Diverse Income Share Discussion Threads

[sarkasm] 08/9/2020 08:30

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 [phone] Americas [phone]

[sarkasm] 01/9/2020 09:01

Https://www.bnnbloomberg.ca/orange-ceo-pledges-to-boost-dividend-with-focus-on-cost-cuts-1.1487255 Orange CEO Pledges to Boost Dividend With Focus on Cost Cuts Helene Fouquet and Geraldine Amiel, Bloomberg News (Bloomberg) -- Orange SA, France’s biggest telecommunications company, pledged to restore the dividend to its pre-pandemic level as soon as this year and to be “ambitious” on cost savings. Orange had cut its 2019 dividend to 50 cents from a target of 70 cents per share in April. It told investors in July that they would be informed by the end of the year if the payout goal would return to the previous level for 2020. Chief Executive Officer Stephane Richard said in an interview Sunday he would “personally” ensure a return to the target. “My objective is to return to 70 cents a share as soon as this year, and we totally have the means to do it.” More broadly, he will continue to pare costs at the company. “We’re totally determined to be more ambitious on the matter, on cost optimization.” A price war in France and weakness in Spain, its two biggest markets, and the need to continue investment in its networks has been weighing on the company’s shares for years. Orange started a program in December to monetize its infrastructure and cut costs. When asked if Orange was planning job cuts, Richard said there is a constant plan to reduce staff in France, and referred to its broader strategy. The company has been making few replacements for staff that are retiring, and Richard said “is this going to continue? Yes.” Personnel reductions would focus on support and non-operational units, he said. He declined to give a target on headcount, but reiterated that the company’s December plan would still achieve 1 billion euros ($1.4 billion) of planned savings by 2023. “We have a job to do on that,” he said. “It’s part of the transformation.” Orange has tended to say little on actions to reduce headcount as it faced a criminal trial linked to a wave of employee suicides more than a decade ago. Ex-CEO Didier Lombard was found guilty of harassment and using “forbidden” methods to carry out staff cuts. The 28% slump in Orange shares this year, under performing peers, raised questions among analysts on whether the company will retain its place in the Stoxx 50 index. The company’s second-quarter results presented a mixed picture. While Orange added a record number of fiber broadband customers in the period, a reflection of its heavy investment, travel bans hit revenue from roaming fees and store closures weighed on equipment sales. Meanwhile, it faces competition from domestic rivals Altice Europe NV’s SFR, Iliad SA and Bouygues SA as they catch up on fiber. “There is some speculation that Orange could be excluded from the Stoxx50 and it weighs on the stock’s performance. But it’s not just that,” Alexandre Iatrides, an analyst at Oddo BHF, said Friday. “Orange benefited in the past two to three years from its advance in fiber. But its competitors caught up and very clearly accelerated.” Infrastructure Opportunities Richard took the CEO role at the company in 2011. A removal from the benchmark would be a blow as it could result in substantial selling pressure from investors and exchange-traded funds that track the index. “We make money, we hand out dividends, we produce cash flow, we have sales that are holding up, as we are massacred on the stock market,” said Richard, speaking in his office in Paris. “The economic reality of the company is totally forgotten.” He said Orange wants to capitalize on opportunities to monetize its infrastructure. It’s selling mobile phone towers in Spain to Cellnex Telecom SA, and will set up separate companies to house its other cellular towers while looking for partners to help with network rollouts in France and elsewhere in Europe. December’s five-year plan indicated the Spanish tower company would be created this year. Richard said Sunday that it would be created and operational by the end of 2021. He also said he envisioned more combinations in this sector in the future. “There is going to be some sort of consolidation on tower companies in Europe,” including between operators, and Orange has had some discussions about this. “We had exchanges with Deutsche Telekom AG and Vodafone Group Plc at some points, but they are not advanced at all.” The virus-related confinement in France before the summer has delayed Orange Concessions, the project to monetize its French fiber infrastructure. Richard said Orange plans to find its financial partner for the dedicated vehicle in 2021, later than the end-2020 planned deadline. He said there is “a lot of appetite for these assets,” and said there could be two investors. Investor Disaffection Amid the activity to make more out of Orange’s assets, he said the company’s share performance reflects a “disaffection” that has developed among investors regarding the industry. They also have a “a sentiment that the short operational perspectives of Orange are under performing other operators, and this comes essentially from two markets: France and Spain.” He said there was reason for “optimism” for the company’s Spanish business in the third quarter. It remains under pressure from competitors including Masmovil on prices, though with its new management starting on Tuesday it can turn around the situation in the next 18 months, Richard said. However, the levels also reflect that hedge funds have “played on an Orange exit,” he said. “They are massively shorting the stock.” “‘I am violently opposed to these practices,” he said. “This isn’t the way financial markets should work because the economic reality of companies is totally forgotten.”

