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With those figures PE ratio is around 4.5 times and dividend cover is nearly 8 times. Which makes it a great value stock with room for growth in the share price. Like I mentioned to Delta in my previous post, based on the last 2 years trading gas prices are a moot point, and, what will drive share price increases is most likely the dividend yield.
Thank you for contacting Hargreaves Lansdown.
Unfortunately there is no European wide facility available to HL to reduce the withholding tax burden to clients holding shares in Europe.
Each European country has a different and sometimes complex tax regime/rebate procedures. For this reason we do not offer a service to claim foreign withholding tax (apart from US and Canadian) but do provide supporting documentation for clients who wish to pursue a claim for withholding tax for shares held in non SIPP products.
At present the Irish withholding tax is 25% and can be claimed from the Irish Revenue for dividends paid into HL ISAs/Fund & Share accounts, but this must be done by the beneficial owner of the shares. We will provide our client’s letters supporting their claim and a tax voucher of our pooled nominee holding. I believe you will be able to download the form from the Irish Revenue website (link below):
https://www.revenue.ie/en/companies-and-charities/documents/dwt/iref-withholding-tax-claim-form.pdf
In our experience the Irish Revenue will require a copy of the original tax voucher which can take several months to obtain from the registrar as a fee needs to be sent by Hargreaves Lansdown (this will be covered by us) to cover the administration costs.
With reference to SIPP products, Hargreaves Lansdown acts as the trustee and is viewed as the legal owner of the shares with the client as the beneficial owner.
This therefore means that claims for foreign withholding tax within a SIPP, must be completed by Hargreaves Lansdown.
Hargreaves Lansdown did make an attempt to obtain reduced rates of tax at source for our Irish stock holders. Our application was rejected by the registrars as we were not considered to be a ‘relevant person’ i.e. a resident in Ireland or a qualifying intermediary (QI) or authorised withholding agent (AWA).
At this point in time, we do not offer a complete foreign withholding tax reclaim service at present. This is in accordance with our Terms and Conditions for your account (covered by section A9).
However, the position is under regular review.
Should you have any other queries please do not hesitate to contact me.
Yours sincerely
Dividends Department
Thank you for your email dated 23.05.23. Please accept my apologies for the late reply.
As previously mentioned in reply to you we did attempt to obtain treaty rates for our clients holding Irish stocks within the SIPP, but the registrars rejected our application on the grounds that we were not a Qualified Intermediary.
Unfortunately, at this present time we cannot help clients obtain treaty rates for their Irish holdings within the SIPP, however this is under constant review.
We appreciate your feedback but if I can help you with any other query, please do not hesitate to contact me.
Yours sincerely
Dividends Department
I have kmr in my SIPP and the response from HL has been very negative. Since they cannot obtain exemption or cannot be ar*ed most likely. There are forms to file with Irish tax authority and HL confirmed they need to take responsibility for that. Again their response has been negative and in short, reading between the lines, they cannot be ar*ed as this would need to be filed yearly. Interested to understand who your provider is and how you have managed a rebate.
So buried in the news this morning: "Total dividends in respect of 2023 are expected to be approximately $50 million. In subsequent years revenues and dividends will be partially subject to commodity prices and may be lower than 2023, although the Company would expect to use the full range of its 20-40% Profit After Tax dividend policy."
So approximately 38c to be paid out next year for 2023 dividend. 56c in total for 2023 which is subject to irish with-holding tax leaves your with a rate 0.42 and a yield of 8% at todays share price.
I've sold up making over 100% gain in this share since I see better value elsewhere for now. . Its still not a retire-able earning but definitely enough to overcome life's inflationary pressures for the foreseeable future. I'm happy to see the progress DX have made in the recent years a big thanks to the management team and II's for driving the right amount of change here to increase shareholder value. Its a shame all the work is done and Private Equity will now take ownership and possibly return it back to the market for even more in the near future.
Its been a pleasure communicating on this board. Invaluable information learnt even if you dont always agree with it. ATB with your future investment and hope they are as rewarding as this share has been.
Gas prices have been at historic lows since the start of 2023 and during this time Centrica have recorded operating profit at 2B or EPS of 25.8p.
What will drive share price is the dividend policy. I expect it to be raised for final year to a minimum 2.66p. CEO clearly stated a "Progressive dividend policy trending to 2x earnings cover over time" Current dividend cover is approximately 8 times earnings.
The share price should be valued in 2 pound region. Anyone who says otherwise is talking bo**ocks. With 2bn ebitda and a 200p share price, p/e is 5 based on current market float including those shares buy backs held in the treasury still. industry is currently 8 on average. They keep the share price down to ensure optimum buyback of shares imo. But the stock is still in recovery phase and the market will want to see more evidence that CNA is back on its feet.
Thanks shepdave. I dont recall waiting that long with hl last time but there was a delay from receiving the dividend as per quoted payment date. Was curious since some mentioned they were buying and i presumed they were reinvesting their dividend?