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 High Price Low Price Open Price Close Price Last Trade
  -3.00 -0.61% 486.00 489.50 486.00 486.00 489.00 15:53:47
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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

Top Dividend Posts

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
tim 3: Think we could easily see £5.50. To be honest am not massively concerned about the share price day to day and think it will track along with the market give or take. I bought these for their track record of increasing dividends for decades and with improved debt terms see no reason why that should not continue.
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:...
chart trader2000: that's one reason lots of people will not buy yield, as although they can bank a yield around 5%, the share falls 20% and they are showing a loss. quite a hurdle for the company to pay out plus 5% without the share price falling. when the market rises the share price follows but when the market falls the mmakers protect their book by cutting the price faster than the fall. still a great share for a long term holding, for top slicing and buying back lower down and/or investing the dividends back into the market.
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
tel5: goes ex divi next thurs so should be a share to keep on holding onto at these levels , nav is well above share price which is unusual for this share.
tel5: seems strange that share price languishing in the mire given that most holdings have risen lloyds been the poorest performer in the holdings , also 6p dividend for holders on 15 th of month
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