Drax Dividends - DRX

Drax Dividends - DRX

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Stock Name Stock Symbol Market Stock Type
Drax Group Plc DRX London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-14.80 -3.52% 405.20 11:19:12
Open Price Low Price High Price Close Price Previous Close
427.40 402.60 427.40 420.00
more quote information »
Industry Sector

Drax DRX Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

scotches: Minimal independent commentary so far on first half results beyond the CEO depiction of "great". Shares marked down within the recent range. Increase in interim divi to 7.5p. hTTps://www.investegate.co.uk/News/-/13268383/ www.sharecast.com/news/news-and-announcements/drax-group-raises-interim-dividend-following-great-first-half-of-the-year--8050356.html
cassini: Castleford Tiger, I bought DGOC (Diversified Gas and Oil) shares with my DRX profits. We'll see if that turns out to have been a good idea. Growth prospects are modest but the divi is high. Usually my selling a share gives it an extra upward impetus ;0)
cassini: Sold at 388p earlier this week. Drax has a decent divi considering my much lower buy price but in the end, what with the (more than) total recovery from the lows I have decided to see if my money can be better put to work in another share.
cassini: I'm in a quandary as to whether to take profits. Consider this scenario - someone buys 500 Drax shares at 200p, then it rises to 400p. His original outlay of £1000 bought shares that have now doubled in value to £2000 and the dividend is 8.15% - relative to his original buy price. Not bad at all. He gets 16.3p per share as a dividend (£81.50 dividend annually in total). However the dividend is actually 4.08% to a buyer at the current share price of 400p. He could sell up DRX and with the proceeds buy £2000 worth (1751 shares) of, say, DGOC instead. With a dividend of 10.85p/share (maintained through 2020 incidentally), his DGOC investment will return a dividend of £190 per year. He is now getting over double the DRX dividend payment (if held in a SIPP, as DGOC is subject to withholding tax). Considering the original outlay into Drax was £1000, that's a bit like getting a 19% dividend on the original £1000 investment inside of a year. All this supposes of course DRX does not climb in value much further and DGOC does not drop or stop paying the dividend. You can replace DGOC with a similar high yield share. Of course Drax could climb higher - it's been much higher in the past, but it's met resistance at ~400p since 2015. Decisions, decisions...
boozey: Gecko you are entitled to be whatever you wish to be! We are here to debate outcomes not to put the world to right! Drax has been a consistent performer since the start of the pandemic pays a great dividend and had directors buy in post excellent interims around 370p. A firm hold I would say.
paulo435: We are now sitting at around the previously rumoured takeover price, to sell or to hold ? Good divi, think I’ll hang for a while yet
boozey: Yes one of my best performers post crash and good dividend too!
paulo435: I don’t always agree with articles on this site, but in this case it’s a decent summary .... https://www.fool.co.uk/investing/2020/10/16/investing-in-renewable-energy-stocks-a-biomass-share-with-5-8-dividend-yield-i-like/
paulo435: Castleford, capital growth is important to me as much as a dividend payment so I wouldn’t always agree with the approach you suggest. Whilst obviously the yield improves as the price takes a dip, it’s the underlying capital growth I am after - dividends alone won’t cover me if the price falls too significantly. Not that it is in this case, I have the benefit of both growth and good yield from my entry price. To answer your question, I have Airtel Africa in my portfolio - which yields around 8% at the moment - just one example. Also, don’t forget, attractive dividends can also reflect a higher degree of risk.
minerve 2: Here guys, some info that will be of help (Courtesy of FT Markets Now 29th June 2020)... Elsewhere in the weekend press, Drax is up after the Mail on Sunday’s Jamie Nimmo said there were “rumours circulating around the Square Mile that a takeover could be on the cards”. It was for quite a long time a story exclusive to newsagents and their customers. The article didn’t make it onto the MailOnline website and a Bloomberg pickup this morning caused no end of confusion by giving credit instead to the Sunday Mail, the sister paper of Scottish tabloid the Daily Record. Anyway. The MoS says an “unknown energy company has got its eye” on the power station owner and “could even be in early stage talks” with “chatter that talks focused at 340p a share.” There isn’t a lot to go on. No named bidder is a big hurdle to shaking out confirmation and, in that context, no response from Drax this morning means nothing much. The UK Takeover Code will, in the absence of a formal offer, put the initial burden of announcing on the bidder side so we’re chasing shadows in that regard. Nevertheless, there has been very credible talk over the past week of a UK mid-market deal in the works and Drax would definitely fit the description. Here’s John Musk, analyst at RBC: We note that within our 340p/sh PT ~85% of the Drax EV sits within renewable biomass and hydro activities. Hence, Drax could be justified as a takeover for some of the larger renewable exposed utilities with the likes of RWE, Enel and Engie all potential suitors, in our view, given their renewable expansion plans, asset overlaps and relatively robust balance sheets. We note Iberdrola sold Drax its Hydro and CCGTs assets in the UK 18 months ago and is unlikely to buy these back, and SSE does not have the balance sheet for this potential transaction. In our recent renewables report we reiterated our Outperform rating on Drax highlighting that we remain supportive of its biomass cost reduction strategy in order to be self-sufficient post the end of the subsidy period in 2027. Furthermore, we stated that we see Drax’s green credentials as unappreciated, with the company not experiencing a re-rating like many renewables peers. . ;. . UK pumped storage assets (such as Drax’s 440MW Cruachan facility) are performing robustly during the Covid-19 crisis and this could provide some offsets to the previously highlighted £60m EBITDA hit from Covid-19 in 2020. Finally we continue to highlight the strong FCF generation of the company, and the well covered ‘sustainable and progressive’ ~7% dividend yield. We note that our 340p/sh price target is based upon the current business only with no biomass generation post 2027, no new CCGTs or peakers and no BECCS. If any bid were forthcoming we believe some option value would need to be ascribed for these projects and highlight our Blue Sky valuation of 545p/sh.
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