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Not sure if anyone tuned into q1 results - but it seems almost certain that the fca report will be released before 1st June - the short term effect in share price could be significant - does anyone know which day such a report will be released ? I assume a Monday in which case it will be 24th as 31st is a bank holiday
Dlg
Pays approximately £8 per annum for every £100
Of shares purchased. Assuming a 3% per annum increase in dividend then in 10 years dividend will have paid £90 for every £100 shares owned. This has worked over past 8 years for me
I’m in on Tuesday - fca report due in q2 normally released on first working day of week - I’m all in post release of report - I get the yield at 7.9% - Reminder whiplash reforms due to start for accidents on or after 31.5.21
My view is that investors are waiting for final FCA report before buying - due in q2 - preliminary report last year in sept caused shares to fall 7% - I’m waiting then in - this company has too much cash on the balance sheet and claim cost due to fall from end of May
Favourable rotation into value coupled with £750k buy back per trading day has the potential goal for this to reach £3.50 post divi - unlike the last 4 years which had seen a post divi decline - here we go - the level of claims is still 40% down in rta s and no weather events so far in 2021
The key to the results is the release of capital reserves - in terms of profit 2017 it was 70/30 in favour of capital release had this same ration been applied profits would have been much much higher - 2020 it was 65/35 in favour of operating profit - I understand why - record profits in a pandemic doesn’t look great but have a look at capital release in admiral’s results way way higher - long term desire is a 50/50 split - another 8p in sept and between now and then 50m buy backs to support share price post ex divi day
although they won't admit it this is a 400m per annum win for DLG from 1.6.21
https://www.lawgazette.co.uk/law/government-reveals-long-awaited-whiplash-portal-start-date-and-tariffs/5107581.article?utm_source=gazette_newsletter&utm_medium=email&utm_campaign=Whiplash+rules+and+tariffs+revealed+%7c+Demoralised+judges+%7c+Secret+Magistrate_02%2f26%2f2021
They also want to reduce reliance on capital reserve relief and make more profit from operations - covid and cla will obviously help - my main hope is a takeover given they have generated more profit than there mrt capitalisation over last 9 years
No problem - when I spoke to board members in November 2019 they seemed to want to avoid the cycle of v high divi only for the share price to fall very significantly post ex divi before the cycle is repeated - I expect the buy back will kick in in April and support the share price - disappointed the buy back hasn’t been reactivated post brexit
If you are a serious long term investor have a look at the civil liabilities act which is now law - it’s implementation had been delayed due to politics / covid but should come in in April saving dlg about 350m per annum
A bit of misunderstanding here dlg was not proposing a special divi in /March April 2020 - it was an ordinary divi plus £150m buy back. Both were canc in April. The ordinary divi was then paid as a special divi in august 2020 - the buy back was never reinstated
Re preference of buy backs over sd please read Q3 results 2019 which clearly confirms the policy going forward