Yep INPP and BBGI better HICL got hit with economically sensitive assets during covid and then when they recovered it's got its water co |
After years of steady dividend growth, HICL has held its dividend at 8.25p a share (yld 6.5% at 126p/sh) since its financial year to March 2020, but the trust doesn't plan to increase its dividend target in respect of financial years to March 2024 and 2025, meaning that the real value of shareholders investment income will decrease significantly. Jefferies analysts find dividend plans disappointing. By estimating future dividend cover based on cash flow projections, they believe that whether HICL will be able to resume dividend growth is largely contingent on inflation outperformance and HICL looks a bit like a bond proxy. |
Plus unwinding PFI leads to windfall profits and is extremely painful/time consuming Just arbitrarily ripping them up won't play well as will hit same investors they need funding from |
That was a risk with Corbyn Labour Current Labour has no plans to get aggressive not least as it needs billions from the private sector to fund its climate plans It's rates and with HICL specific risks on some of its economically sensitive assets and water company |
I used to deal in these some time back but I am a bit out of touch with what is driving the price at the moment.If I had to guess I would say the prospect of an incoming labour government may want to unwind some of the lucrative PFI deals that hicl is invested in, what other positive/negative drivers are there. |
'It's a 50m buyback. Will make no difference at that level.' Indeed, but it will certainly be seen as a value marker. |
It's a 50m buyback. Will make no difference at that level. |
Think the buy back is needed to get the share price moving. Need to wait for the sale proceeds… |
Problem was the divi cash cover was very tight before inflation took off Plus the water company which is if not their largest investment one of the largest isn't paying out a divi |
Inflation protection? Well the dividend certainly hasn't been rising |
A very positive piece in Shares magazine. I'm considering buying more. |
The buy back is merely symbolic and clearly sill not move the share price but it has highlighted the inherent value hidden in some of these structures.
Agree with Adam once the cuts start these will re-rate pretty fast. Tempted to nibble in advance at a few and slowly build over the months. |
It will be interesting to see what they pay for their share buybacks, albeit a small allocation of 50M. I have the feeling they will be on the value trail. I certainly hope so :). |
Valuations across this sort of asset class won't improve materially til we get interest rate cuts and probably more than 1 cut
At the moment, 5% risk free from a savings account is too competitive against these assets (or indeed small caps). Once those accounts are down at 2%-3% or on a path to there, I think we'll see a re-rating in things like HICL |
18BT my sentiments exactly. Also the proposed share buyback should underpin the price more. |
Perhaps selling something at such a huge premium to valuation will finally knock some sense into the mkt - probably not. |
120.80 - 121.00 (GBX) at 14:52:43
on Market (LSE) |
blueliner, I was with HSBC invest direct but transferred out to ii. I found the service provided by HSBC inadequate (their web site is antiquated). After many errors and a particularly costly bad example I went to the FCA and was awarded a measly £250. They said that although HSBC had given me the wrong information, they didn't have to be right because they were an execution only broker. |
Morning
I have escalating problems in receiving my HICL dividend.
My holding unfortunately is through HSBC Stockbrokers, a historical peculiarity.
The payment due to me 29th Dec remains unpaid on my account as HSBC admit they are having problems processing HICL dividends and some other stocks dividends. I had to ring up for the figure to complete the calendar year end. I could consider a stock transfer.
Anyone else haaving to wait so long, I know there are rumblings how long it takes with certain providers to credit pi's accounts, could be down to platforms cutting staff numbers. |
Threw my toys as still no divi in my account with BESTINVEST Evelyn - sort it out lads. |
Came into AJ Bell yesterday morning and was re-invested before the lunchtime close. |
I await mine |
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