Utilico Emerging Markets Dividends - UEM

Utilico Emerging Markets Dividends - UEM

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Utilico Emerging Markets Trust Plc UEM London Ordinary Share GB00BD45S967 ORD 1P
  Price Change Price Change % Stock Price Last Trade
0.25 0.14% 175.75 16:35:25
Close Price Low Price High Price Open Price Previous Close
175.75 175.50
more quote information »
Industry Sector

Utilico Emerging Markets UEM Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

davebowler: Quite a recovery in the share price!
erogenous jones: There was an interesting article either in the Sunday Times or Investors Chronicle this weekend (forget which) about dividends. The yield for FTSE companies is at the highest it has been since 2009. While there are those that challenge a high dividend yield (and with good cause when it rises over 10%), it is, of course, reflective of the share price at the point of calculation and although companies such as IMB and VOD have a high percentage yields, because they have both had long track records of these payments and generate very strong free cash flows, I am inclined to continue to consider them in my portfolio. I no longer hold IMB, but I have strengthened my exposure to VOD.
erogenous jones: The NAV is gradually rising and remains at a premium to the share price. A rising share price is usually assured in such circumstance.
kenmitch: At last! A couple of investors (or maybe the same one buying two lots) have woken up to the extreme undervaluation of UEMS (share 226p to sell so UEMS worth 43p) with two 100,000 buys at just 35p. Hoping that this time and in time for Feb 28th UEMS expiry the share price will go to new highs and UEMS too. Still fwiw optimistic about getting 40p either from selling in the market or risking trustee. And worth exercising as many as we can afford to.
kenmitch: Below is part of my first post on this thread on 15th Feb with reasons why UEMS looked a strong buy. One of the target prices has already been reached - the 32p sell price for 35% gain, against 5% for the share. The higher 42p target has also been hit but so far only the buy price. Very high chance that 42p will be exceeded if current bull market continues. Share now 226p to sell so UEMS worth 43p but can still be bought under 40p. Target 240p share price. Then UEMS worth 57p if exercising but probably as now lower is deciding to sell the subs. Trustee route is risky but has the advantage of need to do nothing and just wait for proceeds in accounts. Here's the first part of Feb 15th post. Hope one or two hold from 24p or so or lower:- "The subscription shares (UEMS) are now very good value AND (some probably don't realise this) sub shares can go in to ISAs. For any not familiar with sub shares and warrants,they are traded the same way as shares though you may have to sign a risk form first if never having traded them before. As with shares they can be bought and sold at any time up to expiry date of Feb 28th next year. Exercise price is 183p. So with the share at 205p to sell, UEMS are currently worth 22p. Current buy quote is 24.5p but they can be bought inside the spread at 23.25p. Yesterday they could be bought for just 21.3p. Target a 5% gain for the share price to 215p and UEMS would be worth 32p, and around 35% more than the buy price today. Target a 10% share price gain to 225p to sell and UEMS would then be worth 42p and not far off double the current price."
kenmitch: Agree re interesting posts but also an "if only!" Why "if only?". Because if only far far more had realised what wonderful investments warrants and subscription shares are they would not have dwindled from hundreds to choose from to just a handful and very few of those worth investing in. Here's an extreme example of how easy it was to do well with warrants and in very good years almost impossible not to. In 1993 there were hundreds of warrants to choose from. That year only 2 warrants fell in value over the year. The average gain for all the warrants was an incredible 222%. 70% of the warrants at least doubled that year. Sphere Investment Trust warrants went up 18 times. I've been investing in warrants since 1989 and am a founder subscriber to what was once an invaluable monthly warrant newssheet, Warrants Alert. Warrants have been by far the most successful part of my investing. I'm a low risk investor who otherwise invests in quality shares - now using the brilliant Stockopedia for some of those. Those who just want out of the subs (UEMS) at the first opportunity and prefer the shares and dividends imo just don't get it. Those who don't and didn't get it are the reason there are now so few left! So is it really better to hold UEM in preference to UEMS? Aside from earlier trades, including one at a significant loss when the share fell to 155p, I've been back in UEMS since July last year. The the share was about 195p and UEMS were 18p to buy. The share has gone up 15% to 225p to sell. UEMS has almost doubled to 35p to sell. So EITHER buy 30000 UEMS at 18p for a cost of £5400 last July OR Buy 10000 UEM share at 195p for a cost of £19500. That 30000 £5400 UEMS buy is currently worth £10500. PROFIT £5100. That 10000 £19500 UEM buy is currently worth £22500. PROFIT of just £3000. So those buying the shares have risked an EXTRA £14000 and have got a current profit £2100 less than if investing in UEMS instead. Dividends won't make up that much! Yes, the subs are riskier if markets turn nasty. But when markets did turn nasty for a while I sold UEMS for a loss and was then out until buying again last year. Even if it goes badly wrong the losses on a £5400 subscription share stake are often much smaller than the losses on a £19500 share stake. Warrants and warrant pricing are so simple and it is so easy to invest in them successfully. Also note that the market makers don't seem to understand them either because UEMS (and this has happened to plenty of other warrants over the years) are at a simply barmy wrong price. UEMS were worth 42p when I added 5000 earlier today at just 35p. The price should be around 45p to allow for the remaining time value left. Re market makers also not understanding them. Geiger Counter subs could be bought for just 0.8p when the quoted spread was 0.75p to 1.5p and the share with over 6 months to run was not much below the exercise price. I bought a smallish stake then and it went up 59 times in a few months, though being too cautious I sold most of mine too soon. "picking up dimes in front of railroad engine???????"
