Hargreaves Lansdown Dividends - HL.

Hargreaves Lansdown Dividends - HL.

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Hargreaves Lansdown Plc HL. London Ordinary Share GB00B1VZ0M25 ORD 0.4P
  Price Change Price Change % Stock Price Last Trade
-31.50 -2.04% 1,510.50 16:35:22
Open Price Low Price High Price Close Price Previous Close
1,522.00 1,504.00 1,538.00 1,510.50 1,542.00
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Industry Sector

Hargreaves Lansdown HL. Dividends History

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

Top Dividend Posts

lomax99: IC today:Buy the Hargreaves Lansdown dipIn the long term the DIY investment platform giant should remain a dominant playerWith its 42.5 per cent market share, Hargreaves Lansdown (HL) is the big beast of the UK's do-it-yourself investment platform market. Many readers of this title will be among its 1.5m clients, and some may have even read our various missives questioning the sustainability of its business model. In short, Hargreaves provides a service that is trusted by huge numbers of people, but at a price which does not always seem compelling. Is it all just a clever marketing exercise propping up margins destined to contract?We think not, even if revenue margin compression seems possible or even likely in the coming years. Neither are these two views contradictory, because Hargreaves sits atop one of the great secular growth stories in finance: the use of investment platforms by ever-greater numbers of savers in the ever-growing UK savings market. This means it should be able to swallow growing pressure on prices thanks to scale and operational gearing.Judging by current market sentiment – reflected in a price to cash flow ratio of 23, a five-year low – this seems like a contrarian view. The shares have failed to hang on to ground first broken in the autumn of 2017, and barely outperformed the FTSE All-share Index in the five years to December 2020. That seems odd for a company that routinely posted after-tax profit margins above 50 per cent and a 27 per cent average return on assets over the same period. While analysts expect fee pressure and slightly higher costs to hold back profits over the next two financial years, bottom line growth should resume at pace thereafter.A beaten-up valuation (at least relative to the historical average) is also at odds with recent performance. Whatever you make of Hargreaves' value-for-money (more on which below), it added 222,000 customers in the 2020 calendar year, and hung on to 92.9 per cent of clients in a period marked by extreme financial market turbulence and, for many investors, reams of spare time to compare and settle on a preferred financial service provider.On one hand...Granted, like any service provider, the group also relies on some client inertia. An ongoing 0.45 per cent annual charge on the first £250,000 of funds held with Hargreaves is pricier than that of key rival AJ Bell (AJB), whose YouInvest platform charges 0.25 per cent. Ongoing charges of up to 1.56 per cent on Hargreaves' own multi-manager funds, even before the annual 0.45 per cent platform fee, look particularly steep against the 0.22 per cent flat charge on Vanguard's LifeStrategy portfolios. Share traders may save money with ii's all-you-can-eat price model, too, versus Hargreaves' charges of up to £11.95 per deal.Beyond fat margins and chunky prices, there are concerns about lower-quality earnings. For example, in the year to June 2020 just over 12 per cent of client assets on the platform were held in cash, and contributed 17 per cent of the £551m in revenues generated in the period. This was very profitable business, as Hargreaves simply held clients' cash in higher-yielding accounts, banking the interest on billions of pounds.This seems less terrible when you consider that banks routinely earn greater margins (albeit with greater risk) from customer deposits, and that it is ultimately up to platform users to move their cash into higher-yielding products or accounts. But much of these margins have now gone as interest rates have dipped. At the same time, recent hiccups in customer service – be it on the dedicated phone dealing line, or platform outages during bouts of market volatility – have all added to the perception of "high cost, poor service, quasi-monopolistic behaviour", to borrow the words of one investor group.At the same time, Neil Woodford's not-so-long march from exile and back into the headlines was another unwelcome reminder of the goodwill chewed up by Hargreaves' long-term promotion of the stricken fund manager. Optically, none of the above has been helped by several major share sales by founder Peter Hargreaves, who this month sold a £300m stake to institutional investors. Although the former chief executive still owns 19.7 per cent of the FTSE 100 group, it's fair to say that