Dunedin Income Growth In... Share Discussion Threads

[panshanger1] 03/3/2020 18:48

I notice this trust now best performing over 1 year uk equity income sector New manager has certainly turned this around Long may it continue

[chc15] 31/1/2020 20:28

Quite resilient this stock lately, ex div on the 6th

[chc15] 24/12/2019 13:22

Yes sounds interesting, I have held EDIN in a fidelity acc for years, never liked invesco, however the jury is out on Majedie..i have cash to invest, so looking for opps.

[ec2] 23/12/2019 19:05

Have done well in these but have today also bought some EDIN as I think this trust looks undervalued in comparison to other UK Equity Income Trusts. The depressed EDIN share price owing to the poor performing, but now to be replaced, asset Mgr creates an opportunity to get into a spread of big dividend hitting UK Equities on the cheap when other similar UK trusts are now on very narrow discounts. The 11% disc and 4.5% yield looks compelling. The 1.65 years of income cover in the income reserve also gives an unrivalled level of comfort for future income distributions. Still keeping my DIG for the income as well but they have had a good run. Hoping EDIN will generate capital growth in addition to the income as the discount moves into line with similar trusts.

[panshanger1] 21/12/2019 16:19

It's a golden oldie no doubt but performing better under a new manager who has reorganised the portfolio over the last 2 years ? Feels like FYI :you'll see further comments on DIG recently on the merchants trust board

[lurker] 21/12/2019 05:22

Still my favourite IT and one of my top 7 portfolio holdingsGlad I bought a massive dollop in 2016 and some more drips on the way up

[chc15] 19/12/2019 11:13

Bought 6k of this yesterday, hopefully upwards trend continues, will add on any big dips. this along with tmpl, mrch and cty are my UK its.

[topvest] 31/3/2019 20:14

A fairly steady trust. I've held for a few years and topped-up once I think. I'm happy to hold this golden oldie, until I become one!
Read the 150 year booklet last year. A typical John Newlands booklet, but an interesting read. John Newlands seems to have a monopoly in the market for investment trust history publications... congratulations to him as investment trusts deserve a great deal more acclaim than they receive. Basically, investing in ten of the best investment trusts is all the average investor needs to do to secure a very robust financial future. Its been that way for well over 100 years!

[goldpiguk] 28/3/2019 10:10

Hi,

Final results out today and DIG announced a final dividend of 3.45p payable on 29th May. Ex dividend date is 3rd May. Total dividend for the year 12.45p. Additionally .38p added to dividend reserves which now stand at 11.54p.

The final dividend is slightly ahead of what I had expected. Have to go out so will take a look at the report later.

Goldpig

[essentialinvestor] 17/3/2019 23:37

UKX level has a significant bearing. Around the 7200 area
we have sold off from a number of times. Luck with your holding.

[goldpiguk] 17/3/2019 21:50

Hi EssentialInvestor,

I too have added a few in recent weeks using ISA dividends. The shares may well spike up on results, but the direction of travel looks certain to be dominated by Brexit progress, or more likely lack of it. I am building my position here and hope to add gradually over the coming months on price dips, drip feeding money into DIG rather than making a large ISA share purchase, which I usually do when building my position in a company at the start of the new tax year.

Goldpig

[essentialinvestor] 15/3/2019 16:04

Added some yesterday, FY report shortly.

[essentialinvestor] 21/1/2019 12:27

XD for 3 pence a share on the 31/01.

Discount to NAV near 10% atm. Added a few last week.

All things being equal, would expect that discount may close
with the FY figures as their new strategy gets more attention.

[essentialinvestor] 04/1/2019 13:59

topvest, the DIG dividend looks secure imv, as it's now well over 5%,
that will have attractions to income seekers.

Would still be cautious on ASCI fwiw, I like ASEI though
following the recent sell off.

[topvest] 03/1/2019 18:06

Aberdeen’s investment strategy as a quality value investor should start to work in their favour now. They have had a rubbish performance, versus growth investors. Growth is now officially a busted flush with all the secular leaders going down fast and in a bear market. FANG stocks, ASOS, Fevertree, most other highly rated stocks all about half way down from 2018 highs. Momentum gone and 50-80% declines await. Now is the time for Aberdeen to do well. If they don’t they have lost it.

[essentialinvestor] 03/1/2019 14:15

escapetohome, I like most of what they hold.
Some of the new additions look small % holdings

[escapetohome] 23/12/2018 13:02

Im not an investor here, this trust was on my wathchlist, i pleased i held off.

[escapetohome] 23/12/2018 13:01

Yup, this doesnt seem right.

Dunedin it manager, please pay more attention to timing of investments.

It seems you rushed in on these investments , yes probably because you buy in bulk and there is not liquidity at really chrap prices, maybe.

However, investors are noticing that you were way off the ball.

