Diverse Income Dividends - DIVI

Diverse Income Dividends - DIVI

Buy
Sell
Best deals to access real time data!
Silver
Monthly Subscription
for only
£17.37
Level 2 Basic
Monthly Subscription
for only
£62.08
UK/US Silver
Monthly Subscription
for only
£30.59
VAT not included
Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Diverse Income Trust (the) Plc DIVI London Ordinary Share GB00B65TLW28 ORD 0.1P
  Price Change Price Change % Stock Price Last Trade
0.50 0.52% 96.10 16:35:27
Open Price Low Price High Price Close Price Previous Close
96.80 95.20 96.80 96.10 95.60
more quote information »
Industry Sector
EQUITY INVESTMENT INSTRUMENTS

Diverse Income DIVI Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
14/10/2020InterimGBX0.8531/05/202031/05/202124/12/202029/12/202026/02/20210
18/08/2020FinalGBX1.0531/05/201931/05/202024/09/202025/09/202030/11/20203.7
11/05/2020InterimGBX0.931/05/201931/05/202025/06/202026/06/202028/08/20200
08/02/2020InterimGBX0.931/05/201931/05/202026/03/202027/03/202029/05/20200
09/10/2019InterimGBX0.8531/05/201931/05/202024/12/201927/12/201928/02/20200
02/08/2019FinalGBX1.131/05/201831/05/201926/09/201927/09/201929/11/20193.65
01/05/2019InterimGBX0.931/05/201831/05/201927/06/201928/06/201930/08/20190
08/02/2019InterimGBX0.8531/05/201831/05/201928/03/201929/03/201931/05/20190
10/10/2018InterimGBX0.831/05/201831/05/201927/12/201828/12/201828/02/20190
03/08/2018SpecialGBX0.2331/05/201731/05/201827/09/201828/09/201830/11/20180
03/08/2018FinalGBX131/05/201731/05/201827/09/201828/09/201830/11/20183.05
02/05/2018InterimGBX0.8531/05/201731/05/201828/06/201829/06/201831/08/20180
01/02/2018InterimGBX0.831/05/201731/05/201822/03/201823/03/201831/05/20180
10/10/2017InterimGBX0.431/05/201731/05/201828/12/201729/12/201728/02/20180
04/08/2017SpecialGBX0.431/05/201631/05/201728/09/201729/09/201730/11/20170
04/08/2017FinalGBX0.831/05/201631/05/201728/09/201729/09/201730/11/20173
04/05/2017InterimGBX0.831/05/201631/05/201729/06/201730/06/201731/08/20170
31/01/2017InterimGBX0.731/05/201631/05/201730/03/201731/03/201731/05/20170
12/10/2016InterimGBX0.731/05/201631/05/201729/12/201630/12/201628/02/20170
12/08/2016FinalGBX0.7531/05/201531/05/201629/09/201630/09/201630/11/20162.8
25/04/2016InterimGBX0.7531/05/201531/05/201623/06/201624/06/201631/08/20160
01/02/2016InterimGBX0.6531/05/201531/05/201624/03/201629/03/201631/05/20160
15/10/2015InterimGBX0.6531/05/201531/05/201624/12/201529/12/201529/02/20160
18/06/2015FinalGBX131/05/201431/05/201525/06/201526/06/201528/08/20152.4
16/03/2015InterimGBX0.531/05/201431/05/201526/03/201527/03/201529/05/20150
17/12/2014InterimGBX0.531/05/201431/05/201529/12/201430/12/201427/02/20150
17/09/2014InterimGBX0.431/05/201431/05/201524/09/201426/09/201428/11/20140
18/06/2014FinalGBX0.9531/05/201331/05/201425/06/201427/06/201429/08/20142.25
19/03/2014InterimGBX0.531/05/201331/05/201426/03/201428/03/201431/05/20140
16/12/2013InterimGBX0.531/05/201331/05/201423/12/201327/12/201328/02/20140
17/09/2013InterimGBX0.331/05/201331/05/201425/09/201327/09/201329/11/20130
23/05/2013FinalGBX0.8431/05/201231/05/201326/06/201328/06/201331/08/20132.1
14/03/2013InterimGBX0.4631/05/201231/05/201320/03/201322/03/201331/05/20130
17/12/2012InterimGBX0.531/05/201231/05/201324/12/201228/12/201228/02/20130
18/09/2012InterimGBX0.331/05/201231/05/201326/09/201228/09/201230/11/20120
20/06/2012FinalGBX0.9331/05/201131/05/201227/06/201229/06/201231/08/20122.19
21/03/2012InterimGBX0.4631/05/201131/05/201228/03/201230/03/201231/05/20120
19/12/2011InterimGBX0.531/05/201131/05/201228/12/201130/12/201101/03/20110
22/09/2011InterimGBX0.331/05/201131/05/201228/09/201130/09/201130/11/20110

Top Dividend Posts

DateSubject
14/9/2020
16:36
sarkasm: Second quarter interim dividend for 2020 Payments of dividends in sterling On 4 August 2020, the Directors of BP p.l.c. announced that the interim dividend for the second quarter 2020 would be US$0.0525 per ordinary share (US$0.315 per ADS). This interim dividend is to be paid on 25 September 2020 to shareholders on the share register on 14 August 2020. The dividend is payable in cash in sterling to holders of ordinary shares and in US dollars to holders of ADSs. The board has decided not to offer a scrip dividend alternative in respect of the second quarter 2020 dividend. Dividend reinvestment plans have been made available for this dividend for ordinary shareholders and ADS holders (subject to certain exceptions) to receive additional BP shares. Sterling dividends payable in cash will be converted from US dollars at an average of the market exchange rate over the four dealing days from 8 to 11 September 2020 (GBP1 = US$1.29846). Accordingly, the amount of sterling dividend payable in cash on 25 September 2020 will be: 4.0433 pence per share. Details of the second quarter dividend and timetable are available at bp.com/dividends. For further information on your dividend payment options visit bp.com/drip. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END DIVGZGMLLDMGGZG (END) Dow Jones Newswires September 14, 2020 05:05 ET (09:05 GMT)
