Merchants Share Discussion Threads

[poikka] 16/4/2020 21:40

Handy site:

[poikka] 16/4/2020 21:39

Mentioned it earlier, but having filled my boots with it, I suggest a look at BMO High Income BHI.

Over the last year or so, the manager revised the portfolio to focus more on companies likely to increase their divis (history now, lol), rather than just big payers.

Divi is 5.16p, which at 73p = 7.0%. Thing is, that divi is really well covered by retained earnings - well over twice, and it's trading at some 7% discount.

Anyway, guys, if you haven't got some, might be worth a look.

DYOR, AISYW, and DBM (don't blame me :) ).

[north sea boy] 16/4/2020 20:29

Good decision by management team to declare a fourth interim, to ensure payment on time. I personally am very grateful for this one as LLOY have left me with a huge income gap in May, and I am sure that there will be other gaps still to appear. Also grateful that CTY have indicated that they will also pay a divi in July.

All the best folks (and thanks for the responses above).

NSB

[cashflow101] 16/4/2020 20:07

thanks Poikka,at first thought you were just guessing ! Not much use looking at the MRCH web site. However after a bit of digging found it. Goes xd on Ap 23rd payable on May 29th Full year = 27.1 p up 4% on last year.Evidently full results due end of April.

[poikka] 16/4/2020 15:36

Great, 6.8p as expected. BIG premium, though, oooer.

[tim 3] 15/4/2020 10:16

Agree would have to be serious for them to break that record although these are certainly going to be challenging times for dividend payers.If things recover fairly quickly then this type of situation is exactly why they hold some cash back and we should be ok.If this is the start of something more serious then could be a bigger challenge to maintain divi growth.I am in the former camp and holding for now.

[speedsgh] 15/4/2020 09:57

@NSB - I think I'm right in saying that the Q4 dividend declaration is usually contianed within the Final Results announcement. The publication of the results will has been delayed at the request of the FCA/FRC. However publication ought to now be imminent. I am not reading anything into the Final Results delay in terms of the next dividend payment. They will presumably update on their thinking re the dividend going forward in the results but I would expect them to be extremely reluctant to lose their hard-earned status as one of the AIC's dividend heroes (i.e. those investment trusts that have increased their dividend consecutively each year for 20 years or more). MRCH have increased their dividend in each of the past 37 years. AIMHO

[north sea boy] 15/4/2020 09:16

Anyone else noticed that the dividend announcement is more than a few days late? Do you think we should be concerned by this?NSB

[poikka] 14/4/2020 22:06

Premium to NAV a bit unnerving at this stage. Divi covered by retained earnings x 1. BHI looking good to me with some 8% discount to NAV and divi of some 6.6% covered well over 2 x.

[tim 3] 09/4/2020 11:01

Have noticed this moves more than you would expect with sharp market moves up or down probably down to the leverage.

[goldpiguk] 08/4/2020 14:39

Hi chart trader2000,

I think the steep rise in MRCH yesterday was in part due to the sacking of Mark Barnett (six months notice) as manager of the Perpetual Income and Growth Trust. Lots of rumours as to who will take over the fund. MRCH was mentioned in the rumours and spiked up, although Majedie was the main beneficiary of the speculation.

Yesterday afternoon I did toy with the idea of selling MRCH and was unable to get a firm price for more than 1,000 shares at a time. I decided not to press the sell button, but I do agree with you MRCH now looks ahead of itself and there are quite a few IT's that look better value.

My main purchase in this crisis has been 14,500 shares in The Edinburgh Investment Trust for my ISA. (See EDIN board.) Again a trust Mike Barnett was fired from and now run by Majedie. I like the new portfolio (recently published) and EDIN has many defensive qualities, including a much larger dividend reserve than MRCH.

I am happy to continue to hold MRCH but would not add as it is no longer at a discount to NAV.

Goldpig

[mister md] 07/4/2020 14:03

NAIT does indeed look good too, so purchased some yesterday, thanks chart trader for highlighting

[mister md] 07/4/2020 08:54

Knew I'd picked up a bargain at 315p ...

[tim 3] 04/4/2020 14:52

Thanks guys Have been wanting to get in there for years now but the valuations valuations put me off now they have cone down a little obviously with good reason but I still believe long term it's a good market to have exposure to the S&P has a historic 10% return to investors.Might consider an EFF tracker.Think I will keep MRCH but sell some of my uk individual shares to fund it.

[panshanger1] 04/4/2020 12:40

Keep waiting for Fundsmith to come off a bit more but has held up very well Has a lot of US exposure

[escapetohome] 04/4/2020 12:26

Im just letting in play out for the time being, saving up cash. But this could be an opportunity to slowly accumulate stock, dipping in each week / month.

[tim 3] 04/4/2020 12:16

Off thread but anyone tempted to have a nibble in the states now they have come off a bit I have virtually no exposure there.

[tim 3] 31/3/2020 20:17

They have survived many other crisis.

Provided this one is not prolonged their record should stay intact.

[escapetohome] 31/3/2020 17:25

Yup , heard they take the divi really seriously, and have a years income reserves from income, but also further reverses.

In january they took the prudent step of reducing gearing as well.