kenmitch: contact. Yes it DOES matter when you buy UEMS IF the share price rises between now and expiry next Feb. Buy UEMS now at 28p with share at 217p OR buy later when share is with luck around 250p. THEN If buying UEMS you'll have to pay around 60p. i.e UEMS will have doubled and you will not only be paying double current UEMS buy price if waiting but will also have missed the chance to SELL your UEMS for a double too! Remember you don't have to exercise UEMS. You can buy and sell UEMS at any time just as you can with shares. And you can also exercise some and sell the rest of your UEMS. And you also have the option of letting UEMS lapse. I.e don't sell them when they expire as a trustee is appointed to exercise any UEMS allowed to lapse and the proceeds are then sent to your account with no dealing costs within a week or two. There are risks leaving it to the trustee. UEMS are still fantastic value at 28p and well worth buying IF confident the share price is going to rise. One reason they are so cheap is because very few understand Warrants and sub shares and so few trade them. With the share at 217p UEMS are worth 34p so 28p is a barmy too low price.
kenmitch: Posted this on UEMS thread earlier today, but as even fewer posts there (just 12 since August!) it might get seen by and be of interest to a couple of people here. UEM again at 218p to sell and worth 35p but can be bought for just 28.25p. The only trades so far today are one tiny sell and another 4000 or so at 25.5p. Why sell when such incredible value unless thinking the share is heading down. UEMS is likely to continue to trade at a discount, and it could even widen a bit too. But it's amazing so few investors are aware of this bargain. Target just 5% more on the share price to 230p and UEMS will be worth 48p. OK the discount could get even wider, at share 230p UEMS should be at least 40p to sell. i.e not far off 50% gain compared with 5% for the share. As long as this isn't the peak for UEM, UEMS looks a no brainer. EDIT. £1000 UEMS stake - profit around £500 for 5% share price rise any time between now and next Feb. £10000 share stake. - profit around £500 for 5% share price rise. Same profit. £9500 less staked. Share goes down 5%.... loss on UEMS ( if not selling out long before share falls that much) would be around half the stake, i.,e £500., Loss on £10000 share stake would also be £500. If wanting to hold the share long term, then just exercise UEMS at expiry for no dealing or other costs. i.e if holding, say 3500 UEMS, then exercise by using UEMS to buy 3500 UEM at 183p a share.
kenmitch: Hi badday. Good to see a post from you here. I've happy memories of your posts and some excellent investment finds on Mike Walters subscription website. As you'll know (but the helpul vacendak probably won't) there was a thriving warrant thread there, and also I ran a warrant portfolio that rocketed for a while (nearly tripled at it's peak) before we had to end it because there were so few warrants and subs left. And you'll also know my strong feelings about keeping it simple. Warrant fans elsewhere are inclined to make them sound far more complex than needed! Anyway to your questions: 1. They OUGHT to go up penny for penny with the share price BUT there are now very few warrants and sub shares left, and for reasons I can't fathom the market makers are now pricing PCFS and to a lesser extent UEMS at a discount. So it is not certain that they will go up penny for penny in line with the share. e.g as explained in my earlier post, if the share gets to 240p then UEMS is worth 57p (exercise price is 183p). BUT it's likely that UEMS will not go as high as that. My guess would be about 50p to sell with share at 240p. (You/we can get the full value by exercising). Note too that though spreads are wide it is often possible to buy both UEMS and PCFS so far inside the spread that sells are recorded as buys. This is nothing new btw. Biggest sub share winner on the portfolio on Mike's site was Geiger Counter sub shares where we bought a small stake at just 0.8p when the spread was 0.75p to 1.5p!!! The price peaked nearly times 60 higher at 46p. Bet you didn't buy any! (That gain was when the share only doubled) 2. re US interest rate rises and effects on Emerging markets. Opinion on the effects of this is divided, and also it varies from Country to Country, and anyway since rises this year are expected some of this will already be priced in. Also remember that UEMS invests mostly in Utilities. A safer than average sector, if a little boring. Hence share price upside potential not that large over the next year or so, and hence why imo it is far better to buy a small stake in UEMS than any stake in UEM. If UEM can go up a boring 10-15% or so over the next year, then UEMS is likely to go up 80%- to a bit over 100%. Hence my view that it is unwise exercising except at expiry time. Finally PCFS is also well worth a look. Unlike for UEM/UEMS interest rate rises are seen as good for banks - easy to widen margins. And US bank shares are flying this year. PCFT shares is 133.5p to sell,making PCFS worth 18.5p (exercise price is 115p and expiry July 31st this year). Yet though worth 18.5p PCFS could be bought for 13.5p on Friday. Ask if wanting to know more. Now that I know you're here I'll check this thread more often. Btw I don't see why you need to time your buying, except that ideal time is an up day for share and before UEMS is up too. As you might know I've rarely exercised a warrant in nearly 30 years investing in them, including the good old days when there were several hundred of them!
