Diverse Income Share Discussion Threads

[waldron] 03/4/2020 10:30

The European Union's insurance regulator has asked insurers and reinsurers in the region to temporarily suspend dividends and consider a postponement of bonuses amid the coronavirus pandemic, knocking stocks across the sector. The European Insurance and Occupational Pensions Authority late Thursday urged insurers to have a prudent approach to shareholders' remuneration and variable pay. It wants insurers and reinsurers to preserve their capital position and ability to absorb potential losses, as well as ensure the continuity of their services. The advice sent share insurers' share prices dropping across the continent. The biggest fallers were Dutch companies NN Group N.V. and Aegon N.V. which both fell over 9%. Also hard hit were France's CNP Assurances and the U.K.'s Legal & General Group PLC, trading down around 7%. The U.K. still follows European insurance regulation during the Brexit transition. Some major European insurers have recently said they continue to expect to pay their previously declared 2019 dividends, including Germany's Allianz SE and Munich Re which both traded down around 2% in morning trading on Friday. Insurers and reinsurers "should ensure that their assessment of the overall solvency needs is forward-looking, taking due account of the current level of uncertainty on the depth, magnitude and duration of the impacts of COVID-19," the Authority said. "In such context, the variable part of remuneration policies should be set at a conservative level and should be considered for postponement," it added. Write to Pietro Lombardi at [e-mail] (END) Dow Jones Newswires April 03, 2020 05:00 ET (09:00 GMT)

[waldron] 02/4/2020 22:22

Even telecoms TAKE CARE EJ Certainly pleased for number son my rental incomes not so sure but so far divis relatinely safe

[waldron] 02/4/2020 21:22

ANOTHER MAJOR OILIE GETTING PREMIUM POINTS FOR DIVIDEND CONTINUENCE Https://seekingalpha.com/article/4335062-exxons-dividend-is-looking-safer-time-to-lock-in?utm_medium=email&utm_source=seeking_alpha&mail_subject=must-read-market-recovery-sooner-than-most-expect&utm_campaign=nl-must-read&utm_content=link-3

[tenapen] 02/4/2020 17:54

Hi, one of the sector's that do well in times of volatility are brokers. I would imagine the last two weeks have been a boom with increased trading as people run for the exit !. To every positive there is always a negatity and with interest rates at near zero the brokers will not be making on the money they hold. Just an idea and no advice intended. Regards. An FT graph on daily trade volumes. Https://markets.ft.com/data/indices/tearsheet/summary?s=FTSE:FSI

[bluemango] 02/4/2020 12:55

Surprised this thread isn't getting more attention. The shock coming as more companies suspend dividends in coming weeks and months is going to be incalculable - and I can't see Government coming to rescue of those of us depending on SIPP income (or other managed investments with income as main priority)

[waldron] 02/4/2020 08:18

Bouygues and Bunzl are the latest European firms to withdraw their 2020 guidance and cancel dividends due to the effects of the coronavirus pandemic on their businesses.

[waldron] 02/4/2020 07:50

Credit Agricole SA has decided to cancel the 2019 dividend following a recommendation from the European Central Bank. France's second-largest listed bank by assets will propose to shareholders meeting on May 13 to allocate the full net profit for last year to reserves, it said late Wednesday. The French bank's decision follows similar steps taken by other European peers, including France's Societe Generale SA, after the ECB asked the region's banks not to pay dividends or buy back shares during the coronavirus pandemic. The ECB wants banks to boost their ability to absorb losses and support the economy as the eurozone braces for a sharp economic slowdown caused by the pandemic. For this reason, it asked banks not to pay dividends for 2019 and 2020 at least until Oct. 1, adding that lenders should also avoid buybacks. The October deadline is incompatible with French laws, under which dividends have to be paid by the end of September, Credit Agricole said. The bank will lay out new guidelines for shareholders' returns in the second part of the year. These can include an interim or exceptional dividend. Cancelling the dividend for last year will boost Credit Agricole SA core capital ratio by 60 basis points, it said. Write to Pietro Lombardi at [e-mail] (END) Dow Jones Newswires April 02, 2020 01:37 ET (05:37 GMT)

[pugugly] 01/4/2020 07:57

RNWH and BARC -dividends suspended.

