International Consolidat... Dividends - IAG

International Consolidat... Dividends - IAG

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
International Consolidated Airlines Group S.a. IAG London Ordinary Share ES0177542018 ORD EUR0.50 (CDI)
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
-38.00 -7.37% 477.40 465.30 489.70 489.70 515.40 10:13:35
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Industry Sector

International Consolidat... IAG Dividends History

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

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elpirata: UBS yesterday> As for coronavirus, though, not all of the European carriers may suffer equally, a team of UBS analysts led by Jarrod Castle wrote in a note. Air France KLM (ticker: AF) and Deutsche Lufthansa (LHA) fell hard on the Stoxx Europe 600, down 6% and 4%, respectively by the afternoon. Of all European airlines UBS covered, those two companies have the highest exposure to China (based on a percentage of 2019 capacity)—around 7% in both cases, Castle wrote. Air France KLM has the biggest exposure to the Asia region at 21% of capacity. International Airlines Group (IAG), which operates British Airways, Iberia, and other air carriers, has the lowest of the European airlines that service Asia at 8%, said Castle. “This is likely part of the reason why IAG’s share price has been relatively unaffected by China related events, but Air France-KLM and Lufthansa have seen greater share price falls year-to-date,” the analyst said. Low-cost carriers such as Ryanair (RYAAY) and easyJet (EZJ) have no direct exposure to Asia, UBS said. Still, these companies are falling along with the rest of the sector on Monday. Castle is sticking to Buy ratings for Lufthansa, IAG and Ryanair, due in part to “attractive valuations.” Sell-rated easyJet remains one of the best of breeds low-cost operators, but valuation is stretched, he said.
sarkasm: 1 FTSE 100 dividend stock I wouldn’t touch right now Divyansh Awasthi | Tuesday, 7th January, 2020 | More on: IAG Red siren flashing Image source: Getty Images. It has been a rough take-off for International Consolidated Airlines Group (LSE: IAG) in 2020. This is not to say that the company is coming off of a great 2019: its shares were up just 0.8% in the year. However, the surge in crude oil price following the assassination of Iran’s military leader Qassem Soleimani made the beginning of the year a rough outing for the share. And in my estimation, things are not about to get any easier. Let’s look back a bit before we look forward. Wake turbulence For the most part, 2019 was a very difficult time for the British Airways owner. Its share price, which had peaked at 664p in early February, had been pummelled down to 413.5p at the beginning of August – a decline of 38%! The political wrangling in the UK related to Brexit was the chief cause of this decline. The problems faced by British Airways were a major reason for the decline in IAG’s share price. In July, the airline operator was fined £183 million after data of half a million of its customers was stolen from its website. British Airways’ long-running dispute with its pilots has also damaged its owner ,both reputability-wise and financially. The strikes by pilots in September led to a cancellation of 2,325 flights and resulted into a loss of £121 million. IAG’s share did bounce back, though, and from mid-August until mid-December its price surged by nearly 52%! The results of election in the UK is exactly what the airline operator needed to set itself up for 2020, as the end of uncertainty boosted its share price. Into rough weather Sometimes, turbulent times don’t seem to end. So is also the case with British Airways. An annual poll by Which?, whose results were released in December, showed that the airline ranked the second worst in passengers’ opinions. The respondents were dejected by the food and drink quality, seat comfort and value for money across both short and long-haul services. Not a good look for the “world’s favourite airline” as the carrier calls itself. Just four years ago, it was named as the best short-haul airline. Early in January, released the raking of the world’s safest airlines. British Airways was unable to make it to the top 20; it had made among those ranks last year. Geoffrey Thomas, Editor-in-Chief of the publisher, cited two reasons why the carrier slipped out of the top 20: the ageing fleet and a high number of non-critical incidents. Headwinds Poor customer satisfaction, data privacy issues, and the tiff with pilots (though they have voted to settle their dispute with the carrier) aren’t the only reasons I wouldn’t invest in IAG right now. The rising fuel prices because of aforementioned tensions between the US and Iran are a big factor. Fuel prices account for about a quarter of IAG’s operating expenses and are its largest variable expense. Combined with the factors mentioned above, they make for a strong case against the airline operator. At about 600p a share, the share is a thumbs down for me. The Motley Fool UK
fjgooner: A quiz for this morning - who is this? Long IAG: All bad news, however bad, is good for me, lol, boys. Short IAG: All good news, however good, is bad for me, lol, boys. Terrible figures, worst month in years. Any good chart is ramped to the heavens. Any bad chart is dismissed as rubbish - never known a rich chartist, lol IAG price going up - definitely the big funds buying in lol, boys. IAG price going down - just the algorithms kicking in - doesn't even count, lol. Crude oil going up - no problem for IAG as 90% hedged. Crude oil going down - great news IAG saving a fortune on fuel, lol, boys. Q) So who would make such pathetic two-faced postings?
