Insights Into Three LSE Stocks With A Good Dividend History, BATS, DLG and SHB

British American Tobacco Plc

British American Tobacco Plc (BATS) is a British multinational corporation with a diversified product portfolio in tobacco products. The Company founded in 1902 came into being with the merger of the United Kingdom’s Imperial Tobacco Company and United States of America’s American Tobacco Company, today it has operations in more than 180 countries.

The Company’s famous brands are Dunhill, Lucky Strike, Kent, Pall Mall, Benson and Hedges and Rothmans among others.

The Company’s shares have a primary listing on the London Stock Exchange where they trade with the ticker name BATS, here the shares of the Company also form part of the FTSE 100 index. The Company’s shares have secondary listings on the New York Stock Exchange with the ticker name BTI, on the Johannesburg Stock Exchange with ticker name BTI, on the Nairobi Stock Exchange with the ticker name BAT and at the Zimbabwe Stock Exchange with the ticker name BAT.

Dividend Update (BATS)

On 28 February 2019, the company said that its Board had declared a dividend of 203.0 pence per ordinary share. The dividend is payable in four quarterly instalments of 50.75 pence per ordinary share. The payment of dividend falls due in May 2019, August 2019, November 2019 and February 2020.

Insights from the Results statement (BATS)

The Company on 1 August 2019 came out with its half-yearly results report for the period ending on 30 June 2019.

  • The Group adjusted revenue grew 4.1 per cent driven by price/mix and growth in New product categories.
  • Adjusted profit from operations of the Company grew by 5.9 per cent, with growth being witnessed in all market regions. Adjusted operating margin was also higher by 110 basis points while increasing investments in New Categories.
  • The Company’s adjusted diluted earnings per share has improved by 7.1 per cent.
  • Operating cash flow conversion for the Company for the year stood at 66 per cent at current rates.

Source – Company’s half-yearly report published on 01 August 2019.

Stock Price performance of (BATS) at the London stock exchange (YTD)

(Comparative chart of BATS with the FTSE 100 index, Source – Thomson Reuters

Stock performance at the London stock exchange over the past five days (BATS)

Price Chart as on 10 September 2019, before the market close (Source: Thomson Reuters)

On 10 September 2019, at the time of writing the report (before the market close, GMT 08.55 AM), BATS shares were trading on the London Stock Exchange at GBX 2876.9.

The stock has a 52-week High of GBX 3801.00 and a 52-week low of GBX 2249.00. The total market capitalization of the Company was £66.41 billion.

Outlook (BATS)

The Company’s performance for the half-year period ending 30 June 2019 has been in line with the management guidance for the full year. The growth witnessed in the new portfolio categories has been very encouraging while the Company continues to plan to make more new launches during the second half of the year.

The Board is confident that it is well in line to deliver a good performance for the full year 2019.

 

Direct Line Insurance Group Plc

Direct Line Insurance Group Plc (DLG) is the United Kingdom-based Insurance and associated services provider. The Company came into being in 2012 when the Royal Bank of Scotland Group demerged its insurance arm into a separate entity. The Company’s subsidiaries include Direct Line, Churchill and Green Flag.

The Company came out with its IPO in October 2012, with its stocks getting listed on the London Stock Exchange on the 16th of the same month. The Company’s shares trade at the London Stock Exchange with the ticker name DLG, and they are also components of the FTSE 100 index.

Dividend Update (DLG)

The company on 31 July 2019 announced in its half-yearly results statement for the period 30 June 2019 that its Board has announced an interim dividend of 7.2 pence per ordinary share.

Insights from the Results statement (DLG)

The Company’s half-year results for the period ended 30 June 2019 were declared on 31 July 2019.

