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ADrunkenMarcus' 'Dividend Growth Portfolio'.

A helpful place to also put any annual reports etc, of your own portfolios
monabri
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Re: ADrunkenMarcus' 'Dividend Growth Portfolio'.

#434430

Postby monabri » August 12th, 2021, 7:36 pm

Acorn

https://www.investegate.co.uk/acorn-inc ... 0000P1220/

Divi declaration and

"Update on the future of the Company

Further to the Company’s announcement on 17 May 2021, where the Board of the Company announced proposals to recommend the appointment of BMO Global Asset Management to manage the Company under a new Sustainable Global Equity Income investment strategy (the “BMO Proposal”), the Board has received further interest from managers regarding the future of the Company. Despite the Board continuing to believe that the BMO Proposal is an attractive investment proposition, after careful consideration of shareholder feedback the Board has concluded that an alternative proposal to the BMO Proposal may represent a more suitable proposition for the Company’s shareholders.

Given the continued shareholder consultations and the review process of alternative proposals, the Company confirms that the Extraordinary and Annual General Meetings will not be held in August 2021 as previously expected. An announcement with further details on the future of the Company will be published as soon as practicable and expected to be no later than mid-September. Thereafter, the Company expects to publish a circular in relation to the Board's proposals for the future of the Company, including a notice convening the Extraordinary and Annual General Meeting"

ADrunkenMarcus
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Re: ADrunkenMarcus' 'Dividend Growth Portfolio'.

#434441

Postby ADrunkenMarcus » August 12th, 2021, 8:14 pm

I see I neglected to post an update when I sold AIF in May 2021. I sold it and directed the proceeds partly into MYI (to bolster the immediate dividend yield) but mostly into increasing my holding in BlackRock UK Smaller Companies (BRSC). The reasoning was I did not want a global sustainable strategy when I had bought into a UK small and mid cap strategy with gearing and large dividends. They also flagged a dividend cut.

But now, it turns out that the Board are reviewing their approach anyway! I'm sticking with BRSC.

Best wishes


Mark.

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Re: ADrunkenMarcus' 'Dividend Growth Portfolio'.

#435991

Postby ADrunkenMarcus » August 19th, 2021, 4:14 pm

Although interim results for H1 2021 should be due in the coming weeks, there's been no 'new' news on DPP. Today's market movement therefore reflects the erratic and sharp movements in an illiquid stock! There is a big spread, however the mid price of 8.75p is up about 19% compared to my 7.37p top up nine days ago. I do not draw any vindication from this - it is a very long term investment - however it did make me realise the value of the tranche of DPP that I bought with STAN would be equivalent to 548p for my STAN shares, if I still held them. In fact, STAN has fallen to 446p so my capital is 23% higher than it would otherwise have been.

Usually if a buy a share it falls, or if I sell one it rises. :D

Best wishes

Mark.

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Re: ADrunkenMarcus' 'Dividend Growth Portfolio'.

#438900

Postby ADrunkenMarcus » September 1st, 2021, 12:49 pm

I note the U-turn by AIF's board. They are now offering a rollover into the Unicorn open-ended fund or a cash exit nearer to NAV. I would have preferred AIF continuing in its original form but this was presumably inevitable.

As stated above, I sold on the open market when they proposed a complete change of mandate.

Best wishes


Mark

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Re: ADrunkenMarcus' 'Dividend Growth Portfolio'.

#441946

Postby ADrunkenMarcus » September 13th, 2021, 5:00 pm

I added a new position today, funded by new capital into the portfolio: Evolution AB (recently they dropped 'Gaming' from the name). The new capital increases the number of income units by about 2.5% and this is about the position size of the new holding.

I had bought it in January 2021 inside my SIPP and had posted on these boards a few weeks earlier:

Evolution Gaming Group (EVOS)

Sector: Travel & Leisure; Subsector: Casinos and Gambling.

Here's their q3 2020 presentation: https://www.evolution.com/sites/default ... 0_pres.pdf

The key stats look impressive:
66.3% ROCE;
61.5% CROIC;
43.1% EBIT margin.

Turnover has grown over nine-fold from 2013 to 2019 (hitting 365.8 Euro million) and it's forecast to reach 899.5 Euro millions by 2021, which would be about 23 times the figure for 2013. Operating profit has more than followed!

On the basis of forecasts for 2020, 2021 and 2022, the EBIT margin should rise to about 55% by 2022. Earnings per share growth is forecast at about 35% in 2021 and about 21% in 2022.

Based on estimates for 2022, it's trading on a 2.2% free cash flow yield and it's forecast to have almost twice that year's free cash flow of 390 Euro millions sitting on the balance sheet as the company's cash position balloons. (For 2020, it's trading on a c. 1.5% free cash flow yield or 54 times earnings on the EPS figures, just above its three-year average of c. 52 times EPS.)


The holding in my SIPP doubled in SEK terms between purchase and April 2021. It's currently up about 70% in Sterling terms, based on weakness in the exchange rate and the share price. Although I planned to invest today anyway, I was lucky in that the shares fell 5%.

It has the potential for strong dividend growth and the last dividend increase was 68%. However, yet again I am diluting the current dividend per income unit because the new capital into the portfolio and deployed into EVO is going to be yielding 0.6% or less. The growth will take a great deal of time time to show up in the overall portfolio and that assumes it can sustain a decent pace of increases going forward (I am NOT assuming 68% a year!)

Best wishes


Mark.

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Re: ADrunkenMarcus' 'Dividend Growth Portfolio'.

#451883

Postby ADrunkenMarcus » October 21st, 2021, 8:50 am

Renishaw's final results were pleasing this morning.

The commentary was optimistic and they have a solid order book. Renishaw eliminated the dividend for 2020 due to COVID-19 but reinstated the interim 2021 dividend in full, at the same level as 2019; they have now confirmed the final dividend which means a total of 66p for the year - up 10% on 2019. (Based on my 2011 purchase, the nominal dividend yield on cost is 7.6%. Renishaw was a good purchase at a knock-down price but illustrates what I am hoping to do, which is achieve a higher dividend yield over time through growth of the dividend, even if from a lower base.)

Operating margin is 24.5% and return on capital employed 18.4%. The balance sheet is very healthy and with plenty of cash, which depresses the return on capital. (I did a quick thumb through of the figures and thought it might be in the mid-20s% if we adjusted for the fact the cash isn't doing anything much. They adopt a pretty conservative financial policy.)

The shares opened up about 7% as I write.

Best wishes


Mark.


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