08/9/2020
07:30
sarkasm: Royal Dutch Shell plc Royal Dutch Shell Plc Second Quarter 2020 Euro And Gbp Equivalent Dividend Payments 08 September 2020 - 07:30AM Dow Jones News Print Share On Facebook TIDMRDSA TIDMRDSB The Hague, September 8, 2020 - The Board of Royal Dutch Shell plc ("RDS") today announced the pounds sterling and euro equivalent dividend payments in respect of the second quarter 2020 interim dividend, which was announced on July 30, 2020 at US$0.16 per A ordinary share ("A Share") and B ordinary share ("B Share"). Dividends on A Shares will be paid, by default, in euros at the rate of EUR0.1353 per A Share. Holders of A Shares who have validly submitted US dollars or pounds sterling currency elections by August 28, 2020 will be entitled to a dividend of US$0.16 or 12.09p per A Share, respectively. Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 12.09p per B Share. Holders of B Shares who have validly submitted US dollars or euros currency elections by August 28, 2020 will be entitled to a dividend of US$0.16 or EUR0.1353 per B Share, respectively. Euro and pounds sterling dividends payable in cash have been converted from US dollars based on an average of market exchange rates over the three dealing days from 3 to 7 September 2020. This dividend will be payable on September 21, 2020 to those members whose names were on the Register of Members on August 14, 2020. Taxation - cash dividend Cash dividends on A Shares will be subject to the deduction of Dutch dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their particular circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax. If you are uncertain as to the tax treatment of any dividends you should consult your tax advisor. Royal Dutch Shell plc ENQUIRIES: Media: International +44 (0) 207 934 5550 Americas +1 832 337 4355
02/8/2020
07:37
sarkasm: BP's prized dividend faces chop after Covid triggers £5.2bn loss BP is scheduled to unveil half-year figures on Tuesday City analysts said BP could cut or shelve its payout alongside the figures By Ben Harrington For The Mail On Sunday Published: 22:31 BST, 1 August 2020 | Updated: 23:02 BST, 1 August 2020 BP is being widely tipped to slash its £6.7billion dividend this week. The FTSE 100-listed oil giant, which is run by Bernard Looney, is scheduled to unveil half-year figures on Tuesday. City analysts said BP could cut or shelve its payout alongside the figures, which have been forecast to show a $6.8billion (£5.2billion) loss in the second quarter of this year. City analysts said BP could cut or shelve its payout alongside its half year figures on Tuesday Colin Smith, an analyst at Panmure Gordon, said: 'We now expect BP to cut its dividend... with the second quarter results.' Analysts at Quest, the cash flow specialist division of Canaccord Genuity, have also placed BP on its 'dividend at risk' list. BP generates the largest dividend payments amongst the FTSE 100 blue chip stocks. Both private investors and big City pension funds and institutions would be upset by the cut. Small shareholders in particular rely on companies such as BP for income in retirement – especially as bank savings accounts now generate almost zero returns. The potential reduction of BP's dividend comes after Royal Dutch Shell cut its payout for the first time since the Second World War. Shell's dividend was slashed by 66 per cent – from $15billion last year to $5billion this year. The move came after the oil price crashed following a massive row between Saudi Arabia and Russia. At one point in April, the oil price in the US fell below zero for the first time in history. Ben van Beurden, Shell's chief executive, said the 'monumental' decision to reset the company's dividend earlier this year was difficult but necessary to preserve the financial resilience of the company against the crisis of 'uncertainty'. BP, though, opted not to cut its dividend, which at the time surprised many City analysts and investors. Analysts expect BP will next week unveil a $6.8billion loss for the second quarter. During the same period last year, it generated a $2.8billion profit. Experts also expect BP to reveal that it will take between $13billion and $17.5billion of non-cash charges following financial blows and exploration write-offs. The latter could total between $8billion and $10billion. Aside from BP, other FTSE 100 