Chesnara PLC (CSN)

[monabri]

"Chesnara to acquire Dutch portfolio of term life and savings policies for €29.15 million"


https://www.londonstockexchange.com/exc ... 18757.html

[monabri]

Chesnara remains well capitalised. Based on the closing market position on 30 June 2020, our solvency cover ratio is 162% (31 December 2019: 155%), after allowing for the payment of a proposed interim dividend of £11.5m (7.65 pence per share) which represents a 3% uplift on the 2019 interim dividend. This dividend will be paid on 13 November 2020 to shareholders on the register on 9 October 2020.

https://www.investegate.co.uk/chesnara- ... 00062108A/

[Dod101]

Thanks monabri. I missed that. I do not understand why this company is not more widely reported. Presumably because it is not very widely held. I have held it for some years and although the capital side has not done a lot, the income is very welcome and unlike say the tobaccos it is a good little business.

Dod

[monabri]

viewtopic.php?p=400310#p400310

Finals - 3% divi increase. Profits down. Solvency level - slight increase.

[monabri]

Half Year Report

https://www.investegate.co.uk/chesnara- ... 00028122J/


3% INCREASE IN INTERIM DIVIDEND

The board have approved an interim dividend of 7.88p per share (2020 interim: 7.65p per share) - an increase of 3%. This constitutes the 17th consecutive annual dividend increase for shareholders.

XD: 9th September 21
Pay: 22nd October 21

[Stan]

Half Year Report

https://www.investegate.co.uk/chesnara- ... 00028122J/


3% INCREASE IN INTERIM DIVIDEND

The board have approved an interim dividend of 7.88p per share (2020 interim: 7.65p per share) - an increase of 3%. This constitutes the 17th consecutive annual dividend increase for shareholders.

XD: 9th September 21
Pay: 22nd October 21

Always struck me as a very safe Company in terms of capital gain and dividends over the years.

[Dod101]

Half Year Report

https://www.investegate.co.uk/chesnara- ... 00028122J/


3% INCREASE IN INTERIM DIVIDEND

The board have approved an interim dividend of 7.88p per share (2020 interim: 7.65p per share) - an increase of 3%. This constitutes the 17th consecutive annual dividend increase for shareholders.

XD: 9th September 21
Pay: 22nd October 21

Always struck me as a very safe Company in terms of capital gain and dividends over the years.

Depends on your definition of 'safe'. The share price is almost exactly where it was 5 years ago £2.80, having reached the dizzy heights of £3.90 or so in between times. To me it has been very disappointing on the capital front, although its dividend has been OK.

Dod

[vand]

A very pleasing set of full year results from one of my newer holdings:

https://www.investegate.co.uk/chesnara- ... 00076786G/

Healthy cashflow generation gives it ample room to continue raising it's already outstanding dividend.

[vand]

Some highlights

· Commercial cash(1) generation of £53.0m in 2021 (2020: £27.7m) represents 156% dividend coverage.

· 2021 cash generation includes c£23m as a direct result of management actions.

· The results during the year, combined with balance sheet strength and the financial outlook, support a further year of dividend growth. The Board is recommending a 2021 final dividend of 14.7p per share (2021 total dividend of 22.6p), which is a 3% increase compared to 2020 and extends the period of uninterrupted dividend growth to 17 years.

---

· Economic value earnings before FX of £57.8m (2020: £(37.6)m) more than covers the annual dividend.

· Two notable acquisitions were announced during the year: one in the UK and one in the Netherlands. Post completion of these deals, pro forma results deliver growth in both Funds Under Management (41% increase(4) to £12.3bn) and policies in force (8% increase to 967,000) compared to the end of 2020. Increased scale will enhance operational efficiency and increase the longevity of the business model.

[Dod101]

But the share price has gone nowhere for a long while, like most financials. The dividend increase is well below inflation for the year. I hold but am not very impressed.

Dod

[vand]

But the share price has gone nowhere for a long while, like most financials. The dividend increase is well below inflation for the year. I hold but am not very impressed.

