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1690 to 1720!? GLA
Results of an internet search for SSE includes :
"What is the ticker for SSE"?
:+)
Any thoughts fellow investors on whether or not Boris or Rishi will punish SSE tomorrow with the EPL / WT ? What incentives / Credits can they give SSE, hardly higher CAPEX in O&GE ???!!
Does this share always rise on the run up to ex divi ? I’m hoping so anyway . Gl
Before ex divi day
Government uncertainty around taxation... never good for business
Why isn't this super share shooting upwards ?
Certainly contributed to the sell off
Thanks for the post , this seems very good news for sse ? We’re only in the 15s mainly because of the windfall tax scare ?
Gl
Ministers are backing away from a windfall tax on Britain's electricity generators in favour of a French-inspired consumer price mechanism in a battle to tame inflation.
Under plans being drawn up in Whitehall, a new system would break the link between the price of low-carbon electricity and that of natural gas, which has risen to record highs following Russia’s war on Ukraine.
This would allow energy suppliers to take advantage of the comparatively cheaper cost of electricity generated by wind and solar farms – and pass on the savings to households and businesses. In France, most electricity is generated by nuclear power. This has meant Emmanuel Macron’s government has been able to order EDF to sell energy at below market rates, shielding consumers.
Telegraph, paywall: https://www.telegraph.co.uk/business/2022/06/17/rishi-sunak-backs-away-windfall-tax-electricity-generators/
Is the windfall tax actually going to affect sse or are we waiting to see what the government does? Either way, I
Guess the market is currently spooked.
Gla
back at under 1658p the number of shares that I sold on 28th April at 1865p
I shoulda waited to top up, doh.
What’s causing this fall? General market conditions? Or still the windfall looming tax
Hi Testpak. FY24 I take to mean the SSE fiscal year ending in 2024, beginning in April 2023, next year.
https://www.lse.co.uk/rns/SSE/preliminary-results-for-the-year-to-31-march-2022-h0fm8yx8795liki.html
Final dividend in line with dividend plan to 2026
· Intention to recommend a final dividend of 60.2p for payment on 22 September 2022, representing a weighted average annual RPI rate of 5.8%, making a full-year dividend of 85.7p per share.
· Continue to target RPI increase for FY23 followed by rebase to 60p in FY24, with attractive annual growth of at least 5% to FY26.
· Scrip uptake capped at 25% on FY22 full-year dividend and thereafter as previously announced.
Financial outlook for 2022/23 and beyond
· SSE's focus continues to be on long-term, sustainable financial performance. With high levels of investment expected in Transmission, a step up in earnings expected in Thermal generation and an expected return to normal weather for Renewables, the Group is confident about delivering strong earnings growth for this financial year.
· SSE currently expects to report full year adjusted earnings per share of at least 120p.
Hi GavsterNBC
Thanx your summary. Where did you get the information that divi for next year has been capped at 60p.
MMs pwishing about again today, look at Auto-Ex-Trades of 1/2/6 shares at below BID,
keeping SP down. Their doing the same across the Utilities, CNA, NG. etc.
Might be time for LTHs to top-up with a few buys....as this likely to go on
for at least a few days this week...watch the big moves after 16.28pm.
Hi, is the next divi in 2023 , 60p ( final and interim )?
I guess time will tell on the sp here, if certainly be buying if we see 15 again . FTSE stocks use to be slow and boring but this one seems to be going from 16 to 19 back to 17 pretty quick .
GLA
Hi Testpack. I had a target price of 1700, which was well reached then surpassed, and it's still way ahead. My free holding is only a few % of what is was from 1200 upwards and I'm optimistically awaiting a pullback to the 1500s.
The debt is massive and next years dividend has been capped 60p. IMO The yield will be too low to warrant such a high SP (if SSE is seen by the market as an earning investment). However, with Dogger Bank and the other projects it will of course mean that at some point the dividend should be much much higher. A big SSE rollercoaster and great investing opportunity awaits so if holding at a loss, then hang on in in there would be my opinion.
It's worth mentioning that this strategy of 60p then 5% annual increasing was presented before the hike in energy prices and inflation kicked in. So there could well be a change in this as investors may look for a return at least equivalent to inflation.
6% Yield of 60p dividend would mean a lowly 1000p SP, 5% yield of 120p means 2400p, or 8% means 1500p, which is all food for thought as to how big of a rollercoaster we could be in for in the coming years if yields become all important.
We'll see. Cheers and GL.
With the 'Windfall Profit' tax now unlikely to be levied on Electrical Generation companies, it is baffling to me why the sp is in decline, when we know there will be £M of extra profit coming our way from increase in prices. Any thoughts anyone?
What is going on today looks like we are heading south (before the storm hits)
Mostly its the rising tide lifting all ships.
It matters not, the SP ups and downs are just background noise to what is a solid long term stock with a reasonable dividend that is well covered.
Failford,
"Any ideas folks re jump".
Probably media headlines suggesting that a windfall tax on renewable electricity generators is now *less* likely, plus general market is currently up, plus possibly reaction to the announcement of a confidence vote on the UK PM.
Mike.
Any ideas folks re jump
Both Shell and BP are up c5% in the past 2 weeks, sse is down 5%. WE have a Govt. which is out of control and devoid of ideas. The Govt 'green'policy is now in tatters in offering big ax incentives to explore and produce more fossil fuels. Companies that are investing in 'green' energy. to reduce fossil fuels are penalised in the same way as fossil fuel producers. I understand it is attempting to wean UK off Russian fossil fuels, but replace it with North Sea FF does not make economic or 'green' sense. Renewable energy projects can be in the market place well before new FF discoveries. Shameful IMO.
If it results in a drop in the SP today, I will probsbly add to my holding. I bought another 200 shares yesterday below £18, and I see anything below that price as good value at the moment.
I have now got limited free cash left to invest but if it goes to £17, I will add another 200.
If it drop further next week I will again add more.
SSE is an extraordinary green energy play and I will continue to add when appropriate.