dividends could be at risk this week. Diageo, the Johnny Walker to Smirnoff drinks giant, is also scheduled to announce full-year results which may include a cut in its shareholder payout. Royal Dutch Shell cut its payout for the first time since the Second World War The company will come under pressure to reduce the dividend after the closure of pubs and hospitality venues for months due to lockdown hammered its sales. Last year, Diageo handed shareholders £1.6billion in dividends. The total amount of dividends paid out by British firms is expected to halve this year as companies look to preserve cash. Some of the most reliable dividend payers including BT and HSBC have slashed their payouts. Research by investment firm Octopus Investments found many income-focused fund managers have already removed BP from their portfolios over fears for the dividend. The proportion of equity income funds that include BP dived from 61 per cent in January to 43 per cent by the end of May.
09/6/2020
18:35
waldron: Is Shell’s Dividend Cut Permanent? Join Our Community Investors were more than annoyed when Royal Dutch Shell slashed its dividend by two thirds. Just last year, the giant oil company announced its plan to pay out huge dividends over the coming five years. Actually, the investors used stronger terms than “annoyed.̶1; They had reason to be annoyed after the strong commitment to the dividend, but maybe they should have previously shown a greater skepticism about the ability of any management to make such a commitment. Times change and perhaps no managements or boards should publicly commit to actions so far ahead of time. Royal Dutch Shell has a reputation for forward planning. And dividend policy, which is supposed to reflect management’s best long term projections is not something that is trifled with lightly. So what does the significant dividend cut say? Management offered two explanations: 1) it was unwise to pay a dividend that would not be earned. i.e. that would require borrowing to sustain. That would reduce the resilience (a favorite word nowadays) of the company. Royal Dutch Shell, however, has the borrowing power and resources to pay an unearned dividend as well as carry out other activities during a short period of difficulties. We could see cash flow of $35 billion and capital expenditures of $20 billion during a bad year, which leaves just enough to pay the annual dividend of $15 billion. An optimistic management would not see this as a problem at all. But a 66% dividend reduction suggests less than optimistic hopes for a sharp rebound in demand. Or perhaps instead that increasingly volatile global oil market conditions may become the new normal, therefore making a large dividend imprudent. Management added another explanation, though: 2) The company also needed the cash resources of the dividend to shift to a position of net zero carbon emissions by 2050. This seems to have puzzled investors even more than concerns about profound future market volatility. Royal Dutch Shell’s management did not explain how cash conserved in this manner would be profitably redeployed to reach this goal. The collateral issue for investors is how seriously to take management’s guidance which assumes a financial policy continuity for many decades in the future long after the retirements of current senior management and directors. Related: China Set To Ramp Up Natural Gas Imports This Decade Royal Dutch Shell could cease investing in new oil properties, sell off what it owns and put the money into non-fossil energy or just return the cash to its investors. That would get it into a net zero position sooner. Or it could wind down its oil businesses gradually and liquidate the company by paying out dividends rather than retain the money. But with so much money going into the development of oil properties, it is difficult for outsiders to evaluate the company’s new direction, which seems to be: “We want to go green, but not quite yet.” This ambivalence about capital investment direction puts investors in an uncomfortable position. Those looking for steady, high yields have been served notice. They can no longer depend on this sector for above average dividend yields. More risk tolerant growth investors may also become reticent about a business gradually losing market share in an energy market that is itself slow growing. Investors who want exposure to the renewables market will not likely do so via investment in oil companies that increasingly own renewables. In this respect oil companies at this stage don’t bring much to the table except their money. And there is plenty of that around from other sources. Also the environmental-social-governance (ESG) investor