Merchants Dividends - MRCH

Merchants Dividends - MRCH

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Merchants Trust Plc MRCH London Ordinary Share GB0005800072 ORD 25P
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
-5.00 -0.92% 538.00 537.00 540.00 537.00 543.00 16:35:29
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Industry Sector

Merchants MRCH 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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chart trader2000: How to benefit from the longest bull run ever and cope with share price volatility CONTRIBUTOR IAN COWIE Is there still time to join the longest bull run - or period of rising share prices - on record? While many bank and building society deposits fail to keep pace with inflation (Which? Best savings rates of 2019 26.04.19), the average conventional investment trust delivered share price returns of 7% over the last year (Morningstar via Association of Investment Companies). The past is not necessarily a guide to the future and share prices can fall without warning. However, the history of the last century and more shows that anyone who could remain invested in shares for five consecutive years at any time since 1899 had a three-in-four historical probability of receiving greater rewards than cash depositors (Barclays Equity Gilt Study 2019). More recently, since share prices began to recover from the global credit crisis in 2009, medium to long-term investors received share price returns of 82% over the last five years and an eye-stretching 330% over the last decade, according to the Association of Investment Companies (May 6 2019). While the future remains unknowable, investment trusts such as JPMorgan Claverhouse Investment Trust plc can be proud of their record of raising dividends every year for 46 years (AIC 12.03.19). HOW SHARE PRICE VOLATILITY CAN HELP Many stock markets fell sharply during the global credit crisis but have bounced back strongly since then. Did you get your share of that recovery? For example, the Standard & Poor’s 500 index - a broad measure of the American market, the largest in the world - reached a low-point of 677 in March, 2009, since when it has quadrupled (Yahoo! Finance S&P 500 long term chart 06.05.19). During the same period, the FTSE 100 index of Britain’s biggest shares has more than doubled from a low-point of 3,542. Decisive action by governments around the developed world, including cutting interest rates and keeping them lower for longer than many observers expected, reduced returns to depositors in bank and building society accounts but helped to increase returns to stock market investors. WHAT MIGHT HAPPEN NEXT? The past is not necessarily a guide to the future and share prices can fall without warning. In addition to economic factors, such as changes in gross domestic product (GDP) - a measure of national output - or interest rates, stock market valuations can be affected by human emotions. For example, fear and greed, pessimism and optimism, can drive share prices down or up. Technological developments - such as inventions and improvements in efficiency - tend to make the economy grow over time. But investors’ optimism or pessimism about the future may fluctuate in a cyclical fashion, varying between pessimism when confidence and share prices are low to optimism when confidence and share prices are high. But historical evidence suggests it pays to avoid short-term emotion to gain from medium to long-term economic growth. WHY IT PAYS TO TAKE A MEDIUM TO LONG-TERM VIEW One of the most comprehensive analyses of various assets, or ways of storing wealth and making it grow over time, examined returns from shares reflecting the changing composition of the London Stock Exchange and cash deposits since 1899 (Barclays Equity Gilt Study page 101, figure 8). If shares were held for two consecutive years, there was a 69% probability of them delivering a higher return than cash. So, over any two-year period, there was a better than two-in-three chance that shares would beat deposits. Put another way, there was nearly a one-in-three chance that cash might do better than shares. However, if shares were held for five consecutive years, the risk that stock markets might be temporarily depressed was reduced and the historic probability of shareholders receiving higher returns than depositors increased to 76% - or better than one-in-four. That is why it is sometimes said that five years is the minimum period over which stock market investment should be considered. Over 10 consecutive years, the historic probability that shares would do best increased to 91% (Barclays Capital Equity Gilt Study 2019 pg. 101). HOW INVESTMENT TRUSTS MINIMISE RISK AND MAXIMISE REWARDS Investment trusts are one of the oldest forms of