Diverse Income Share Discussion Threads

[minky] 06/3/2019 06:06

Funny, they do not mention discoraging the Directors, Ceo,s etc from having such high salaries and added benefits when they have pension deficits. There must be many who could take less to support the pension fund without too much impact on shareholders. After all, where would a company be without it's shareholders. I think they are entitled to a return on capital employed.

[waldron] 05/3/2019 18:32

UK pensions watchdog to clamp down on ‘excessiveR17; dividends

5 March 2019By Nick Reeve

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The UK’s Pensions Regulator (TPR) is to visit more defined benefit (DB) schemes and make more interventions as part of a “robust” new approach to supervising the sector.

In its annual funding statement, published this morning, TPR stated that it would take a much firmer stance on the ratio of dividend payments to DB scheme contributions.

Weaker employers should pay more into their schemes than to shareholders, TPR said, while companies that were unable to support their schemes should not be paying dividends at all.

If a company paid dividends greater than the amount paid to its pension scheme, the regulator said it would “expect a strong funding target” and a short deficit recovery period.

TPR has been scrutinising dividend payments and scheme funding arrangements as part of its ‘clearer, quicker, tougher’ approach to regulation, rolled out last year after severe criticism from politicians in the wake of the high-profile collapses of BHS and Carillion.

The regulator also urged schemes to set out more specific long-term goals for improving funding and securing member benefits – one of the main elements of the government’s reform proposals, currently under consultation.

David Fairs, TPR’s executive director of regulatory policy, analysis and advice, said: “In order to support schemes we are setting out what we expect trustees and sponsoring employers to consider on funding, investment and covenant.

“The annual funding statement will help them think about the risks facing their scheme, to consider what levels of risk are acceptable and how to mitigate risks where appropriate.

“Trustees have fed back to us that they find this clarity helpful in negotiating good outcomes for members and avoiding interventions and action from TPR.

“We have taken a tough stance on schemes that have not been treated fairly and will continue this approach where members’ benefits are under pressure.”

‘Covenant leakage’

TPR said it was “concernedR21; about the imbalance between payments to company pension schemes and dividends paid to shareholders, as well as other forms of “covenant leakage”.

“Recent corporate failures have highlighted the risk of long recovery plans while payments to shareholders are excessive relative to deficit recovery contributions,”; the regulator said.

TPR has already contacted a number of schemes that were at risk of losing out relative to shareholders, quizzing them on funding approaches and negotiations with sponsoring employers. It indicated that it would continue to make such interventions at a greater number of schemes “where we do not believe that their valuations reflect an equitable position relative to other stakeholders”.

The regulator also vowed to engage with a number of schemes this year if recovery periods were considered to be “unacceptably long”, and warned trustee boards to expect communications in the coming months.

“While some trustees may not consider their current recovery plan to be long, we will be looking at both the maturity and the covenant of the employer in forming a view on what we consider to be an acceptable recovery plan length,” TPR said.

Consultancy firm Hymans Robertson estimated that one in five FTSE 350 companies with DB schemes were at risk of intervention from TPR.

The full annual funding statement is available on the regulator’s website.
The industry responds

Dan Mikulskis, LCP

Dan Mikulskis, LCP

“For weaker sponsors, there is always going to be a very difficult balance to be struck between the interests of pensioners and the ongoing solvency of the company. It is a hard area to regulate but we believe it is important to recognise that in many cases pension scheme trustees are a key stakeholder in the ongoing company, and should be recognised as such – the expectations suggested by the regulator around dividend payments help to achieve this.”
– Dan Mikulskis, partner at LCP

“Given the desire to strengthen DB pensions funding, the regulator’s robust stance makes perfect sense. It is challenging employers to fund pension schemes ahead of paying shareholders. But it will create challenges for business, and some employers may be surprised by how much the ground is shifting. Many companies will need to give a higher priority to pensions funding and risk management than they do today and some will come under pressure to either increase pension contributions or cut dividends.”
– Mike Smedley, pensions partner at KPMG