[florenceorbis] 01/4/2020 07:52

The Times: Glencore has postponed a decision on whether to pay its proposed $2.6 billion dividend this year amid risk that its production could be significantly disrupted by the coronavirus pandemic.

[waldron] 31/3/2020 13:01

arcteryx 31 Mar '20 - 12:29 - 12114 of 12115 0 1 0 https://www.ft.com/content/ee832198-024b-4a0f-a61d-de767a1e6d6c Anjli Raval, Senior Energy Correspondent 25 minutes ago Shell secures $12bn credit facility to safeguard dividend Energy major boosts available liquidity to more than $40bn as coronavirus bites Royal Dutch Shell has secured a new $12bn credit facility as it seeks to safeguard dividends amid “significant uncertainty” spurred by the coronavirus pandemic. The Anglo-Dutch energy group said on Tuesday that the arrangement, which follows a $10bn facility obtained in December, had boosted its available liquidity to more than $40bn. The company’s shares rose 6 per cent in morning trading in London. “We have seen and expect significant uncertainty . . . with regards to prices and demand for oil, gas and related products,” Shell said, citing the impact of coronavirus on the global economy as well as the Saudi-led price war and a flood of new supplies to the market. Brent crude fell this week to its lowest level since 2002. The company said new oil price assumptions would lead to a post-tax impairment charge of $400m to $800m, expected to be disclosed when it reports its first-quarter earnings on April 30. While Shell pointed to previous guidance that every $10-a-barrel decline in the Brent crude price cost it $6bn a year, it warned that this estimate was “most applicable to smaller price changes than we currently witness”. The Brent crude price has plunged to $23 a barrel from $70 in January. Shares in Shell, which is one of the world’s biggest dividend payers, have plunged 40 per cent over the same period. Shell said the effects of the coronavirus crisis would primarily be reflected in this month’s earnings, with only a “relatively minor impact” in January and February, before most of the restrictions on movement and activity were imposed in countries worldwide. Last week Shell said it would suspend its share buyback programme and announced that capital expenditure would fall to $20bn or less this year, from initial plans for $25bn. It said its operating costs would also decline by $3bn to $4bn. “Shell has the balance sheet capacity and ability to cut capex to survive in the current environment without a significant cut to dividends, but if this outlook was to last for more than nine to 12 months, we would expect a cut,” said Biraj Borkhataria at RBC Capital Markets. Oil and gas majors were under pressure before coronavirus hit, having pledged to maintain shareholder payouts and sustain hydrocarbon earnings despite macroeconomic weakness, while pivoting towards greener businesses. Coronavirus trajectory tracker explained “Expectations for increased shareholder returns are no longer viable,” said Jefferies analyst Jason Gammel in a note last week. While he said existing payouts were generally safe for now, “the return of scrip dividends seems likely”, referring to the option for investors to receive additional shares instead of cash payments.

[waldron] 28/3/2020 14:37

CHUCKLE WHAT THINK YOU GARY

[gary1966] 28/3/2020 10:59

So are world governments going to pay people that live off their dividend income, 80% up to £2500pm as well?

