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Microfocus an HYP share?

Practical discussions about equity High-Yield Portfolios (HYP) for income
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monabri
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Re: Microfocus an HYP share?

#198630

Postby monabri » February 3rd, 2019, 6:37 pm

Dividend Data for MCRO.

Code: Select all

Year End | Interim | Final  | Special | Total* | Growth
04/2018  | 34.60¢  | 58.33¢ |       - | 92.93¢ |  5.53%
04/2017  | 29.73¢  | 58.33¢ | 168.00¢ | 88.06¢ | 32.06%
04/2016  | 16.94¢  | 49.74¢ |       - | 66.68¢ | 37.77%
04/2015  | 15.40¢  | 33.00¢ | 60.00p  | 48.40¢ | 10.00%
04/2014  | 14.00¢  | 30.00¢ | 60.00p  | 44.00¢ | 10.00%
04/2013  | 11.90¢  | 28.10¢ | 50.00p  | 40.00¢ | 26.58%
04/2012  | 8.20¢   | 23.40¢ | 45.00p  | 31.60¢ | 35.04%
04/2011  | 7.20¢   | 16.20¢ |       - | 23.40¢ |  7.34%
04/2010  | 5.60¢   | 16.20¢ |       - | 21.80¢ | 39.74%
04/2009  | 4.50¢   | 11.10¢ |       - | 15.60¢ | 20.00%
04/2008  | 3.60¢   | 9.40¢  |       - | 13.00¢ | 30.00%
04/2007  | 3.00¢   | 7.00¢  |       - | 10.00¢ | 66.67%
       


HL figures for comparison ( Overview Page)

Code: Select all

Year ending:             | 30/04/2019 | 30/04/2018 | 30/04/2017 | 30/04/2016 | 30/04/2015 | 30/04/2014
Dividend payments        |           
Final:                   | 58.33¢     |          - | 58.33¢     | 49.74¢     | 33.00¢     | 30.00¢   
Interim:                 | 34.60¢     |          - | 29.73¢     | 16.94¢     | 15.40¢     | 14.00¢   
Total dividend for year: |          - |          - |      $0.88 |      $0.67 |      $0.48 |      $0.44
Dividend metrics         |           
Dividend growth:         | n/a        |     -2.25% |     32.06% |     37.77% |     10.00% |     10.00%
Dividend yield:          | n/a        |      5.70% |      2.60% |      3.30% |      2.90% |      4.30%
Dividend cover:          | n/a        |       2.09 |       2.07 |       1.52 |       2.76 |       2.28


On the HL website, if you look at the Full Dividend Breakdown page, it doesn't have data further than financial year end 30/4/2017 but the Overview page has data for year ending 30/04/2019....looks like the data has been pasted in the wrong column ?.

Maybe some of the price volatility is associated with the large special dividends?

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Re: Microfocus an HYP share?

#198656

Postby MDW1954 » February 3rd, 2019, 8:38 pm

Arborbridge wrote:
kempiejon wrote:Microfocus MCRO,
FTSE100 yes, cap £6,100M
Forecast Yield = 5.7% (from webfg https://uk.webfg.com/equity/Micro_Focus ... onal-13372)
current yield = 4.11% (from dividenddata https://www.dividenddata.co.uk/dividend ... ?epic=MCRO)
Dividend increase history 13 years (divdata)
5 year dividend increase CAGR= 18% (dd)
Div Cover current 2.1 Forecast 1.9 (webfg)

I picked them about a year ago, turns out not excellent timing as the yield has improved a lot, I've added since and might again.


Does that chart of rising dividends look a bit too good to be true? 21.74% CAGR over 10 years?
A slightly odd thing, BTW, I first looked at the dividend figures on the HL site, and it gives growth of -2.25% for 2018. Not sure why that is.

And that share price chart looks rather, well, too volatile for sleepless nights. Do I need another share which can plunge like that overnight? Maybe MCRO isn't boring enough for a HYP, but then it would provide some nice diversity - and I could do with some more.

Arb.


Arb,

Look at the dividend chart I posted earlier in this thread, in my post to Ian P -- the post that pointed out that MCRO was a FTSE 100 share with a 4.7% yield that was bigger than many popular HYP picks around here, and with a better dividend growth record, too.

Alas, it is "unknown" and therefore fatally flawed. Perhaps I should stick to Glaxo which hasn't raised its dividend for -- what? -- five years?

MDW1954

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Re: Microfocus an HYP share?

#198659

Postby Lootman » February 3rd, 2019, 8:46 pm

MDW1954 wrote:Perhaps I should stick to Glaxo which hasn't raised its dividend for -- what? -- five years?

And which is still one third below it's share price of 20 years ago in USD terms.

"Never sell Glaxo". Ha ha. Anyone remember that?

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Re: Microfocus an HYP share?

#198691

Postby Arborbridge » February 4th, 2019, 7:47 am

MDW1954 wrote:
Look at the dividend chart I posted earlier in this thread, in my post to Ian P -- the post that pointed out that MCRO was a FTSE 100 share with a 4.7% yield that was bigger than many popular HYP picks around here, and with a better dividend growth record, too.

Alas, it is "unknown" and therefore fatally flawed. Perhaps I should stick to Glaxo which hasn't raised its dividend for -- what? -- five years?

MDW1954


Yes, I've just done that, and the "too good to be true" dividend increases are shown to have been supported by eps growth.