Dod

Yes, the cashflows to the stockholders are mainly through the dividend payout. That said, even despite the last few years, the shareprice has still managed to triple over 20 years, so the capital value alone has appreciated in real terms for very long term holders, which added with the dividends would have resulted in decent total real returns.

Expecting your dividend payouts to beat inflation every year is unrealistic, but a progressive dividend policy is sensible. It's not their fault that inflation is so high at the moment. I'm pretty happy with 3% increase.

[Dod101]

But the share price has gone nowhere for a long while, like most financials. The dividend increase is well below inflation for the year. I hold but am not very impressed.

Dod

Yes, the cashflows to the stockholders are mainly through the dividend payout. That said, even despite the last few years, the shareprice has still managed to triple over 20 years, so the capital value alone has appreciated in real terms for very long term holders, which added with the dividends would have resulted in decent total real returns.

Expecting your dividend payouts to beat inflation every year is unrealistic, but a progressive dividend policy is sensible. It's not their fault that inflation is so high at the moment. I'm pretty happy with 3% increase.

I bought in September 2014 at £3.462. Today £3.10. At my stage in life I am happy to collect the dividend but it is a hopeless investment from a capital value point of view.

Dod

[vrdiver]

I bought in September 2014 at £3.462. Today £3.10. At my stage in life I am happy to collect the dividend but it is a hopeless investment from a capital value point of view.

I guess it's a matter of pot luck. I bought in April 2007 (£1.79), topped up in August 2013 (£2.61) and again in December 2016 (£3.00) and have a total return of 164%, or 11.1% annual compound return (XIRR). Dividends received represent 119% of my total purchase costs.

The share price at £2.90 yesterday, or £3.10 as I type, makes the 2016 purchase look a bit of an error, but overall I'm happy to keep holding.

VRD

[Dod101]

I bought in September 2014 at £3.462. Today £3.10. At my stage in life I am happy to collect the dividend but it is a hopeless investment from a capital value point of view.

I guess it's a matter of pot luck. I bought in April 2007 (£1.79), topped up in August 2013 (£2.61) and again in December 2016 (£3.00) and have a total return of 164%, or 11.1% annual compound return (XIRR). Dividends received represent 119% of my total purchase costs.

The share price at £2.90 yesterday, or £3.10 as I type, makes the 2016 purchase look a bit of an error, but overall I'm happy to keep holding.

VRD

You are of course right. As always it depends on when you bought and for some reason financials have been out of favour for quite some time.

Dod

[vand]

I bought in September 2014 at £3.462. Today £3.10. At my stage in life I am happy to collect the dividend but it is a hopeless investment from a capital value point of view.

I guess it's a matter of pot luck. I bought in April 2007 (£1.79), topped up in August 2013 (£2.61) and again in December 2016 (£3.00) and have a total return of 164%, or 11.1% annual compound return (XIRR). Dividends received represent 119% of my total purchase costs.

The share price at £2.90 yesterday, or £3.10 as I type, makes the 2016 purchase look a bit of an error, but overall I'm happy to keep holding.

VRD

I agree, the longer term returns have been pretty good - 10.3% annualised over 10yrs according to Morningstar handily beats a FTSE tracker by a substantial margin.

But we all know that returns can be lumpy, and if you get in at the wrong time it can be a long time before you numbers match the long term.

5yr return is nowhere near as good at 2.57% annualised.
OTOH, 1yr return is 14.37%.

The same is true of any security. When prices can easily swing 30-40% within a year, without a change in fundamentals then the price you buy it at matters, and if you buy it at the top end of that range then you can essentially go nowhere for a few years while the business carries on with business as usual but the price drifts towards the bottom of the range.

One of my favourite investing quotes from Howards Marks: "Good investing is not about buying good things.. it is about buying things well."

[XFool]

I bought in September 2014 at £3.462. Today £3.10. At my stage in life I am happy to collect the dividend but it is a hopeless investment from a capital value point of view.

I guess it's a matter of pot luck. I bought in April 2007 (£1.79), topped up in August 2013 (£2.61) and again in December 2016 (£3.00) and have a total return of 164%, or 11.1% annual compound return (XIRR). Dividends received represent 119% of my total purchase costs.