[essentialinvestor] 23/12/2018 12:09

They look to be adding high growth smaller companies just at the wrong time.

One example, Dechra Pharmaceuticals.
Dreadful timing.

Adding very high PE in late cycle is risible, and costly.

I understand what they are attempting to do,
their timing is way off and may prove a costly error of judgement.

[speedsgh] 19/9/2018 15:54

Yes, have also been digesting the last AR & latest factsheet. All sounds good, they just need to show that they can perform & that stubborn discount should start to narrow. Revenue reserves gives them a good buffer with the dividend which they will be loathe to cut at any point due to the impressive track record.

Have to say that I do find appealing their change in strategy to increased weighting in faster growing companies with strong balance sheets & greater dividend growth potential which is in the process of being implemented. DIG is now high up on my watchlist and will be looking to take an initial position on any weakness. A bit of usual autumn market turbulence would be much appreciated. Many thanks again for highlighting.

[goldpiguk] 19/9/2018 15:06

Hi, speedsgh,

Good to see you post here. The quarterly dividend payments have been slightly changed to make them more evenly balanced througout the year. I only expect a slight increase on last years total. (12.1p from memory)


However, with the changed investment strategy, there is no problem with dividend payments due to the large dividend reserve. I read in the Annual Report they expect to dip into the reserve in the current year. However with reduced interest payments after April 2019 and new investments in companies with strong dividend growth they expect to outperform going forward.

Goldpig

[speedsgh] 19/9/2018 10:51

from Fund Manager's Report in the latest Factsheet to 31/7/2018...

The major share price movements within the portfolio were once again due to company specific events. French employee benefit and payments business Edenred increased sharply on the back of a very positive set of interim results, demonstrating the benefit of our overseas positioning in generating diverse and attractive investment opportunities. UK listed small cap life insurer Chesnara rebounded sharply on a broker upgrade that highlighted the significant discount to net assets and the attractive and growing dividend. Not owning Glencore also proved beneficial as the miner was hit by a potential US Department of Justice investigation into its conduct in a number of emerging markets. At a sector level oil companies lagged as hydrocarbon prices fell following a strong run since the start of the year amidst some concerns over rising US output. In contrast tobacco stocks continued to perform strongly, benefiting from solid results and a stronger dollar, partially reversing some of the very significant underperformance of the past twelve months. Pharmaceutical stocks also performed well primarily led by growing investor enthusiasm for AstraZeneca and their attractive revenue profile from new products.

Activity remained relatively high as we continued to shift the portfolio towards better quality, higher growth and smaller companies. As a result we introduced new holdings in life sciences company Abcam and financial services provider London Stock Exchange. Both of these are lower yielding investments but offer the prospect of double digit dividend growth for many years ahead. Abcam is a world leading franchise specialising in the manufacture and distribution of antibodies used in scientific research. It has exceptional long–term growth prospects, a strong balance sheet and the potential to significantly increase their distributions to shareholders over time. London Stock Exchange has a very strong position in the provision of exchange, clearing, index and settlement services. This provides high and resilient levels of growth that should translate into attractive levels of dividend growth to its investors.

We added further to positions in a number of mid-sized companies including Hansteen
which owns a high yielding portfolio of industrial real estate, Assura the provider of primary care facilities across the UK and Aveva the leading design software provider for oil and gas, power and marine industries. At the larger end of the market cap spectrum we also increased our holding further in British American Tobacco, attracted by the elevated yield and resilient growth and National Grid where strong performance in their US assets increasingly underpins the high and steadily growing dividend. We trimmed our position in Experian given a stretched valuation following a significant increase in the share price on the back of positive results. We also exited our relatively small position in Swiss pharmaceutical giant Roche given lacklustre prospects for dividend growth and reduced our holding in HSBC where the growth outlook is also subdued and the yield no longer offers such an attractive premium to that achievable elsewhere.

Our approach remains unchanged and we continue to focus on improving the medium
term income and capital growth potential of the portfolio while maintaining appropriate diversity and balancing the near term requirements of our relatively high yield. Benefiting from the new combined research capabilities of the firm we have an increasingly full pipeline of attractive potential investments, particularly those focused toward capital and income growth. Finding higher yielding companies that we deem of sufficient quality for long-term investment is more challenging but we continue to evaluate a number of opportunities. All of which should allow us to position the portfolio in an increasingly differentiated manner, while underpinning the dividend policy. Equity markets remain relatively buoyant although there are a number of headwinds developing, particularly around global trade and the increasingly bellicose approach of the US to the implementation of sanctions on countries such as Turkey. As such we see little reason to shift from a conservative focus on higher quality businesses. While significant movements in large benchmark weighted stocks can affect near term relative performance, given changes to the portfolio and sound corporate performance we remain confident in the total return potential for the trust.

[lurker] 06/3/2017 08:12

One of my recent (2016) favourites...interesting to see the effects of todays news