5 Stocks Going EX-Dividend – RIO, BP, DGE, AZN and GSK

Rio Tinto

Rio Tinto PLC (RIO) is a British mining and metal company that focuses on exploring, mining and processing mineral resources. The company has its presence in 35 countries across six continents and is a globally renowned leader in aluminium. The company’s operations are differentiated in four segments, namely Energy & Mineral, Copper & Diamonds, Aluminium and Iron Ore.

Financial Highlights (H1 FY 2019, in $m)

(Source: Company Filings)

As higher iron ore prices helped in offsetting the impact of lower volumes and lower aluminium prices, excluding $0.8 billion contribution by the coking coal assets divested in 2018, consolidated sales revenue of $20.7 billion was 9% higher than first half of 2018. The operating profit during the period was $5.2 billion, against $6.4 billion recorded in the prior year, reflecting an increase in the impairment charges. Profit before finance items and taxation amounted to $5.5 billion while profit before taxation was $5.2 billion. The company recorded a profit in 2019 first half of $2.9 billion (2018 first half: $4.5 billion) and net profit attributable to the owners totalled to $4.1 billion (2018 first half: $4.4 billion) in 2019 first half, mainly reflecting the impairment of Oyu Tolgoi. Due to a strong contribution from Iron Ore, underlying earnings during the period was $4.9 billion, which was 12% higher than the prior period. Basic earnings per share remained flat over the year at 252.5cents, while the underlying earnings per share rose by 19% to record 301.5cents.

Dividend

The group declared ordinary interim dividend per share of 151 cents, which amounted to a total of $2.5 billion, and announced a special dividend of 61 cents, amounting to a total of $1 billion. The dividend translates to 123.32 pence per share of interim dividend and would be paid on 19 September 2019.

Share Price Commentary

Daily Chart for the last year as at 08-August-19, before the market close (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (at 4:20 pm GMT, before the market close), RIO was trading at GBX 4,132.4, which was lower by 1.49 per cent versus the closing price of previous day. Stock’s 52- week High and Low are 4,979.14/GBX 3,278.77. The outstanding market capitalisation was around GBP 71.13 billion, with a dividend yield of 5.55 per cent.

BP Plc

BP PLC (BP) is a London, the United Kingdom-headquartered integrated oil and gas company. The operations of the group are vertically integrated, and it is engaged in various activities such as exploration and production of oil and natural gas, marketing chemicals and development of renewable energy. The operations of the group are differentiated in three segments, namely Upstream, Downstream and Rosneft.

Financial Highlights (H1 FY 2019, in $m)

(Source: Company Filings)

In the first half of the financial year 2019, the company’s total revenue stood at $141,154 million as against $146,050 million in H1 FY2018, while revenue in Q2 FY2019 stood at $73,747 million versus $76,907 million in Q2 FY2018. Profit before tax for H1 FY2019 was $7,930 million as against $8,901 million in H1 FY2018. The company’s profit for the period attributable to the shareholders stood at $4,756 million for H1 FY2019 versus $5,268 million in H1 FY2018, while it was $1,822 million in the second quarter. For the half-year, underlying replacement cost profit was $5,169 million, and it was $2,811 million in the second quarter compared with $2,822 million in the corresponding period in 2018. The company’s basic earnings per share for H1 FY2019 stood at 23.47 cents versus 26.42 cents in H1 FY2018. The company’s diluted earnings per share for H1 FY2019 stood at 23.35 cents against 26.27 cents in H1 FY2018.

Dividend

On 20 September 2019, the company will pay a quarterly dividend of 10.25 cents per ordinary share, taking the total dividend for the first half to 20.50 cents, against 20 cents in 2018.

Share Price Commentary

 Daily Chart for the last year as at 08-August-19, before the market closed (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (at 4:22 pm GMT, before the market close), BP was trading at GBX 502.9, lower by 0.53 per cent versus the closing price of previous day. Stock’s 52- week High and Low prices are GBX 603.60/GBX 481.35. The outstanding market capitalisation is around GBP 103.29 billion, with a dividend yield of 6.70 per cent.

Diageo PLC

Diageo PLC (DGE) is a London-headquartered international alcoholic beverage group with business across six continents. The group owns and operates a range of brands, including Smirnoff, Johnnie Walker, Guinness, and many more, which are consumed by people in more than 180 countries around the world.

