Member Info for tomglan

Personally, I view both DLG and LGEN as reasonably and similarly priced at current levels, they should both earn about 30p EPS this year which means an earnings yield of 10% (PE 10). DLG typically pays a 22p ordinary dividend with the remainder usually paid out as specials or buybacks which basically eats up all their profits, they tend to increase the ordinary div at 2-3% per year. LGEN on the other hand will pay about 18p in divs and will retain the remaining 12p for growth, 12p at their usual 20% ROE equals 2.4p in future profits or 8% growth. So with LGEN you get a slight bit more growth at a cost of a lower div yield. Recently LGEN has stated they will be running div increases below profit growth for the next few years so I'd actually expect div increases to be around the 4-5% level for them, rather than the 8% above. ATB

"The Group has outstanding Tier 2 debt issued in 2012 with nominal value of £250 million and a first call date during the
first half of 2022. Excluding this debt, the Group’s solvency ratio after the proposed interim dividend would be 177%" Page 8, 2021 HY report.

Also, take a look at page 16 on the H1 2021 presentation, they display the solvency ratio excluding callable debt prominently with the callable debt percentage greyed out. Therefore I'm assuming this is the figure they'd use when determining potential capital returns. ATB

The solvency ratio was 177% at HY excluding Tier 2 debt callable in 2022, to get back down to the 160% level we'd be looking at a capital return of around £250m via special dividends or share buyback i.e. 18-19p per share. This would potentially be in addition to the 22.3p ordinary div per share. Did the CFO mention where the solvency ratio was in Q3 out of interest?

My tears came after buying them (at £30)... :'-(

The RNS are on the London stock exchange site, it appears lse doesn't link them correctly sometimes.

Litt are we sure this is a direct LGEN holding and not just a proxy holding for customers invested in their funds i.e. LGEN Global Emerging Markets Index Fund?

mole_man, what broker do you use to hold shares in ASX stocks? My provider (iWeb) has recommended I transfer my BHP shares to another platform as they can't place trades with ASX. Thanks

My bad didn't read your post properly! Ignore me :)

The company has stated numerous times that they intend to increase the dividend at 3-6% for the next few years. They just increased the interim by 5%... yet here we have analysts predicting a 9% and 13% FY increase?! Do they just look at the front cover of the results or something?

Because the £50m buyback completed thus far should only have a 1.25% impact on a company with a market cap of £4,000m which is small enough to get lost in the day-to-day price fluctuations. The reason for the buyback is that management believes it's getting a good deal on the purchases for the remaining shareholders. By the end of the current £100m buyback scheme, there will be about 2.5% fewer DLG shareholders than before, this means management could increase the dividend by 2.5% and it would cost the same total amount as the previous year. Essentially the remaining shareholders get a bigger cut of the same pie which should eventually reflect in the share price but this usually requires sizable buybacks conducted over multiple years - see Next PLC for a good example of this. ATB

The only reason I put up with iWeb being occasionally late with dividend payments is because of their 0% account fee. I've saved a good few thousand over the years in fees compared with other brokers.

Matt, I'm not the poster in question but there's some useful info on page 188 of the 2020 annual report on their sensitivity analysis. For example, a 100bps increase in interest rates has a positive £438m impact on pre-tax profit whereas a 50bps increase in inflation expectations has a negative £148m impact. There are other figures on that page that are worth looking into as well. It remains to be seen what central banks will do with interest rates and where inflation will go, I just hope the positives counter the negatives and LGEN can come out ahead. Looking good here for a top-up if we can get to 250p (7% yield). ATB

I'm very pleased this is falling along with the rest of the UK market, I've got some chunky dividends being paid by LGEN and DLG over the next couple of weeks and didn't fancy paying £3+ to re-invest here. Another few days of falls like this and they'll be plenty of bargains to choose from! ??

It's smaller interim dividends for the next two quarters. 20.85p was last year's payment so it'll be that plus whatever amount IMB decide to increase it by, personally I'd be happy with a 2-3% increase given the yield. See: imperialbrandsplc.com/investors/shareholder-centre/dividends-history

You're right, thanks for clearing that up. I need to work on my skim reading

Slodo, that should be £70m as the initial buyback was for £100m. If the share price stays around the £3 level we could be looking at a 2-3% reduction in shares outstanding meaning the dividend could be raised by that amount without costing any money. I'm currently on a rebased yield here of 8%+ so even small 2-3% increases do me just fine. ATB

You both should check out page 35 from the FY 2020 Results presentation as it breaks down how the figure is calculated. It's all about how much of their profit is from the current year vs. prior year reserve releases. They state in the presentation they are targeting a 50/50 split for 2021 so the part about being on "track for current-year operating profit to be more than half total operating profit" seems to me to re-affirm that this target is likely to be met. ATB

Not sure I follow the logic of why it's bad for long-term shareholders that the company is buying back shares into a falling price? The cheaper the price the more shares the £100m will cancel out. Personally, I'm glad it's been falling and hope it continues to drop all the way to the 20th of May when I can re-invest the recent div. Having said that, the trading update on 5th May may provide a bounce for those so inclined... GLA

Yes, the dividend gets posted to you, so to speak, as soon as the market opens on the ex-dividend date (Thurs 15th April). You could then sell the shares Thurs morning @ 8am or Friday and still receive the dividend.

Fidelity (SIPP) paid my div on Weds and let me re-invest straight away. iWeb (ISA) also paid on Weds but I have to wait until today in order to spend it.