“Businesses with pension scheme valuations this year will be under considerable pressure to pay higher contributions to their pension scheme. This will be incredibly unwelcome for those who are wrestling with tough trading conditions or Brexit-related uncertainty. If businesses are struggling, TPR will be highly likely to intervene to put the interests of pensioners ahead of investors… All trustees are going to have to work harder to demonstrate to TPR that the risks they are running can be supported by the business their scheme relies on.”
– Patrick Bloomfield, partner at Hymans Robertson

Jenny Condron, Association of Consulting Actuaries

Jenny Condron, Association of Consulting Actuaries

“Sponsors, trustees and their advisers need to be assured that the changing approach will not herald an overly inflexible one and that the regulator will remain proportionate in using its powers, particularly those situations where employers are engaged in corporate restructuring – often with the specific aim of enhancing the organisation’s future prospects and therefore the covenant supporting the pension scheme.”
– Jenny Condron, chair of the Association of Consulting Actuaries

Sir Steve Webb

Sir Steve Webb

“One of the most striking features of the new statement is the tougher language around companies paying large dividends when their pension scheme is in significant deficit. Pension scheme members are understandably concerned when their pension scheme is well short of the money needed to pay their pensions if they see large amounts of money going out of the business in dividends. While there is nothing wrong in companies paying dividends, it is good to see the regulator putting greater pressure on firms to make sure that sorting out the hole in the pension scheme gets the attention it deserves.”
– Sir Steve Webb, director of policy at Royal London

[waldron] 31/1/2019 07:08

31/01/2019 7:02am
UK Regulatory (RNS & others)


TIDMRDSA TIDMRDSB

ROYAL DUTCH SHELL PLC FOURTH QUARTER 2018 INTERIM DIVIDEND

The Board of Royal Dutch Shell plc ("RDS" or the "Company") today announced an
interim dividend in respect of the fourth quarter of 2018 of US$0.47 per A
ordinary share ("A Share") and B ordinary share ("B Share"), equal to the US
dollar dividend for the same quarter last year.

Details relating to the fourth quarter 2018 interim dividend

It is expected that cash dividends on the B Shares will be paid via the
Dividend Access Mechanism from UK-sourced income of the Shell group.

Per ordinary share Q4 2018

RDS A Shares (US$) 0.47

RDS B Shares (US$) 0.47

Cash dividends on A Shares will be paid, by default, in euro, although holders
of A Shares will be able to elect to receive dividends in pounds sterling.

Cash dividends on B Shares will be paid, by default, in pounds sterling,
although holders of B Shares will be able to elect to receive dividends in
euro.

The pounds sterling and euro equivalent dividend payments will be announced on
March 11, 2019.

Per ADS Q4 2018

RDS A ADSs (US$) 0.94

RDS B ADSs (US$) 0.94

Cash dividends on American Depository Shares ("ADSs") will be paid in US
dollars.

ADSs are listed on the New York Stock Exchange under the symbols RDS.A and
RDS.B. Each ADS represents two ordinary shares, two A Shares in the case of
RDS.A or two B Shares in the case of RDS.B. ADSs are evidenced by an American
Depositary Receipt (ADR) certificate. In many cases the terms ADR and ADS are
used interchangeably.

Dividend timetable for the fourth quarter 2018 interim dividend

Announcement
date January 31,
2019

Ex-dividend date
February 14, 2019

Record
date
February 15, 2019

Closing date for currency election (see Note below) March 1,
2019

Pounds sterling and euro equivalents announcement date March 11, 2019

Payment
date
March 25, 2019

[florenceorbis] 25/1/2019 09:30

Does the Vodafone Group plc share price have investment appeal after today’s trading update?
Can Vodafone Group plc (LON:VOD) (VOD.L) deliver improving share price performance?
January 25, 2019 Robert Stephens Vodafone (LON:VOD)




Vodafone share price
Vodafone share price

The Vodafone Group plc (LON:VOD) (VOD.L) share price is down 1% today after the company released a trading update for the quarter ended 31 December 2018.

In my view, the company continues to make progress with the delivery of its strategy. It is moving towards a simpler operating model, while investing heavily in digital opportunities. Partnering is likely to become an area of increased interest for the business in future, as it aims to reduce costs and improve asset utilisation.