davebowler: Edison; Valuation: Discount wider than historical averages UEM’s share price discount to cum-income NAV of 11.3% is wider than the 12-month average of 10.4% (range of 3.9% to 16.3%), and wider than the averages of the last three, five and 10 years of 8.2%, 7.9% and 8.3% respectively. UEM has a history of stable or rising dividends, compounding at an annual rate of 4.24% over the last five years. UEM’s current dividend yield of 3.3% compares favourably to the peer group average of 2.9%. Current portfolio positioning The portfolio typically holds c 60-90 names. At the end of May 2016, the top 10 positions accounted for 44.3%; this was a decrease in concentration from 52.8% at the end of May 2015 (see Exhibit 1). Reflecting the long-term nature of investments, nine companies are common to both periods. The new name in the top 10 list is Transgaz, a Romanian gas transmission company in its third regulatory cycle with a regulated rate of return of 7.7% until September 2017. There is a long tail of investments in the portfolio as initial position sizes are often small, either for liquidity reasons or to allow the manager to build confidence in the management of investee companies. Formerly the largest position in the portfolio, Malaysian IT services company MyEG is now the sixth largest holding, with the manager selling down as the shares are considered to be fully valued. The position in Malaysia Airport Holdings is now the largest single exposure. The manager expects good passenger growth at both its Malaysia-based airports and its now wholly owned investment in Sabiha Gökçen International Airport in Istanbul, Turkey. The fund typically invests/disinvests c £100m per annum. In FY16 £96.1m was invested and £130.5m realised as profits were taken on a number of Chinese H-share positions in the April 2015 market rally, although China remains the largest country exposure. Looking at sector exposure, over the last 12 months the largest increases have been in electricity (3.6pp), gas (2.8pp) and airports (2.3pp), while the largest decreases have been in satellites (3.3pp), other infrastructure (2.9pp) and toll roads (2.1pp). Dividend policy and record UEM pays dividends quarterly in September, December, March and June. Despite the focus on capital growth, the board aims for a flat or growing annual dividend; this has been achieved every year since fund inception in 2005. In FY16, the dividend of 6.4p was a 4.9% increase versus the prior year. Over the last five years, dividends have grown at a compound annual rate of 4.24%. UEM is able to distribute from both income and capital when necessary, which allows a smooth progression of the dividend even though income levels may fluctuate significantly. For the 12 months to 31 March 2016, total income rose by 45.9% to £21.3m. This was a yield on gross assets of 4.8% versus 3.0% in the previous year. Most of the increase was as a result of the special dividend distributed by Asia Satellite Telecom in H116. Higher income, coupled with lower costs, led to a revenue return of £17.5m in FY16 versus £10.6m in FY15, meaning that dividend payments were more than fully covered. Peer group comparison Exhibit 9 shows a comparison of UEM with AIC Global Emerging Markets sector trusts that have market caps greater than £50m. Given its focus on specific areas of the market, UEM cannot be compared directly with the peer group; however, its emerging market exposure provides some relevance to the comparison. UEM has outperformed the peer group average over one, three, five and 10 years, ranking second over three and five years and first over 10 years. In terms of risk-adjusted returns as measured by the Sharpe ratio, UEM is in line with the peer group average over one year and higher over three years. Its discount is narrower than average and it has one of the lowest ongoing charges, although a performance fee is payable. UEM’s 3.3% dividend yield ranks it third out of the five peers that pay a dividend.
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