Steppe Cement Dividends - STCM

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Stock Name	Stock Symbol	Market	Stock Type
Steppe Cement Ltd	STCM	London	Ordinary Share

	Price Change	Price Change %	Stock Price	Last Trade
	0.10	0.33%	30.60	15:53:26

Open Price	Low Price	High Price	Close Price	Previous Close
30.50	29.50	30.75	30.60	30.50

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Industry Sector
CONSTRUCTION & MATERIALS

Steppe Cement STCM Dividends History

Announcement Date	Type	Currency	Dividend Amount	Period Start	Period End	Ex Date	Record Date	Payment Date	Total Dividend Amount
08/07/2021	Final	GBX	2.5	31/12/2019	31/12/2020	15/07/2021	16/07/2021	30/07/2021	3.5
29/10/2020	Interim	GBX	1	31/12/2019	31/12/2020	05/11/2020	06/11/2020	20/11/2020	0
09/07/2020	Final	GBX	3	31/12/2018	31/12/2019	16/07/2020	17/07/2020	31/07/2020	3
13/06/2019	Final	GBX	3	31/12/2017	31/12/2018	20/06/2019	21/06/2019	12/07/2019	3
19/06/2018	Final	GBX	1	31/12/2016	31/12/2017	05/07/2018	06/07/2018	27/07/2018	1