During the quarter, the company’s revenue declined by €0.8 billion to €11 billion, while third quarter organic service revenue grew by 0.1%. The company’s performance in Europe was similar to the second quarter, with service revenues decreasing by 1.1%. There was, however, improving customer and financial trends in Italy, as well as robust retail growth in Germany. The company also experienced reduced churn in Spain, as well as a consistent performance in the UK.

Vodafone’s Rest of World segment grew by 4.9%, with a decline in South Africa as a result of a weak economy being offset by strong performance in other markets.

Mobile contract churn was reduced by 2 percentage points. As part of its increased focus on partnerships, the company intends to extend its existing UK network sharing agreement with Telefonica O2 to include 5G services.

With Vodafone on track to meet guidance for the full year, I think its performance in the third quarter was relatively positive. Sure, there is a long way to go with the implementation of its refreshed strategy. But I think it could create a stronger and more efficient business which is better able to generate improving financial performance.

Trading on a dividend yield of 8.8%, I think the stock offers a margin of safety. Therefore, I believe it has recovery potential over a long-term time period.

[waldron] 13/12/2018 15:52

Thursday 13 December 2018 3:42pm
FTSE dividend payments to hit record £94bn next year and yields boosted by market drop
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Callum Keown
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Markets Nervous Amid Fears
FTSE 100 dividend payments set to reach record high (Source: Getty)

FTSE 100 dividend payments could hit record highs of £94bn next year while falling markets have increased yields, tempting investors and keeping the index stable amid political uncertainty.

A difficult autumn for the markets with shares falling has seen the forecast dividend yield for the blue chip index rise to 4.9 per cent for 2019, according to AJ Bell.

The investor platform’s analyst Russ Mould said the “tempting̶1; yields would provide support for UK stocks among the “maelstrom of political uncertainty.”

Housebuilder Taylor Wimpey could offer the highest yield of 13.1 per cent, followed by coal and steel miner Evraz - 12.1 per cent - and Persimmon at 11.8 per cent.

Barratt Developments could return yields of 9.6 per cent, as three housebuilders appeared in the top ten of AJ Bell’s analysis.

Mould said: “Such a fat yield looks extremely tempting compared to the Bank of England’s 0.75 per cent base rate for cash and the 1.23 per cent yield on benchmark UK ten-year Gilt.

“The presence of three house builders in the top ten is testimony to the size of their capital return programmes, but it may also hint at investor scepticism that the industry can maintain its current lofty levels of profitability without the benefit of Government assistance, via the Help to Buy and Lifetime ISA schemes.”

But the research raised concerns over Standard Life Aberdeen, whose long streak of dividend increases could end next year and Vodafone, where the shareholder distribution may not grow for the first time in two decades.

More than half of the £93.7bn paid out to shareholders will come from just ten firms, with Shell, HSBC, BP, and British American Tobacco accounting for 34 per cent of forecasted payments.

[waldron] 13/12/2018 07:28

13/12/2018 | 7:47

PARIS (Agefi-Dow Jones) - Total's board of directors decided on Wednesday to reduce the share capital of energy giant by canceling 44.6 million treasury shares, representing 1.66% of capital.

These shares were bought back between 9 February and 11 October 2018, Total said in a statement.

"This transaction has no impact on Total SA's consolidated financial statements, diluted weighted average number of shares and net earnings per share," the group added.

Following the cancellation of these shares, the number of shares making up the capital of Total amounted to 2.64 billion and the number of voting rights exercisable at a general meeting at 2.77 billion.

The board of directors also decided on Wednesday to distribute a second interim dividend of € 0.64 per share, "identical to the first interim dividend for fiscal year 2018 and up 3.2% compared to the three installments and the balance paid for the 2017 fiscal year, "said Total in a separate statement.

-Alice Doré, Agefi-Dow Jones; [phone]; [e-mail] ed: VLV

Agefi-Dow Jones The financial newswire

[shauney2] 11/12/2018 16:44

WHR, warehouse reit.e-commerce play and the growth in online shopping via last mile urban sheds.
NAV 105p,current price 94p.Dividend total of 6p for the full year paid quarterly.Good recent results.

