas RLE will have to keep selling properties to pay down their debt and maintain the dividend until, eventually, there's nothing left to sell. You pays your money and takes your choice of course.
Sorry to disagree @K - One year ago the price was 140p, yet they talk about providing capital growth as well as a 6 percent dividend. Anyone bought in a year ago is getting 4.14% Yield. My average is 122p = 4.75% yield. All good for the new investors, forget about the long termers.
Unless I am missing something, it's a bigger disgrace than RLE.
Dividend confirmed, 5.8p for 2023. First instalment of 1.45 XD 12 Jan, payable 31st Jan. Still not a bad yield for an asset class of this nature, but clearly disappointing after last year's exceptional 8.8p.
Started: tacly, 9 May 2022 16:38
Last post: Krustysmegma, 29 Dec 2022 11:27
Based on the company's declared target dividend of 6% of NAV, it looks like the yield will drop to c. 5.7% (latest NAV 96.26 x 6% = 5.78p - down from 8.8p this year). All tbc by EAT of course, & adjusted for NAV at 31/12/22.
Nah the ER says mid-7s. Still, wodda bargin, Disc2NAV -7% end-Jun 2022. All coz Ukraine has spooked everyone.
Seriously! Heading towards 9% dividend!
Started: silverknight, 11 May 2022 11:09
Last post: jonathb, 13 Jul 2022 10:02
Whatever, I just don't get why this isn't way north of here, except Ukraine of course. Screaming buy when all the smoke clears, of course by then it may be too late.
"In addition, the Company has paid a dividend of 2.2 pence per share in January 2022. It will also pay further dividends of 2.2 pence per share in July and October 2022. These four interim dividends, with a cumulative total of 8.8 pence per share, provide an annual payment to shareholders representing six per cent of the closing net asset value per share of the Company as at 31 December 2021."
That looks pretty close to 9% currently to me. Of course, if the NAV hasn't recovered by 31st December 2022 it'll be re-set lower then, if that's what you meant?
Yes, but only on a temporary basis. The nav has tumbled and the divi reset at 6% of that at end of December.
Started: silverknight, 18 Feb 2022 18:44
Last post: silverknight, 18 Feb 2022 18:44
Divi impossible to predict with any certainty. Assuming the sp and nav remain as they are now at 31st December the yield would be a very acceptable 6.2%. Obviously a falling nav is likely to drag the sp down with it. Reserves may need to be tapped to pay the promised 8.8p this year.
Started: dusty42, 5 Jan 2022 17:35
Last post: Krustysmegma, 15 Feb 2022 23:39
As at 30 June 2021 the Company had a Distributable Reserve of £335.8 million.
Total dividend payments year to 31 Dec 2021 £28.8 million.
So even with no income they can afford the dividend for the next 12 years. However, investors will be looking for improved dividend cover going forward in the hope that EAT will be able to maintain the recent level of dividend growth.
If any of the information from boards is reliable, dividend cover was very low...is this now a sell on SME vulnerability to rising rates?
10% increase is pretty decent(long may it continue).. and 2.2 is a nice round number. Might mean it's keeping pace with inflation at least!
Nothing to complain about here performance wise since I got in at least.
Bang on Dusty - well done mate.
Cant complain.
Spot on dusty, 8.8p per share dividend declared for 2022 (barring unforeseen circumstances) in level payments of 2.2p per quarter.
Started: BigCamera, 21 Aug 2021 12:37
Last post: BigCamera, 21 Aug 2021 12:37
This is showing excellent signs, a new high SP and a 2021 dividend of 8p. Very optimistic with this, social recovery on the way up. Growing inflation will be a concern but i believe this to be in good hands. Glad I'm in.
Very pleased with this years progress, empowering the high SP to go onwards and upwards, a good position.
Started: Krustysmegma, 4 Aug 2021 09:01
Last post: Krustysmegma, 4 Aug 2021 09:01
Excellent report, benefits of the investments made last year starting to work through to total returns. Had to dip in to distributable reserves to maintain the dividend, but the reserves are so massive it's hardly had any impact. Solid stuff, great yield, onwards and upwards for EAT.