Top Dividend Posts

Top Posts
Posted at 28/9/2022 15:02 by aleman They are just waiting confirmation of exemption from the tax, hence no plans from the company for anything else at this stage. The government has said it intends for foreign dividends for qualifying companies (basically those who have already paid tax) not to be taxed a second time and that clarifications on exactly who do and don't qualify would be forthcoming. Thoughts are that most dividends from already taxed entities will not see further tax but it might depend on who pays exactly what rates and where - a minimum of 15% was mentioned. I think the company believes it will qualify when the guidelines come out which is why it's hung on and taken no action. It sounds like the government is going to publish in November. I think the most likely outcome is no change in anything and a delayed 5p dividend but this cannot be confirmed until the government publish. Until then, we can't be certain because governments are known to change their minds! Read Full Thread Follow Reply
Posted at 07/9/2022 19:12 by mattjos Steppe highlighted in this article today: “The best value Aim stock was manufacturer Steppe Cement, with a forecast dividend yield of 19pc, according to the broker AJ Bell. This was followed by the investment manager Polar Capital Holdings at 10.5pc. Polar Capital was also the third largest dividend payer in 2021, returning just under £40m to shareholders.” https://www.telegraph.co.uk/investing/shares/junior-stocks-paying-better-dividends-still-risky-investors/ Read Full Thread Follow Reply
Posted at 25/8/2022 22:40 by mattjos assuming worst case & the divi is actually taxed, it results in 3.8p payable, that is: Offer price 33p /3.8p Divi = 11.5% Yield Between now and whenever there is greater clarity on the matter, the $10m+ cash sits on the balance sheet. The divi intent & tax 'wrinkle' was issued on 13th June … the mid share price closed at 38p the day before so, with current mid price now at 32p the entirety of the potential 5p dividend has already been more than fully discounted by the market. All in all, an unusual situation & the lack of clarity has, in effect, caused the ex-divi fall without payment of the divi. Read Full Thread Follow Reply
Posted at 01/8/2022 10:31 by zangdook Four possibilities - 1. Dividend is ok, and they pay it. Sp rises 2. Dividend is ok but they decide to miss it this year - unlikely. Sp falls 3. Dividend is not ok so they do some corporate juggling and find a way to pay. Sp falls and then rises, unless the solution is announced at the same time as the tax news, in which case it probably just rises assuming there's no downside to the corporate stuff 4. Dividend is not ok so they decide to miss it this year. Sp falls hard. ¯_(ツ)_/¯ edit: of course the share price isn't likely to behave as we might consider predictable or rational Read Full Thread Follow Reply
Posted at 31/7/2022 23:33 by aleman Is this what seems to be causing confusion? It sounds like STCM could be exempt from the withholding tax/prosperity tax provided they comply with certain conditions - but those conditions have yet to be published. I'm far from sure about it, though. I only just looked for it tonight and I'm not familiar, but it seems to fit the narrative. The last sentence of this sample is interesting. Could it be a problem for 2022 only? Https://news.bloombergtax.com/daily-tax-report-international/tax-changes-in-malaysias-2022-budget Tightening of Foreign-Sourced Income (FSI) Exemption Since year of assessment (YA) 1995, the income of any person derived from sources outside Malaysia and received in Malaysia has been tax-exempt (the FSI exemption). Only tax-resident companies carrying on banking, insurance, or sea or air transport businesses were excluded from the FSI exemption. One of the FA amendments (the FSI amendment) seeks to tax tax-resident persons on their foreign-sourced income remitted to Malaysia and to restrict the FSI exemption to non-resident persons, with effect from Jan. 1, 2022— marking a significant departure from the entrenched position . As such, tax-resident persons, whether individuals or corporations, would be taxed on their foreign-sourced income received in Malaysia, initially at a flat rate of 3% on gross amount received from Jan. 1, 2022 to June 30, 2022 and thereafter at prevailing income tax rates. However, at the eleventh hour, and unexpectedly, a press release was issued by the Ministry of Finance (MOF press release) the same day on which the FA received Royal Assent, with a view to ameliorating the potentially far-reaching detrimental effect of the FSI amendment. Pursuant to the MOF press release: all categories of foreign-sourced income received in Malaysia by tax-resident individuals from Jan. 1, 2022 to Dec. 31, 2026 would be tax-exempt provided that no partnership business was carried on by the individual; for tax-resident companies and limited liability partnerships, only foreign-sourced dividend income received in Malaysia by them from Jan. 1, 2022 to Dec. 31, 2026, is tax-exempt, and all other types of foreign-sourced income remain taxable. However, in both instances, the exemption is subject to compliance with conditions which have yet to be issued by the Inland Revenue Board. Hence, it remains uncertain as to how the FSI exemption will operate in practice. The MOF press release also clarified that the “prosperity tax” or “cukai makmur” would not apply to foreign-sourced income received in Malaysia by small or medium-sized enterprises (SMEs) which are taxed under paragraph 2A of Schedule 1 to the Income Tax Act 1967. The prosperity tax was introduced through the FA to tax companies (other than SMEs) earning chargeable income in excess of 100 million Malaysian ringgit ($23.8 million), so that the first 100 million Malaysian ringgit of its chargeable income would be taxed at 24%, and any excess would be taxed at a higher rate of 33%. The prosperity tax is imposed for YA 2022 only. Read Full Thread Follow Reply
Posted at 27/7/2022 14:48 by zangdook Three days to the anniversary of our last dividend. Is it pure coincidence that both the interim and final dividends didn't happen because of (unrelated) tax issues? I'm also in NTBR where they haven't declared a dividend because they couldn't make up their minds if they wanted to. I kid you not. So STCM isn't the worst of the non-payers. Read Full Thread Follow Reply
