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Compass Group Interims

Practical discussions about equity High-Yield Portfolios (HYP) for income
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idpickering
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Compass Group Interims

#221687

Postby idpickering » May 15th, 2019, 7:32 am


Wizard
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Re: Compass Group Interims

#221697

Postby Wizard » May 15th, 2019, 8:51 am

As a result of the business' continued strong earnings growth and cash flow generation we declare an interim dividend of 13.1 pence per share, up 6.5% on the prior year.

IanTHughes
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Re: Compass Group Interims

#221705

Postby IanTHughes » May 15th, 2019, 9:12 am

With a yield of less than 2.25% this is hardly an HYP stalwart

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


Ian

idpickering
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Re: Compass Group Interims

#221713

Postby idpickering » May 15th, 2019, 9:21 am

IanTHughes wrote:With a yield of less than 2.25% this is hardly an HYP stalwart

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


Ian


Agreed. I put this here as I know some of our gang hold the stock.

Ian.

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Re: Compass Group Interims

#221719

Postby Arborbridge » May 15th, 2019, 9:26 am

IanTHughes wrote:With a yield of less than 2.25% this is hardly an HYP stalwart

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


Ian


Depends how you define "stalwart" ;) The yield may or may not ever have properly qualified it, but if one had bought at around 4% yield ten years ago, and with a dividend growth rate of 9% for the past five years, one might think that "stalwart" sums it up. Rising dividend, and incidentally share price up by over 5x in ten years, " HYP stalwart it is.

What it isn't is a candidate for now. I've been hoping for years that CPG would become one, but I have a feeling that if it ever did so, it would become my next WPP. i.e. the yield would be right just as some bubble bursts. (WPP I bought about three weeks before Sorell left).


Arb.

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Re: Compass Group Interims

#221722

Postby IanTHughes » May 15th, 2019, 9:29 am

idpickering wrote:
IanTHughes wrote:With a yield of less than 2.25% this is hardly an HYP stalwart

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


Agreed. I put this here as I know some of our gang hold the stock.

Quite right and it may once have been an HYP selection, but not for over a decade in my view.

Mind you, if one did pick it up a number of years ago, what a stunning dividend record:

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


Ian

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Re: Compass Group Interims

#221733

Postby tjh290633 » May 15th, 2019, 9:54 am

IanTHughes wrote:With a yield of less than 2.25% this is hardly an HYP stalwart

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


Ian

It is certainly below the criterion as a new choice. The yield has tended to fall below the point where I would sell completely, only to be saved by the next dividend increase.

I hold them as a result of owning Forte, taken over by Granada, merged to form Granada-Compass then demerged into Compass and ITV. ITV was never worth topping up, and was a rump holding. When they stopped paying dividends, they went. Meanwhile CPG has gone from strength to strength.

When the day comes that I move into ITs, Compass will be one of the first to go

TJH

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Re: Compass Group Interims

#221747

Postby Howard » May 15th, 2019, 10:26 am

IanTHughes wrote:
idpickering wrote:
IanTHughes wrote:With a yield of less than 2.25% this is hardly an HYP stalwart

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


Agreed. I put this here as I know some of our gang hold the stock.

Quite right and it may once have been an HYP selection, but not for over a decade in my view.

Mind you, if one did pick it up a number of years ago, what a stunning dividend record:

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


Ian


I was lucky enough to buy Compass around 2006 just after the "Turkey Twizzler" episode with Jamie Oliver. I wish all my share decisions were that lucky! A bit OT but I see there is now a campaign to bring the twizzler back. Perhaps it wasn't as unhealthy as it was made out.

Hopefully Compass will continue to prosper after the sad demise of the CEO Richard Cousins and his family in the recent helicopter crash.

regards

Howard

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Re: Compass Group Interims

#221753

Postby bluedonkey » May 15th, 2019, 10:47 am

Yes, I bought it in October 2005. It was recommended at the time as it was in HYP territory then.

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Re: Compass Group Interims

#221781

Postby Bouleversee » May 15th, 2019, 12:17 pm

Thanks to Ian P. for posting those results. As you say, some of us have held for a long time and it was good to know this ship hasn't lost its compass and is still sailing well.

I'm with Arb. on this one; it depends how you define yield, as well. I bought in Jan. 2000 and May 2001 after the price had fallen back a bit and with a subsequent return of capital and consolidation my average price was £5.67. Today they are not far short of £18 (well up today against the market) and as you can see from Ian H's 2nd link, which to me is more relevant than the first, the dividends have increased regularly and considerably since that time so a pretty good return on my investment in terms of income and capital. I am kicking myself for not topping up when the s.p. was down earlier in the year and happy to continue holding. I am also intrigued (I have much to learn) by TJH's comment that Compass would be the first to go when he considers it prudent to switch to ITs for practical reasons but he probably doesn't hold all the dross I have in my p/f which would be jettisoned first. However, that discussion is presumably for another board where one might also discuss whether it is still worth buying, albeit not for a HYP.

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Re: Compass Group Interims

#221821

Postby tjh290633 » May 15th, 2019, 2:25 pm

Bouleversee wrote:Thanks to Ian P. for posting those results. As you say, some of us have held for a long time and it was good to know this ship hasn't lost its compass and is still sailing well.

I'm with Arb. on this one; it depends how you define yield, as well. I bought in Jan. 2000 and May 2001 after the price had fallen back a bit and with a subsequent return of capital and consolidation my average price was £5.67. Today they are not far short of £18 (well up today against the market) and as you can see from Ian H's 2nd link, which to me is more relevant than the first, the dividends have increased regularly and considerably since that time so a pretty good return on my investment in terms of income and capital. I am kicking myself for not topping up when the s.p. was down earlier in the year and happy to continue holding. I am also intrigued (I have much to learn) by TJH's comment that Compass would be the first to go when he considers it prudent to switch to ITs for practical reasons but he probably doesn't hold all the dross I have in my p/f which would be jettisoned first. However, that discussion is presumably for another board where one might also discuss whether it is still worth buying, albeit not for a HYP.

Simple, Lorna. I would be switching from a low yield equity into an IT with a higher yield. It is also one of my highest value holdings. My thoughts are that I would start by switching those shares with yields below that of the market.

TJH

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Re: Compass Group Interims

#221824

Postby Bouleversee » May 15th, 2019, 2:34 pm

Thanks, Terry, As I guessed, you will have avoided/already switched out of the dross I have with much lower or no yields. Several to go before I get to Compass! LTBH doesn't always work.

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Re: Compass Group Interims

#221850

Postby MDW1954 » May 15th, 2019, 5:24 pm

tjh290633 wrote:
IanTHughes wrote:With a yield of less than 2.25% this is hardly an HYP stalwart

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


Ian

It is certainly below the criterion as a new choice. The yield has tended to fall below the point where I would sell completely, only to be saved by the next dividend increase.

I hold them as a result of owning Forte, taken over by Granada, merged to form Granada-Compass then demerged into Compass and ITV. ITV was never worth topping up, and was a rump holding. When they stopped paying dividends, they went. Meanwhile CPG has gone from strength to strength.

When the day comes that I move into ITs, Compass will be one of the first to go

TJH



My (inherited) holding has a broadly similar provenance, beginning with my father's holding of Granada. When I inherited the shares, I sold the ITV component and kept the Compass holding.

MDW1954


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