Merchants Share Discussion Threads

[zac0_4] 20/4/2024 09:18

I see Merchants have just reported record earnings per share. So, good dividend cover and the ability to continue to build up revenue reserves for any future requirement.

[superiorshares] 19/4/2024 22:16

You need to focus on interest rates. They are going nowhere!
Oil is too high and the economy in the US on a tear. Because interest rates will be high for at least another 2 years a whole raft of companies will suffer because basically Joe blogs will have empty pockets.
The large recent rally (US) was based on 6or7 reductions 2024, then reduced to3/4 and now debatable if their will be any at all?
OK my call I'm sure now will be premature although I will stick with it.
As for your call above £4.50 at end 2024 you claim, below £4.50 I claim.

TRUMP2024
SS

[investingdad] 19/4/2024 21:14

I said closer to 600p than 300p. I'm correct so far. 11% gain Vs 40% drop. We will see.From the invasion to a year later the share price rose 15% or so and rallied on the move to value in 22. Higher for longer is certainly going to be true, however there will be some downward movement here before the US. MRCH has done well enough in the high interest rate environment, even with some poor performance of late. Also, if you have invested here during the lows, you manage to outpace inflation and keep picking up those dividends without a worry. Time in the market and all that.I'm fine with them issuing shares when at a premium which is what they openly do. Earnings per share have risen, looks positive enough.Stability from elections here and predominantly US will give the market direction. To deny it as a political view is an odd call when a history has shown that it more or less happens every time.I do think 2025 might have some more issues, but a correction in US markets will probably happen this year, however I think stability from elections will push the bad news a little. Providing the middle east doesn't truly ignite.

[superiorshares] 19/4/2024 07:02

My call was based on companies will have to cut or shelve their dividends ultimately.
Also I believe that MRCH were issuing shares to pay dividend via the back door.
Interest rates are going to remain high and possibly go higher.
It was also based on a War in Ukraine.
Only a Sanctimonious Europhile would say their will be a Stockmarket rally based on a Labour win. Just for the record Labour could only wish to be as Left extremist as the Tory filth.
I don't need to pick out points between the beginning of my call and the end of 2024.
I will see how near or how far it is from £3
Somebody also made a call on here that it would be £6 by 2024
Shout out please.

TRUMP2024
SS

[jong] 18/4/2024 10:05

XD Today. 7.1p per share payable on Wed 22 May.

[noiseboy] 17/4/2024 09:08

Chill out mate , sit back, collect the fat dividends and have a cup of tea

[investingdad] 16/4/2024 19:51

I think you made the same call even longer ago before that and then it rallied to 600p, but you don't mention that as often. Predicting is hard. But just to be clear the fall that you are predicting is more than the COVID crash. That's some statement. Especially in an election year when there will be an end of year rally based on the outcome.And if it does most people here will buy. I certainly will. A nice 9% yield from MRCH is worth putting a lot of money into.

[superiorshares] 16/4/2024 19:31

Investing dud you will find I made this call about a year and a half ago.
The dud still trys to smear and denigrate. Somethings never change.

TRUMP2024
SS

[investingdad] 16/4/2024 18:49

SS showing up in times of global termoil and calling a 40% fall in MRCH. Somethings never change.

[superiorshares] 16/4/2024 07:53

Superior here
My end of 2024 target £3 ish, us it going to get there?


TRUMP2024
SS

[investingdad] 12/4/2024 10:32

550p hit today! I mentioned this would be the target a month ago when it was available at 515p-518p. About a 7% gain since then. A brilliantly resilient trust and helped by some good news or optimism about the UK economy in today's press.

[speedsgh] 09/4/2024 18:30

St James’ and Close Bros blows knock Merchants -

Merchants Trust's post-Covid recovery stalls as UK equity income fund's annual results show double blow from by Financial Conduct Authority interventions against two holdings...

[shalder] 05/4/2024 14:49

Thanks both!

[speedsgh] 05/4/2024 13:38

@shalder - Here's your answer re the dividend XD date, now confirmed as XD 18 April...

Dividend Declaration -

[gateside] 04/4/2024 22:28

I've looked elsewhere on dividend data website No ex div announced yet by the looks of it

[shalder] 04/4/2024 22:14

Unlike previous years, I can't see an xd date for the final in the results statement. Is it available elsewhere?

[speedsgh] 04/4/2024 07:58

Full year dividend increased to 28.4p (42 consecutive years of increases); fully covered by earnings with board focus on rebuilding revenue reserves used to support the dividend during Covid.

Final dividend of 7.1p payable on 22 May...

Final Results -

Income

In terms of the income generated by the underlying portfolio, it was a strong year with revenue earnings per ordinary share rising 6.3% to a record 30.5p (2023: 28.7p) as dividend income received by the trust has fully recovered from the impact of the pandemic. This meant the dividend declared for the year was fully covered by earnings, as well as allowing the board to add 1.8p per ordinary share to revenue reserves.

I have written before about the importance of investment trusts being able to build revenue reserves in order to provide some protection against difficult times. This was amply demonstrated during COVID years when our revenue reserves built in good years enabled the board to maintain dividends to our shareholders even though dividend receipts from the Merchants portfolio of investments were weak. Now that dividend receipts from the portfolio have recovered the board thinks it important that we should build up reserves once again, as illustrated by the chart on page 6 of the Annual Report.

At the end of the financial year, the revenue reserve stands at 18.1p per ordinary share.

Dividend

The board is pleased to propose a final dividend of 7.1p for shareholder approval at Merchants' upcoming AGM on 16 May 2024. Subject to that approval, that will mean a full year dividend of 28.4p (2023: 27.6p), a rise of 2.9%.

The annualised growth rate of the dividend paid by the trust over 42 years stands at 6.4%, remaining well above the rate of inflation over that period which stands at 3.8% annually as measured by the Consumer Prices Index (CPI) despite the particularly high inflation numbers evident over the past two years. The company continues to pay a high dividend, representing a yield of some 5.2% at the period end. This remains well above the sector average (4.5%), placing it in the top-ten yielders in the sector.

With 42 years of unbroken annual dividend rises, Merchants also retains its place on the Association of Investment Companies' (AIC) Dividend Hero list - those companies having managed to consistently raise their dividend for twenty years or more.

[philby1] 14/3/2024 12:39

Yes, mine was paid today.

[richtea2517] 14/3/2024 12:37

Div today?

[investingdad] 12/3/2024 20:35

Dividend is paid this week so I can see the share price moving up again with reinvestment. And at around 5.5 percent yield per share, it isn't a bad price at all. There will be another run at 550p soon enough.

[nerja] 12/3/2024 17:03

God where would we be if the ftse was down today!

[mancman1] 01/2/2024 09:28

One of those rare IT's currently trading at a premium.

[jong] 01/2/2024 08:58

XD today. 7.1p per share payable on Thursday 14 March.

[superiorshares] 28/12/2023 02:36

Well done investing dud for predicting a Santa's Rally .
Now MRCH is starting to get very close to shorting time again
SS