movement is growing in importance. And this vocal group is decidedly anti oil and all other fossil fuels. Back in the day portfolio managers catering to yield oriented investors could say, “Yeah, those oil companies are big time polluters but where else can you get 500 or 600 basis points over the risk free rate? Well with this dividend cut that argument just went out the window. Almost five decades ago, the US electric utility industry had a reputation for rock-solid common stock dividends with above average yields. But power plants, especially those located on the east and west coasts, were at that time heavily fueled by cheap oil from the Middle East. Suddenly this formerly cheap fuel first became scarce and then far more expensive. New York’s own Consolidated Edison Company found itself heavily exposed in the early 1970s and did the unthinkable, omitting its dividend. That was the icebreaker so to speak. Others followed. The key takeaway, to us, is that after the Con Ed dividend cut, yield oriented investors looked at electric utilities differently. They could no longer rely on a dividend even during times of stress. We wonder if, in a similar way, Royal Dutch Shell’s dividend action has similarly broken the ice. By Leonard Hyman and William Tilles for Oilprice.com
08/6/2020
12:08
waldron: 08/06/2020 9:50am UK Regulatory (RNS & others) Bp (LSE:BP.) Intraday Stock Chart Monday 8 June 2020 Click Here for more Bp Charts. TIDMBP. RNS Number : 2547P BP PLC 08 June 2020 8 June 2020 BP p.l.c. First quarter interim dividend for 2020 Payments of dividends in sterling On 28 April 2020, the Directors of BP p.l.c. announced that the interim dividend for the first quarter 2020 would be US$0.1050 per ordinary share (US$0.630 per ADS). This interim dividend is to be paid on 19 June 2020 to shareholders on the share register on 11 May 2020. The dividend is payable in cash in sterling to holders of ordinary shares and in US dollars to holders of ADSs. The board has decided not to offer a scrip dividend alternative in respect of the first quarter 2020 dividend. Dividend reinvestment plans have been made available for this dividend for ordinary shareholders and ADS holders (subject to certain exceptions) to receive additional BP shares. Sterling dividends payable in cash will be converted from US dollars at an average of the market exchange rate over the four dealing days from 2 to 5 June 2020 (GBP1 = US$1.25868). Accordingly, the amount of sterling dividend payable in cash on 19 June 2020 will be: 8.3421 pence per share. Details of the first quarter dividend and timetable are available at bp.com/dividends. For further information on your dividend payment options visit bp.com/drip. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. END DIVGIGDLCSGDGGI (END) Dow Jones Newswires June 08, 2020 04:50 ET (08:50 GMT)
09/4/2020
09:31
grupo guitarlumber: Swiss regulator welcomes UBS and Credit Suisse moves to split dividends Moves by Credit Suisse and UBS are a better outcome for shareholders compared with European peers, Citigroup analysts say By Steve Goldstein and Olivia Bugault April 9, 2020 9:14 am GMT The Swiss Financial Market Supervisory Authority said it welcomed the move by UBS and Credit Suisse to postpone half of their planned dividend distributions for 2019 to the fourth quarter. “Finma welcomes this significant step, which was taken after Finma wrote to the boards of directors of both banks asking them to reconsider their dividend plans. Finma views this precautionary measure taken by both institutions as a way of simultaneously dealing with the major uncertainties associated with the Covid-19 crisis and addressing shareholders' expectations," it said in a statement. UBS said on Thursday that it expects net profit in its first quarter to rise, while it will pay its 2019 dividend in two installments. The Swiss bank expects net profit to come in around $1.5bn, compared with $1.14bn a year earlier, while its CET1 capital and CET1 leverage ratios at the end of the first quarter should come in line with its targets. UBS said that it will pay its dividend in two parts following a request from Finma. The bank will propose a dividend of $0.365 a share for 7 May and a special dividend reserve of the same amount per share in November, it said. UBS will publish its financial results on April 28. Credit Suisse, meanwhile, will pay its 2019 dividend in two installments following a request from Finma. The Swiss bank said that it will propose a dividend of 0.1388 Swiss francs ($0.143) gross per share at its AGM on 30 April, half which will be paid from retained earnings and the other half coming form the capital contribution reserves. The bank will propose another