pooled fund, bringing many individual investors’ money together to share the cost of professional management and invest in dozens of different companies and - in the case of international funds - different countries. The aim is to diminish the risk inherent in stock markets by diversification. Since 1868, investment trusts traded on the London Stock Exchange have enabled investors of all sizes to gain exposure to income and growth opportunities in Britain and overseas. More recently, since share prices began to recover from the global credit crisis in 2009, medium to long-term investors received share price returns of 82% over the last five years and 330% over the last decade, according to the Association of Investment Companies (06.05.19). RISING INCOME AND CAPITAL GROWTH While the future remains unknowable, investment trusts such as JPMorgan Claverhouse Investment Trust plc can be proud of their record of raising dividends every year for 46 years. That means this fund - which aims to provide a combination of capital and income growth, mostly from companies listed on the London Stock Exchange - succeeded in increasing dividend distributions throughout a period spanning several wars and stock market crashes. Over the last five years, JPMorgan Claverhouse Investment Trust plc has increased its dividend from 20p per share in 2014 to 27.5p in 2018 (Association of Investment Companies, 06.05.19) and its yield - or the income it pays expressed as a percentage of its share price - is currently 4%. Dividends are distributed to this investment trust’s shareholders four times a year - in March, June, September and December. Meanwhile, JPMorgan Claverhouse Investment Trust’s total share price return was 41% over the last five years and 216% over the last 10 years (Barclays Equity Gilt Study 2019 06.05.19). Alternatively, JPMorgan Global Growth & Income plc enables shareholders to benefit from the best ideas from around the world with a predictable quarterly income. JPMorgan Global Growth & Income plc yields 3.9% and delivered total returns of 101% over the last five years and 297% over the last decade. WHY TIME IN THE MARKET MIGHT BEAT TIMING THE MARKET Share prices are volatile and it is impossible to predict with certainty whether they will rise or fall in the short-term. As discussed earlier, investor sentiment may fluctuate between fear and greed, driving prices down or up. Sometimes the best days for rising share prices follow soon after share prices have fallen, so short-term speculators who duck in and out of the market run the risk of missing some of its potential returns. For example, someone who invested £1,000 in the FTSE All Share index 30 years ago could have enjoyed an annualised return of 8.7% and a final fund value of £12,146 if they had stayed in the market the whole time (Fidelity International 06.05.19). By contrast, if this investor missed just the best 10 days in the market during the last three decades, he or she would have received an annualised return of 6.4% and ended up with a total fund value of £6,496 – that’s a difference of £5,650. If this investor had missed the best 30 days - equivalent to an average of missing just one day per year during this period - then their annualised return would have plunged to 3.6%, reducing their final fund value to £2,927. That is why it is sometimes said that time in the market is more likely to build wealth than attempting to time the market. Many stock markets have recovered strongly since the global credit crisis more than a decade ago to create the longest bull run - or period of rising share prices - on record. Stock market investors have benefited from low interest rates, while these reduced returns to bank and building society depositors. But share prices are volatile and can fall without warning. Investment trusts diminish the risk of stock market investment by diversification and sharing the cost of professional fund management. Investing over the medium to long term - that is, over five years or more - is least likely to be affected by short-term volatility and most likely to produce satisfactory results. Ducking in and out of shares may mean you miss some of their potential returns. Time in the market is a safer path to wealth creation than trying to time the market. Investors should remember that share prices can fall without warning and that you may get back less than you invest. However, investment trusts seek to diminish the risk inherent in stock markets by diversification and professional fund management. There are hundreds of investment trusts to choose from. For more details see the Association of Investment Companies.
chart trader2000: MRCH price is going crazy bananas, will it breach its previous 2007 price which of course doesn't include dividends received.
