Focus on 4 Upcoming Dividends From FTSE 100 – HL, BLND, CNA and BDEV

Hargreaves Lansdown PLC

Hargreaves Lansdown PLC (HL) is a Bristol-headquartered provider of investment management products and services to private investors in the UK, which also operates the largest direct to investor investment service in the country. The company provides execution only of advisory and third-party arrangement services and offers a range of investment products, investment services, financial planning and advice.

Financial Highlights (FY 2019, in £m)

 (Source: Company Filings)

The company’s net new business in the FY19 declined by 4% from £7.6 billion recorded in the FY2018 to £7.3 billion in FY2019. Total AUA (Assets Under Management) was up by 8% to £99.3 billion in FY2019 from £91.6 billion in FY2018. The company’s revenue during the year increased by 7% to £480.5 million from £447.5 million recorded in the FY2018. Pre-tax profit stood at £305.8 million in FY2019 versus £292.4 million in FY2018, an increase of 5%. The company’s diluted earnings per share were up by 5% to 52 pence in FY2019 versus 49.6 pence in FY2018.

Dividend

Keeping in line with the intention of maintaining the ordinary dividend pay-out ratio at around 65%, the company increased the total ordinary dividend by 5% to 33.7 pence per share (2018: 32.2p). Taking the total dividend for the year to 42.0 pence per share (2018: 40.0p), which represented dividend payout ratio of 80.6% (2018: 80.6%), the group declared a special dividend of 8.3 pence per share (2018: 7.8p). To all shareholders on the register at the close of 27 September 2019, the final and special dividends will be paid on 18 October 2019.

Share Price Commentary

On 19 September 2019, at the time of writing the report (at 15:17 pm GMT, before the market closed), HL stock was trading at GBX 2,035, up by 1.34 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 2,447.33/GBX 1,622.00. The company’s stock beta was 1.13, reflecting more volatility as compared to the benchmark index. The outstanding market capitalisation was around £9.55 billion, with a dividend yield of 1.68 per cent.

British Land Company PLC

British Land Company PLC (BLND) is a London-headquartered company that is engaged in the real estate business with a focus on commercial properties, including prestigious retail and office space. It owns, develops and manages mixed-use properties. Its portfolio of properties includes retail, leisure, residential and office.

Financial Highlights (FY 2019, in £m)

 (Source: Company Filings)

In the fiscal year 2019, the company’s total revenue increased by 41.5% to £904 million as compared to £639 million in FY18. Like-for-like rental growth across the portfolio was 2.4%, or £15 million, which helped in more than offsetting the £14 million impact of Retail CVAs. Underlying profit was down by 10.5% at £340 million, and despite the share buyback completed in the year, underlying EPS was 34.9p, a decline of 6.7% from the previous year.  The IFRS loss before tax for the FY2019 period stood at £319 million against the profit before tax for the FY2018 of £501 million, due to the variation in the valuation movements on the portfolio of properties and the capital and other income results of the JV (joint ventures). IFRS basic loss per share (EPS) was 30 pence as compared to earnings per share of 48.7 pence in the previous period data, due to the decrease in the property valuations. EPRA Net Assets Value per share declined by 6.4% to 905 pence against the 967 pence in FY18. Loan to value ratio reduced by 0.3% to 28.1% as compared to 28.4% in FY18.

Dividend

Representing an increase of 3% on the first interim dividend last year, the company declared the first interim dividend payment of 7.9825 pence per share for the quarter ended 30 June 2019. All shareholders on the register at the close of business on 4 October 2019 will be eligible for the first interim dividend to be paid on 8 November 2019 by the company.

Share Price Commentary

On 19 September 2019, at the time of writing the report (at 3:17 pm GMT, before the market closed), BLND stock was trading at GBX 558.2, down by 0.67 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 645.00/GBX 465.30. The company’s stock beta was 0.87, reflecting less volatility as compared to the benchmark index. The outstanding market capitalisation was around £5.22 billion, with a dividend yield of 5.56 per cent.