dividend of the same amount in autumn, it said. "While the board remains of the opinion that Credit Suisse's financial strength would have continued to support the original dividend proposal made to our shareholders, we believe that this response to Finma's request, in alignment with the similar decisions made by our peers, is a prudent and responsible step to preserving capital in the face of the challenges posed by the Covid-19 pandemic," Credit Suisse said. Credit Suisse had previously planned to distribute a dividend of CHF0.2776 gross per share, it said. The decisions by Credit Suisse and UBS are a better outcome for shareholders compared with European peers, Citigroup analysts say: “This should appease the Swiss regulator Finma, while it also means that [Credit Suisse] retains an annual dividend yield of circa 4% and UBS circa 8%, even if it is now split over two payments. This is a better outcome for shareholders than we have seen at UK and European banks, which have cancelled dividends entirely.” Additional reporting by Pietro Lombardi
17/6/2019
09:24
the grumpy old men: MONEY OBSERVER Vodafone dividend cut highlights need for new approach to income investing The telecoms company’s dividend cut ended a two-decade run of rising payouts. Chris McVey suggests three key issues for equity income investors to consider. June 17, 2019 by Chris McVey Share on: As you may have read last month, Vodafone announced that it was cutting its dividend, despite the board having recommitted to it six months earlier. Vodafone’s cut ends a two-decade run of rising payouts. It also highlights three important issues that equity income investors need to keep in mind. The good news is that investors can mitigate this risk by diversifying the types of income funds they hold, and being aware of three key issues. Vodafone dividend cut: which UK shares might be next? 1) High dividend yields can mean low dividend cover If you hold a stock for its dividend, you want to be confident that the company can keep paying it. Ideally you want to see dividend cover of 2.0 or above, which means profits are enough to cover the payout twice over. In the case of Vodafone, dividend cover was less than 1.0 just before the announcement of its dividend cut. This is clearly unsustainable over the long term, so we shouldn’t be too surprised that Vodafone acted as it did. What it should draw our attention to is the fact that among the big dividend payers, the average dividend cover is significantly below that 2.0 mark. If we look at the 10 FTSE 100 companies that pay the most money out to shareholders, their average dividend cover is less than 1.5. If we look at the top 10 FTSE 100 companies by dividend yield, the figure is just 1.2. 2) Popular income stocks can have below-average dividend growth Many of the big blue-chip dividend payers have reached a stage in their maturity where earnings and dividend growth have slowed. If we take the top 10 companies by total dividend payout and strip out BP and Royal Dutch Shell (because oil price moves make their earnings more volatile), we see that on average their earnings and dividends are expected to grow more slowly than the FTSE All-Share average over the period from the end of 2017 up until 2020. 3) Concentration risk In the run-up to its dividend cut, Vodafone was one of the FTSE 100’s top 10 dividend payers, by both dividend yield and by the total amount that it paid to shareholders. In fact, the top 10 biggest dividend payers accounted for more than half the dividends paid by FTSE 100 companies in 2018. Now consider the fact that three-quarters of traditional income funds hold those stocks, and you’ll see why equity income investors need to have an eye on concentration risk. They may want to consider adding a different type of fund to their portfolio for diversification. A different approach It would be complacent to assume that Vodafone will turn out to be an isolated case. So where can income investors find diversification? Last December, we launched the FP Octopus UK Multi Cap Income Fund, which invests in companies across the entire market cap spectrum, drawing on our longstanding smaller companies’ expertise. This approach has allowed us to seek out companies with sustainable dividends, which have above-average earnings and dividends growth, and that tend not to appear among the holdings of more traditional equity income funds. The experience of Vodafone shows that while a household name and impressive past performance may feel comforting, investors need to consider diversification, particularly if income is important. Chris McVey is a senior fund manager and head of the FP Octopus UK Multi Cap Income Fund, Octopus Investments.