The share price at £2.90 yesterday, or £3.10 as I type, makes the 2016 purchase look a bit of an error, but overall I'm happy to keep holding.

VRD

I agree, the longer term returns have been pretty good - 10.3% annualised over 10yrs according to Morningstar handily beats a FTSE tracker by a substantial margin.

But we all know that returns can be lumpy, and if you get in at the wrong time it can be a long time before you numbers match the long term.

5yr return is nowhere near as good at 2.57% annualised.
OTOH, 1yr return is 14.37%.

The same is true of any security. The price you buy it at matters.

One of my favourite investing quotes from Howards Marks: "Good investing is not about buying good things.. it is about buying things well."

So, to put it another way: Timing matters!

Discuss.

[vand]

I bought in September 2014 at £3.462. Today £3.10. At my stage in life I am happy to collect the dividend but it is a hopeless investment from a capital value point of view.

I guess it's a matter of pot luck. I bought in April 2007 (£1.79), topped up in August 2013 (£2.61) and again in December 2016 (£3.00) and have a total return of 164%, or 11.1% annual compound return (XIRR). Dividends received represent 119% of my total purchase costs.

The share price at £2.90 yesterday, or £3.10 as I type, makes the 2016 purchase look a bit of an error, but overall I'm happy to keep holding.

VRD

I agree, the longer term returns have been pretty good - 10.3% annualised over 10yrs according to Morningstar handily beats a FTSE tracker by a substantial margin.

But we all know that returns can be lumpy, and if you get in at the wrong time it can be a long time before you numbers match the long term.

5yr return is nowhere near as good at 2.57% annualised.
OTOH, 1yr return is 14.37%.

The same is true of any security. The price you buy it at matters.

One of my favourite investing quotes from Howards Marks: "Good investing is not about buying good things.. it is about buying things well."

So, to put it another way: Timing matters!

Discuss.

I got onboard CSN when it hit 257p in the last month. At this rate my annualised return is going to be north of 400%. Of course this is just short term noise, but even over a period of years your returns are the result of a lot of noise and luck.

A lot of investing even over a 20yr timeframe is just luck and circumstance.

An interesting read:
https://ofdollarsanddata.com/you-dont-need-alpha/

"If you had beaten the market by 5% a year from 1960-1980, you would have made less money than if you had underperformed the market by 5% a year from 1980-2000"

[Dod101]

I bought in September 2014 at £3.462. Today £3.10. At my stage in life I am happy to collect the dividend but it is a hopeless investment from a capital value point of view.

I guess it's a matter of pot luck. I bought in April 2007 (£1.79), topped up in August 2013 (£2.61) and again in December 2016 (£3.00) and have a total return of 164%, or 11.1% annual compound return (XIRR). Dividends received represent 119% of my total purchase costs.

The share price at £2.90 yesterday, or £3.10 as I type, makes the 2016 purchase look a bit of an error, but overall I'm happy to keep holding.

VRD

I agree, the longer term returns have been pretty good - 10.3% annualised over 10yrs according to Morningstar handily beats a FTSE tracker by a substantial margin.

But we all know that returns can be lumpy, and if you get in at the wrong time it can be a long time before you numbers match the long term.

5yr return is nowhere near as good at 2.57% annualised.
OTOH, 1yr return is 14.37%.

The same is true of any security. The price you buy it at matters.

One of my favourite investing quotes from Howards Marks: "Good investing is not about buying good things.. it is about buying things well."

So, to put it another way: Timing matters!

Discuss.

Over many years, I conclude that timing the market, for good or bad, is largely down to luck, although in holding for a long time (say 25/30 years for a number of my shares) I have done well to very well. Smart quotes from the likes of Howard Marks are fine but it is how to implement them that matters. Another saying 'It is not timing the market that matters, it is time in the market'. None of which gets us very far.

Dod

[ayshfm1]

Interim divi 8.1p up 3% paid 21st October.

[Dod101]

Interim divi 8.1p up 3% paid 21st October.

Thanks but there is more to a company than its dividend. I see that that news is contained in its half year results announced today (which do not seem to me to have very much of note)

Dod