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Some sites (inc bbc) are showing us down at 234.28, a near 16p drop on the day. Others (including the London Stock Exchange site) are showing us closing at 248.3.
Any ideas?
T
The Uncrossing Trade ( UT) was 248.x pence. The 6% drop is a glitch.
Thanks for that, my2penneth. I was a bit concerned. I only invested in this one today and thought my timing was unusually bad (even for me) to have dropped 6% within a couple of hours!
T
Good evening all, I bought another 20,000 shares for my pension today.
It shows final closing price at 248.3 so looks like a glitch on LSE.
It's not the first time I've seen these glitches and I doubt etc... I'm quite "long" on LGEN at 6.6% of my portfolio value.
FTSE up 1.36% this week so far. LGEN dog down 0.6% in the same period. Business as usual!!
"Same as it ever was"
"Letting the days go by"
"Into the blue again" then, obviously ! ; )
Bad investment worst performing stock FTSE100
Better of with RR or Lloyds
Will take a few years to get above the 3, pound mark again and how long will the dividend hold up for is anybody's guess
Good luck
Depends on your entry price the dividend is good. It's a good share for making a quick profit with the yoyo share price that trades within £2.50-2.56.20
Yes, this basket case has now turned into a day trading stock.
Are you kidding re the dividend? They have the next 6 years profits already booked and sitting in their balance sheet. Plenty of cash to pay the dividends too.
LGEN has the misfortune to operate in an unloved sector in an unloved market but is a financially sound company with a resilient dividend.
We won’t know what the new CEO’s strategy will be re the dividend until June 12th and I think there is a serious chance that future dividend growth may be curtailed as a deliberate part of his plan. But there is no doubting the ability of the company to pay it should they decide to do so.
Apologies and I bow to any greater knowledge but I thought L&G although has an excellent growth history on the divi were not in the best place to continue. Divided cover 0.69 and payout ratio 146%??
I'm no genius but if the good people here can explain it would benefit myself and other less learned investors.
https://www.dividenddata.co.uk/ex-dividend-date-search.py?searchTerm=Lgen
Divi well covered. Here's some key data:
Operating profits (before adjustments) are at £1.66bn, with organic capital generation covering the cumulative dividend payment of £4.5bn, with £0.8bn to spare.
I hope this helps for now.
"Apologies and I bow to any greater knowledge but I thought L&G although has an excellent growth history on the divi were not in the best place to continue. Divided cover 0.69 and payout ratio 146%??
I'm no genius but if the good people here can explain it would benefit myself and other less learned investors."
Others will be able to explain better but the website you link to basically doesn't capture the earning power of L&G as there has been new accountancy standards introduced which have clouded the reported figures. The new rules change when an insurance company can record a profit (moving away from day one when the policy is written). Basically, the underlying business is profitable and can cover the growing dividend. It also has a large surplus of capital it can turn to as and when needed to fund the dividend.
https://group.legalandgeneral.com/media/cftjqa2g/an-introduction-to-ifrs-17.pdf
I would assume that the 0.69 dividend cover (if it's correct) is based on statutory earnings. But those are based on accounting rules that don't necessarily do a good job of estimating profitability, especially for some sorts of companies. I believe LGEN's statutory earnings were significantly reduced last year because of a fall in asset values. But that can just be the result of market ups and downs that don't affect the company's ability to pay dividends.
20questions - that site isn't incorrect. It's just not correct.
The way that lists companies have to produce their "results" is determined by a set of accounting standards called IFRS. These standards require that companies value all of their investments and holdings at the market price at the time of reporting. (This is called "Mark to market".) Any difference since the last results has to be reported as a profit or loss.
So, if LGEN has £5bn of property assets that, because of market conditions, are now only worth £4bn then they have to knock £1bn off their reported profits REGARDLESS of whether those assets have, or will ever, be sold.
As a result, the "profit" number in the results is the "operating profit" (simplistically, what they charged for their services minus their costs - their "real" profit) PLUS or MINUS any adjustments for the value of the investment holdings (and other accounting standards adjustments for stuff like pensions, etc)
Sites like DividendMax and DividendData take this second, adjusted number to calculate the dividend cover and payout ratio.
Dividend cover and payout ratio pre-date the accounting standards changes that have now fundamentally broken them unless you calculate them yourself.
Hope that helps.
Thank you
As I have said before and I am a retired qualified accountant, we now have some accounting standards which are beyond the easy comprehension of the man in the street. This ought not to be and the "accountancy bodies" responsible should be ashamed of themselves and repent. The only way to properly establish the true value of any asset is to sell it in a free market and all so called valuations are mere conjecture (fact). In an English court of law conjecture (guess work) is not permitted and will always be dimissed by learned judges and yet businesses such as L & G are being forced to apply such doubtful "principles". It is not surprising then that application of these rules are almost impossible to understand by most people and the results can vary hugely from one week to the next; they are in fact absolutely crackers.
Our new CEO said he would need until June before he could offer an informed statement about this company. From what Eccles04 has confirmed bearing in mind his depth of knowledge of the profession, our new CEO seems to have started well and I wish him all my good wishes. That was June 2024, I hope!!