28/5/2019
11:59
sarkasm: Tuesday 28 May 2019 11:08am Interactive Investor Talk What is City Talk? Latest Vodafone dividend cut: which UK shares might be next? Share Interactive Investor Talk Contributor Vodafone dividend cut: which UK shares might be next? (Source: iStock) By Tom Bailey from interactive investor. Vodafone's cut might be a canary in the coalmine for FTSE 100 shares. Over the past year the market has increasingly cooled on Vodafone (LSE:VOD). The company has a long list of problems, including the high cost of 5G investment, being squeezed by competition on the continent and high levels of debt. The company's share price fell by roughly 30% between April 2018 and April 2019. As a result, the company's dividend yield shot up to a seemingly generous 9%. Now, however, reality has caught up with the company's payout level. On Wednesday 15 May, Vodafone announce its dividend would be cut by 40%, giving it a new yield of around 6%. According to Simon McGarry, senior equity research analyst, Canaccord Genuity Wealth Management: "The red flags have been there for all to see - the dividend yield was dangerously high, low dividend coverage (ratio of earnings to dividends) and dividend growth had slowed - last year growth was only 2% and in its recent statement, there was no growth at all." The share has consistently featured on our Dividend Danger Zone screen since its creation in 2016. A number of high-profile investors had previously grown concerned about Vodafone's position. Mike Fox, manager of Royal London Sustainable Leaders fund recently told Money Observer that he had sold his stake in the company. Similarly, Robin Geffen, chief executive of Neptune Investment Management, sold out of Vodafone last year. Vodafone, however, isn't likely to be the only major UK company seeing a dividend cut in the coming months. The dividend payouts for a number of FTSE companies currently look perilous. According to Geffen: "Vodafone's announcement should be viewed as a canary in the coalmine moment for UK equity income investors" Geffen fears that many other supposedly "safe" dividend-paying companies are also likely to face a cut, citing falling levels of dividend cover as his key concern. He adds: "We would put the tobacco majors Imperial Brands (LSE:IMB) and British American Tobacco (LSE:BATS), BT Group (LSE:BT.A) and the major utilities stocks in that category." British American Tobacco currently has a dividend cover of 1.35 times, Imperial Brands 0.87 times and BT 1.47 times. As a rule of thumb, shares with a dividend cover score of above 2 are considered reliable dividend payers. Meanwhile, a number of companies on our Dividend Danger Zone screen all have dangerously low dividend covers. The worst offender is Stobart Group (LSE:STOB), with a dividend cover of 0.5 times. That means that half of its dividend is being paid for with borrowing. The infrastructure and support services company already cut its dividend last December, citing a lack of cash. Further cuts, it seems, may still be ahead. Hammerson (LSE:HMSO), the property group, is also on the screen, with a particularly high net debt to EBITDA ratio of 10.9 times. This was one of the reasons it entered our screen in March. At the time, McGarry noted that the company was attempting to sell off assets to cut its debt burden. But, he warned: "Hammerson might struggle to deliver its strategy to dispose of retail parks in a bid to reduce leverage, which is too high at 40%+ loan-to-value." The company's dividend cover is currently 1.1 times. Also on the screen is SSE (LSE:SSE), with a dividend cover of 1.2 times. Similarly, Geffen is bearish on the dividend prospect of the utility sector as a whole, noting his is the only IA UK Equity Income Fund to have 0% exposure to utilities. The sector has an average cover of 1.29 times. This article was originally published in our sister magazine Money Observer.
