Merchants Share Discussion Threads

[mister md] 15/4/2021 12:41

finally something to get Glaxo moving (currently up 8%):

"Hedge fund Elliott builds up multibillion-pound stake in GSK" - FT.com

Handy that it's the number 1 holding here ;-)

[ctrader3] 14/4/2021 10:20

tim, all good.

[tim 3] 14/4/2021 09:22

Thanks for your posts ctrader appreciated.

Yes looks like it was a case of maintaining the dividend at all costs and needed a fair chunk of reserves to do it but I guess tats what they are for.Also looks good for future promotions that they survived the covid problems and still increased dividends!

[zac0_4] 14/4/2021 09:15

Yes. The 'Dividend Hero' status they've achieved is prominent in a number of their communications. I rather think they're keen to maintain that status!

[panshanger1] 14/4/2021 08:42

Looks like they have used up about a third of the reserves and will happily top up for this year ?Looks like dividend secure ATM

[gateside] 14/4/2021 08:30

Yes having some overseas shares makes sense. CTY another dividend hero, have 7% in Europe and 5% in the USSo it's good to see MRCH looking at new strategies. I think they will do all they can to try to ensure that the dividend rises each year.

[zac0_4] 14/4/2021 08:05

An overall positive report given the trading circumstances experienced in 2020. I welcome the decision to consider overseas investments up to 10% of the value of the trust. It should help provide both further opportunity and diversification.

[ctrader3] 14/4/2021 07:21

Income remains in sharp focus

As noted, the year saw a large number of dividend cuts in the market and this has inevitably impacted earnings per share which are down more than a third to 18.5p. The board recognises the importance of a growing dividend to shareholders. We can see a path to a covered dividend in the medium term. Absent any significant further deterioration in the outlook for income, the board plans to continue with its progressive dividend policy, and is willing to consider utilising reserves, built up over many years, to cover any shortfall from earnings. We propose a final quarterly dividend for shareholder approval of 6.8p which means for 2020 an increased full-year dividend of 27.2p. This includes a contribution from reserves of 9.9p, leaving 18.3p in reserves at the year end. Whilst this dividend represents a nominal increase of 0.4% over the 2019 dividend of 27.1p, close to but not in excess of the 2020 rate of inflation, we have now grown the dividend for 39 consecutive years at an annualised growth rate of just under 7%, well above the rate of inflation over that period which stands at 3.4% annually as measured by the Consumer Prices Index (CPI).


The ability to accumulate revenue reserves for use in just such a 'rainy day' remains one of the key features of an investment trust and one that the board is happy to consider using prudently on behalf of shareholders.


We are very pleased therefore to, once again, retain our AIC Dividend Hero status. 2021 has seen us continue to provide one of the highest yields in our peer group as part of an attractive total return for investors. We remain as focused on dividends as you are.