Member Info for Tom78

The funny thing is, although I'm not exactly splitting my sides laughing is although they hiked the dividend 9% we may actually get less in sterling than last years interim (4.98p) due to a much less favourable exchange rate.. :) At least Trussonomics did us a favour there!

Rand weakness against the pound

Prudential plc ("Prudential") has today announced its 2023 first interim dividend of 6.26 US cents per ordinary share.

exact rate tbc nearer payment but 6.26 / 1.27 = 4.9p hardly worth bothering.

Back down to 125p again. Ten years of share price growth gone in no time at all. until Gilt yield come down this has absolutely had it.

Dividend is also improved including special. $0.7344 gross so roughly 46p after 20% withholding tax.

Over 5 years PRU has divested M&G and Jackson, which by using my brokers figures for the book value adjustment after each corporate action equates to 270p per share. M&G was 1 for 1 split, Jackson 1 for 40 PRU. The dividends for those two put together are pretty significant. The benefits of this new Asia and Africa strategy has yet to be really played through and as yet no real rewards for shareholders, unless you traded it like Pokerchips said.

Trouble is pensions funds don't put much money into UK equities, they mostly have to buy Gilts. This is one reason for such depressed UK share prices. Nigel Wilson complained of this in a recent interview in May this year.

The whole market is getting walloped though Plus is not immune in brutal sell offs, look at IGG and CMCX similar businesses. Anything financial be it banks, insurers, asset managers are really struggling share price wise.

Regarding the next dividend I'm not holding my breath on it being very good in light of all the extra cash they burned buying Odeys chunk of shares in that one off deal.

You can't always rely on on figures quoted here. I quoted a trailing 12 month yield at 6.4%. The previous full year of 185 and 221p gives you an 8.1% yield on todays price. This is why looking at yields in isolation is really pointless and to some extent dangerous to the inexperienced investor.

It's best not to look at RIO as fixed yield type of share such as a Investment trust or bond. The bumper profits of 2021 and 22 are long gone and at the time gave RIO a 10% yield. This was never likely to be maintained and hasn't.

If you add the last two declared dividends together 137 and 185p you get 322p for the two. So that trailing yield on todays SP is 6.4% but not guaranteed in the future.

Dividends are are looking in the rear view mirror and trying to predict future yields is pointless, what matters is the price of commodities (mainly iron ore) if it goes up then expect better dividends to come.

Yes.

I agree Simon. Sadly until interest rates come back down significantly I can't see this returning to the previous 160-170p range and I think that could be a long time away if ever. HICL is not offering any dividend growth either which is also a negative for the share price.

One positive is plenty of recent director buying so they obviously see upside from here.

Yes, lets just hope it the positivity lasts as there have been many false dawns over the last year when it looked like turning a corner back down it went. Certainly a good day for the update with FTSE flying has probably added 3-4% to the SP.

If anyone forgot as it was so long ago the dividend should be paid next week on the 11th, although it is often a day or two late as the currency has to be converted into pounds. Rather annoyingly the Pound has appreciated 6.8% against the Dollar in the time from ex to payment. It's a pity the payment cannot be made sooner after ex div.

Sorry if I irritated you there.

I don't think I suggested that this was not a money spinner in the past or can't be again in the future.

I was not lucky enough to buy PLUS on it's market debut so have not enjoyed those fantastic returns you quote, however my capital gain is 95% and total return is 159% so I think I'm doing ok.

The dividend witholding tax is a pain and I agree that buybacks are more tax efficient in that respect. If the BOD want to go down the path of lower dividends and more buybacks then fine, but the share price has to grow to compensate and this is where the undervalued share price is a frustration.

Holding these shares can be a real rollercoaster of a ride and have seen some significant rises and falls in very short spaces of time. The shares touched £20 in 2018 before a 75% decline due to number of reasons so as ever timing is vital.

The current dividend yield is not good. If you look at the dividend history on dividenddata the last final was the lowest since 2013 (the very first one since coming on the market) The special was also the lowest in history 10.78 cents.

It's clear the BOD want to put more dividend money into buy backs but it has not stopped the rot in the share price. For all of the years I have owned this share it has been 'cheap' based on it's earnings but it rarely achieves even a fair rating. I see no catalyst for this to change.

For US stocks in a UK ISA there is a withholding tax applied. If you have completed a W-8BEN form with your broker you can get it reduced to 15% from 30%. For shares held in the ISA there will be no further taxation on the dividend.

EGM Monday 24th July.

I think i read that 80% of hicl income is linked to inflation so long term it should go up. Meanwhile I suppose shareholders have to take it on the chin, as always jam tomorrow.

Did you add any more spindok? what is your take on this disaster of a share price right now?

I never thought it would go lower than my first 2013 buy of 131p but here we are. All infras and renewables have been massacred of late. What a mess and these are generally considered lower risk!. At least the 2.07p dividend is paid on Friday but it won't be going in here that's for sure.