fjgooner: I was just wondering whether the potential strike is not the real reason for the recent weakness in IAG's share price. After all, it appears that almost everyone expects no strike to occur, so maybe there's another factor in play. Assuming that we are heading for a definite Brexit in 72 days time, what is the current position on the requirement that airlines must show that they are more than 50 per cent owned by EU investors to retain flying rights within the EU? Is it still the case - as per the February article below - that non-EU shareholders may be forced to sell their IAG shares - which presumably would crash the price. Or has this scenario be clarified since? With IAG's share price approaching 400p, I am seriously considering buying back in as a long term hold, but am unclear as to whether this aspect remains a serious issue that needs to be considered before getting back in. I would appreciate any up-to-date clarification on this. Https:// "IAG, Ryanair and easyJet all have corporate provisions to strip voting rights from non-EU shareholders and to force them to sell their shares so they can meet the target, and IAG reiterated on Monday night that it would do so."
adrian j boris: Https:// International Consolidated Airlines Group (LSE: IAG) isn’t having the best of it right now. Going ex-dividend today means its share price has fallen exactly 33% over the past 12 months. I would argue, though, that this represents a truly-terrific buying opportunity. Demand for the British Airways owner has hardly been helped by industry rival Lufthansa’s June profit warning, the German flyer rocked by huge price competition in the European short-haul market, as well as the recent uptick in fuel prices. So it’s not a surprise to see IAG’s share price drop in the wake of the release. After all, the recent collapse of Monarch and Flybmi in the UK alone illustrates the huge pressures facing the UK operators alone. Flying through the fog But for the time being the FTSE 100 aviation giant is flying through this turbulence and, pleasingly, affirmed its full-year profits estimates for 2019 last month. Okay, reduced air fares in Europe are troublesome for IAG’s Aer Lingus and Vueling divisions but, thankfully, the strength of the transatlantic market is helping to keep things in the air. Besides, in the long term, I’m confident the blue-chip flyer’s expansion in the continent’s budget sector should pay off handsomely, helped by more and more of its local rivals running into trouble and going to the wall. IAG is, in my opinion, a great share to buy today and cling onto for years, my enthusiasm boosted by its modest forward P/E ratio of 4.6 times and gigantic 6.6% corresponding dividend yield.
fjgooner: m1k3y1, I'd agree 100% with you that those hedging figures should protect IAG from sudden crude price volatility to a large degree. So I can't understand why, according to post 7835, Alliance News attributed today's share price movements to crude prices. Especially when the spike in crude price came after 21:30 BST when the API data was released. Whilst I'm here, going back to our BB discussion on dividends - recall that we looked, as a currently evolving worked example, at Sainsburys (SBRY) that went ex-dividend on a payment of 7.9 pence after closing the night before at 202.6 on June 5th. As I suggested, one would expect the underlying share price of this stock to be adjusted down by a similar amount. By midday on ex-dividend date of 06/06/2019 SBRY was trading down by 7.7 pence - exactly as expected. I proposed at that time that, if SBRY were to recover the 7.9 pence within, say, 10-15 trading days, then I would take that as a very good sign. If the opposite were true, then one would be far less happy in holding the stock. So here we are, 15 trading days later. So I thought it was a good time to take a look. SBRY today still hasn't recovered any of the 7.9 pence of that dividend. Indeed, it closed today at 187.9, a full 14.7 pence down - almost double the hefty dividend that had paid. Of course that is not to say that this indicates any post-dividend behaviour for any other stock. But in this worked example - taken at random as it had been occurring - we have seen illustrated the main 2 points: 1. The share price WILL be adjusted down by the same amount at open on ex-dividend date. This always happens - that is how it works. It happens to my stocks many times per year. This is normal. The downward adjustment is never "in the price" days or weeks ahead of the event. 2. Thereafter, subsequent price movements are then subject to the market's perception of the company and overall market conditions, but the adjustment WILL be made on ex-dividend date when the markets open. IAG, unlike SBRY, is best of breed in its sector, so I'd expect no more than the base adjustment on ex-dividend date. What happens on any other day is anyone's guess. Let's hope for good news over the forthcoming weekend on the US-China trade talks. This market is looking a little nervous and could use a decent boost next week. I fear that it will be needed.