Started: silverknight, 5 Apr 2021 12:12
Last post: Krustysmegma, 20 Apr 2021 09:37
Thanks dusty. They haven't exactly helped to clear the mist have they? "readily realisable assets"? Bonds? Bullion? Watches?? Cattle??? After the last (reported) dividend distribution, the distributable reserve had dropped to £346m but as you pointed out in your original post, that's enough to cover the dividend for years ahead even without income from investments.
Like you, I'm very happy with my investment here. My only issue now is that the SP seems to be catching up with the true value inherent here, so the yield on any new shares I bought would now be less than 5%. My current shares are earning over 6%, so I'll try to raise some funds to use in the event of a pullback in the SP. That looks unlikely for now though I have to say.
Thanks again, & good luck with your investments. K
Hi Krustysmegma, thanks for the response.. I did email EAT and got a reply from the company secretary 'the Distributable Reserve is composed of readily realisable assets. This reserve is disclosed to provide shareholders with comfort regarding the sustainability of the Company’s dividend.'
It didn't fully answer my question as to exactly what this reserve entails. There is also some reference to it's composition in the full year report. I suspect it includes liquid assets that are part of the trust. For them to have a reserve this size completely independent of the trust would indeed be awesome, but sadly I think that is hard to believe(I would welcome being proved wrong). That said, and regardless - I am very pleased with performance here in the time I've been a holder. Seems they have made some good decisions at a turbulent time.
dusty42, I'm not an accountant or anything similar but everything I've read about a distributable reserve suggests it is just that, money put aside by a Trust during good times (up to 15% of distributable funds p.a.) to cover liabilities, including dividend cover, during leaner times. If this is indeed the case, EAT looks to be in a very healthy position currently. K
Hi silverknight. Yes, I was trying to clearly indicate I did not believe this to be the case, it was the reason for my question. I will try contacting the company and asking.
I'm happy - will be approving and re-appointing at the AGM
Started: Krustysmegma, 12 Mar 2021 08:44
Last post: dusty42, 31 Mar 2021 16:01
Turning the light back on temporarily.. I bought in here last year - seemed like quite a bargain and and has performed fairly well, decent regular income.
If there is anyone out there, I have a question. In the RNS on 30th of March there is the following statement 'and a Distributable Reserve of £339 million.' Can anyone shed any light on what this is? As I understand it a distributable reserve is accumulated profits, used by trusts to cover dividends in hard times? Which is great, but this seems like a big number relative to the market cap.. and what form does it take? Surely this can't be a cash reserve of this size? By my maths this could cover the dividend in full for more than a decade.. which surely can't be the case? Ok so that's quite a lot of questions.. can anyone shed any light?
Switching off light, closing door, will come back in a year see if anyone's passed through..
Final results today, at the height of the pandemic has returned over 20% in total and intends to pay a dividend of 8p (c. 6%) in 2021 in 4 quarterly instalments. Total return of over 200% in the last 10 years. Currently c. 9% discount to NAV.
I'll switch the light off now, no point wasting electricity. If you happen upon this share, it's our little secret, keep it to yourself.....
Started: lummox, 18 May 2018 11:27
Last post: devonplay, 3 May 2019 12:35
Yes, not much comment on here. I bought a little time ago, just under 100p
Looking at the possibility of adding more this month. There's just so many high options around at the moment.
how a share that has gone up a healthy 15% in a year plus paid a ballsy 5% annual dividend merits no posts or interests for over a year !! Good investment trusts are so so Boring !! .... " NOT " as they steadily build profits without too many alarms. Still you could be posting 100's of times in exciting make you rich stocks like TESCO, BT or ROYAL MAIL Funny ole game this investment lark .... discuss if of course there is anybody there
The discount has widened to its largest for years, yet the underlying asset value has been performing well. With a hefty dividend and the discount almost sure to narrow back to its mean somewhen in the next couple of years this looks a very good income buy on a 2 to 3 year view
Last post: lummox, 24 Sep 2015 23:44
...........anybody out there ?
the next recession?.....http://www.businessinsider.com/measure-predicts-recessions-without-fail-2013-6
in the storage bay for anyone ta use,uh.... http://seekingalpha.com/instablog/812815-chihawk/197491-junior-investing-and-trading-basics