Member Info for Couerdelion

Are we going to see another attempt to break £15 today? As ever with Jet2, it's simply a matter of waiting even if it does feel like a long time.

10% dividend yield is pretty attractive. Tempted to dabble a little here at these prices but I suspect it might have further to drop before any bounce.

Revenue down and margin down. What's to like here?

BLZE continuing to rise. TMT's holding worth another 35c since last reporting date.

I think we are now at a fairly neutral price here. I expect a little run up between now and ex-div date but the DY was becoming a little too stretched for my liking. Not that I really care too much about the SP, but if I can get a better DY elsewhere, I will switch to the higher yielding payer for the immediate dividend uplift rather than speculating that my dividend will grow naturally there in the next 5-10 years. Bur still, I own these for the dividend and that hasn't changed

The dividend is well covered. Ignore profits - just look at the surplus waterfall on slide 20 to see that dividend, debt and operating costs amounted to £0.4bn compared to surplus emergence but there is still another 5 years of those costs sitting in solvency surplus.

Not a moment too soon as the market has now decided the yield on PHNX was too low. Still higher than here but the difference is now under 50bps which is largely accounted for by the impending ex-div date. Who knows, maybe the ex-div dip and a little momentum might allow a reverse transaction.

Maybe the problem was that it was already 6% too high.

On the whole looks positive. IFRS is nothing that I would worry about but the market might not like it. Debt ratio is reducing which is encouraging. Perhaps the one concern might be the small volume of BPA business completed in HY1 but they've countered this with the volumes in progress and/or completed since HY1.

Looking forward to the presentation later.

OTB didn't fall as much as JET2 yesterday.

Something that I have noticed for a little while is that the dividend yield on PHNX and LGEN have been drifting apart for some time now and I cannot fully account for what is now a 100bp difference. I have therefore been taking the opportunity to switch investments from PHNX to LGEN to get this dividend uplift but can anyone suggest why there is such a large difference?

I can account for around 30-35bp of the difference being the impending ex-div date for PHNX but I can still get a 6% dividend increase by selling PHNX, keeping the "October dividend" then reinvesting what's left in LGEN.

One of the simplest rules of etiquette here is not to share details of volumes in personal trades.

That said, I hope people got in today at a decent price. Leave it a while and the SP will be back whether it be tomorrow, next week or next month.

Fortunately I don't have to wait for cheaper prices before I am happy to buy. If I am happy getting 9% here (and assuming growth of just 2% p.a.), then a purely passive play will get me a return of 11% p.a. which is not too shabby for doing next to nothing. If the SP falls, I can simply continue holding and collecting the dividend but if it goes up, I have the option to see and bank the capital gain.

It might be hard to grasp if you only focus on the SP and capital gains but I apply different rules and measures for dividend stocks (and yes it is almost like treating it as a bank account)

It's a huge overreaction to a downbeat update at Jet2. I'm using this as a cheap entry point.

The market's getting hysterical here. Fill up while stocks last (but not on my advice)

Looks like there could be a good buying opportunity today.

If it reached 340p later this year, I might contemplate a smallish sale but I'd let the bulk of my holdings run. Perhaps if it started approaching the high 300's, I might think of going underweight. Not even considered selling any of the shares I hold in my ISA.

All theoretical musings for now.

Casapinos, L&G will only hold gilts to match liabilities (they will also hold other forms of fixed interest and inflation-linked securities) which means that when gilts prices fall, so will the valuation of the liabilities. The net impact of interest rate movements should therefore be fairly neutral

Actually it is not quite as simple as that since L&G will hold surplus assets to cover different risks to its balance sheet. These are effectively shareholder assets but I don't expect those would be invested in fixed interest securities so wont have the same exposure to yield increases. More likely, the market reaction here is more about concerns that capital ratios might be at risk and I suspect they are more likely to be right if we are looking at residential property related risks.

All this talk about the company's inability to maintain the dividend is just panicking. Just take a look at "Shareholder Own Funds" and give that simply a risk-free rate of return and you'll see how many years of dividend cover they have.

As always, the simplest explanation works best here. Markets are taking fright at government borrowing and the UK is caught in a squeeze so bond yields are up. Dividend stocks like L&G are, to some extent priced to give a premium to the risk free yield so when bond yields go up, the dividend yield here has to do the same so the SP falls. It has surprised me more this year that yields have fallen so much here while government bond yields were rising to perhaps we are also seeing a little correction.

Don't invest in LGEN unless you are happy to accept the SP fluctuations driven by the bond markets.

Another top-up, this one to be funded through the sale of some PHNX shares so no real increase in exposure this time. I'll take the 9.2% dividend safe in the knowledge that it is well covered by cash generation.

Next top-up at 9.5% DY.