Financial Highlights (FY 2019, in £m)

(Source: Company Filings)

The company reported a growth of 6% in net sales to £12.9 billion, supported by positive organic net sales growth across all regions. Driven by strong organic volume growth and positive price mix, organic net sales grew by 6% in FY 2019. Driven by organic operating profit (before exceptional gains) growth of 9%, reported operating profit (before exceptional) rose by 8% to £4,116 million in FY2019 versus £3,819 million in FY2018. The company’s operating profit increased by 10% from £3,691 million in FY2018 to £4,042 million in FY2019. The company’s profit attributable to the shareholders was up by 5% to £3,160 million in FY2019 from £3,022 million in FY2018. While the basic earnings per share increased by 7% to 130.7 pence, pre-exceptional EPS rose by 10% to 130.8 pence, reflecting lower finance charges and higher operating profit.

Dividend

The company recommended a final dividend of 42.47 pence, representing an increase of 5% and taking the full year dividend to 68.57 pence per share, which will be paid to shareholders on 3 October 2019. The dividend cover was 1.9x, against targeted range of 1.8-2.2x.

Share Price Commentary

 Daily Chart for the last year as at 08-August-19, before the market closed (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (at 4:25 pm GMT, before the market close), DGE was trading at GBX 3,344.50, lower by 1.00 per cent versus the closing price of previous day. Stock’s 52- week High and Low prices are GBX 3,538.00/GBX 2,513.00. The outstanding market capitalisation was around GBP 80.27 billion, with a dividend yield of 2.03 per cent.

AstraZeneca

AstraZeneca PLC (AZN) is a Cambridge, United Kingdom-headquartered, global, innovation-led biopharmaceutical company. The group focuses on discovering, developing, manufacturing and commercialising prescription medicines for consumption by millions of patients across the globe and has operations all over the world with business in over 100 countries. Though, the company selectively pursues therapies in autoimmunity, neuroscience and infection, its three major focus areas are, Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory.

Financial Highlights (H1 FY 2019, in $m)

(Source: Company Filings)

Product Sales rose by 12% in the first half (17% at CER) to $11,183mn and total revenues increased by 9% (14% at CER) to $11,314mn, driven down by a fall in collaboration revenue. Core gross profit rose by 11% (15% at CER) to $9,225mn, while reported gross profit increased by 11% (16% at CER) to $9,122m. Driven by increases in product sales and gross margin, reported operating profit rose by 9% (12% at CER) to $1,590mn, while core operating profit rose by 39% (44% at CER) to $3,011mn. Core profit before tax increased by 46% (47% at CER) to $2,565mn and reported profit before tax increased by 14% (11% at CER) to $899mn. Core EPS increased by 38% (40% at CER) to $1.62, while reported EPS of $0.56 represented an increase of 3%.

Dividend

The company declared an interim dividend of $0.90 per share, the same as in the corresponding prior- year period. The record date will be 9 August 2019, and the dividends will be paid on 9 September 2019.

Share Price Commentary

 Daily Chart for the last year as at 08-August-19, before the market closed (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (at 4:27 pm GMT, before the market close), AZN was trading at GBX 7,195, higher by 0.97 per cent versus the closing price of previous day. Stock’s 52- week High and Low is GBX 7,270.00/GBX 5,312.00. The outstanding market capitalisation was around GBP 93.63 billion, with a dividend yield of 3.07 per cent.

GlaxoSmithKline

GlaxoSmithKline PLC (GSK) is a healthcare company, which focuses on the manufacturing, commercialisation, and development of pharmaceuticals vaccines and consumer healthcare products. It offers drugs for the treatment of cancer, HIV, anti-viral, metabolic, anti-bacterial, rare diseases, cardiovascular and urogenital, immuno-inflammation, respiratory, central nervous system (CNS), and dermatology. The company offers over the counter (OTC) products for pain, relief, nutrition, skin health, oral health, and gastrointestinal disorders.

Financial Highlights (H1 FY 2019, in £m)

(Source: Company Filings)

As Vaccines turnover grew by 25% AER/ 22% CER to £3,107 million, group turnover increased by 6% AER/5% CER to £15,470 million during the first half of 2019. Adjusted operating profit grew by 8% at AER over H1 2018 to £4,334 million, while total operating profit rose by 44% at AER to £2,912 million compared with £2,019 million in H1 2018. Adjusted EPS of 60.6p compared with 52.7p in H1 2018 was up by 15% AER, and total earnings per share were 36.3p, compared with 20.2p in H1 2018.

Dividend

The company declared a second interim dividend for 2019 of 19 pence per share and reported that it intends to maintain the dividend for the year at the current level of 80 pence per share. The dividend will be payable on 10 October 2019.

Share Price Commentary

 Daily Chart for the last year as at 08-August-19, before the market closed (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (at 4:30 pm GMT, before the market close), GSK was trading at GBX 1,661.6, higher by 0.21 per cent versus the closing price of previous day. Stock’s 52- week High and Low prices are GBX 1,749.40/GBX 1,408.80. The outstanding market capitalisation was around GBP 82.89 billion, with a dividend yield of 4.83 per cent.

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