Merchants Share Discussion Threads

[superiorshares] 23/3/2022 02:40

Tim 3 .
I like BP. But Several people on BP chat raved about the fact BP received a 1.5 billion dividend from Rosneft , if that's true ? .. Then their will be a price to pay .

[tim 3] 22/3/2022 23:06

Fair point but it's still reiterated it's dividend guidance.

[superiorshares] 22/3/2022 22:33

Tim 3
Problem for BP. Its looking like they will get nothing for Rosneft ?

[tim 3] 22/3/2022 22:03

Just as well 2 of their top 5 holdings are oil companies!

[superiorshares] 22/3/2022 21:27

Zac o
My basis for dividends decreasing over the next 2/ 3 years is inflation at about 10 per cent . Oil at plus 150 dollars a barrell , that little war that is going on !.. can only lead to an almighty recession. .. I don't think companies will be splashing out on dividend increases .

[ctrader3] 22/3/2022 08:18

Real Estate Investors 2021 EPRA net tangible assets per share up 6.5% 58.8p
38.38p to buy > dividend 3.068p
8% yield > next divi 29 Apr 0.812p
discount around 30%

-------------

for anyone who also trades the yield.

[zac0_4] 19/3/2022 19:57

SS - on what basis are dividends likely to decrease over the next 2-3 years?

[tim 3] 18/3/2022 09:08

Plenty of defensive stocks including large investments in energy in their top 10 would think dividends are more likely to grow in those areas imo.

[superiorshares] 18/3/2022 02:37

This is my problem here .
It fails me that dividends are going to increase and remove that payment from reserves .
I would think that dividends over the next 2/3 years are more likely to decrease than increase ?

[gateside] 15/3/2022 07:18

6.85p dividend paid today

[ctrader3] 08/3/2022 11:12

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.

14/04/21

[zac0_4] 08/3/2022 10:54

I'll be interested to see 2nd half / full year 2021 results. I'm currently positive on dividend sustainability here. Results will be on Merchants website around 14th April.

[apparition1] 08/3/2022 09:38

Year to 31/1/21 eps 18.51p on revenue loss p/s on captal 76.38 Dividend 27.2p so yes dividend paid out of reserves
6 Month to 31/7/21 eps 13.33p profit p/s on capital 70.58p Dividend 13.6p so it depends on how you view paying dividends out of capital gains.
Over the 18 month yes they dipped into reserves - that's why I hold Investment Trusts rather than OEICs.

[superiorshares] 08/3/2022 07:46

OK let's simplify stuff.

Does this trust have an un covered dividend ?

[sharesoc] 07/3/2022 21:48

We are hosting a webinar with The Merchants Trust PLC (MRCH) on 22 March 2022, which may be of interest to current shareholders or potential investors. Simon Gergel (Portfolio Manager, Chief Investment Officer UK Equities) will be presenting. You can register here:

[ctrader3] 07/3/2022 08:57

I'd be a willing buyer if the price falls to
around 450p a yield of 6%.
My primary aim is the yield, although I would
expect to make a capital gain which may
take a while.
As there are several Trusts yielding over
8% I would require a yield of 6% for
the risk/reward ratio.
I wasn't expecting Mr. Market to give me
the opportunity, will he, won't he ?

[apparition1] 06/3/2022 14:37

Tag57
"If they can only pay the divi by issuing more shares, then the trust sounds more like a ponzi scheme than an investment."
Hi Tag - shares issued at a premium generate an addition to the Share Premium Account £30,044,518 in the year to 31/1/21 increasing this reserve to £84,137,103. Dividends cannot be paid out of this reserve only the capital and revenue reserves - see note 13 page 92 of the4 accounts. This is a legal requirement to prevent exactly what you are suggesting.

[tim 3] 06/3/2022 12:18

Figures speak louder than words.

Just have a look at the total return over the long term (decades)they consistently perform.

And have survived many crisis over that time yet always managed to increase there dividend every year.