Ditto BBOX and SHED.

[aleman] 10/12/2018 18:32

Energy and mining trust, BRCI, up to 5.8%.

[aleman] 10/12/2018 18:25

HSD have only just roughly halved their dividend and the yield has gone back up to 9.7%.

[aleman] 10/12/2018 18:20

SHRS have hit 5.7%.

[aleman] 10/12/2018 18:10

SDV just hit 5%. It's range of small caps generate revenues that cover the current dividend around 130% - better cover than most income trusts.

[aleman] 10/12/2018 18:03

PHNX yield up to 8.3% now.

Come on. Loads more high yielders are occurring as the market tumbles. More suggestions, please!

[grupo guitarlumber] 10/12/2018 17:33

DIVI DATES



Payment date December 19, 2018

[aleman] 06/12/2018 17:41

MCLS down to 68p now so Liberum's revised 8p dividend forecast is a near 12% yield. Go figure.

[waldron] 06/12/2018 17:12

Royal Dutch Shell Q3 2018 Euro and GBP Equivalent Dividend Payments
06/12/2018 5:02pm
UK Regulatory (RNS & others)


TIDMRDSA TIDMRDSB

ROYAL DUTCH SHELL PLC THIRD QUARTER 2018 EURO AND GBP EQUIVALENT DIVIDEND
PAYMENTS

The Hague, December 6, 2018 - The Board of Royal Dutch Shell plc ("RDS") today
announced the pounds sterling and euro equivalent dividend payments in respect
of the third quarter 2018 interim dividend, which was announced on November 1,
2018 at US$0.47 per A ordinary share ("A Share") and B ordinary share ("B
Share").

Dividends on A Shares will be paid, by default, in euro at the rate of EUR0.4124
per A Share. Holders of A Shares who have validly submitted pounds sterling
currency elections by November 30, 2018 will be entitled to a dividend of
36.77p per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate
of 36.77p per B Share. Holders of B Shares who have validly submitted euro
currency elections by November 30, 2018 will be entitled to a dividend of EUR
0.4124 per B Share.

This dividend will be payable on December 19, 2018 to those members whose names
were on the Register of Members on November 16, 2018.

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 own tax advisor.

[aleman] 04/12/2018 11:58

MCLS are predicted to cut their dividend. Liberum predict 8p for next year, down from 10.3p, then 8.2p for the following year. The shares have fallen to just under 80p for a yield of over 10% on the lowered figure.

[aleman] 29/11/2018 09:57

Interims with a restored dividend at CRU confirm a turnaround from troubled times driven by new investments. Yield 6%+. A big seller's overhang is still holding the share price back so it should jump a bit when it finishes.

[brasso3] 28/11/2018 21:34

Worth looking at AAZ if you want an attractive yield and exposure to some significant growth. Broker upgrade expected next week.

[maywillow] 28/11/2018 08:59

AXA SA (CS.FR) said Wednesday that it has progress in simplifying the company's structure and raised its payout target and 2020 return-on-equity target.

The French insurer now expects an adjusted ROE of between 14% and 16% in 2020 compared with 12% to 14% previously. As of 2018, AXA's dividend payout ratio range is 50% to 60%, up from 45% to 55%, the company said ahead of its investor day.

"The progress made in transforming the group's profile, along with our confidence in continued strong operational delivery across all geographies, has led us to review our capital-management policy," the company said regarding its adjusted payout target.

AXA confirmed its operating free cash-flow target.



Write to Sarah Sloat at [e-mail]



(END) Dow Jones Newswires

November 28, 2018 03:36 ET (08:36 GMT)

[waldron] 26/11/2018 08:27

Is Royal Dutch Shell Plc’s 6% dividend yield affordable?
Could a falling oil price disrupt the dividend investing potential of Royal Dutch Shell Plc (LON:RDSB) (RDSB.L)?
November 26, 2018 Robert Stephens Shell (LON:RDSB)




Royal Dutch Shell Plc
Royal Dutch Shell Plc

The oil price continues to fall, and this is leading the Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) share price lower in my view. It has dropped 16% in the last six months, with Brent recently moving below $60 per barrel for the first time since February 2018.

