M&g Share Discussion Threads

[skinny] 13/11/2019 13:19

335 pages and 198 mentions of "dividend".

[fenners66] 13/11/2019 13:09

Just going back to the dividend expectation.....

From the prospectus :-

The Board currently expects to declare a 2019 ordinary dividend of around £310 million, subject
to the Company’s financial performance and overall financial position remaining in line with
expectations. Based on the expected number of M&G Shares at Admission, this is equivalent to
about 11.92 pence per share. The dividend is expected to be paid to M&G Shareholders in May
2020, in accordance with the Company’s proposed financial calendar.

The expected 2019 ordinary dividend is consistent with the Board’s dividend policy, as described above, being
broadly two thirds of the amount that the Board would have anticipated paying in respect of
2019 on a standalone basis under its new dividend policy.

At the same time and subject to the same conditions, the Board expects to declare a one off
demerger related dividend of around £100 million. Based on the expected number of M&G
Shares at Admission, this is equivalent to about 3.85 pence per share.

This is in recognition that, for the majority of the 2019 financial year, the Company was operating without incurring certain costs, e.g. debt interest costs, which it would expect to bear in future and which have
been allowed for in determining the initial level of ordinary dividend


OK so I know some have read that as the FULL year 2019 dividend would have been 11.92 x 1.5 = 17.88p

But it still could mean a different (lower?) dividend for 2020.

Why?

It goes on to say that there will be debt interest costs etc. to factor in to 2020
It says "determining the initial level of ordinary dividend"
But that is not the future level

New dividend policy talks about stable or increasing .... typically expected over time. A longer term policy.

So is there anything more specific in the prospectus ?
Its 335 pages and I have not read them all !

[dogwalker] 12/11/2019 20:32

Yes, it's gone up.

[2wild] 12/11/2019 16:23

Yes good to see this finally break 230p.

[frazboy] 12/11/2019 15:37

Interesting price action today

[essentialinvestor] 10/11/2019 12:33

M&G have taken an 8% stake in SCS plc,
approx £18 million investment.

Reading the recent SCS trading outlook
not a decision I would agree with -
at least from a timing and cyclical perspective.


Some may remember SCS was listed previously
and came unstuck during the financial crisis.
From memory in 2006 they had net cash of approx £20 million,
two years later the shares were suspended and equity holders wiped out.

I'm not suggesting history will repeat, but perhaps an interesting one
to watch from a quality of investment decision basis.

[essentialinvestor] 08/11/2019 14:38

I thought something like RIV might be a good fit,
likely to be available considerably cheaper in
the next equity bear market.

[essentialinvestor] 08/11/2019 14:36

Jon, the second paragraph is the key one longer term.

Ultimately an acquisition or two may be needed,
however this is not the time for any buys.

For anyone particularly keen, the analyst Q&A (on the recent presentation) goes
in to detail on the dividend and debt levels.

All available on their IR site.

[jonwig] 08/11/2019 14:26

One of my brokers has given me this, off-the-record:

Price Taret 270p

Key attraction is the cash flow profile from the asset management, with profits and annuities business as all are cash generative. This provides a strong cushion to the dividend. We calculate the dividend cover to be around 1.5X.

Key challenge is growth – management are focussed on growing PruFunds and third party asset management AUM but this may not be sufficient to out perform the life business run off.

Debt Leverage – is at the high end when compared to UK life insurers and European Insureres – do believe cash flow strong enough to pay down debt

[essentialinvestor] 08/11/2019 12:09

There will be ample opportunities here.

[woodhawk] 08/11/2019 11:14

I've had a nibble now. Let's see how it goes.

[essentialinvestor] 08/11/2019 10:22

A week before the general election may be a decent entry point -
unless there is an electoral upset.

Added a small amount.

[woodhawk] 08/11/2019 09:46

Cousin Jack,

You've pretty much summarised my own modus operandi in this game. Just biding my time waiting for a slightly better entry price here.

[essentialinvestor] 06/11/2019 19:32

bet, would assume that is on the investment side of the business,
the performance of which though drives shareholder returns.
Their largest financial commitment, by far, is a London commercial property
development - if I've read the details correctly.

If you can live with the likely volatility, MNG looks interesting fwiw.

[betman] 06/11/2019 15:30

essential - when you say "they have been significant investors in the business over the last 12 months " is that their customers money or their own i.e. does decline impact fund performance or their capital position ?

For the record I have bought for the 2020 divis and/ or the broker targets of 300p. My main concern would be decreasing fees structure due to ETFs etc and fallout from Woodford. Also concern regarding end of a 10 years bull market

[cousin jack] 05/11/2019 18:39

The other way around EI. Until I retired I tended to mainly trade, but now am mainly concerned with building an income portfolio. However I like do dabble if I see trading opportunities in stocks that pay a decent dividend as they offer some protection if I get it wrong. From looking at your posts I would have thought your approach not dissimilar ?

[essentialinvestor] 05/11/2019 17:21

Turning in to a trader eh, Jack ).

[cousin jack] 05/11/2019 17:03

Still holding my 215.5p buy (post 55) and waiting to add, as I think we are going to see lower. At least my BP buy (post 56) has turned out well - I’ve sold half of those but still holding the rest.

[essentialinvestor] 05/11/2019 16:43

Had a small amount before the close @ 2.15, sold some yesterday morning at 2.181.
Over 2.20 was available that afternoon. Moving around quite a bit.


Does anyone see a retest of the recent low on the cards..?
Think it would take a lot to get back down to £2.01 again.

[stun12] 05/11/2019 15:01

Still feeling pretty heavy while the loose stock (almost all of it, given the way M&G was spun off) finds a more permanent home. Looks really good value, but it's a bit frustrating that others like SLA and PHNX are moving up so well.

[jonwig] 03/11/2019 07:45

Questor says Buy:

The asset manager approached its demerger from Prudential last month with questions about debt levels and how it was going to revive itself after a period of net outflows from the funds it runs.

But now that the split has gone through, markets are warming to the defensive qualities of a business that manages £341bn and is led by John Foley, a Hill Samuel veteran who was the Pru’s chief in the UK and Europe.

Analysts at Deutsche Bank calculate that even in the event of a 25pc fall in stock markets, M&G would suffer only an 8pc hit to capital generation.
More:

[luderitz] 02/11/2019 21:26

I don’t know but it’s certainly welcome to receive free shares in a Company that seems well thought of from what I have read.

[topvest] 02/11/2019 20:41

It seems to me that the demerger was all about setting the higher growth business free. M&G has been forgotten and is on a silly valuation. Being a contrarian, maybe its M&G that will actually perform better than the PRU? It certainly seems much better value.