[waldron] 18/8/2020 07:00

TOP NEWS: BHP Lowers Dividend As Revenue Falls Short Of Consensus Tue, 18th Aug 2020 05:15 Alliance News (Alliance News) - Anglo-Australian mining firm BHP Group PLC said Tuesday it lowered its annual dividend, as profit and revenue declined on lower prices and an increase in the closure of mines and rehabilitation provisions, as a result of Covid-19. For the year to the end of June, pretax profit dropped by 10% to USD13.51 billion from USD15.05 billion the year before, as revenue declined by 4.3% to USD42.39 billion from USD44.29 billion. BHP's revenue performance came in short of company-compiled expectations, which stood at USD43.07 billion. Profit from operations decreased by 11% to USD14.42 billion from USD16.11 billion the prior year, while underlying earnings before interest, taxes, depreciation and amortisation slipped by 5% to USD22.07 billion from USD23.16 billion. The underlying Ebitda was just ahead of consensus expectations, which had the figure at USD22.01 billion. BHP said its performance was hurt by lower prices, particularly in coal, copper and petroleum, lower volumes including a decline in copper grades and petroleum fields, and a rise in the closure and rehabilitation provisions for closed mines. BHP declared an annual dividend of 120 US cents, down 10% from 130 cents the year before, as net debt as at June 30 was USD12.04 billion, up 28% year-on-year from USD9.45 billion. Looking ahead, BHP said it expects petroleum output for its current financial year to be in the range of 95 million to 102 million barrels of oil equivalent, reflecting a 6% to 13% fall from 109 million barrels of oil equivalent produced for the 2020 financial year. Copper production is set to be between 1.48 million and 1.65 million tonnes, a 5% to 14% drop from 1.72 million tonnes. Iron ore output is expected to be between 244 million and 253 million tonnes, reflecting a 2% drop to 2% rise from 248 million tonnes produced in the 2020 financial year. The metallurgical coal forecast is between 40 million and 44 million tonnes, marking a 3% fall to 7% increase from 41 million tonnes. Finally, energy coal is expected to be between 22 million to 24 million tonnes, reflecting a 5% drop to 4% increase from 23 million tonnes. "BHP delivered a strong set of results for the 2020 financial year that reflect the strength, resilience and quality of our people and our portfolio. In a year marked by the challenges of the global Covid-19 pandemic, social unrest in Chile and commodity price volatility, we were safer, more reliable and lower cost," said Chief Executive Officer Mike Henry. "We are moving to concentrate our coal portfolio on high quality coking coals, with greatest potential upside for quality premiums as steel makers seek to improve blast furnace utilisation and reduce emissions intensity. In oil and gas, we will continue to invest in opportunities that are resilient under a range of price scenarios, and which are aligned to our strengths. We will seek to divest oil and gas assets that are mature or which are likely to realise greater value under different ownership," Henry added. Shares in BHP were marginally higher at AUD39.87 on Tuesday in Sydney. By Dayo Laniyan; [e-mail]

[bluemango] 09/8/2020 09:50

As flagged by me back in June (post 424) Phoenix (PHNX) have just confirmed they are maintaining their dividend of 23.4p per half-year (shares are currently 720p, yield 6.3%) Legacy life insurance acquirer. No staff furloughed. Chairman's wife recently bought £117k worth.

[misca2] 08/8/2020 15:02

Https://seekingalpha.com/article/4366288-total-sa-last-surviving-european-oil-dividend?utm_medium=email&utm_source=seeking_alpha&mail_subject=tot-total-sa-the-last-surviving-european-oil-dividend&utm_campaign=rta-stock-article&utm_content=link-2

[sarkasm] 02/8/2020 08:37

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.

