Standard Life Aberdeen Share Discussion Threads

[chinese investor] 21/11/2018 11:57

Annual Dividend is 8.47%.

[cyberian] 21/11/2018 11:47

kenmitch....agree...very well put and on balance you have it measured. I hope that the Directors or senior executives bonus is not connected to EPS increase as that would be truly disingenuous, and something the Chairman designate should immediately change IF that is the existing case...I cannot believe that is how it is, but would need to review to see if it the case or not.

[kenmitch] 21/11/2018 11:32

Buybacks don't support the share price. Look no further than Apple. They are spending $100 BILLION on buybacks this year. That hasn't stopped the share price falling by over 20% in recent weeks.

Nor have the SLA buybacks supported the SLA share price.

Buybacks DO mean eps will be higher than it otherwise would have been. Directors often like buybacks when their bonus pay is linked to eps!

And fewer shares in issue does make it less costly to pay dividends on the remaining shares.

Buybacks also reward those who want out, as there is a willing buyer. They gain at the expense of those who stay invested.

So buybacks DO reward investors, but often NOT the ones who stay invested!

I discovered that years ago and now invest accordingly.

e.g sold out of SLA when they started buying back (above £4) but bought back (too soon?) on Monday as so much bad news now looks priced in, and the dividend if maintained is too good to miss.

Also some of the things investors don't like about SLA like dual management are very easy to fix.

[w1ndjammer] 21/11/2018 11:00

Hi guys is that the correct divi yield showing on ADVFN 8.3%
or have more shares been issued.

tia

WJ.

[cyberian] 21/11/2018 08:48

Interesting to see the detailed break-down of every purchase by GS yesterday...they appear to mop-up every little sell they can get their hands on..quite extraordinary. It reveals that there are very limited big sellers of the shares which is encouraging, and augers well for an improvement in sentiment, perhaps?

[cyberian] 20/11/2018 20:31

MC...ITV paid a Special Dividend of 10p in March 2016 (in addition to dividends of 6p in 2016)...that was when the share price was well over 200p NOW their share price is about 146p. A special divi is a one off and an investor can either bank it or buy more shares in the stock. An income return is very important to a lot of private investors, and to the Pension Funds/ Insurance names etc....just look how pained they were when BP had to cut their divi after the GoM disaster. You can come up with all sorts of scenarios, and individual frustrations over management strategies/decisions, but you either stay or leave the share, and invest in other companies in a mixed/balanced portfolio...your choice and judgement. To me 250p now looks attractive now that the GS mandate as I mentioned earlier has kicked in...we will see if that judgement is correct over the next year or so.

[mcunliffe1] 20/11/2018 19:16

Buying-back a number of shares seems to serve no purpose to me beyond permitting a lower dividend payout to a lesser number of shares to APPEAR to be hitting the same percentage as previous payouts prior to the buy-back.

Had they instead distributed OUR money as a special divi. we could have chosen to buy more shares and hence increase our actual dividend amount even if the divi. per share was a lower percentage than previous years.

The dual CEO's have taken that choice away from us.

At the back of this fiasco is, I suspect, an executive share payout scheme that requires a certain yield to be achieved. Possibly even a certain share price The market's falling anyway so that aspect is touch luck.

Their purchases have however afforded the opportunity to exit the stock for those holders who've had enough.

[tornado12] 20/11/2018 17:30

You are right Fiona that a special divi would give immediate benefit to SH but SLA are following general trend of SBB to shore up their EPS and the future dividend trend. I'm pretty sure this is SLA strategy and as a longer term holder with current Divi circa 7% ROI I am happy with that.

[fionascott1234] 20/11/2018 17:05

And the average price paid during the buy-back of the first tranche = 289p. A Special Dividend WOULD instead have been nice.

[tornado12] 20/11/2018 16:25

Cyberian, I agree on your sentiment regarding share buybacks. They are one of few who are making a major reduction in their share pool under strong pressures on both share price trend and revenue trend. If they have got it right and their next business update shows a clear future strategy then this is a good opportunity for long term investors. That's the reason I jumped onboard a few months ago and now I hope the BOD can follow up with the right business plan & vision.

[meijiman] 20/11/2018 12:07

It was a great idea for one individual ..just needed a mug buyer. This dual ceo nonsense will not last...though it will probably do so till the Chairman has weighed up the merits of the candidates

[cyberian] 20/11/2018 12:05

Can now understand why only 3 shares were bought last Thursday as ML had to get as close to their final mandate figure as possible, and that is why they were just a few pennies short...big drama!!