fjgooner: @doc_oj post 6584 Markets always price a stock however they will on any given day. But on ex-dividend date - irrespective of any other positive or negative factors occurring on that day - the stock price is adjusted downward by the amount of the dividend by the exchange on which that stock trades. That is what happens. So if a stock is paying out a 2% dividend, for the share price to remain neutral on ex-dividend date the underlying stock must make a gain of 2% due to good news, sentiment, broker upgrades etc. And, by comparison, if the underlying stock weakened by say 1% on that day, the stock price would drop by 3%. The bigger the dividend, the bigger the drop that needs compensating against in the share price. For small dividends, the effect is usually not observed amongst the up and down movements of a normal day's trading The reason for the adjustment is basically that the amount paid out as dividends no longer belongs to the company and this must be reflected by a reduction in the company's market capitalisation. Instead, that dividend money now belongs to the individual shareholders. The exchange on which the stock trades will automatically apply the adjustment as the market opens on ex-dividend date. I hope that helps. All the best for a strong recovery in IAG share price soon and good luck for your results tomorrow.
fjgooner: Why is that No.1. Muppet montyhedge repeatedly (many, many times) going on about the special dividend to be paid. Shares almost always go down by the same amount on ex-dividend date - see below. So what is that colossal muppet's point? With IAG plunging back towards sub-500p territory and a further likely drop to reflect the money written off from the balance sheet when the special dividend is paid and with Brexit issues swirling, why is he ramping this stock every day? This sort of behaviour is often observed in those needing to dump an over-exposed position. Https:// Special Dividend Impact on Stock Price In theory, a company’s stock price will automatically fall by the special dividend amount on the ex-dividend date because the company’s distribution of this cash represents a decrease in the value of the company. Take a look at FutureFuel, for example. FutureFuel (FF) declared a special dividend of $2.29 per share at the end of 2016. Immediately before FutureFuel’s ex-dividend date, its stock price was $15.97 per share. Then, the company’s stock price immediately dropped to $13.34 per share, a decrease of $2.63 (somewhat more than the special dividend amount). If you had purchased shares of FutureFuel prior to the ex-dividend date just to get the special dividend, the market value of your investment would have actually dropped by slightly more than the special dividend you received! You never know how a stock's price will respond to a special dividend, making this dividend capture strategy a risky one to pursue. ... That’s just one of the main reasons why this strategy, of specifically buying a stock just to get the special dividend, is a poor one. Don’t Chase Special Dividends When a company announces a large special dividend, many investors are initially drawn to the idea of buying shares to get the special payment. However, this strategy, a derivative of the regular dividend capture idea, is usually not a good idea. That’s because after the bill due ex-dividend date, the share price will almost always decrease by the special dividend amount. In other words, from a total return perspective you gain nothing from a special dividend, as the total value of your investment is unchanged (you collect the dividend, but the price of your investment decreases by an equal amount). In addition, you need to remember that a special dividend represents a return of capital to investors, meaning the cash paid out will no longer be available to grow the business.
knowing: Pressure on International Consolidated Airlines Group PLC’s (LON:IAG) share price “is overdone”, said UBS, and should ease off for a number of reasons in coming months. Despite a 9% cut to its earnings per share forecasts for the British Airways owner’s current year due to changes in currencies, fuel price and other changes, the Swiss bank said its estimates were quite conservative, especially if IAG has a strong summer season. READ: RBC upgrades IAG to ‘outperform217;, thinks shares could surpass £10 over longer-term Indeed, the UBS analysts believe summer demand environment “should be supported by less geopolitical uncertainty in the UK over summer period”. There are other reasons to be cheerful, the analysts volunteered, are the “potentialR21; for further industry consolidation and the recently improving trend on pricing for North Atlantic flights and IAG’s planned European capacity discipline over the summer that “gives us confidence in our positive full year pricing”, predicting a 2% price increase compared to the market’s current indication of a 2% decline. Research by UBS indicates that North Atlantic yields for May and June are running at circa 5% and with a supportive capacity outlook. UBS also took confidence from history, with IAG’s management having grown earnings since the company’s formation and current 2019-2023 targets for free cash flow, EPS and return on invested capital “suggest there could be earnings upside to UBS forecasts”. What’s more the analysts see a “low” ability for the shares to sink any lower as they are trading close to their historic lowest valuation multiples, while investors buying soon would also receive a sizeable dividend payment of €0.515 due on 8 July. READ: British Airways owner IAG declares €700mln special dividend as 2018 profits rise 9.5% With the shares climbing from a recent two-year low of 500p but still down 20% since early February and 26% lower than last June’s 52-week peak, UBS analysts upgraded IAG to ‘buy’ from ‘neutral’;, keeping their target price of 705p.
neilrich: The share price has fallen due sentiment, no connection with next weeks results. IAG dividend yield is approaching 5% with four times dividend cover, plenty scope for increasing the dividend.
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