chart trader2000: The emotional benefits of dividend re-investment I really like this style of investing and use it myself for my share portfolio. What's particularly good about it is that you focus your attentions on the performance of the company and its ability to keep paying a growing dividend rather than what's happening to the share price. The bigger the amount of your investment return that comes from dividends and their reinvestment, the less you tend to worry about share prices. In fact, with this investment strategy you can actually welcome falling share prices. As long as the underlying business is sound, a falling share price allows your dividend to buy more new shares which means more dividends to potentially boost your long term returns. With this mindset, you worry less and concentrate on what's important rather than the short-term whims of the stock market. To me this is proper investing and more people would be better off financially and emotionally if they put their money to work this way. Buy and hold is not the same as buy and forget This strategy is based on holding on to a share for a long period of time. This is known as a buy and hold strategy. However, this must not be confused with a buy and forget strategy. Whilst you do hear stories of people who had left shares invested and forgotten about them for 30 years, and then to find out they had become millionaires, it is probably wiser to keep an eye on your investment from time to time. I;m not talking about obsessing about share prices every day. Instead you should read the company's half year and full year results statements to see that all is well and that your dividend is still safe and growing. The other thing to keep an eye on from time to time is the dividend yield on your shares. This is important because it represents the rate of interest you are getting on your reinvested dividends. What you need to be constantly asking yourself is whether you can reinvest at a higher rate elsewhere? Edited article from Sharescope. ............. too boring getting rich slow for the many, not the few, where I have heard that before ? u will get many desperate days but u will also get some days like the last few and hopefully a few more.
chart trader2000: Edison issues review on The Merchants Trust (MRCH) The Merchants Trust (MRCH) offers investors the potential for long-term capital growth along with a high and growing level of income. Helped by the refinancing of the trust's high-cost, long-term debt, for FY20 (ending 31 January) the board's intention is that MRCH's annual dividend will be at least 4.2% higher year-on-year. Manager Simon Gergel at Allianz Global Investors (AllianzGI) is optimistic about the trust's prospects, citing a broad opportunity set due to attractive valuations in the UK stock market. He says that at some stage the deeply depressed sentiment towards UK shares should improve, which could lead to a meaningful revaluation of the domestic market. Despite Brexit uncertainty, MRCH has re-rated from a c 6% discount and now regularly trades close to NAV. The current 0.1% share price discount to cum-income NAV compares with the average 0.4%, 3.7%, 3.7% and 2.2% discounts over the last one, three, five and 10 years respectively. MRCH has a progressive dividend policy and offers an above-market 5.4% yield. The Merchants Trust High and growing level of income The Merchants Trust (MRCH) offers investors the potential for long-term capital growth along with a high and growing level of income. Helped by the refinancing of the trust’s high-cost, long-term debt, for FY20 (ending 31 January) the board’s intention is that MRCH’s annual dividend will be at least 4.2% higher year-on-year. Manager Simon Gergel at Allianz Global Investors (AllianzGI) is optimistic about the trust’s prospects, citing a broad opportunity set due to attractive valuations in the UK stock market. He says that at some stage the deeply depressed sentiment towards UK shares should improve, which could lead to a meaningful revaluation of the domestic market. Edison issues review on The Merchants Trust (MRCH) Click here to view the full report. All reports published by Edison are available to download free of charge from its website HTTP:// ............. marketing doc from Edison.
chart trader2000: Earnings and Dividends Revenue earnings per share for the period were 6.72p per share, compared to 8.39p per share for the equivalent period last year. This decrease was primarily driven by the deliberate strategy, referred to above, to continue to reduce exposure to higher yielding, lower-growth companies. The level of investment income earned during the period was in line with the Manager’s forecasts, with the dividend cut from Vodafone being largely offset by better than expected performance from other sources, such as Rio Tinto and BHP. The Company also received special dividends from Croda, Direct Line and Marshalls. A first interim dividend in respect of the year ending 31 January 2020, of 3.0p per share (2019: 3.0p), was paid on 23 August 2019 and the Board has declared a second interim dividend of 3.0p per share (2019: 3.0p), which will be paid on 29 November 2019 to shareholders on the register on 8 November 2019. It is the Board’s intention to continue a policy of growing total annual dividends in real terms over the medium term. In the event of an uncovered dividend, the Company has significant revenue reserves which are available to cover any shortfall. The net asset value per share (“NAV”) increased by 15.8% on a total return basis, outperforming the FTSE All-Share Index which produced a total return of 10.6%. The share price total return for the period was 16.0%. .............. great return if u were a shareholder, DYOR. Dividends can be more reliable than share prices as they're driven by the companies performance itself and not the whim of investors. HL ............. anyway need to return the thread back to MRCH.
