#Tornado12, fine by me, the DPS +2% in 25/26/27 plus the BB, even if the share price stayed as it is, but it is more likely to grow as the share capital / free float shrinks..
Sit on your shares and we shall find out.. :o) |
The problem here is the facts will take time to unwind and the strategy moving forward may not be sound considering we are coming to the end of an economic cycle and a 100 year super cycle? A test would be would Warren Buffet invest here and I think not and he is a keen buyer of insurance stocks for good reason but I doubt this one. What actually is core profit when it leads to such low net profit after tax? Selling assets to cover dividends and share buybacks may return money to shareholders but also has a detrimental effect on the share price itself obviously then consider the CSM to what extent does it add to the current yearly profit and what does it add moving forward and over how long? My honest opinion this is another Vodaphone in the making but like that it will tread water for quite a while. |
Looking again at the FY presentation, they plan SH returns in next 3 yrs with I believe Share Buybacks ;
500M in 2025 (confirmed)
1000M in 2025/2026 (equity available by mid-2025)
Current share float is circa 5,892 Billion & assuming the share price stays pretty stagnant @ 245p , the the total BB will be 0,612 Billion shares or a share reduction over 205/26 of 10,4%..... Equivalent to 2,1p @ current divi rate.... The 2% fcst divi increase 2025-2027 will require extra 1,3p. So the SBB will easily cover the increase in the next 3 yrs with a potential for extra 0,8p, if core operating EPS are growing (as stated in financial targets) by 6-9% CAGR..
With this scenario, the dividend is safe and there is a potential change in growth rate, if conditions are favorable.
I see the CEO has played more than safe with the divi outlook IMHO... GLA |
Growth was down by 0.1 in Jan - Reeves is having a hard job of turning things around. There cud be more bad news in 2 weeks time in the budge. There will be less money to spend with water rates going up by 35.9% for Joe Public in April to.
As long as the dividend payment dont get wiped out by any share price fall over time we shud be OK.
But where is the share price going long term ?
I did wonder whether the share price wud rise between now & going ex dividend then maybe fall 20p the day afterwards, & the time to sell wud be the day before they go ex divi - with AA4 that pay 13% - split in quarters - a similar case happens there. |
I'll be buying another £50k's worth come ex-divi day for my SIPP, as the price should drop nicely on that day. |
"if" a truce does occur in Ukraine will that be good for LGEN or is a truce sort of factored in ...
Eg the truce will not mean anything economically for the EU/UK as the damage has already done and there is no coming back from it... |
Too cheap not too buy morePE c 10Dividend c9%Buy back 3.5%Months remember buying AV at 300 and hope this can re-rate in a similar way |
There is a certain symmetry, a company which assures lives investing in death.
Laud must be nervous about her position, responsible for years of safe investment in poorly performing UK stocks and bonds has robbed LGEN of progress, we know Simoes has a new asset manager to shift to more rewarding international venture and pe investment. Still we might as well jump on the local defence band wagon since Europe seems set to re-arm.
Good to see the share price recovering composure must be traction from the buyback, steadily removing cheap surplus stock from the market. Those of us here for very long term income will be looking for the sort of recovery which has been achieved by committed buyback programmes at BP, IMB and LLOY. Three examples where our money has been very well spent. |
Let's hope they've been buying RR. & BA. |
Thanks and interesting Marksp.. Im looking into that. |
you get it if you buy now |
yes you do |
Yep you do sunny Jim |
Yes, you need to buy before 24th April then you will receive your dividend on the 5th June. |
pritijay: You do get a dividend but often the share price falls after ex-dividend so you might or might not make money in the short term. Generally speaking, you have to hold long term if you want to make money out of dividends. |
Hi All,
I’m a newbie at investing in shares. Just a quick question …..if I buy LGEN shares today and hold till after the ex-dividend date…..do I qualify to receive the 15.36p dividend? Thanks in advance 🙏 |
buybacks...
If the FTSE is going downhill because of the rise of USA, Brexit etc etc
then for UK companies to keep their share prices relatively stable they have to buyback shares....
I dont see an alternative option that does not involve either an EU listing or a US listing. |
Being a cynical Yorkshire man I always think of Buy Backs as method of increasing the EPS so Directors can justify bonuses all round ;) |
 I always think buybacks represent an acute lack of ambition.
If you are buying back stock returning 9% it suggests you have no internal business opportunities that return more than 9%
LGEN divi is not a 2% increase on budget, it is a 2% increase in DPS. By using company money to buy back shares the quantity of shares in issue decreases giving about 3.5% reduction in shares in issue.
Lgen is using shareholder funds to decrease the shareholder distributions. The 2% is also nominal so Inflation at 3.5%, return at 2% and 3.5% reduction in the distribution pool. Simoes is "inflating away" the dividend rather than openly cutting it.
LGENs money comes from float investing and fees from investing others money. Underneath it is a massive leveraged multi-asset fund. So, if i can get 5% real return on a credit fund with credit risk spread over hundreds of holdings and 5% real on LGEN, with equity and regulatory risk, why would I buy LGEN?
I have about 6k of these. I have 3x the holding in CVCG. That is a credit/debt investment fund that co-invests in the PE deals for CVC capital. That returned 25% last year TR and currently yields the same as LGEN before adding in the annual special dividend paid in March. (There are three quarterly dividends for a fixed amount and then a catch up on dividend 4).
In the world of bond proxies, LGEN isn't particularly attractive on a risk adjusted basis SO - the only way it can really move forward is to grow |
20 years ago the ISA used to be split into a maxi and mini, the mini (cash) element was £3K, but if you used the maxi for stocks and shares we could squirrel away £6K, we will have to see if robber Reeves makes any changes, the current ceiling of £20K has been fixed since 2016/17 year and really needs adjusting up for inflation, but the ISA has proved such a useful tool to shield CG and income from tax it is most unlikely the socialists would even consider raising the limits during their term in office..Well played to those that started on their PEP/Tessa journey before April 1999 when the ISA was introduced, those holders will be the ISA millionaires of today.. |
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Hot Features
Premium
