Wizard wrote:
I see this more negatively, I think it marks the end of the 10% increase per year. If the policy is revised, that means changed and I can't see the policy changing to an increase of more than 10% per year. So the dividend growth rate is going to be slower.
I don't really see how we can read their statement in any other way, other than telegraphing a slow-down in dividend-growth (my bold below) -
The Board reaffirms the 10% dividend growth in respect of the final dividend for the current financial year ending 30 September 2019.
Thereafter, the revised dividend policy will be progressive, growing annually from the current level, taking into account underlying business performance. This new policy recognises the Company's continued strong cash generation and the importance of growing dividends for shareholders, while providing greater flexibility in capital allocation.Where we might differ is where you take the view that this might be seen as 'negative'...
I've been concerned for some time that a 10% year-on-year dividend increase can't be sustainable over even the medium term, never mind the long term, and so an RNS statement that says they're going to revise that unsustainable dividend progression to a more
sustainable level,
but whilst crucially still not cutting the dividend, is something I personally see as a
positive step for the business, and not a negative one...
Cheers,
Itsallaguess