chart trader2000: I also own DIG, I do own a few I/T's all paying dividends, which I am still re-investing so personally I don't mind if the market falls, as the share price falls the yield rises and vice versa. I am watching DIG as they are switching shares from high yielders to shares with growth/yield. They stated they are willing to use reserves to continue to pay any shortfall in the dividends received versus payout. ....... The Investment Manager has continued to execute our strategy of reducing the Company’s dependence on higher yielding, lower growth companies. As we have stated in previous reports, this strategy should enhance the Company’s longer term potential for both faster dividend growth and better capital performance. However, a consequence of this approach is the that the Company’s revenue per share is likely to be lower this year than it was in the previous year. Our distribution policy remains to grow the dividend faster than inflation over the medium term and, with the Company’s robust revenue reserves and the forecast underlying dividend growth of the companies.
chart trader2000: Most of the companies raise money at regular intervals, with a placing above net asset but at a discount to the latest share price which may allow u to enter at a better price. FSFL recently fell from 126p to 118p on placing news, not all on the same day. ........................ Declared total dividend of 3.38p per share during the period and on track to deliver 2019 target dividend of 6.76p per share* * Target returns are not a profit forecast. There can be no assurance that target returns will be met and it should not be seen as an indication of the Company's expected or actual results or returns current buy price 119p current yield 5.6% DYOR
chart trader2000: THE MERCHANTS TRUST PLC Half-Yearly Financial Report For the six months ended 31 July 2019 Highlights -- Dividends declared for the first six months of 2019/20 are 13.5p per share, up 4.7% on last year. -- Debt refinancing to lower the average interest cost to 3.5%. -- NAV total return* 7.4%, compared with 10.6% on the FTSE All-Share Index. -- Share Price total return 5.1%. -- Ordinary shares yield 5.3% at 485.0p, compared with 4.2% on the FTSE All-Share Index at the close of business on 13 September 2019. * Debt at market value Interim management report In this landmark year after celebrating the 130(th) anniversary of The Merchants Trust in February, I am proud to be writing to you as I start my tenure as Chairman. First of all I must thank Simon Fraser for his immense contribution to the trust and commitment to shareholders over the past decade. During that time, and including his nine years as Chairman, the trust has successfully navigated various market conditions, economic cycles and political upheavals, and, today, finds itself a leading option for investors within its peer group. On behalf of shareholders and the board I thank Simon for his valued stewardship of The Merchants Trust and wish him well in his future ventures. Half year results In the last published Annual Report shareholders received a report of a challenging year for equity markets, particularly in the final months of 2018. Fortunately, in the past six months investor confidence has returned, at least in select areas, and we ended the period in a more positive position. Over the six months to 31 July 2019, the company's net asset value (NAV) total return of 7.4% (with debt at market value), although positive, was adrift of a strong FTSE All-Share Index performance of 10.6%. This was predominantly due to the underperformance of the value oriented UK equity portfolio compared to the wider market. You will find a more in-depth explanation of this, as well as a description of the current polarised nature of the UK stock market, in the Investment Manager's Review below. A performance attribution analysis can also be found below. Renegotiation of the company's debt On 3 July 2019, the board announced that a three year revolving credit facility had been entered into which was to be used to repay early the company's borrowings from Fintrust Debenture PLC of GBP42 million at the beginning of August 2019. The additional cost of redeeming the debentures was GBP14.4m and this was funded from existing assets. This was part of an eighteen month strategy to restructure the company's debt profile and this refinancing has significantly lowered the company's finance cost. The company's weighted average interest rate on all borrowings has fallen from 8.5% in January 2018 to 6.0% at the half year end and following this latest refinancing exercise it is 3.5%. This has enhanced the company's earnings potential and your board believes it will improve the long-term capital returns for shareholders. The refinancing has also provided more flexibility in the company's borrowings by introducing an element of shorter term debt. Net earnings and dividends Earnings in the six months to 31 July 2019 have been strong at 16.1p per ordinary share (2018: 15.6p), an increase of 3.2% over the equivalent period in the previous year. The board has declared a second quarterly dividend of 6.8p per ordinary share, payable on 12 