25/8/2018
12:20
adrian j boris: Will Royal Dutch Shell Follow Its Peers And Raise Its Dividend? Aug. 25, 2018 1:57 AM ET| 24 comments | About: Royal Dutch Shell plc (RDS.B), RDS.A Aristofanis Papadatos Aristofanis Papadatos Oil & gas, portfolio strategy, value Aristofanis Papadatos (3,851 followers) Summary Royal Dutch Shell has not cut its dividend since World War II and is currently offering a 5.6% dividend yield. The oil major has frozen its dividend for 18 consecutive quarters. The big question is whether it will raise its dividend amid excessive free cash flows and a brightening outlook of the oil sector. Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is an oil giant that has benefited from the rally of the oil price in the last 12 months, just like its peers. However, the oil major has paid the same dividend for 18 consecutive quarters, as it froze its dividend at the onset of the downturn of the oil market that began in 2014. Therefore, the big question is whether the company will raise its dividend in the upcoming quarters. Dividend record Despite the downturn that began in 2014, Exxon Mobil (XOM), Chevron (CVX) and Total (TOT) have continued to raise their dividends, albeit at a low single-digit rate. BP (BP) followed the same path as Shell and froze its dividend for 15 consecutive quarters, but eventually raised it in the running quarter, thanks to the strength of the oil price and the brightening outlook of the oil market. Therefore, Shell is the only oil major that has kept its dividend flat for such a long period. While Shell is not a dividend aristocrat, it has an exceptional dividend record. To be sure, it has not cut its dividend since World War II. This degree of consistency is extremely rare, particularly for a cyclical stock, and is a testament to the strength of its business model and its execution. On the other hand, Shell has remarkably slowed its dividend growth rate in the last decade, as it has raised it at an average rate of only 2.7% per year. This rate is much lower than that of its American peers. Nevertheless, the current 5.6% dividend yield of Shell is much higher than the 4.1% and 3.8% yields of Exxon and Chevron, respectively. If Shell resumes raising its dividend, it will have a much more attractive dividend than its American peers. Free cash flows Just like the other oil majors, Shell is highly leveraged to the oil price. Consequently, when the oil price began to plunge in 2014, the upstream segment of Shell, which used to generate the vast majority of its total earnings (~90%), saw its earnings collapse. As a result, the earnings of Shell in 2015 and 2016 came out 87% and 75% lower, respectively, than those in 2014. In addition, the free cash flows of the company plunged and hence they were insufficient to fund its dividend. However, thanks to the production cuts of OPEC and Russia, and the drastic investment cuts of all the oil producers during the downturn, the oil market has eliminated its supply glut and has become much tighter this year. As a result, the oil price has enjoyed a strong rally since last summer and is now trading near a 3.5-year high. This rally has resulted in a great rebound of the free cash flows of Shell, which have bounced from -$1.5 B in 2016 to $14.8 B in 2017 and $8.9 B in the first half of this year. Hence the free cash flows of Shell have increased so much that they can easily cover the approximate $13 B in annual dividends. It is remarkable that Shell recently surpassed Exxon in annual operating cash flows ($35.7 B vs. $30.1 B) for the first time in about two decades. Moreover, thanks to the recent fierce downturn of the oil sector, Shell has greatly improved its efficiency. It has reduced its operating expenses by 35% in the last four years while it has focused on investing in high-quality oil reserves, with markedly low breakeven prices. Furthermore, the company expects more than 700,000 barrels/day from projects that will start up this and next year. Overall, thanks to the strength in the oil price and expected production growth, the management of Shell expects the free cash flows to hover around $30 B per year during 2019-2021. Such a level can easily cover not only the current dividend but also meaningful hikes in the upcoming years. Management has noticed the excessive cash flows and recently initiated a 3-year share buyback program worth $25 B. Moreover, it has turned off the scrip dividend and thus it now pays the dividend only in cash, not in shares anymore. These two moves reflect the confidence of management in the brightening outlook of the company. As long as the oil price remains strong, which is the most likely scenario, the next move of the company will be