M&g Share Discussion Threads

[karv1] 08/3/2021 14:28

I guess we are all going to be up early tomorrow, with my fingers crossed for a maintained dividend or even better a rise in dividends with good inflows, and an increase in fum. My gut feeling or hope is the dividend will be maintained unless the figures are bad compared to the interim.

[2wild] 06/3/2021 01:54

Next 2 trading Days could see 10-20% gains. Unlike many high yielding stocks, MNG is not paying an historically based dividend, which
is no longer sustainable. They set the initial 11.96p final div some weeks before 2019 general election, when the 12 month average FTSE100 was around the current level. In August 2020 they declared 6p interim, with FTSE100 and worldwide markets far lower than now, with little prospect of a vaccine before spring/summer 2021.

As they finalise 2020 report Sunday/Monday latest covid-19 death rate will be circa 100 with around 40% of the UK adult population vaccinated including most of the high risk categories. Therefore almost certain to declare a final dividend in excess of 12p on Tuesday 9th March, in my view. Could easily be £2.50 by ex-dividend date.

[emptyend] 05/3/2021 21:06

I took an opening position just before the close today, having missed the most recent dip towards 180p. US market being up 2% since London's close should help next week start firm, with results to follow.My impression is that the groundwork has been laid for a return to favour, especially in the post-Brexit, post-pandemic market environment - but time will tell over the next couple of years.

[doubleorquits] 26/2/2021 12:14

Who knows for sure?! But they did pay the dividend when the market fell last year and the promised special dividend too. There were a number of companies who failed to pay a dividend most notably in this sector AV. I hold this and EVR, SLP and RIO for the same reason you are citing - high yield. I feel confident of them to pay their dividends at the rates of previous year but it is a guessing game. MNG are the last of the four I mention to go - the others have all come up with the goods and more.

All IMO.

[gary1966] 26/2/2021 12:12

karv1,

Taken from the interim accounts and so feel pretty confident that it will be maintained at last years level.

I expect further volatility in markets while the Covid-19 virus remains a threat. It is too early to say we are through the worst, despite the rally in the second quarter. Against this backdrop, we remain committed to our dividend policy of stable or increasing pay-outs. We will continue to monitor developments carefully and we do not expect to increase the dividend while the threat of Covid-19 remains.

Hope this helps.

[my retirement fund] 26/2/2021 12:10

Slim chance should have a bright future

[karv1] 26/2/2021 11:44

I am new to M&G I have invested in M&G today, chasing my phantom high dividends, does anyone think there much chance of it being slashed? every time I pick a high yield dividend stock lately it gets slashed even when the numbers are good for one reason or another.

[gbh2] 25/2/2021 07:38

"will be at least 12.2p"

Which will be double the previous payment, do try to keep up at the back.

[rogerramjett] 24/2/2021 21:23

And perhaps more than adequate dividend cover.

[2wild] 24/2/2021 17:59

Being factual the previous 2 posts are nonsense.

MNG floated during October 2019 and have only ever issued one each of the 3 standard payment types.

On 10th March 2020 they declared a final dividend of 11.92p for the period ending 31/12/2019. A special, return of capital, dividend of 3.85p was also declared at the same time.

In August 2020 MNG declared an interim dividend of 6p for the period 1/1/2020 to 30/6/2020.

MNG advised the starting point for the interim div would be 50% of the previous final div. Therefore 2020 interim was increased by 0.67% to 6p, more or less in line with the prevailing rate of inflation.

I'm expecting the 2020 final dividend, which will be declared 9th March, will be at least 12.2p, given continuing improvements to market sentiment.

[whatja] 24/2/2021 16:04

Being pedantic but
The first interim dividend is half the prior year’s second interim dividend.
Any change is applied to the second interim dividend and then flows into the next years first interim.

And just to confuse investors, we have a second interim instead of a final dividend because of Solvency II regulations which are not met for a final dividend to be declared.

[gbh2] 24/2/2021 12:59

March will be the Final divi which historically has been double the interim.

[rogerramjett] 22/2/2021 15:33

I bought 12500 shares on Friday. If this does not run to £2.60 I must be missing something.

Is 12p final divi likely or reduced to 6p ? This would be a 12p divi and around 6-7% at this share price

[reverend bong] 22/2/2021 09:54

6p, 12p, plus a 4p special. Yield at the current price of 187.55, if the dividends remain the same as 2020, is actually 11.6%.

If I wasn't looking for capital gains in covid recovery shares I'd be topping up in a big way.

[2wild] 18/2/2021 15:41

Don't forget a few months after floatation, during February'2020, the share price peaked at 252p on a inditated 17.86p annual div, giving a yield of 7.1% plus a soecial dividend. 2020 interim was marginally increased to 6p and i expect a 12.2p final will be declared 9th March.

[1jat] 18/2/2021 13:41

Trouble is MNG was established with quite a high yield.
It is difficult to change market sentiment once this becomes he established position.
Although 6% is a high yield, there will be a fear that the cash flow could dry up or the regulator denies the dividend. Hence a higher yield is likely to persist.

[popit] 17/2/2021 20:46

There is no real reason for M&G to be trading at such a discount to other companies in the same sector.

M&G has an annual dividend of about 18p, made up of a 12p final and a 6p interim, and so at present M&G shares have a far higher yield and are much better value than similar shares such as Standard Life or Phoenix which have a yield of about 7%.

If M&G shares were to yield a similar 7%, M&G shares would be about £2.60.

M&G also benefits from a very resilient cash flow that other similar companies such as Standard Life and Schroders do not have. About 90% of the M&G dividend is already covered for the next three years by the with-profits book, and annuities, which total about £130 billion of heritage money.

M&G also plans to generate £2.2 billion of capital over the next 3 years which is equivalent to about 80p per share over the next 3 years, so it is quite possible that will also be some special dividends in the next few years in addition to the 18p annual dividend.

I actually think even £2.60 would quite undervalue M&G shares. A dividend of 18p and a yield of about 6% would suggest that a fair value for M&G shares is about £3.

[2wild] 17/2/2021 20:33

Flew out the station going from 181.6p Thursday morning to 197p Monday afternoon. Derailed today and slid down the mountain.

Guess it's more like a rollercoaster.

[pander45] 17/2/2021 15:39

I think it just broke down leaving the station......

[2wild] 15/2/2021 13:41

All aboard the MNG Express arriving 2:50 p.m. April.

190p resistance broken, next resistance 206p and then onto 250p by ex div day, following results on 9th March.

[2wild] 11/2/2021 12:13

Added yesterday at 183.83p, this morning they were below 182p and now they're above 188p. If we break 190p resistance next one is 206p.

[mikealig] 11/2/2021 09:03

Thanks Gary. My mistake and somewhat reassuring.

[gary1966] 11/2/2021 07:19

You do realise this is M&G selling shares in other companies not institutions selling shares in M&G? Quite normal for fund management companies to regularly have announcements like this.

[pander45] 10/2/2021 17:36

That's another big lump reported today....

[mikealig] 10/2/2021 10:28

Yes, a bit concerning really.