[waldron] 28/3/2020 07:33

More than 100 British companies halt dividend payments due to coronavirus pandemic share with twitter share with LinkedIn share with facebook share via e-mail 0 03/27/2020 | 06:56pm GMT A usually crowded Canary Wharf is seen at lunchtime in London More than 100 British companies have postponed or ditched dividend payments in a bid to preserve cash for what could be a lengthy enforced shutdown of large parts of the UK and global economy due to the coronavirus pandemic. Data from investment firm AJ Bell released on Friday showed that retailers, housebuilders and telecoms firms as well as plenty of other sectors halted a combined 4.2 billion pounds of dividend payments in March alone. Two real estate companies -- Persimmon and Taylor Wimpey -- accounted for a combined 1.24 billion pounds after builders started shutting construction sites as demands from new buyers plummeted. More recently, the UK government urged people to avoid moving house and requested builders to halt non-essential construction work during the virus outbreak. Persimmon postponed a 751.8 million pound dividend payment, while fellow builder Taylor Wimpey cancelled its final and special dividends for 2020, a total 485.7 million pounds. Broadcaster ITV said it would not pay one either after the coronavirus hit its advertising revenues and forced Britain's biggest commercial free-to-air broadcaster to suspend production of its top soap operas "Coronation Street" and "Emmerdale". Retailer Marks & Spencer ditched its 2019-20 final dividend too, saying it was no longer able to provide any meaningful guidance on its likely earnings for 2020-21 after its stores were shut. There have only been nine exceptions to the rule so far this month, including from utility firm SSE and Coca Cola HBC AG, according to AJ Bell and even they were not straight forward. SSE said it might need to change the timing of its full-year dividend of 80 pence per share for 2019-20 based on how the Covid-19 impact evolves, while Coca Cola was another firm that withdrew its guidance for the current financial year. The London Stock Exchange said on Wednesday it would allow companies listed on its market to defer payment of dividends for up to 30 days due to coronavirus hitting markets. (Reporting by Joice Alves, editing by Pritha Sarkar)

[waldron] 28/3/2020 07:00

FRANCE: BERCY SETS ITS CONDITIONS FOR THE PAYMENT OF DIVIDENDS Companies receiving public aid set up to try to limit the economic impact of the coronavirus epidemic will not have to pay dividends or face repaying aid and paying penalties, the Minister of Finance said on Friday. French Economy and Finance, Bruno Le Maire. The government is thus toughening the tone on the opportunity for companies to distribute part of their cash to their shareholders as France is heading for a recession this year. "Companies that need cash today, especially big companies, if they need cash and they ask for state aid, they can't, they don't have to pay dividends. And we will ensure that it is respected, "said Bruno Le Maire on BFMTV. "All the companies which would have benefited from deferrals of social or tax charges and who would have paid dividends will be obliged to repay this cash advance on social and tax charges with an interest penalty," he added. Bercy will also refuse to companies that have paid dividends to benefit from the state guarantee for new bank loans, the minister continued. THE SHAREHOLDER STATE COULD VOTE AGAINST DIVIDENDS "And believe me, these big companies which would ask for a bank loan without the guarantee of the State will have trouble finding this bank loan," he said. Employers who will benefit from the state-funded partial unemployment scheme are called to "the greatest moderation" when it comes to dividends. Finally, Bruno Le Maire announced that state representatives would vote, during general meetings of companies in which he is a shareholder, against the payment of dividends if they have benefited from a public aid scheme. The advisability of distributing dividends was raised at the start of the day at the social partners' meeting organized by the government to take stock of the coronavirus epidemic and its economic and social consequences. Bruno Le Maire had called on big companies last week to show moderation in the matter and Tuesday, the secretary general of the CFDT, Laurent Berger, had followed suit by urging large groups not to pay this year given the economic crisis caused by the coronavirus epidemic, which put France on hold. The union welcomed Friday the announcements of Bruno Le Maire, welcoming in a press release "a strong signal calling on businesses to be consistent". This debate goes far beyond French borders: several European companies have already given up paying dividends and on Friday, the European Central Bank (ECB) asked the banks placed under its supervision to suspend their dividends and share buybacks, until October 1 at least. (Marine Pennetier, edited by Marc Angrand)

[praipus] 18/3/2020 22:27

PUT option insurance in place still ? These guys should be absolutely loaded :)

[adrian j boris] 14/10/2019 21:00

Top UK dividend payers Rank Company 1 HSBC (HSBA) 2 Royal Dutch Shell (RDSA) 3 Rio Tinto (RIO) 4 BP (BP) 5 Royal Bank of Scotland (RBS) Subtotal £11.9bn % of total dividends 33% 6 BHP Group (BHP) 7 British American Tobacco (BATS) 8 Glencore (GLEN) 9 National Grid (NG) 10 BT (BT) 11 Vodafone (VOD) 12 GlaxosmithKline (GSK) 13 Astrazeneca (AZN) 14 Lloyds (LLOY) 15 Anglo American (AAL) Subtotal £10.1bn Top 15 grand total £22bn % of total dividends 62%