Schroders results

[peterh]

I think some here hold SDRC (myself included).

Press release here: https://www.schroders.com/en/sysglobalassets/digital/global/media-relations/schroders-annual-results-2018---press-release---final.pdf

Info about the dividend - no change in the final, but +0.9% for the full year:

The Board will recommend to shareholders at the Annual General Meeting a final dividend of 79.0 pence (2017:
79.0 pence), which is unchanged from 2017. This will bring the total dividend for the year to 114.0 pence (2017:
113.0 pence), an increase of 1 pence. The final dividend will be paid on 9 May 2019 to shareholders on the
register at 29 March 2019.

[ian56]

I think some here hold SDRC (myself included).

Press release here: https://www.schroders.com/en/sysglobalassets/digital/global/media-relations/schroders-annual-results-2018---press-release---final.pdf

Info about the dividend - no change in the final, but +0.9% for the full year:

The Board will recommend to shareholders at the Annual General Meeting a final dividend of 79.0 pence (2017:
79.0 pence), which is unchanged from 2017. This will bring the total dividend for the year to 114.0 pence (2017:
113.0 pence), an increase of 1 pence. The final dividend will be paid on 9 May 2019 to shareholders on the
register at 29 March 2019.

Thanks Peter, slightly disappointing in view of recent increases but at least they have a prudent dividend policy and hopefully will be back to some above inflation increases soon. A long-term hold for me.

From the press release:

Payout ratio The total dividend per share in respect of the year (see note 8) divided by
the pre-exceptional basic earnings per share. Maintaining a payout ratio
of approximately 50% allows us to align shareholder return with the
success of the Group.

[monabri]

That's a bit disappointing...

[Dod101]

Thanks for this. I missed these results for some reason, even although I hold. The dividend is not the be all and end all, even if the HYP strategy emphasises it. The fact is that compared to say SLA, Schroders is doing quite well but like all fund managers there are no doubt pressures on performance and the level of fees.

This is a conservative well run operation and although the dividend increase is very modest, at least it is still going in the right direction.

Dod

[monabri]

Interesting to note that (visible) shorting levels on Schroders and Standard Life Aberdeen are both very low ( 0% and 0.7% respectively).
Noting that Jupiter Asset Managers are being shorted heavily at 8%.

SLA finals are due 13th March...I'll settle for a divi freeze bearing in mind the current yield ( hoping that IF there were any issues with SLA then the shorters would have already signalled their views).

[Arborbridge]

https://www.dividenddata.co.uk/dividend ... y?epic=sdr

The above shows the dividend curve for SDR, and it has been more than adequate. This year is disappointing, but when all said and done. it's better to have a company paying out dividends it can maintain rather than ones it cannot. Unless, of course, one is prepared to invest in a company over-paying, take the moeny and then jump ship before it capsizes - I doubt whether my timing is that good, and this is meant to be a LTBH strategy

The alternative is to find a company which is able to pay out fine increases for ever based on rising profit - but those are really rather rare within the HY universe.

Arb.

PS I'm bring SDRC up to full strength with a top up next week - despite there being some higher yielders (Heretic!!)

[88V8]

Just for anyone who is unaware, there's SDR, and there's SDRC. The latter are non-voting shares, but have a slightly better yield and would usually be the HYP choice.

V8

[monabri]

I noticed a headline in the FT regarding Nick Train "doubling his holding" in Schroders.

https://amp.ft.com/content/f1553c3a-8c4 ... c6da5cd3c6

I don't subscribe to the FT so I can't provide more details.

[Breelander]

I don't subscribe to the FT so I can't provide more details.

Google the title "Nick Train doubles Schroders stake" and follow the Google link. Then you'll see it all.

[Dod101]

Glad to hear that Nick Train has doubled his stake in Schroders. I have always like them and have held it for a long while. The FT article's only message is that Schroders will have to do much more in N America to become a truly top world fund man ager. That observation may be true but does not do much for or against the investment case.

The very large holding held by the Schroder family will ensure that it continues to be a conservative long term thinker, just what I like.

Dod

[monabri]

It will be quite hard to break into the US market and establish a brand. I thought that the increasing trend in the US is to move towards the passive funds such as Vanguard ( "Bogleheads" *). What can Schroders offer from an actively managed fund that say, JP Morgan, can't?

Attempting to establish a foothold in the US will be expensive ...let's hope it doesn't affect the dividend for the UK investors if they decide to go down the US route, that would be my concern.



After Jack Bogle
https://www.bogleheads.org/forum/index.php