From memory last year was 20.9p covered, but option income more than doubled. There might be some bounceback from last year's fall (from just over covered) but options revenue might fall back. Also, they switched some of the portfolio from income bias to growth bias, so underlying cover might well fall even further than last year in the short term. There's a bit going on in the mix there and I would not be surprised if cover fell further under 20.9p but with future prospects talked up. |
Looks like the full year dividend (year ending Aug 2024) will be 24.6p (2 x 6.1p/s + 2 x 6.2 p/s), an increase of 0.4 p/s on last financial year (2 x 6.0 p/s and 2 x 6.1 p/s). Maintains recent year annual increase of 0.4p/s, around 1.6%.
Key for me when the results are published will be dividend cover, is it fully covered and/or trending in the right direction? |
Thanks Rik, that certainly answers all of my questions, and I am very happy with the answer!Best wishes. NSB |
3rd Interim dividend for the year ending 31 August 2024
The directors have declared the third interim dividend of 6.20p per ordinary share in respect of the year ending 31 August 2024. The dividend will be paid on 30 August 2024 ... The shares will be quoted ex-dividend on 25 July 2024. |
Note, there doesn't need to be a dividend raise this quarter to maintain the record of annual dividend rises.
Year 1 Q1:6.0p Q2:6.1p Q3:6.1p Q4:6.1p = Total 24.3p
Year 2 Q1:6.1p Q2:6.1p Q3:6.1p Q4:6.1p = Total 24.4p
Year 3 Q1:6.1p Q2:6.1p Q3:6.1p Q4:6.2p = Total 24.5p
Result: Three years of annual dividend increases
Cheers,
PJ |
zaco4
I forgot that the next dividend should be another increase after the 4 at 6.1p, to keep up their long record of annual increases. There would be no point holding at the current 6.1p quarterly as that would break that long annual increase record. I.e no point just holding, So probably another token increase to be announced this week. Bearing in mind their comments about the dividend in their updates, a cut seems VERY unlikely.
Also until recently the big dividend has been at the expense of capital gains with HFEL by far the worst performer in the sector. BUT new Manager and change of tactics, as they’ve explained in their updates, could mean much better performance ahead and capital gains as well as huge dividend. Already the share is well off the bottom at 242p compared with 198p low last October. Pleased I topped up then to average down and maximise dividend yield too. |
It certainly has - I bought @318 in 2014 and sold @323 in 2019 - so 5p in 5years. |
16 years of dividend increase here and next generation dividend hero status with AICDoubt they would want to lose that but you never know !The size of the dividend clearly underlines it has been at the expense of capital over the years imho I speak as a long term holder here and at AAI |
" . . . so hopefully no change in the 6.1p quarterly and 10% annual yield . . ."
I'm expecting a slight increase in the dividend. 6.10p has been paid for the last 4 quarters. |
Thanks kenmitch, that's really helpful; I didn't actually think that I could ask them direct. Handy to know for future occasions. Best wishes. NSB |
I agree, and the changes made so far do look positive. I therefore hope I am just being overly nervous on the dividend outlook; I remain a holder here, and intend to add a further 50% over the course of this tax year, as dividend income arrives in my ISA to fund the purchase. Not even looking for an increase in dividend this year, in fact I would be very happy if they are maintained on or even just below current levels for a year or two to ensure the ship is properly steadied. 5.5p per quarter would be very satisfactory. Best wishes. NSB |
I’ve just done the obvious and asked them.
The dividend announcement will be sometime this week and reason for delay is Board Meeting later than usual. Obviously I wasn’t given info on the dividend level but got the impression there’s nothing untoward, so hopefully no change in the 6.1p quarterly and 10% annual yield. |
Havent there been changes in management this year though? |
Wow! NSB, that input has certainly restrained my latest buy order! Now on even closer watch! |
My concern was that they are more than 2 weeks late with the announcement of the August dividend; this has been announced on 21st June for at least the past 2 years. I wonder why they are announcing late this year; are we likely to see a cut in dividend now?Best wishes. NSB |
Has one of the companies just gone ex a big special div ? That might explain it. |
I may be mis-inferring? - but the fact that today's (gross & net) NAV RNS came out 1 minute 'after the close' seems a tad concerning. |
What's happened to NAV here? Last two RNS 4th & 5th Jul seemed to show a marked reduction in the net NAV. Are they mistaken? |
Chinese manufacturing PMI rose to 51.8 in June, from 51.7. This is highest for two years. Backlogs rose for the 4th consecutive month. Other Asian countries were mixed but decent on the whole as the ASEAN index held steady at 51.7, but with new orders registering a 4th consecutive rise. Vietnam leapt from 50.3 to 54.7, with surge in orders to a level not seen since 2011. |
Better NAV performance this week |
yes correct Ford. also TPE: 2330 is the Taipei ticker. not $1T yet so my bad :)
Taiwan Semiconductor Manufacturing 5.22%
Samsung Electronics 3.92%
MediaTek 3.53%
China Resources Land 3.36%
HKT Trust & HKT 3.34%
Hon Hai Precision Industry 2.77%
Lenovo Group 2.63%
HDFC Bank 2.53%
ASE Technology 2.48%
PCCW 2.40%
I personally am glad that the Aussie mining companies are no longer in the top ten holdings, but am wondering what that might mean for future dividend policy? |
unastubbs, is this the right chart? |
TSMC reaches $1T valuation. 5.22% of the portfolio. Reason to be cheerful 😁 |
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