Phoenix Share Discussion Threads

[eeza] 09/3/2020 19:03

Anyone found the XD date?

Found it, on website - Financial calendar - provisional dates.
XD 2 April; Pay 19 May

[north sea boy] 09/3/2020 16:50

Just found time to read through the results slide pack (with accompanying scrip) on the Pheonix investor centre. It really was an excellent and informative pack, so well done to the guys on that!

Like many on here, I was struggling to understand the dividend proposition, but the scrip does make it very clear, as confirmed by Bluemango above.

Great results, company team clearly know their business and where they want to take it.

If I am being picky though, I am left a bit disappointed in the dividend proposition; dividend cover is currently x2.4, yet no increase in the 2020/21 tax year for us investors. I do appreciate their caution, but feel a 1-2% increase this year would not have rocked the boat for them; total dividend payout this year only 334m, so an extra 3-6m split between all of us would not have killed them.

Oh well, circa 7% yield as it is, so mustn't grumble I suppose.

NSB

[bluemango] 09/3/2020 15:08

I have had confirmation that the projected dividend payments are as outlined by speedsgh above, i.e. with the 3% uplift at the time of the 2020 final dividend paid in May 2021 (24.1p) giving an anticipated full 2020 dividend of 47.5p and 48.2p the following year.

[masurenguy] 09/3/2020 11:37

Topped up here this morning.

[my retirement fund] 09/3/2020 09:51

Very sensible. Pointless trying to catch the bottom. Way to volatile.

[speedsgh] 09/3/2020 09:48

@bluemango - I think they will have equal amounts once the increase is implemented i.e.

FY19 final - 23.40p/share (payable May 20)
FY20 interim - 23.40p/share (payable Sep 20)
FY20 final - 24.10p/share (payable May 21)
FY21 interim - 24.10p/share (payable Sep 21)
FY21 final - 24.10p/share (payable May 22)

Hopefully further acquisitons of closed books will enable them to increase the dividend further over time.

[cwa1] 09/3/2020 09:46

Morning All

Rejoined the fray here, hard to resist. No doubt WAY too early but hopefully will pay off in the middle to longer term...if any of us make it that far :-)

[bluemango] 09/3/2020 09:17

You're probably right. It just seems strange going by their established practice of having equal amounts.

[speedsgh] 09/3/2020 09:08

@bluemango - No, I don't think it is a typo. I think all they are saying is that they plan to increase the dividend by 3% with effect from the FY20 final dividend payment which is payable in May 2021. On previous evidence I can't see why this would only apply to the final dividend each year, so I am taking it to mean that the full year dividend will increase 3% from 46.80p to 48.20p with the first increased payment being in May 2021 once the acquisition of ReAssure has completed. AIMHO

[bluemango] 09/3/2020 09:04

Forward yield over 7.5%.

And to take a cold, dispassionate view, coronavirus age profile of fatalities would presumably be financially beneficial to Phoenix?

[bluemango] 09/3/2020 09:00

Thus full year 2020 0.482 (2 x .241)

[thamestrader] 09/3/2020 09:00

Couldn't resist dipping my toe back in.

[bluemango] 09/3/2020 08:57

Thanks speedsgh.

Do you think it's possible the prefix 'final' was a typo and they meant to state 'full year'? That would make more sense and also tallies with their established practice of having equal amounts of interim and final dividend.

I think they anticipate a full year increase of 3%.

[speedsgh] 09/3/2020 08:11

Future dividend guidance in today's results...



"The Group's enhanced cashflow profile post the acquisition underpins the Board's proposal to increase the final 2020 dividend per share by 3%."

So final payment in May 2021 will increase to 24.10p. I assume that this increase will apply to both interim & final payments from May 2021 onwards? If so, full yr dividend post increase becomes 48.20p.

FY19 final - 23.40p/share (payable May 20)
FY20 interim - 23.40p/share (payable Sep 20)
FY20 final - 24.10p/share (payable May 21)

[this_is_me] 09/3/2020 07:45

Surprises on the upside are a lot less common than surprises on the downside.

It looks good for the future too.

[masurenguy] 09/3/2020 07:09

Great set of results - however market mayhem will probably discount them at the moment !

Phoenix Group announces strong results and new cash generation target. ReAssure acquisition on track to complete mid-2020.

Financial highlights

-- Strong cash generation(2) of GBP707 million in 2019 (2018: GBP664 million) exceeding the upper end of its cash generation target range of GBP600 million - GBP700 million(3) for the year.

-- Solvency II surplus of GBP3.1 billion(4) as at 31 December 2019 (GBP3.2 billion(5) as at 31 December 2018).

-- Shareholder Capital Coverage Ratio of 161%(4,6) as at 31 December 2019 (167%(5) as at 31 December 2018) demonstrating continued resilience.

-- Group operating profit of GBP810 million in 2019 (2018: GBP708 million).
-- Proposed final dividend of 23.4p per share (2018 final dividend: 23.4p per share) with 2019 full year dividend of 46.8p per share (2018 full year dividend(7) : 46.0p per share).

-- New business in 2019 enhances the sustainability of our dividend by delivering GBP475 million of incremental long-term cash generation:

-- GBP240 million from UK Open and Europe businesses (2018 pro forma(8) : GBP280 million); and GBP235 million from bulk purchase annuities (2018: GBP250 million).

-- Assets under administration of GBP248 billion as at 31 December 2019 (GBP226 billion as at 31 December 2018).

-- Fitch Ratings affirmed the Group's rating as A+(9) ; "positive" outlook. Leverage ratio(10) of 22% as at 31 December 2019 (22% as at 31 December 2018).

Cash generation targets

-- 2020 cash generation target of GBP800 - GBP900 million.
-- 5 year cash generation target (2019 - 2023) increased by GBP0.1 billion to GBP3.9 billion for new business written during 2019.

-- Long-term cash generation guidance remains at GBP12 billion after 2019 cash remittance of GBP707 million, demonstrating offsetting nature of new business written in the year.

[my retirement fund] 07/3/2020 11:34

Its still an open sore to all eza. We will be back to the same cliff edge possibility again in less than a year, and then it will rumble on and on for many more years thereafter. Of course some people like open sores, thats a fact !

[jonwig] 07/3/2020 09:15

"An open sewer" you mean?

[eeza] 07/3/2020 08:55

Not to mrf. It's still an open sore.

[jonwig] 07/3/2020 08:43

Oh, that!! Seems ancient history.

[my retirement fund] 07/3/2020 08:34

No deal brexit was looming.

[jonwig] 07/3/2020 08:26

space-bob -

The FTSE100 fell 12% in the second half of 2018. Granted, PHNX fell bt more but I can't pinpoint a particular reason.

[space_bob] 07/3/2020 00:12

I'm considering in at 650, but can see the big drop at end of 2018. Sorry I'm lazy can anyone explain?