[ariane] 30/7/2020 09:56

Total maintains dividend despite net losses of £6.5bn, celebrates major oil discovery off Suriname by Mark Lammey 30/07/2020, 7:54 am French energy giant Total this morning announced first-half net losses of £6.5 billion, but provided some cheer by maintaining its dividend and celebrating a major discovery off Suriname. Paris-headquartered Total had enjoyed net income of £4.5bn in the first six months of 2019. But the firm’s first half 2020 figures were hit by a £6.3bn impairment on its assets, with most of that sum tied to its high-cost, high-carbon Canadian oil sands business. ENERGYVOICE

[ariane] 30/7/2020 09:09

Https://www.marketscreener.com/GTT-GAZTRANSPORT-ET-TEC-15821825/news/GTT-H1-2020-results-Revenue-and-earnings-up-sharply-annual-targets-confirmed-31013536/ Outlook for 2020 The Group has good visibility on its royalty revenues4 from now to 2023 thanks in particular to the order book for its core business as at the end of June 2020. This corresponds to revenues of 832 million euros over the 2020-20235 period (374 million euros in 20206, 266 million euros in 2021, 151 million euros in 2022 and 41 million euros in 2023). Given the size of the backlog, and assuming there are no major delays or cancellations of orders, GTT confirms its targets for revenues and EBITDA for the 2020 financial year, i.e.: 2020 consolidated revenues of between €375 million and €405 million, 2020 consolidated EBITDA of between €235 million and €255 million Additionally, the Group is confirming its dividend distribution policy, i.e. for the 2020 and 2021 financial years a minimum distribution rate of 80% of consolidated net income. Interim dividend payment The Board of Directors meeting of July 29, 2020 decided the distribution of an interim dividend of 2.50 euro per share for the 2020 financial year, to be paid in cash according to the following schedule: November 3, 2020: Ex-dividend date November 5, 2020: Payment date Covid-19 Health of GTT employees and their families Although no severe cases have been identified, the Group continues to implement the recommendations of the health authorities and to update them regularly as the situation evolves. How the Group operates Registered office: except for employees at risk or close to a person at risk, all staff have returned to work on site. Subsidiaries and seconded employees: same policy as the registered office, subject to local directives. Main risks For GTT, the main risk of the coronavirus epidemic consists of possible delays to the timetable for the construction of vessels, which may lead to a shift in the recognition of revenue from one financial year to another. On the date of this press release, GTT notes some delays, but without significant impact on revenues for 2020. The risks related to the impact of the epidemic on the worldwide economy, and particularly on the market for LNG, are currently difficult to assess. The Group nevertheless reiterates that the LNG market is mainly based on long-term prospects and financing. GTT's activities are therefore functioning normally, despite a particularly difficult environment. The Group closely monitors any changes that could affect the markets in which it operates. Presentation of H1 2020 results Philippe Berterottière, Chairman and Chief Executive Officer, and Marc Haestier, Chief Financial Officer, will comment on GTT's results, and answer questions from the financial community during a conference call in English on Thursday, July 30, 2020, at 8:30 a.m. Paris Time. To participate in the conference call, please dial one of the following numbers five to ten minutes before the start of the conference: France: [phone]; United Kingdom: [phone]; United States of America: [phone]. Confirmation code: 4064836 This conference will also be broadcast live on GTT's website (www.gtt.fr/finance). The presentation document will be available on the website. Financial agenda Payment of an interim dividend of €2.50 per share for the 2020 financial year: November 5, 2020 Publication of the Q3 2020 revenue: October 28, 2020 (after closing)