Posted at 14/6/2022 12:55 by scrwal Since my post 4591 I have been thinking and had a sort of eureka moment which actually invalidates what I said and also invalidates the comments made afterwards - sorry. I have only owned STCM since the start of this year but hope I have got the prior year analysis below correct. This is how I see the situation, with the major assumption that cash is moved up the chain of companies by way of dividends - which has to be the case otherwise why is there a problem anyway. PRIOR YEARS The Kazakh companies make all the cash and paid an interim and final dividend to the Netherlands company. The Netherlands company on receipt of the divi then paid a dividend itself to the Malaysian company for the same amount. The Malaysian company on receipt of the divi then pays a dividend to "STCM" for the same amount. "STCM" receives said divi and then pays dividends to its shareholders. CURRENT The Kazakh companies make all the cash but to avoid a withholding tax can only make a dividend payment once the accounts are audited and approved. The divi goes to the Netherlands company. The Netherlands receives the the 5p divi but if it pays a dividend to Malaysia this suffers a 24% withholding tax on Malaysia. Malaysia when it receives any cash can pay a divi to "STCM" as normal. "STCM" receives and pays a divi as normal. This means the bottleneck occurs at the Netherlands to Malaysia level, not at the "STCM" level so any actions do not directly affect STCM shareholders nor should they be actioned at the "STCM" level. The course of action will be determined by the murky waters of taxation and accounting in respect of trading profits/losses and capital gains/losses. Depending on this a course of action could be as follows Netherlands does a scrip issue and then buys back said shares for a sum equal to the divi. The shares are cancelled. Malaysia receives the proceeds and pays out a divi to "STCM" for the same amount. No withholding tax is paid as it hasn't received a foreign dividend. I'm not sure how the transactions would be reflected in the respective financial statements nor how they would be treated taxwise in Malaysia or the Netherlands. The big advantage for STCM is that all this will be an intragroup event cancelling out in the consolidated accounts subject to the costs of whatever scheme is used. Also the legal requirements will be lower hopefully for whatever is done at the subsidiary level rather than those at a stock exchange level. Read Full Thread Follow Reply
Posted at 13/6/2022 18:36 by king suarez Hi kenmitch, yes I read your post, which prompted me to post. I'm not saying the price of STCM could/would not go down following a buyback - anything could happen. The price is down today, despite great results after-all. If we are about to enter a recession, even a great dividend might not stop the rot as future lower prices/demand become factored in? For a counter example see Goldplat, which initiated a buyback programme recently at the end of March when the share price was just below 7p. The shares hit 9.6p earlier this morning, before selling off a little due to the market. That rise imo was driven more by the solid fundamentals of the business, but possibly the buyback helped raise the bid price taking some shares liquidity out? I know nothing about Whitbread, so cannot comment on that specific example. What happened to the fundamentals/earnings of the business in the years post-buybacks? Did they improve or worsen? Was lack of free cash in the business a factor? Was the Costa disposal a bad decision - done too cheaply - did it harm earnings too much etc? I think a buyback can be detrimental, if it used by directors just to try to push up a share price short-term (option incentives for example?) when the cash is really better suited to paying down debt, or expanding. That could leave a company in a worse position long-term. STCM don't have the problem of excessive debt, nor lack of funds for expansion/plant improvements, so I don't see it is a business risk in that sense - it's equivalent to a dividend to me. You mention about sellers in STCM potentially wanting out and a buyback offering that liquidity - is that not a good thing? Otherwise a big seller can continue to sell down at an ever decreasing share price, with insufficient private investor demand to capitalise, as we've seen recently with SEB, until the tide turned? I'd rather have a dividend, personally, but as a long-term investor, not averse to a buyback either. Alternatively, the companies cash sits in the bank earning a derisory interest and being eroded by inflation, which is what we are trying to beat by investing here? Read Full Thread Follow Reply
Posted at 12/4/2022 08:28 by constable ken Sure For reference, the dividend history is: Full Year 2019 3p Full Year 2020 3.5p (interim 1p, final 2.5p) For 2021 the dividend has not yet been announced, however it will go back to being a single final dividend with no interim. So when bluemango gave the yield for a 3.5p dividend, he was quoting for the historical dividend, and correctly noted that this year it may be increased. This is a perfectly normal and correct way to refer to the dividend. We don't know this year's dividend; here is last year's and from the information available it's likely to increase. Then eggbaconandbs jumped in and implied that bluemango had not added in the interim when quoting the dividend. (he's edited his post to make it seem he was referring to the return to a single dividend policy this year; he wasn't, but it's neither here nor there. BM quoted the total for last year and noted it may increase.) There's a tendency with some posters on this board to overstate the dividend. It goes back a long time. Sometimes they add dividends from more than one year to claim the dividend (per year) was higher than it was; sometimes they imply that they have inside information and quote a high dividend before the (lower) dividend is actually declared. I get very sick of it; sometimes it may be carelessness but often it looks dishonest. In eggbacon's case, implying that BM had forgotten to account for the interim dividend when clearly he had not, it looks like a deliberate attempt to confuse readers and pump up the share. The yield here is exceptional. Why do people have to lie about it? hope this helps. Read Full Thread Follow Reply
Posted at 04/4/2022 11:39 by flashheart I have HL currently showing the STCM dividend yield at 12.5%. Is this correct and up to date? Read Full Thread Follow Reply

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