the market took the discounted placing as a negative....on the otherHowever, to characterise Hargreaves as a mere beneficiary of investor inertia is neither fair to the business or its customers. A more charitable and balanced take is that the company's dominant and growing market position is evidence of a client base that feels secure and empowered by a strong proposition to help them manage their money.Increasingly, these customers are also younger, and their needs are changing. But while it's important not to lump investors into one group, it's also worth remembering that most people are risk averse and cautious with their money. Sure, cryptocurrencies, leveraged equities and meme-led investing may be in vogue, but that's a drop in the pond compared with the £300bn sitting in low- or no-interest cash individual savings accounts (Isas).Pensions reforms and the auto-enrolment scheme mean growing numbers are aware of the need to get their 'savings working harder', to borrow Hargreaves' tagline. To this end, the launch of Active Savings – a portal giving savers the flexibility to easily move between fixed interest rate products – represents an opportunity to cement the brand and wider platform in the minds of customers who otherwise wouldn't view themselves as investors.This, together with strong client flows in recent quarters, go a long way to explaining why forecasts for assets under administration have rebounded and are set to climb in the coming years (see chart).Cash savings are also one of many intensely competitive areas. Just this week, Aviva (AV.) launched its own portal, suggesting the 75 per cent uptick (£4.5m) in Hargreaves marketing spend seen in the first half of FY2021 may not be a one-off. But as the market leader, Hargreaves has already stolen a march on new entrants, with large footholds in multiple asset classes. Numis analysts go one further, arguing that Active Savings represents "another staging post in HL evolving to provide a comprehensive financial platform".Even in structural growth markets, competition is always a threat. So while investors can expect Hargreaves to adapt, no one can say for certain which segment of DIY investment will be in the ascendency in five years' time. The challenge from low-cost passive funds isn't going away, and we expect robo-advice to gain traction as Goldman Sachs adds an investing platform to its popular Marcus account later this year in the UK.Has Hargreaves invested enough in this future? The hugely cash-generative nature of the business has been good for dividends and the corporate bank account, but the coming years might require a more creative recycling of cash should market share come under pressure.Then again, the end-game – the sort of AI-powered consolidated platform which Numis reckons Hargreaves could build and eventually render traditional financial advice obsolete – sounds like a prize worth pursuing. After all, if there's one thing Hargreaves has shown, it's that people are happy to pay up for convenience.Thrones can be both a target and their own peculiar source of power.
micha14: @Ochs I know a lot about the management by a analyzing their desicion making. Just look at the fundslibrarysale-outstanding. See how they treat owners vs themselves. Consider dividend policy. Think about their biz strategy. Treatmnt of employees. Listen and read their market insights. See their Ns for last 4yrs. Finally team up with Nick Train, largest owner and billionairs Hagreaves and Landsdown. Ehh. The most profitable family owned biz in Europe. UNDERVALUED
ochs: @seanp, sorry to hear that, I'd guess organising a large helpdesk with many staff working from home is problematic and that might explain the slower phone answering. However what has always distinguished HL from the competition has been the quality of the customer service, and that is something they need to maintain, but it becomes harder the bigger they get, and is certainly something management need to keep a handle on. One of the best compliments regularly heard about HL in the past was the personal touch meant that you felt like you were dealing with a small company, rather than a large one. @m_kerr, I agree the numbers are fantastic, and its amazing to see the dividend increase when so many companies have cut or cancelled, but the market is not currently rating the shares due to various headwinds specific to HL.
m_kerr: IMO, a 3.5% bulletproof dividend (including the regular special dividends) that will grow over time, is a hugely valuable income stream. it's not been cheaper on this measure in the last 5 years. if valuation stays static this means almost a 15% total return over the long run. as an indirect comparison, spirax sarco is trading at 50 times earnings, with a 1% dividend yield. as a direct comparison, aj bell trades at 45 times earnings with a roughly 1.5% yield. the reason for this massive disparity in valuation to these very high quality businesses is possibly due to selling pressure expected over time from peter hargreaves. but that should be of no concern to long term investors.