to raise its dividend. Final thoughts After a fierce downturn in its sector, Shell has emerged stronger, with its free cash flows reaching all-time high levels. This is an outstanding achievement, as the price of oil is still about 30% lower than it was before the downturn that began in 2014. This performance confirms that Shell utilized the downturn in a highly productive way by cutting its expenses and investing only in high-return growth projects. Thanks to its excessive free cash flows and its exciting prospects, the oil giant has turned off its scrip dividend and has initiated a gigantic buyback program. The next move in its shareholder distribution policy will be to raise its dividend. Investors should expect a dividend hike in the upcoming quarters. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
30/7/2018
09:44
grupo: UK Dividend Monitor: Headline dividends fall for first time in three years Stronger underlying dividends Mining and commodities Miners saw 95% year-on-year dividend growth Laura Dew Laura Dew @LauraDewIW 30 July 2018 Tweet Facebook LinkedIn Google plus Send to Print this page 0 Comments UK headline dividends have declined for the first time since 2015, falling 2.1% in the second quarter of 2018, according to the latest quarterly dividend monitor from Link Asset Services. The report said year-on-year headline dividends fell to £32.6bn as a result of lower special dividends. Link said special dividends were £1.9bn during the quarter, which was deemed "healthy" but lower than the above-average special dividends of £3.2bn that were paid out in Q2 2017. Related articles UK Dividend Monitor: Headline dividends fall for first time in three years SIPP non-standard investment advice costs FSCS £112m in 2017/18 FSCS claims from failed SIPP provider pour in Three things your clients may call you about this week … Treasury Committee 'doubtful' FOS ready to handle SME cases However, the administration solutions provider said this was not a "cause for alarm" as underlying dividends - which exclude special dividends - saw a sharp rise of 7.1% to a record £30.7bn. Particularly strong growth this year came from the mining sector where headline dividends grew 95% thanks to Glencore, Rio Tinto, Anglo American and Mondi, which collectively paid out over £1.9bn more than in Q2 2017. "As more mining companies move away from a progressive dividend policy that can be impossible to sustain when commodity prices slump, and towards policies that link dividends more explicitly to profits, so we can expect their dividends to be much less predictable than in the past," the report said. "The mining sector is unusually large on the London Stock Exchange compared to most other large markets, making its share of UK dividends much greater than elsewhere." HSBC remained the largest dividend payer followed by Royal Dutch Shell, Rio Tinto, BP and Lloyds Banking Group, collectively paying out £8.8bn during the quarter. Dividends paid out by FTSE 100 companies fell 3.9% year-on-year to £27.3bn as a result of the lower special dividends while companies in the FTSE 250 saw an increase of 6.4% to £4.3bn. "Top 100 dividends fell 3.9% year-on-year in the second quarter to £27.3bn," the report said. "This was mainly due to the big special dividend National Grid paid last year, though exchange-rate effects and the timing change at BAT also played a role. "Adjusting for all these factors, top 100 dividends were actually 14.3% higher. The mining sector made up two-thirds of this increase. "Over the longer-term, mid-cap dividend growth has been slightly higher than the top 100, as these companies are often less mature and so have further to run than their larger counterparts. But they also tend to be more domestically focused, and so may be suffering from slower growth in the UK economy." Link's headline dividend forecast has increased to a record £97.8bn, up from £96.3bn last quarter. Meanwhile, the underlying dividend forecast increased from £90.4bn to £94.1bn. Justin Cooper, chief executive of Link Market Services, part of Link Asset Services, said: "UK plc's profitability is on a firmer footing, and though there are still points of weakness, overall, profits now comfortably cover dividends. Balance sheets are also getting stronger. This is giving companies more headroom to return cash to shareholders. "The miners might be digging deepest, but the rest of UK plc is coming up with the dividend goods too. Three-quarters of sectors saw growth on the back of improving profits, and income investors are set for another record year in 2018."
ADVFN Advertorial
Your Recent History
LSE
DIVI
Diverse In..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20201205 10:08:15