Diverse Income Share Discussion Threads

[aleman] 02/1/2023 20:35

Another link for the header?

[spangle93] 27/12/2022 11:23

Just a note to reinforce Divmad/Bluemango's recommendation of I3E, where I'm lucky enough to have an average purchase price of 8p, so my effective dividend is 25% :-)

The board stated on 22 Dec "As part of the i3's commitment to its total return model, the Company is increasing its 2023 minimum dividend by 59.4% above the total dividends paid during 2022 to £ 24.475 million, through an increased monthly dividend of 0.171 p/share - equating to an annual dividend of 2.052 p/share"

I3E drilled an appraisal well in the North Sea in October this year. Unfortunately it did not prove an extension of an existing discovery, which affected the share price. Looking into 2023, there are no single well events of a similar magnitude - the company will progress the North Sea discovery towards a field development well that ties the original exploration back to third party infrastructure. However I3E is all about exploitation of, and production from, onshore resources in western Alberta, where is has sizeable acreage in new conventional plays that offer good rates of return, and where its inventory of hundreds of wells means that no one well will wildly affect the share price

Note: MINIMUM dividend. In 2022 the moonthly dividend was raised during the year.


Elsewhere in the hydrocarbons space DEC continues to offer a stable, rising quarterly dividend. I'm sure CASSINI would have brought it to people's attention. DEC is unique in oil and gas in that it makes its money from managing the decline of mature wells in the US, and operating infrastructure, rather than exploring for new finds, or developing discoveries. The latest quarter is 4.375 US cents, which would be 17.5c annualised (14.5p at $1.2 = £1). Current share price is 117p, so that's a nominal dividend of 12.4%. I am SO going to get shouted out here, but the majority of brokers and investors believe that this is subject to a withholding tax of 30%, or 15% if held in an ISA, or 0% if held in a SIPP. You'd also need to complete a W-8BEN form


One wildly left field oiler, which has so many red flags that it could be a May Day procession in Moscow, is CASP. Who? CASP. CASP has recently announced a maiden dividend, which turned out to be rather larger than any BB expert was imagining.

"The size of this maiden dividend is indicative of the levels to be expected in the future. The Board intends that the future dividends will be paid on a monthly basis, based on the higher of £1 million per month or a pay-out ratio of broadly 35-40% of free cashflows."

This equates to a distribution of 0.0444 pence/share, which has been succeeded by a second monthly dividend of the same magnitude.

CASP is on AIM and operates in Kazakhstan. The CEO and members of his family own a significant majority of the shares. Its communications with retail shareholders, and engagement with them, would not get a good rating on booking.com. RNS's are written by a mouthpiece for the company - the chairman - who is an accountant, so technical details often make no sense. Although Kaz isn't subject to sanctions, its oil export route is through the Urals so it's effectively treated as such the international price it can get for its oil is much lower than Brent.

HOWEVER, the concert party wants a return from the company, and now they are producing over 2000 bopd, they can pay dividends. If the monthly dividends continue, then at a share price around 4p, the annualised dividend would be 13.3%


Disclaimer - I hold each of these shares

[bluemango] 27/12/2022 10:10

By contrast, Steppe Cement (STCM) pays only annually, but it is 10.6% at current offer price (5p dividend, 47p offer) and earnings are likely to increase. Next payment July. A solid, steady earner, with directors having serious skin in the game.

Could also benefit from eventual rebuilding programme in nearby Ukraine.

[bluemango] 27/12/2022 10:02

Agree with #611, I3E looks interesting for dividend seekers with a regular monthly dividend, just increased, and price of energy likely to start rising again with China opening up after Covid restrictions.

I3E is also subject to rumours re possible prepping for it to be taken over. Meanwhile 8.5% yield from a solid sector (O&G) in current market is undeniably attractive.

[the chairman elect] 27/12/2022 09:41

So Aleman a company has to pay ACT of 25% on Divi's and we have to pay 8.5% at BT tax or much more if HRT payers?

Seems as per usual like an awful lot of TAX being collected by HMRC

Is the above broadly it or have I got it wrong?

P.S. - finally how do Divi's compare now with other income producing assets such as corporate bonds, GILTS etc, etc....

[aleman] 26/12/2022 10:49

That dividend report suggesting a record high of £86bn is nonsense. I remember dividends breaking £100bn when there was a run of big special dividends. This article goes into some detail about the record £110.5bn paid in 2019 and there's an FT article to back it up. Dividends are still well down from peak and we are paying more tax on them.

[divmad] 26/12/2022 07:21

And one from me. I3e, forward yield 8.5% , payable monthly.

[flyfisher] 26/12/2022 07:18

New to this thread, here are some that i own and follow.

TBCG, forward yield 7.5%

LGEN, forward yield 7.0%

OCN, forward yield 6.6%

AAL, historic yield 6.4% excluding special

[waldron] 16/12/2022 06:17

Credit Suisse private markets executives latest to leave bank

Brian Williams and Jerome Wallace are moving to William Blair as the investment bank expands its private capital advisory group

By
Rod James

Friday December 16, 2022 6:01 am

Credit Suisse Group has lost two managing directors, according to people familiar with the matter, following the departure of a global leader in its private fund group just weeks earlier.