November 2019 to shareholders on the register at close of business on 4 October 2019. A Dividend Reinvestment Plan (DRIP) is available for this dividend and the relevant Election Date is 18 October 2019 and the ex-dividend date is 3 October 2019. Merchants Trust continues to be an AIC 'Dividend Hero', an elite group of investment trust companies that have increased their dividends each year for 20 years or more. The company's dividend has increased for 37 consecutive years and a high and growing yield remains a key objective of the company. The total distribution declared for the first half of 2019/20 is 13.5p, an increase of 4.7% on the same period last year (12.9p). The directors intend to at least maintain the quarterly dividend payments at 6.8p for the rest of the year, leading to a minimum annual dividend of 27.1p, an increase of 4.2%. The company's revenue reserves remain strong, and, as at 31 July 2019 were 28.8p per share (2018 - 26.9p). Net asset value As at 31 July 2019, the NAV per ordinary share (with debt at market value) was 493.2p. On a capital basis, the NAV per ordinary share (with debt at market value) increased by 4.6%, underperforming the benchmark return of 8.1%. The total return reflects both the change in NAV per ordinary share and the ordinary dividends paid. For the six months to 31 July 2019, the total return NAV per ordinary share increased by 7.4%, whilst the FTSE All-Share Index increased by 10.6%. Material events and transactions At the company's annual general meeting (AGM), held in May, all resolutions put to shareholders were passed. The third quarterly dividend of 6.5p per share was paid on 6 March 2019 to shareholders on the register on 1 February 2019. A final dividend of 6.6p per share was paid on 22 May 2019 to shareholders on the register on 22 April 2019. The total paid and declared for the year ended 31 January 2019 was 26.0p.
chart trader2000: Look for growth: Tracking down trusts, funds and company shares that can grow dividend payouts is one of the keys to long-term returns and beating inflation I’m certainly not complaining about the share price gains, but the strong performance of the small selection of companies that Finsbury Growth & Income holds - combined with the compression effect of a low interest rate world - has pushed its published yield down over the years - even though it has increased dividend payouts. As a point of comparison, the trust’s current 1.7 per cent dividend yield is down from about 2.8 per cent when I first invested. Yet, the yield its shares offer new investors is not the one I get – mine is based on the roughly 350p I paid in spring 2012 - and my own number crunching revealed that based on last year’s 16.1p paid out, I am getting a 4.6 per cent yield. That’s pretty chunky and chimes with AJ Bell’s research, which looked at the dividend hero trusts over the past decade. It showed that investors who had invested in City of London in 2009, the dividend hero with the longest track record of 52 years, would now be earning a handsome 8 per cent yield based on the share price they bought at. The dividend heroes that yield more than 10% a decade later:...
goldpiguk: Hi andyj, Interesting point about the MRCH share price. The time period you refer to includes the dotcom crash, the banking crisis as well as the current Brexit effect, which has put some foreign investors off investing in the UK entirely. The MRCH share price has been quite volatile over this time period. At some points during 1998 MRCH shares could have been picked up for around £3.00 a share. The 1998 highs were around the current share price. However it should be noted that since 1998 MRCH has paid out over £3.84 in dividends and is primarily an income investment trust. The UK FTSE 100 where MRCH has substantial holdings has performed poorly over this time period. The intraday high of 6,950.6 set on 30th December 1999 and the closing high that day of 6,949.63 were not exceeded until 2015. For an ISA I think investment trusts (I currently hold three) offer well balanced underlying holdings with a higher degree of income protection than holdings in single companies. In the next few months I expect the UK market to remain very volatile and there is a risk of steep falls especially if we cannot get a satisfactory resolution to the Brexit issue. If the Government collapses and Corbyn comes to power it will hit the UK FTSE hard especially if they increase Corporation tax as they are currently proposing, force companies to give 10% of their equity (indirectly) to employees and embark on a programme of renationalisation of gas and electricity. Companies in the utility sector will face large demerger costs to separate their businesses where some parts are to be nationalised. Higher Corporation Taxes would have a direct effect on UK Companies ability to maintain dividend payments, so investment trusts with large dividend reserves will help mitigate this to some extent. I am continuing to add to my investment trust holdings (recently purchasing more DIG) and in the new tax year will most likely add another Investment Trust to my ISA portfolio. Goldpig
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