I wouldn’t be surprised if there are further declines for the oil price in the short run. Investors appear to be unsure about the prospects for the world economy, and this could lead to an increasingly cautious attitude. Rising US interest rates and a stronger dollar could reduce demand growth for oil over the medium term in my view, and this may be bad news for the wider industry.

Offsetting this to some degree could be geopolitical risks in countries such as Iran, Venezuela and Saudi Arabia. However, thus far, bearish views on oil are winning out, and this trend could persist.

Clearly, Shell’s financial prospects are highly dependent on the price of oil. As a result, its profitability could be negatively impacted by a falling oil price, and this could squeeze the headroom that it currently has on its dividend outlook.

In the current financial year, though, the company is due to have dividends covered 1.5x by EPS. This suggests to me that it could cope with a lower oil price and still yield 6%. But in terms of dividend growth, a falling oil price may mean that confidence in the future dissipates to some degree, which may lead to a more cautious dividend growth rate.

With Shell seeking to rationalise its asset base and reduce leverage, I think it offers impressive long-term income investing potential. In the near term, though, further volatility in the oil price would not be a surprise to me, and this could lead to a relatively challenging period for the stock over future months.




About Robert Stephens 4954 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email [e-mail] or use one of the other contact methods available on the 'Contact Us' page

[la forge] 10/10/2018 09:30

4 top dividend shares? Vodafone Group plc, AstraZeneca plc, National Grid plc and Royal Dutch Shell Plc
Do these income shares offer impressive outlooks? Vodafone Group plc (LON:VOD) (VOD.L), AstraZeneca plc (LON:AZN) (AZN.L), National Grid plc (LON:NG) (NG.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L)
October 10, 2018 Robert Stephens FTSE 100




Vodafone Group plc
Vodafone Group plc

The income investing prospects of Vodafone Group plc (LON:VOD) (VOD.L), AstraZeneca plc (LON:AZN) (AZN.L), National Grid plc (LON:NG) (NG.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) seem to be relatively positive in my view.

Vodafone’s share price fall means that it has a dividend yield of over 7%. Although the company is seeing its investment-related costs increase as it bids on 5G spectrum, I think that its long-term growth prospects continue to be bright.

The acquisitions it has made may strengthen its overall position, while partnerships could lead to improved competitiveness in key markets. With EPS growth expected to improve next year, I think the Vodafone share price may have investment appeal.

AstraZeneca’s investment in its pipeline could lead to stronger EPS performance over the next few years. The company has been able to put in place what seems to be a stronger foundation for future growth, and this could prompt a higher valuation further down the line.

With a dividend yield of around 3.7%, I think AstraZeneca remains a relatively appealing income stock. While dividend growth has been non-existent in recent years, its improving financial performance could lead to a rise in shareholder payments in future.

National Grid’s dividend yield of around 6% is relatively high when compared to its recent history. This suggests to me that the stock could offer good value for money, while it may also provide a degree of defensive characteristics in case the FTSE 100 continues its recent fall.

While political and regulatory risks remain high, I think that National Grid’s overall strategy is sound. Its focus on investing in its North American assets could lead to a stronger overall business in the long run.

Shell’s dividend yield stands at over 5% at the moment, which suggests that the company may offer a large margin of safety.

Sure, the oil price could come under pressure, and the company’s future may be uncertain. But with free cash flow set to improve and the company engaging in an asset disposal programme, I’m upbeat about its financial outlook. As a result, I feel that Shell’s dividend prospects could improve over the medium term.




About Robert Stephens 4520 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email [e-mail] or use one of the other contact methods available on the 'Contact Us' page

[brasso3] 05/10/2018 10:42

AAZ will pay a maiden dividend this year. At current prices the yield is ~6%. Goes ex divi on 11th Oct.

The company has also promised to pay 25% of FCF in all future dividends.