Alas, it is "unknown" and therefore fatally flawed. Perhaps I should stick to Glaxo which hasn't raised its dividend for -- what? -- five years?


Good point! Maybe I really should look at this again - but first I should decide whether I want another share in my HYP. The desire might have been more pressing had I disposed of Pearson, but I didn't, but I suppose my HYP is getting rather small now there are only 37 shares in it ;) This is a classic case of a share I have dismissed previously because the yield was too low - now it has jumped to something reasonable (but not too high) and we are suspicious that this is indicative of a bigger problem somewhere. But in my case, this is the same scenario as WPP - I waited years for a reasonable yield, and then bought it.

BTW, Microfocus wasn't unknown to me, for it was discussed by Jim Slater back in the day well before HYP. I might even have owned some shares in certificate form, but I don't have an easy way to find out pre-spreadsheet.

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Re: Microfocus an HYP share?

#198708

Postby Alaric » February 4th, 2019, 9:10 am

I dare say they've moved on, but twenty years ago a USP was that they offered a version of COBOL (a widely used commercial computer language originally from the 1950s) which could be run on machines much smaller than the IBM or similar monsters previously in use.

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Re: Microfocus an HYP share?

#198729

Postby Wasron » February 4th, 2019, 10:01 am

Alaric wrote:I dare say they've moved on, but twenty years ago a USP was that they offered a version of COBOL (a widely used commercial computer language originally from the 1950s) which could be run on machines much smaller than the IBM or similar monsters previously in use.


I’m sat at work today using MicroFocus software to query mainframe systems written in COBOL...

Some of those systems are likely to be around for another couple of decades, migration from legacy mainframes is complicated and expensive, especially now that all the original coders have long since retired...

And I probably should get back to work...

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Re: Microfocus an HYP share?

#198779

Postby MDW1954 » February 4th, 2019, 12:02 pm

Alaric wrote:I dare say they've moved on, but twenty years ago a USP was that they offered a version of COBOL (a widely used commercial computer language originally from the 1950s) which could be run on machines much smaller than the IBM or similar monsters previously in use.


They're still big in COBOL, I gather from various IT contacts.

https://www.microfocus.com/solutions/cobol-development/

But these days it seems to be just a part of the portfolio:

https://www.microfocus.com/about/

MDW1954

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Re: Microfocus an HYP share?

#201316

Postby MDW1954 » February 14th, 2019, 12:32 pm

A set of very decent results from this under-the-radar HYP share this morning, and the shares are up 13% at the time of writing.

Dividend up 14.5%, which is nice, and the yield now down to 4% from the 4.7% when this thread started a couple of weeks back.

Capital-wise, I and others who bought in are now up 70% in 12 months.

https://investors.microfocus.com/investors-media/results-reports/results-centre/

MDW1954

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Re: Microfocus an HYP share?

#201339

Postby ayshfm1 » February 14th, 2019, 1:03 pm

We got quoted £1 million by MF for a Cobol license(!)

Decided to run the code through a COBOL to C converter fix the C, profile it and optimise the bits that were performance critical, kept the million. 100K we'd have paid up.

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Re: Microfocus an HYP share?

#201485

Postby PaulBullet » February 15th, 2019, 8:44 am

I purchased these for my HYP in the dip around October 2018.

My technology sector was very small as I only has Computer Centre (CCC) in there which was also brought when I first set up my HYP.

I had these and Sage on my radar and when the yield showed 6%+ i purchased them after a bit of research that led me to believe that the blip was indeed a blip.



Paul

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Re: Microfocus an HYP share?

#215191

Postby PinkDalek » April 15th, 2019, 2:48 pm

From Valentine's Day 2019:

MDW1954 wrote:A set of very decent results from this under-the-radar HYP share this morning, and the shares are up 13% at the time of writing.

Dividend up 14.5%, which is nice, and the yield now down to 4% from the 4.7% when this thread started a couple of weeks back.

Capital-wise, I and others who bought in are now up 70% in 12 months. ...


From April Fools' Day 2019:

https://www.investegate.co.uk/micro-foc ... 00065768U/

Micro Focus International plc

Proposed Return of Value of the pounds sterling equivalent of US$1.8 billion

0.8296 Share Capital Consolidation

Posting of Circular and Notice of General Meeting


Details in the link and subject to General Meeting approval and finalisation of the amount to be returned per Ord etc but Return of Value will equate to the pounds sterling equivalent of approximately $4.33 to $4.39 per Ordinary share ....

How that all impacts the forward yield is not something that particularly concerns me. :)

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Re: Microfocus an HYP share?

#215200

Postby NeilW » April 15th, 2019, 3:26 pm

TFW you realise you are old enough to remember when Microfocus was just a supplier of COBOL compilers.

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Re: Microfocus an HYP share?

#215234

Postby PinkDalek » April 15th, 2019, 5:29 pm

NeilW wrote:TFW you realise you are old enough to remember when Microfocus was just a supplier of COBOL compilers.


TFW?

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Re: Microfocus an HYP share?

#215238

Postby monabri » April 15th, 2019, 5:34 pm

PinkDalek wrote:
NeilW wrote:TFW you realise you are old enough to remember when Microfocus was just a supplier of COBOL compilers.


TFW?


You need to "get down with the kids" (try not to get arrested ;) )

https://www.merriam-webster.com/words-a ... eling-when

(p.s. I had to look it up!)


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