  • The Company for the half-year delivered £274.3 million in operating profits, a combined operating ratio of 92.5 per cent and an annualized return on tangible equity of 20.9 per cent.
  • Direct own brand in-force policies of the Company grew by 2.0 per cent to 7.2 million, in following with its continued strong growth in subsidiaries; Green Flag and Direct Line for Business, which helped it offset pressure on the direct motor and home markets.
  • Total in-force policies reduced by 3.2 per cent primarily on account of partnership exits announced in 2017.
  • Operating profit of £274.3 million for H1 2019, was lower compared to the operating profit of H1 2018, due to the reversal of the exceptional Motor performance in the first half of 2018.
  • The Combined operating ratio of 92.5 per cent improved by 0.4 percentage points compared to the corresponding period of prior year, mainly due to benign weather conditions during the period. Adjusting for normal weather, the combined operating ratio was 94.6 per cent, within the Group’s medium-term target of 93 per cent to 95 per cent.

Source – Company’s half-yearly report published on 31 July 2019.

Stock Price performance of (DLG) at the London stock exchange (YTD)

(Comparative chart of DLG with the FTSE 100 index, Source – Thomson Reuters   

Stock performance at the London stock exchange over the past five days (DLG)

Price Chart as on 10 September 2019, before the market close (Source: Thomson Reuters)

On 10 September 2019, at the time of writing the report (before the market close, GMT 10.25 AM), DLG shares were trading on the London Stock Exchange at GBX 287.4.

The stock has a 52-week High of GBX 358.69 and a 52-week low of GBX 278.80. The total market capitalization of the Company was £3.91 billion.

Outlook (DLG)

The Company continues to have a target combined operating ratio between 93 per cent and 95 per cent for 2019 as well as for the medium term. The Company is also making good progress in reducing operating costs with a target of bringing it below £700 million. The Company maintains its focus on achieving a minimum of 15 per cent return on tangible equity.

Shaftesbury Plc

Shaftesbury Plc (SHB) is a United Kingdom bases Real Estate Investment Trust (REIT) with an exclusive interest in London’s west end side properties. In that area, the Company has leased out a combined area of 1.1 million square feet space to businesses such as restaurants, cafes, pubs and shops providing the Company with 70 per cent of its rental income. Another 0.4 million square feet area is leased out as office space and residential apartments providing the company with the balance of its rental income.

The Company, founded in 1986, is headquartered in London. The shares of the Company were listed on the London Stock Exchange in October 1987 where they trade with the ticker name SHB. The shares of the Company are also constituents of the FTSE 250 index.

Dividend Update (SHB)

The Company on 21 May 2019 along with the declaration of its half-yearly results for the half-year ending 31 March 2019 announced an interim dividend of 8.7 pence per share.

Insights from the Results statement (SHB)

The Company’s half-yearly results for the period ended 31 March 2019 were declared on 21 May 2019.

  • The Company’s Net property income has risen by 5.2 per cent to £48.6m following a 6.4 per cent like-for-like increase in rents receivables.
  • The combined valuation of the Company’s portfolio of assets grew by 0.3 per cent in the past six- month period to 31 March 2019 and by 1.1 per cent in the past one-year period to 31 March 2019.
  • The Company’s EPRA earnings have grown to £27.3 million up by 9.2 per cent for the six-month period ended 31 March 2019 compared to EPRA earnings of £25.0 million for the six-month period ended 31 March 2018.

Source – Company’s half-yearly report published on 21 May 2019.

Stock Price performance of (SHB) at the London stock exchange (YTD)

(Comparative chart of SHB with the FTSE 250 index, Source – Thomson Reuters   

Stock performance at the London stock exchange over the past five days (SHB)

Price Chart as on 10 September 2019, before the market close (Source: Thomson Reuters)

On 10 September 2019, at the time of writing the report (before the market close, GMT 11.30 AM), SHB shares were trading on the London Stock Exchange at GBX 840.6.

The stock has a 52-week High of GBX 935.5 and a 52-week low of GBX 734.0. The total market capitalization of the Company was £2.57 billion.

Outlook (SHB)

The Company continues to invest in high value-enhancing projects. Current development schemes underway include 184,000 sq. Ft of space with an Estimated Rental Value (ERV) of £13.7 million (9.3% of portfolio ERV).

The Company believes that the medium to long term outlook for the West End and London Real estate market is bright despite the gloomy business mood in the rest of the United Kingdom which makes the company less susceptible to the ill-effects of an economic slowdown.

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