[ariane] 30/7/2020 08:54

Https://www.marketscreener.com/ORANGE-4649/news/Orange-Financial-results-at-30-June-2020-31017933/ Outlook For the financial year 2020, Orange confirms that it does not foresee any significant deviation with respect to its financial objectives: Given current information and currently anticipated trajectories, the Group now expects a slight decline in 2020 EBITDAaL of about 1% including all the effects linked to the Covid-19 pandemic. It should be noted that, excluding the Covid-19 impact, EBITDAaL would have been 'flat positive' as expected. Given delays in investments to date, eCAPEX will be lower, offsetting the decline in EBITDAaL. Therefore, the Group's EBITDAaL less eCAPEX will be stable in 2020. The Group's commitment to exceed 2.3 billion euros in organic cash flow from telecoms activities remains unchanged. The objective for a net debt to EBITDAaL ratio for telecoms activities of around 2x in the medium term is maintained. For the 2021-2023 period, Orange confirms its financial objectives as announced during the investor day on December 4, 2019. Orange will pay an interim dividend of 0.30 euros in cash on December 9, 2020. The decision on the final amount of the 2020 dividend will be announced between the results publication dates for the 3rd and 4th quarters of 2020. A distribution of 0.70 euros per share remains the Group's objective, including for the 2020 fiscal year, the final decision will be taken at a later date, depending on the situation. Commenting on the publication of the 1st half 2020 results, Stéphane Richard, Chairman and CEO of the Orange Group, said: 'Orange has shown a remarkable level of resistance in the first half of the year, despite the effects of the Covid-19 pandemic, with a 0.3% increase in revenues and a contained decrease in EBITDAaL of 0.8%. These results bear witness to our business' resilience and its capacity for collective mobilisation in the face of this crisis. In France, in spite of the restrictions due to the pandemic, our commercial dynamic is good, in particular in fiber: indeed we delivered a second-quarter record of 238,000 net additions. Our customers' appetite for fiber confirms the validity of our investment strategy and we are continuing our deployment with a view to building as many connection points in 2020 as we did in 2019 notwithstanding the unprecedented health context. In Spain, where the situation remains challenging given the market's slide towards low cost, we have adapted our positioning and enlarged the range of our offers: a strategy that is now showing its first results. In Africa and in the Middle East, revenues grew 3.8% in the first half and EBITDAaL rose by more than 7%: an excellent performance driven by mobile data (with a 40% increase in 4G customers year on year), by broadband and by Orange Money, that will be further strengthened by last week's launch of Orange Bank Africa. Even though Orange has proven to be more vital than ever to its business customers over these past months, the health crisis has impacted our results in B2B. I would, however, point to the very good performance of Orange Cyberdefense and Orange Cloud for Business where revenues grew by 11% and 8% in the first half. This crisis has revealed the strategic nature of telecoms networks for our economies and even society as a whole. While impacted, we are comforted in the strategic choices we made with Engage 2025, the roll-out of which we will be accelerating, whether this be through mastering our carbon footprint, the deployment and optimisation of our infrastructures or the development of our growth territories. I'd like to conclude by extending my warm thanks to all of Orange's teams who have been fully mobilised throughout the crisis to serve our customers.'

[ariane] 30/7/2020 07:13

announcement Jul 30, 2020 The Board of Royal Dutch Shell plc (“RDS” or the “Company”;) today announced an interim dividend in respect of the second quarter of 2020 of US$ 0.16 per A ordinary share (“A Share”) and B ordinary share (“B Share”).

[aleman] 24/7/2020 12:08

FTSE100 Q2 dividends down 45%. FTSE 250 Q2 dividends down 76%. Https://www.linkassetservices.com/our-thinking/uk-dividend-monitor-q2-2020 Not just me then.

[waldron] 23/7/2020 06:32

Rough Q2 reports ahead for Big Oil names; BP dividend cut seen likely Jul. 22, 2020 6:57 PM ET|About: BP PLC (BP)|By: Carl Surran, SA News Editor For the first time since at least he early 2000s, all five Big Oil supermajors - BP, Chevron (NYSE:CVX), Exxon (NYSE:XOM), Shell (RDS.A, RDS.B) and Total (NYSE:TOT) - are poised to post a quarterly loss, analysts say. "Worst-in-a-generation oil prices combined with OPEC production cuts, collapsing refining margins and millions of barrels of unsold crude mean no facet of Big Oil's business has emerged unscathed," Bloomberg writes. For BP, several analysts anticipate a cut in the dividend payout of 30%-65%, a historic move for a company that has been a cornerstone dividend payer. Exxon, Chevron and Total are not expected to follow suit, although Goldman analysts believe a cut at Exxon "could enable a financially healthier company." Shell already cut its dividend for the first time since World War II earlier this year. Exxon's borrowing is rising rapidly and eventually will become a cause for concern, according to Morgan Stanley and Goldman, which says the company's net debt increased $8.8B in Q2 and will surge to $78B by year-end 2022. Chevron's agreement to acquire Noble Energy this week includes the assumption of $8B of additional debt, but CEO Mike Wirth says the company remains well-placed to pay its dividend. "Our team has forecasted earnings for 72 quarters and Q2 2020 seems the most difficult of them," says Jefferies' Jason Gammel.

[florenceorbis] 14/7/2020 15:20

Https://seekingalpha.com/article/4358331-exxon-vs-shell-exxon-wins-dividend?utm_medium=email&utm_source=seeking_alpha&mail_subject=rds-a-exxon-vs-shell-exxon-wins-by-a-dividend&utm_campaign=rta-stock-article&utm_content=link-2

[aleman] 10/7/2020 14:36

From Shares Mag (paraphrased): The number of FTSE 100 companies with 10 years of consecutive raised dividends fell from 25 at the start of the year to 14 at the end of H1, according to AJ Bell. FTSE100 yield fell from 4.7% to 3.6%, covered only 1.4 times.

