JLT - all over bar the shouting

[Davidsb]

https://www.investegate.co.uk/jardine-l ... 41427864T/

Following receipt of EC approval, the takeover by Marsh & McLennan will be sanctioned by the High Court of Justice on 29th March - well, they haven't got anything else planned for that day.....

So, after nearly twelve years, it's goodbye to JLT, and on with the search for the next golden opportunity.

[Gengulphus]

Must admit I only vaguely remembered Jardine Lloyd Thompson ever having been suggested as a HYP share! But on checking, a long-term chart indicates that in 2007 its price varied between a low of about 300p and a high of a bit short of 500p, and its dividend was 20.5p, so its historical yield ranged from over 4% to over 6% - well within HYP territory. Its takeover price of 1915p means that a purchase then has made a capital gain of somewhere between very roughly 300% and very roughly 500%, which far outstrips its dividend growth - the rise to its last full-year dividend of 34p makes that only 66%. As a result, its yield has dropped over the years and at some point, it will have dropped out of HYP territory - I haven't tried to work out just when. But it's a good example of why an already-bought HYP share's yield dropping is not necessarily bad!

And as a thought experiment, that means that someone who bought equal quantities of Jardine Lloyd Thompson and Carillion back then and continued to hold both until the bitter end in each case would still have enjoyed an overall capital gain of between about 100% and about 200%, plus all the dividends in the meantime. Both outstanding successes like the former and outstanding failures like the latter are decidedly rare, of course, but an outstanding success can vastly outweigh the absolutely worst possible failure. Yet the rare outstanding failures get far more attention on the boards than the rare outstanding successes... It's an intrinsic part of investor psychology, I think, and hard to resist even if one knows about it - I didn't buy JLT, but my HYP has had (and still has) its outstanding success with Halma, yet I've paid far more attention to my Carillion losses than to my Halma gains. So it's good to have a reminder to look at those gains from time to time, and see that they exist and are very substantial!

Gengulphus

[Lootman]

Must admit I only vaguely remembered Jardine Lloyd Thompson ever having been suggested as a HYP share! But on checking, a long-term chart indicates that in 2007 its price varied between a low of about 300p and a high of a bit short of 500p, and its dividend was 20.5p, so its historical yield ranged from over 4% to over 6% - well within HYP territory. Its takeover price of 1915p means that a purchase then has made a capital gain of somewhere between very roughly 300% and very roughly 500%, which far outstrips its dividend growth - the rise to its last full-year dividend of 34p makes that only 66%. As a result, its yield has dropped over the years and at some point, it will have dropped out of HYP territory - I haven't tried to work out just when. But it's a good example of why an already-bought HYP share's yield dropping is not necessarily bad!

I can't recall when I bought JLT and it wasn't particularly for HYP'esque reasons. But it has done very well.

It was one of only two shares that I bought on the Peter Lynch principle i.e. if you like the product and/or its service then buy the company. In this case my youngest son went to work for them and I just liked the things he was telling me about it, so I took a punt on it. (The other was Fevertree which did as well, but quicker).

Ironically he later left them to join the company now buying it.

But yes and to confirm, it did have a decent yield on it a few years back.

[Deev8]

I bought Jardine Lloyd Thompson for my HYP back in January 2005 and topped-up the holding six months later, paying an average price of 376p per share. The next two dividends (a 12.0p final followed by a 8.5p interim) gave a yield of 5.4%. I seem to remember that it was a "bit racey" as a HYP share because of a relatively low market cap at the time, definitely lower than most of my HYP constituents.

It has certainly worked out well, as I needed to trim-back the holding towards the end of 2008 and again in late 2011. My holding has delivered some very decent dividends and is currently showing a return (IRR) of just over 15% per annum.

[Davidsb]

JLT has worked out well for me, and ranks second in my current list of holdings in terms of capital gain. As others have said, the dividend performance has not been sparkling, but as a habitual non-tinkerer the company would really have to offend me before I press the Sell button....

;¬)