Direct Line

[NeilW]

"The Board is proposing a final dividend of 9.7 pence per share making a total regular dividend for 2016 of 14.6 pence per share. This represents 5.8% growth over the 2015 regular dividend and is in line with the Group's aim to grow the regular dividend annually in real terms. The final dividend will be paid on 18 May 2017 to shareholders on the register on 17 March 2017. The ex-dividend date will be 16 March 2017."

[kogsawelly]

Hi Neil
So a total dividend of 14.6 per share makes the yield 4.6%.
Can anyone tell me why Digital Look suggests a dividend of 29.44 pence for 2016 - making a yield of 8.5% ?
Sorry if this has already been asked and answered before.
thanks
kogsawelly

[kiloran]

Hi Neil
So a total dividend of 14.6 per share makes the yield 4.6%.
Can anyone tell me why Digital Look suggests a dividend of 29.44 pence for 2016 - making a yield of 8.5% ?
Sorry if this has already been asked and answered before.
thanks
kogsawelly

Special Dividends? http://www.investorease.com/company.php ... e&epic=dlg

The board's statement only referred to regular dividends.

--kiloran

[kogsawelly]

Thanks Kiloran for the quick reply.

So "Specials" seem to be a feature of Direct Line having paid them consistently for a number of years - not very special then.
I suppose they are not guaranteed but neither is an annual dividend I suppose.

I guess the unknown is what effect regarding changes to the discount rate for personal injury damage awards will have on the Special going forward.
Presuming they will be the 1st to go or be reduced.

I was thinking of adding Direct Line to increase my exposure to non-life insurance alongside Admiral.
regards
kogsawelly

[monabri]

the group's aim to grow REGULAR dividends

...

Balanced by a reduction in (not so) Special dividends?

[TheWildshot]

Thanks Kiloran for the quick reply.

So "Specials" seem to be a feature of Direct Line having paid them consistently for a number of years - not very special then.
I suppose they are not guaranteed but neither is an annual dividend I suppose.

I guess the unknown is what effect regarding changes to the discount rate for personal injury damage awards will have on the Special going forward.
Presuming they will be the 1st to go or be reduced.

I was thinking of adding Direct Line to increase my exposure to non-life insurance alongside Admiral.
regards
kogsawelly

I think the fact that they have not announced a special dividend with these results already answers that question.