Merchants Share Discussion Threads

[rik shaw] 17/2/2010 22:30

My wife holds some of these as a steady income generating IT. Having bought early last year the share price has reflected increase in the index reasonably well in addition to the div.

rik

[kiwi2007] 17/2/2010 21:06

Any comments on this IT ?

Basically pays a div of 6.5% at 332p - and they have increased the dividend each year for the last 10 (and possibly more).

A bit highly geared (130%) but their major holdings seem quite solid with a goodly portion of earning from overseas.

Top 10 holdings.

| ROYAL DUTCH SHELL "B" | 40,876,409 | 8.17 |
+--------------------------------------+----------------+---------+
| GLAXOSMITHKLINE | 38,185,935 | 7.63 |
+--------------------------------------+----------------+---------+
| VODAFONE GROUP | 37,449,638 | 7.49 |
+--------------------------------------+----------------+---------+
| BP | 33,726,136 | 6.74 |
+--------------------------------------+----------------+---------+
| HSBC HLDGS (UK) | 29,338,374 | 5.87 |
+--------------------------------------+----------------+---------+
| ASTRAZENECA | 20,859,554 | 4.17 |
+--------------------------------------+----------------+---------+
| BAE SYSTEMS | 20,538,561 | 4.11 |
+--------------------------------------+----------------+---------+
| SCOTTISH & SOUTHERN ENERGY | 19,914,400 | 3.98 |
+--------------------------------------+----------------+---------+
| BRITISH AMERICAN TOBACCO | 19,655,049 | 3.93 |
+--------------------------------------+----------------+---------+
| UNILEVER | 18,612,750 | 3.72



The market NAV = 352.83p inc income. (share price 333p)



From PDF 31/12/2009

The Trust's performance was ahead of the index with defensives like BAE Systems, Reed
Elsevier and Unilever performing well and IG Group up 20%. Negatives were fewer but
included as sharp pull back in Pendragon and not owning Rio Tinto and Imperial
Tobacco which both rallied.Portfolio activity was limited to reducing positions in
companies that had performed well and looked less attractive, like BT and National Grid
and adding to relative underperformers, like British Land and SSE.
Looking into 2010 we remain of the view that we will see a more stable environment
than over the last two years but a high debt overhang limits the scope for strong
economic growth. Differentiation between companies rather than sectors is likely to be
more important in a slow economic environment. Valuation could be a more important
driver of stock performance as well as other fundamentals like business quality and
competitive advantage. The portfolio has a high exposure to large, well capitalised
companies with strong cash flows, low valuations and high dividend yields. We have
also added attractively valued higher growth businesses to the portfolio in recent
months.


I bought some both for my SIPP and personal account earlier and am thinking of adding - unless someone can disued me? Or point me to a better IT with similar qualities (I hold EDIN and DUN also).

[rik shaw] 06/7/2009 17:05

FIRST QUARTERLY DIVIDEND

The Board has declared a first quarterly dividend for the financial year ending
31 January 2010 of 5.6p, payable on 19 August 2009 to holders of record at the
close of business on 17 July 2009.

[washbrook] 28/1/2009 15:09

The table of OWEN 999 was compiled in early March 2008.
Notice the differece now I compiled a spreadsheet.
Notice RBS High/Low =37 times.


The figures are correct to 27.1.09

[owen999] 28/1/2009 13:10

---------CLICK TO ENLARGE----------------------------------------------------------------------------------


This year if you are an investor now the 4th of March and the volatility has outstripped 2007 easily with 9 months to go.
Looking at my portfoilio of stocks 10 out of 21 stocks are more volatile than FTSE.
This is a high yielding portfolio.
yielding 5.83%
----------------------------------------------------------------------------------------------------

[washbrook] 22/1/2009 10:15

The Board has declared a third quarterly dividend of 5.6p per Ordinary Share, payable on 20 February 2009 to holders on the register at the close of business on 23 January 2009. xd 21.1.09

[washbrook] 22/1/2009 10:12

Now at 271p 7.91% yield. LOW on 27.10.08 @248p( which gave a yield of 8.47%)
In my bones I think it it is still going lower sometime in late January to March if the $ strengthens from here.
If the $ starts to weaken should go higher.

