1robbob - the question is why did they change from dividend per share to total dividends paid - after completion - in the same paragraph
Why not enhance the message rather than obscure it ?
By saying the increase in 2026 would be mid single digits or better if there are any share buybacks.....
That would leave us in no doubt.
However I can think of another reason why they cannot say even that at this stage - I had not thought of it until writing this - what if they are planning to / or make another acquisition in 2026 they need to ensure they are not overcommitting now ? |
Quite.
Hopefully thats clear now - I can’t think of any more ways of explaining it! |
I would of thought it was pretty obvious
Dividend per share: the total of the interim and final dividend paid on each ordinary share held
Total Dividend Cost: the sum total of the amount of dividends paid in aggregate. ie dividends per share x the number of shares on which the dividends were paid
There is no way on earth that AV shareholders would approve the deal if there was to be a cut in their dividend |
I’m inclined to concur.
I decided to look up what per share means.
But First of all I tried to understand what post completion means. It means after completion, which I’m guessing means when the deal has been fully done, finished, the businesses are one, totally combined.
Per share is a little more complicated. I think it means an amount of something for each share in existence.
I think the something is the total amount of money the business has for dividends to be given to shareholders.
So, going out on a limb a bit, I think they will pay a fraction of that total for every share I hold and I think they get that amount by dividing that total dividend by the number of shares.
Its a bit tricky to grasp but I think that is all “post completion” as explained in my first paragraph.
So, its a bit of a flyer but I’m not expecting a dividend cut.
Looking back there appears to be a clue in the paragraph from AV that mentions total dividend, dividend per share and post completion at the same time. |
So the total divi payout will increase pro-rota which is fundamental to SH. Looking fwd to the FY results .. |
Spot on 1robbob. I looked at this very carefully and that's exactly as I read it. If it had involved a dividend cut they would never have been able to get the deal done. |
fenner & Spud
No you are wrong
The dividends in 2025 will be payable to both AV and ex DLG shareholders ie on the enlarged share capital. Hence why they base the policy on 'per share'
The increase in 2026 is therefore on the rebased enlarged share capital and is a genuine increase in dividend per share of mid single digit % plus any benefit from Share Buy-backs |
I also see an increase in the total dividend payout pot but with a decrease per share due to the increased share count.spud |
But with an increase in number of shares in issue in double digits
i.e. on the face of it a dividend cut for 2026 per share |
Tornado
The dividend policy for 2025 and 2026 was announced in the DLG Offer Document
2025 = increase in dividend per share of mid single digit percentage
2026 = increase in total cost of dividends of mid single digit percentage |
From what I have read in last days they still intend to maintain dividend policy in 2025 which, for me , is key to be invested. With the T/O not expected to be completed before mid next year the FY results will be key milestone GLA |
(I should have been clearer... no coverage to be found on the BBC) |
Engelbert - Was covered by FT today as a front page side column. Merry Christmas to one and all and thank you everyone for not turning this into the PHNX thread (& others of a similar ilk) of which it could so easy have become. Oh & a Happy (and hopefully more prosperous) New Year. spud |
It was viewed more times but that’s the audience decision not the channel. |
What price Aviva shares after the merger and dilution? |
 Aviva grabs a Christmas ‘bargain’
Aviva (AV) has picked up a ‘bargain’ after its £3.7bn bid for insurance peer Direct Line (DLG) was accepted. The Citywire Elite Companies AA-rated insurer has agreed to pay 129.7p per Direct Line share in cash plus 0.2867 of new Aviva shares and a dividend payment of up to 5p per share, totalling 275p per Direct Line share. Aviva shares gained 0.9% to 461p yesterday.
‘This deal strikes a balance that seems to deliver value for both parties,’ said Hargreaves Lansdown equity analyst Matt Britzman. ‘Direct Line has been navigating choppy waters, with its market share steadily eroding and a history of missteps from previous management leaving the ship off course.’ He said, for Aviva, the ‘price tag is sitting on the edge of what might be considered a bargain, but the strategic potential could prove to be a real cracker.’ ‘Acquiring Direct Line cements Aviva’s status as the heavyweight champion in the UK home and motor insurance markets,’ said Britzman. ‘Beyond bolstering their market dominance, the deal unlocks opportunities to put the Direct Line transformation on the fast track, while capitalising on efficiency gains that come with increased scale.’ |
I wonder why the BBC has not reported this story |
I can't help but think that although Motor Insurance is a capital light business.
It is short tail, low (or no) margin, highly competitive and Politically vulnerable.
So it would not have been my choice to give away 12.5% of the Company for.
But Dame Amanda has certainly earned the right to have the benefit of the doubt |
https://news.sky.com/story/aviva-agrees-to-buy-direct-line-for-3-7bn-13279269 |
Amanda Blanc is the making of Aviva |
And you couldn't have a better Chief Executive than Amanda Blanc to ensure that all will go well. |
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