[fionascott1234] 20/11/2018 11:46

TWELVE years on from demutualisation when we thought that 230p was a bargain price we are now testing < 250p.Do we think that having a dividend approaching 10% makes up for such a price collapse?Do we think that such a dividend is sustainable?Can we believe that the Aberdeen merger was really such a great idea?Oh dear.

[cyberian] 20/11/2018 11:38

Good news on share buy-backs with the announcement that the £175 million program run by ML has been completed, and a new second mandate agreed with GS for £200 million out of the £575 million still available. The program will start today and run through next March...phew, that's a relief!! So all we need is the PM May brexit deal to somehow win a vote (probably at the second attempt) and we may see some progress. Good to see BOE Carney give some measured support for the current deal on the table...still hoping for common sense to prevail...the Jacob alternative program today looks dead and useless...but some will have a different view I have no doubt?

[cyberian] 20/11/2018 10:30

EI...I really like PRU and their recent strategic moves has help propel their revenues and business to new levels...not too sure about the tone difference with SLA as they too have made some big changes and obviously one has to wait and see if successful, or more marginal. The differences in their respective markets is totally different...I would also draw your attention to the dynamics of LLoyds bank and their changes etc...their share price has faltered over last 2 years and recently their attitude/decision of unwinding connection with SLA I would suggest has been a failure...well so far. AUM are important but one again has to look at what has and remains attractive to SLA. I have suggested that the Scottish Widows mandate produced quite low margins and in the scheme of things not that significant, although the headline numbers look negative. SLA have said that that business effects only 5% of revenue returns, and although they would prefer to have held on to it, their cost savings program across all their activities should more than make up and loss earnings. The new Chairman may shake things up in a more positive direction next year.

[essentialinvestor] 20/11/2018 10:11

While Brexit sentiment is unhelpful, SLA price weakness runs far deeper.

It's all about the AUM, lets see where that is at the next update.

If you have a quick read of the latest PRU update, and then the last SLA statement,
there is a very marked difference in tone.

[cyberian] 20/11/2018 09:54

I would hope or expect that M.L. would give us a clue as to a base bargain IF they resume buy-backs at the 250p levels we have seen early today...who knows they may still hold off for a few more days, The price of buy-backs is now quite interesting as at current levels they are able to reduce even more the number of shares in play (held), which will help the div yield and cover into next year, and beyond.

Just to clarify what the IOD suvey showed this morning...75% of members support PM May's plan which provides an agenda that they can work with...two-thirds believe that a no deal would be damaging and 52% would favour a new referendum....the last view just shows that there would be no certainty how that vote would go, as country is split and nothing would change that.

[edmundshaw] 20/11/2018 09:16

What's a bargain thoug? 260p? 250p? 230p?

[cyberian] 20/11/2018 09:11

Oh dear!! no wonder SLA appear to have suspended buy-back program with the current turmoil...sp action rather overdone after CEO's buying at roughly 270p recently. Probably a reasonable move to keep their war chest of funds in reserve until markets settle down as is likely once the largest US high tech names have found a more sustainable base/value. Their influence in the US markets is causing the anxiety, and should be seen as such...others mid size companies are doing OK, and interest rates in US, and in Europe will remain quite soft over next year or more. Brexit will get sorted one way or another over coming weeks and media coverage is like a soap opera...they love it but not too sure what significant influence the drama queens are causing. The IOD survey this morning reveals where they stand, and that is why I think a resolution will be found fairly soon. In the meantime does one sit on ones hands or add a few SLA shares at these bargain levels?

[warranty] 19/11/2018 19:06

Well whatever's happening in Westminster, it's certainly not helping SLA, which continues to slide. As for Scotland, it's pretty much a given there will be another Independance referendum but more interestingly to me, what about one for Northern Ireland? I can't believe how quiet Sinn Fein have been on that and surely Independance there would at least resolve the Backstop issue!!

[fionascott1234] 19/11/2018 18:54

Indeed Edmund, it appears that no matter the result of a vote there will always be those who ignore it for their own ends.Now what did I say about keeping politics away from this board?

[edmundshaw] 19/11/2018 18:44

I am just a sc I suppose - half scot. I'd prefer not to need two passports... but I don't suppose I shall get a say as I live in England... democracy is a strange animal...

[sicker] 19/11/2018 18:27

As you may glean from my user name, I too am a Scot who once voted SNP but will do so no longer :-) mainly due to the First Ministers attitude to the points of view of others, a problem shared by many MPs

[fionascott1234] 19/11/2018 17:39

I can't abide her either and I am a Scot and a Scott.

[tornado12] 19/11/2018 17:10

I think we have to hold onto our hats it’s going to be a hell of a roller coaster ride ! None of those idiots in Westminster know what working together and finding common approach means. They are all a disgrace to our sovereign history. Shares will fall again make no doubts about that