[washbrook] 16/1/2009 07:27

Now at 273p dividend=21.6p net yielde 7.9% now looks good value for income searchers.

[washbrook] 16/10/2008 17:36

I have been watching this carefully for 2 years
In the last major recession in 1991.
On February 1st 1991 the share price was 169p and the dividend was 9p, therefore if the dividend stayed the same and the share price it would take you 18.77 years to get your capital back not counting the interest accrued just a yard stick.
The low of today 16.10.08 was 262p and the dividend has grown to 21.6p, therefore on the same yardstick it would take you 12.13 years that is 54.74% cheaper in value than 1991.
The net Yield on the stock in 1991 was 5.325%
One year high coupon gilts were yielding 11.38% gross
Inflation in (RPI=8.95%Jan1991)(RPI =3.84JAN 1992

Today Merchants Investment Trust is on a net yield of 8.244%
One year high coupon gilts 7.69% gross and inflation(RPI 5.0 SEPT).
The markets are telling us something or is there a gross misalightment ?

[washbrook] 29/9/2008 11:18

342p offer 6.3157%yield
I suspect they will go to 330p at least.

[washbrook] 05/9/2008 20:19

372p close yield 5.80645

[washbrook] 05/9/2008 10:44

AT 374p yield 5.7754% current market price@10.44hours.

---------------------------------------------------------------------------------------

[washbrook] 10/7/2008 08:49

At 10.7.2008 @358p yield 5.869% likely to move lower.
I would be a buyer at 314p yield 6.69%.
since my first post in 2003
Dividends have increased
2003=17.2p
2004=17.6p
2005=18.0p
2006=18.9p
2007=20p
2008=21.6p

[washbrook] 05/5/2008 19:22

1.5.08 471 nav share price 442

6.1% discount 4.89% yield

[owen999] 31/3/2008 11:52

AT 413.25p now yields 4.83%.

[owen999] 04/3/2008 12:05

---------CLICK TO ENLARGE----------------------------------------------------------------------------------


This year if you are an investor now the 4th of March and the volatility has outstripped 2007 easily with 9 months to go.
Looking at my portfoilio of stocks 10 out of 21 stocks are more volatile than FTSE.
This is a high yielding portfolio.
yielding 5.83%
-----------------------------------------------------------------------------------------------------

[eithin] 29/10/2004 17:08

Have a look at City Merchants (CHY) for long term. Accumulate around 165p for long term, or sell around 190p. Yield 6.58%.

[stupidboypike] 09/7/2004 08:11

talybibo,

No I got the printed version - but it may have been last years. I think quite a lot of the gearing was at around 9%. I may be wrong, it is a year or so since I looked but do check for yourself because it put me off what I thought was an otherwise excellent IT.

Best regards

SBP

[talybibo] 08/7/2004 15:02

Correction - "full accounts" (no one would publish their fullunts on the internet!)

[talybibo] 08/7/2004 15:00

Maiden post on this board and I am a holder. Since MRCH publish their top ten holdings and ADVFN show the yields we can deduce that half MRCH's portfolio yields 4.38%. Given that they are paying 5.64% to us which, by the time we take into account say a 10% discount to NAV, effectively reduces to 5.08, it means they must be making 5.67% from the rest of their portfolio - all before costs and interest. Sounds to me that we might be paying for our dividend by an on-going reduction in asset value. Did you manage to find a copy of their fullunts on the internet Stupidboypike; I notice they have about 30% gearing; not all at 9% I hope!

All IMHO of course.

[stupidboypike] 07/7/2004 09:26

Hi All,

Just a quick warning Merchants has some pretty expensive fixed rate borrowing on board ( around 9% from memory). I was a great fan until I researched and found this out.

Best regards

SBP

[washbrook] 07/7/2004 09:10

It is now 314p to buy NAV = 334 discount 6%.
Underperformed FTSE by 6% since 27.2.04.YLD now 6.28%.
£10000 in Merchants income £628
£10000 in ING @ 4.7% net = £376
Next XD latter end of JULY