Centrica PLC

Centrica PLC (CNA) is a Windsor, United Kingdom-headquartered global energy, services and solutions company, and the owner of British Gas, the largest energy provider in the United Kingdom. The target market of the group includes the United Kingdom, Ireland and North America, and is primarily engaged in the supply of power and gas to businesses and consumers.

Financial Highlights (H1 FY 2019, in £m)

      

(Source: Company Filings)

In H1 FY2019, the company’s adjusted revenue declined by 2% to £13.8 billion as compared with the corresponding period of the last year, due to the decrease in Centrica consumer revenue, while the decline in the Centrica business revenue and production and exploration was broadly unchanged. Adjusted gross margin reduced by 15% against the same period in 2018. EBITDA stood at £1,075 million, a decrease of 19% from the previous year same period data. Adjusted operating profit reduced by 49% to £399 million against the £782 million in H1 FY18. Adjusted earnings for the period attributable to shareholders reduced by 63% to £134 million as compared to £358 million in H1 FY18. Adjusted basic earnings per share were 2.4 pence, a decrease of 63% from the same period in 2018.  Adjusted operating cash flow declined by 32% to £744 million as compared with the corresponding period of the last year.

Dividend

To shareholders on the register on 11 October 2019, an interim dividend of 1.5p per share – which is lower by 58% over the year – will be paid on 21 November 2019, and the full year expected dividend was revised to 5.0p per share.

Share Price Commentary

On 19 September 2019, at the time of writing the report (at 3:30 pm GMT, before the market closed), CNA stock was trading at GBX 73.76, up by 1.34 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 156.67/GBX 63.99. The company’s stock beta was 0.62, reflecting less volatility as compared to the benchmark index. The outstanding market capitalisation was around £4.25 billion, with a dividend yield of 13.60 per cent.

Barratt Developments PLC

Barratt Developments PLC (BDEV) Coalville, United Kingdom-headquartered is a residential property development company, which is engaged in acquiring land, obtaining planning consents, developing, constructing and selling residential and commercial property throughout Britain. The group is a constituent of the FTSE 100 index. The operations of the company are differentiated in two operating segments, namely Housebuilding and Commercial developments.

Financial Highlights (FY 2019, in £m)

 (Source: Company Filings)

Though the group reported an increase of 1.6% in total completions at 17,856, total ASP for the year declined to £274,400 (2018: £288,900), reflecting changes in mix and trade out of central London, leading to a fall of 2.3% in total revenue to £4,763.1 million, from £4,874.8 million recorded in the prior year. Gross profit during the period rose by 7.5% to £1,084.2 million, which corresponded to improvement in gross margin to 22.8% (2018: 20.7%), while higher gross margins and the benefits of the new product range delivery helped the company to report a growth of 4.5% in operating profit to £901.1 million. Due to a decline of £16.3 million in net finance charges, margin initiatives, a strong close to the year and additional contribution from joint ventures, profit before tax for the year was up by 8.9% to £909.8 million (2018: £835.5 million). Basic earnings per share of the company were at 73.2p, up by 10.1%.

Dividend

The total dividend for the financial year was 46.4p (2018: 43.8p), as the group announced special dividend per share of 17.3p (2018: 17.3p) and final ordinary dividend per share of 19.5p (2018: 17.9p). To shareholders registered at the close of 11 October 2019, the dividend will be paid on 5 November 2019.

Share Price Commentary

On 19 September 2019, at the time of writing the report (at 3:30 pm GMT, before the market closed), BDEV stock was trading at GBX 629.8, down by 0.38 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 670.20/GBX 430.00. The company’s stock beta was 0.79, reflecting less volatility as compared to the benchmark index. The outstanding market capitalisation was around £6.45 billion, with a dividend yield of 4.60 per cent.

Comparative share price chart of HL, BLND, CNA and BDEV

(Source: Thomson Reuters)