Brian Williams and Jerome Wallace, the co-heads of Americas distribution in the investment bank’s private fund group, plan to join investment bank William Blair as co-heads of its newly formed private capital advisory business, according to three of the people.

FINANCIAL NEWS

[waldron] 13/12/2022 11:08

all the best

[peterbill] 13/12/2022 11:04

Thanks Waldron

My portfolios in Stirling so don't want to receive divis in other currencies, so do look at other ways to gain exposure to shares listed on other exchanges.

I'm in the process of investigating infrastruture investments, digital or other for the longer term.

[waldron] 13/12/2022 11:00

Cordiant Digital Infrastructure Limited CORD - DividendMax

There are typically 2 dividends per year (excluding specials). Latest Dividends Enter the number of Cordiant Digital Infrastructure Limited shares you hold and we'll calculate your dividend payments: Calculate Payment Previous Payment £1.50 Paid on 21 Jul 2022 (Thu) Next Payment £2.00 Paid on 23 Dec 2022 (Fri) Forecast Accuracy —

[waldron] 13/12/2022 10:33

PAYS A QUARTERLY DIVI WHICH HAS JUST BEEN PAID

CANNOT FIND MENTION ON ORANGE INVESTMENT

APPARENTLY Digital 9 is set to join the FTSE 250 index on December 19.

Thanks for your post Peter

enjoy yer day

chuckle and cheers

take care

By the way my portfolios only hold swiss franc and euro denominated shares

[waldron] 13/12/2022 10:14

Digital 9 targets unchanged annual dividend as set to join FTSE 250
12/01/2022 | 12:04pm GMT


(Alliance News) - Digital 9 Infrastructure PLC on Thursday said it targets an unchanged annual dividend for 2022 at 6.0 pence per share, as the investment fund is set to join London's club of mid-cap stocks.

The London-based investor in digital infrastructure declared a quarterly interim dividend of 1.5 pence per share for the third quarter that ended on September 30.

Digital 9 aims for a dividend of 6.0p per share for the year ending on December 31, unchanged from financial year 2021, which started on January 8, 2021 and ended on December 31 that year.

Further, the company expects to update its five-year business plan in early January. It expects to release its 2022 results in March.

The company added that its investment manager Triple Point Investment Management LLP confirmed it started a formal recruitment and selection process for a permanent head of digital infrastructure.

Meanwhile, Digital 9 is set to join the FTSE 250 index on December 19.


Announcing its quarter index review late Wednesday, index provider FTSE Russell said Digital 9 will join the index alongside European Smaller Cos Trust PLC, replacing Home REIT PLC and Petrofac Ltd.

abrdn PLC, Beazley PLC and Weir Group PLC will join the FTSE 100, while Dechra Pharmaceuticals PLC, Harbour Energy PLC and Intermediate Capital Group PLC will leave it.

In its most recent earnings release back in September, Digital 9 posted a half-year pretax profit rise of 64% to GBP27.4 million from GBP16.7 million in the six months to June 30 compared to a year prior. Total income grew 36% to GBP31.4 million from GBP23.1 million.

Meanwhile, its net asset value per share at June 30 improved 0.5% to 105.13 pence each from 104.62p at December 31, 2021 and 1.7% from 103.34p a year ago. However, earnings per share fell to 3.43 pence against 9.34p. The company raised GBP155 million through issuing shares in January and July 2022. In a challenging environment, the company back then noted that 69% of the total recurring revenue from its portfolio of investments has some form of inflation protection, including 58% with uncapped consumer price index/retail price index linkage.

Digital 9 Infrastructure shares were 2.3% higher at 89.24 pence each on Thursday morning in London.

By Tom Budszus; [e-mail]

[peterbill] 13/12/2022 10:09

Thanks waldron

I see that Orange is quoted on the Paris and NY exchanges, so looked to see if there were any ITs that hold Orange ... came across this



Don't know anything about them ...

DYOR

[peterbill] 20/11/2022 13:07

"If you're dependent on dividend income, then surely it should be in an ISA."

... or SIPP - all my investments are sheltered in ISA or SIPP

We have been encouraged by successive governments to save via these instruments, so dividends should be protected, but somehow think the income will be eroded.

If dividends of pensioners are being raided, they (the government) will have to looks at the generous public sector pensions (their own) ... Imagine the outcry ... turkeys don't vote for Christmas.

[yump] 20/11/2022 11:39

If you're dependent on dividend income, then surely it should be in an ISA.

Also, surely there's a difference between investors and people who make a few grand trading an asset. Fed up of people who dabble being called investors.

The loudest voices complaining and claiming 'investment' will suffer are the people who benefit from all the punters.

[mattjos] 20/11/2022 10:52

The revenue will catch up with you if you don't declare - have no doubt