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.
I think there expecting the divi to now get paid as nothing else said since announced
Sp weighed down by debt in the business passed across by pru. Not seen as a long term problem bar divi payment and will take several years to bring down.
Yield will drop back to 5 or 6% as its cut reflecting sp and getting debt down which no different to what we are seeing everywhere. So actually taking the divi and reinvested at this sp wouldn’t the that bad but don’t expect 10% yield pretty much anywhere
It would look extremely bad on the management to not pay the dividend since it is now ex-dividend so I would be very suprised if the company announced a suspension with this divi
If they cancel the divi there will be a sell off, but if they pay it, there will probably be a sell-off afterwards anyway, so expect downwards pressure on the SP in the short term. As unvrkw says, if they do pay out, reinvesting dividends at depressed prices could well prove a rewarding decision in the long term, but you might want to just spend it before COVID19 gets you?
Can't see that. When a share goes x div it usually goes down the amount of divi then works itself back. If a divi is cancelled then surely the price of that share should go up by the same dividend amount as the company is saving paying the divi.
That didn’t happen with the banks. When due dividends were forcibly cancelled the shares dropped sharply.
"When a share goes x div it usually goes down the amount of divi then works itself back. If a divi is cancelled then surely the price of that share should go up by the same dividend amount as the company is saving paying the divi."
Yes, but not all shares are the same. M&G's main attraction is it's dividend: if the prospects for that have diminished, the reason for holding it weakens. The prospects for dividends generally have obviously diminished drastically, with widespread cancellations. M&Gs ability to sustain it's dividend policy, as stated in it's prospectus in October is surely hanging by a thread.
Lets be honest certain businesses that are doing still ok will simply hold the class, not create a reputation problem and just payout more when they can.
M and g might pay down more debt as the excuse is given but divi payments will come back and as I saw it this business is less impacted than most hence the debt or divi benefits.
As an example Barclays is doing well in the investment arm due to the current situation, divi goes, extra divi back a year from Now. If you have cash it's about divi and potential growth stocks at this time
cheeze but there is some serious mis-information being spread on this board re M&G.
The share is already x-dividend, so in itself M&G will NOT fall because it pays the dividend it stated it will give on the ex-dividend. Thats the whole point of the stockmarket requiring every company to quite clearly state its ex-dividend date.
Ex-dividend date was in April.
Technically, it's true that paying the dividend does not automatically result in a price fall. No one said that. The point being made was that seekers of dividends will have previously topped up on M&G either because it was already one of the top dividend payers, or because, unlike many, it did not cancel the dividend. The reasons many holders may sell once the dividend is paid is either because the dividend was the sole reason for their holding, or that they were long-term holders based on the progressive dividend policy and now face an official or likely revision to that policy. This is obviously just an opinion, not a fact, and certainly not "serious mis-information".
No Blah,
You are spreading serious misinformation.
Very clear, if dividend IS paid, there should be no effect. If dividend is NOT paid of course there will be a negative effect since the payment date for the dividends is only a couple of days away.
But to be very clear, the share price will NOT drop because the dividend IS paid. (However this is not a binary solution, the share price could drop for many other factors that are not related to the dividend being actually paid).
Of course I'm not CH, as a long term commenter on this board, why would I do that? To state that the price will definitely not fall on payment of the dividend is just your opinion: stating it as a fact is in itself mis-information. No one knows.
Payment of the dividend seems like an obvious trigger for any potential sellers who have been holding on waiting for it, especially in the unusual current circumstances. The dramatically changed prospects for future dividends are a factor which will be highlighted either explicitly or implicitly at the same time as the dividend payment, so splitting hairs on that issue is pointless, it is another reason why a drop could arguably occur. That is not mis-information, it is reasoned opinion on what the share price might do, nothing more or less.
I’m with you BBD.
This inexperienced 25 poster CH just wanted to make a splash....He/she/ze needs to be considerate to others and look back over the weeks....there have been some people that seem to have no understanding of Ex dividend dates and payment dates....but the comments around whether the payment happens or not are exploring the psychology of the markets.....of course we know the SP falls when the shares go exdiv....and do not go down again when a dividend is paid. However not paying a dividend is a very different matter going to the heart of confidence in the prospects for the company. In this case paying th dividend could cause a rise in the SP as will be a sign of confidence.
Loads of dividends cancelled across all types of companies, what will M&G do? Cancel= disaster for me, Pay it, very good for me ,not sure good for M&G,reduce it, would probably make sense going forward,really have no clue what will happen.
Thanks Jatw. Although my opinion is usually wrong, that is purely due to highly questionable reasoning. Misinformation is reserved for explaining tardiness and cheating at Scrabble.
No other cancellations so close to the payment date though, Panderman? The odds seem very strongly in favour of a highly rewarding divi for M&G holders this week. Fingers and toes crossed. After that, the perceived prospects for future payments will be one of the main things driving the SP, imo, along with Pandemic 2.0, Brexit 5.?, and the four horsemen of misinformation.
Blah, hope you're right, that'll do for me.
Bit of a strange argument as if you had any thought they might cancel the div then surely the sensible option would be sell your shares wait until it is paid then bye your shares back you would still get your div payment and would have no risk but the cost of the sale
Buy not bye lol
"shareholder Solvency II coverage ratio said to be "comfortably above" its risk appetite throughout the crisis, standing at 168% as at 31 March.
The FTSE 100 firm said that, given its financial strength and the importance of dividends to investors, it would pay its dividends of £410m - comprising an ordinary dividend of 11.92p per share and a special demerger dividend of 3.85p - on 29 May, as it had previously announced"
The financial strength is great news. Awaiting outlook, more to come.
Hopeingmore, I agree anyone thinking they might have cancelled would already have sold, but my argument implies that there would be no incentive for them to buy back because the dividend policy which made them invest in the first place had been expunged. Awaiting comments on the future outlook for dividends from management, but the above statement about financial strength gives reason to hope it might be better than I predicted.