[sarkasm] 05/7/2020 09:38

Https://www.gsk.com/en-gb/investors/shareholder-information/dividend-calendar/ Dividend timetable for Q1 2020 Payable Thursday 9 July 2020 Dividend timetable for Q2 2020 Announcement date Wednesday 29 July 2020 Ex-dividend date* Thursday 13 August 2020 Record date Friday 14 August 2020 Last date for DRIP elections Thursday 17 September 2020 Payable Thursday 8 October 2020

[adrian j boris] 28/6/2020 08:22

Https://www.bnnbloomberg.ca/saudi-aramco-s-dividend-math-doesn-t-add-up-1.1457305

[waldron] 09/6/2020 19:35

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

[bluemango] 09/6/2020 12:26

Possibly of interest here to income seekers, just posted this on PHNX (Phoenix) thread: bluemango9 Jun '20 - 11:35 - 4011 of 4011 Edit 0 2 0 Added again. Rather overweight now. Still think these have been overlooked at this price. Time will tell. Bull factors: 7% yield looking relatively safe. Legacy life assurance business model not hugely reliant on selling new product or services, unlike many other companies in current uncertain economic environment. Low price possibly has much to do with confusion over fundamentals (eg focus on PE/eps) Staff not furloughed, so no moral obligation to suspend dividends. Chairman's wife recently bought £117k worth around these levels. Director deals aren't always a useful indicator, but nobody, whatever your situation, is going to fork out that kind of cash without being reasonably sure the capital would be secure.

[waldron] 09/6/2020 12:09

Frank Prenesti Sharecast News 09 Jun, 2020 07:29 09 Jun, 2020 11:55 BAT warns of Covid-19 sales hit but commits to dividend payout pall-mall-cigarettes-tabac-bat British American Tobacco lowered full year guidance as coronavirus travel bans and lockdowns in South Africa, Mexico and Argentina hammered sales. The maker of Pall Mall and Rothmans on Tuesday said it expected constant currency adjusted revenue growth of 1% - 3% from previous guidance of around the lower end of 3% - 5%. It also forecast mid-single figure adjusted diluted earnings per share growth, compared with high single figure previously as sales in emerging markets were hit. BAT added that it would maintain dividends, paying out at a ratio of 65% of adjusted diluted EPS and growth in sterling terms, “supported by a strong liquidity position”. It said revenue had been especially hard hit in South Africa where sales of tobacco were stopped completely in March as part of measures to combat the virus. US sales were proving more resilient than expected across the industry, with volumes falling around 4% this year. Debt reduction would continue, but at a slower rate, BAT added. Richard Hunter, head of markets at interactive investor said the "bull case" on BAT shares remained clear. "BAT continues to generate cash on a prodigious basis given the underlying inelastic demand of its products, while also reaping the reward of high margins following a major cut to production costs after moving its manufacturing facilities some years ago to more cost-efficient geographies," he said. Hunter said the stock had outperformed the FTSE 100, rising nearly 4%, as compared to a 12% decline for the wider index over the last year, displaying some of its defensive qualities. "At the same time, appetite for the shares is undiminished, with the market consensus remaining firmly in place as a strong buy.” AJ Bell investment director Russ Mould said analysts had been looking for a 4% increase in EPS to 335.4p a share, which underpinned estimates of an identical increase in the full-year dividend – paid in quarterly instalments – "to just shy of 219p a share". "If that sum is indeed paid, it would add to BAT’s streak of increased annual dividend payments which dates back to 1998, according to Refinitiv data," Mould said. “Those forecasts will not be going up after today and they may even come down very slightly, but a dividend of just under 219p a share still equates to a dividend yield of 7.3%, more than enough to catch the eye of income-starved investors who have seen 46 FTSE 100 firms cut, defer, suspend or cancel a dividend payment already in 2020." “The question that analysts need to ask themselves about BAT – and indeed the other big payers in the FTSE 100 – is whether the pay-out ratios are defensible over the short-term, owing to any hit to business from COVID-19, and then the long-term, which issues such as competitive position, regulatory threat, management acumen and financial strength will all remain key considerations.". Mould also cautioned that the tobacco industry was no longer guaranteed to be immune from volatility, with falling global volumes and regulatory pressure on branding and advertising and now Next Generation Products which could mean "some investors are less convinced of the long-term cash-generative capabilities of tobacco".