ochs: Indeed, 7 years ago turnover, profit and dividend were nowhere near where they are today, so on that basis you could argue that it looks cheap (certainly cheap compared to AJ Bell) - and in that period it's been over £24 so a great trade (plus dividends) for those buying 7 years ago and selling after about 5 years.
imastu pidgitaswell: P I swing trade this regularly, and posted so over the past 12 months and more. Not very well compared with others, as I find the 'rhythms' more difficult to predict, but well enough. It has made a significant contribution to the £400k gains made in 2020. This share is a growing, cash generative, dividend paying, high margin FTSE 100 stock. It is literally the complete opposite to Aston Martin - and indeed Tesla. There is more than one way to make money on this markets, and swing trading a fairly volatile but solid share like this is as good as any. Buy and sell and make the same profits over and over again. Works for me. And for others. I could argue the case for and against this as a long term investment, but why be so dismissive of someone taking a perfectly reasonable - but different - view to you?
lomax99: We can all aspire to AJB's forward PE of c. 45, if you think HL. is expensive......
lomax99: IC Comment: No slowdown for Hargreaves Lansdown Despite a tepid reaction to its half-year numbers, the DIY investment platform remains bullish air value for Hargreaves Lansdown (HL.) sits at 1,705p per share, according to a FactSet survey of analysts’ average 12-month target prices. Investor selling dragged Hargreaves’ market value back beneath this level on the publication of interim figures that beat consensus profit forecasts and detailed a stonking 40 per cent surge in net client flows to £3.24bn in the six months to December. By the sound of it, the DIY investment platform provider has lost little of that momentum since the period end. “Trading in January has been similar to other lockdown periods with strong dealing volumes, significant client engagement and robust net new business and net new client numbers,” said chief executive Chris Hill. After the necessary lip service to market uncertainty came assurances of his company’s “ability to continue to help more clients to save and invest”, including in the crucial run-up to the end of the UK tax year. Of course, one-year target prices or the prospects for a bumper 2021 ISA season are insufficient indicators of long-term earnings growth, which as the FTSE 100 constituent points out is posited on the “structural growth opportunity” in UK savings and investments. Still, several factors might explain the long face that greeted these numbers. While client retention levels – arguably the group’s greatest asset – remained encouragingly high at 92.9 per cent, marketing and distribution costs climbed 75 per cent to £10.5m, implying stiffer competition and higher client acquisition costs. This was part of a 27 per cent rise in overheads across the group, though a profit margin in excess of 60 per cent isn’t going to cost shareholders much sleep. Neither is the dividend, so long as it is covered by operating cash flows almost three times over. The more that is held back now raises the chances of specials in the future. Margins also remain chunky. The revenue to assets ratio tracked the FY2020 performance, though lower interest rates meant net income ‘earned’ on client cash dropped 29 per cent to £32.8m. Revenue here is expected to dip to between 34 and 40 basis points for the 12 months to June, down from 74 in the prior year. If not dead, then the golden goose is ailing. FactSet-compiled consensus forecasts are for adjusted earnings of 57p per share for the year to June, and 54p in FY2022 – a plateauing that stems partly from fears of frothy asset valuations. This suggests upgrades are most likely to come from better-than-expected client inflows, which remain hard to predict. However, Hargreaves’ business model has held up admirably during its most testing period yet. The shares, which are much cheaper than smaller rival AJ Bell (AJB) will likely face pressure this year, but should be on every UK investor’s long-term watch list. Hold.
lomax99: Shorter tracker reports short interest of 2.4% in HL. , I wonder if the UK branch of the Reddit community might like to focus their ire on them.....The retail investment market in the UK is worth c £2.4 trillion, at £121bn AUM, HL has only a relatively small share of that - plenty to aim for.
micha14: whats wrong with he market? Operating profit up 10pc, AUM up 40pc, dividend up 6pc. Why has the stock not moved?
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