U might be considering buying Assura as the current yield is suitable for either an accumulation or de-accumulation portfolio.
The first check is their dividend yield 7.6%. Tick
Second their dividend history. Tick
Third dividend guidance
Assura increases quarterly dividend to 0.84p from 0.82p; FY24 dividend 3.24p vs 3.08p Tick
Fourth chart don’t buy a ‘falling knife’.
Uncertain which way the share will trade but if u want to lock in the dividend it matters little. The Trust was in the portfolio but was sold for a small profit to re-invest in a higher yielder.
If the blog portfolio was a de-accumulation portfolio I would still own the Trust.
If u are investing your hard earned for your retirement that are two stages to consider.
ACCUMULATION
Weak markets.
Where because u have time on your side although u will not be making a profit from your portfolio u will be able to re-invest the dividends at a higher yield also getting more shares for your money. U may be willing to take a higher risk/reward but stick to your plan.
Strong markets where u will be able to book some profits, especially as the price rises the yield will fall and u can re-invest in a higher yielder.
DE-ACCUMULATION
The only thing that is of interest to u, is your portfolio of Trusts going to pay their next dividend ? The risk/reward would need to be at the lower end of risk so u might be willing to take a lower yield than when u were in the accumulation period.
Good operational and strategic progress; further dividend increase announced
Assura plc (“Assura”), the specialist healthcare property investor and developer, today announces its results for the year ended 31 March 2024.
Jonathan Murphy, CEO, said:
“We have continued our track record of growth to deliver another period of increased EPRA earnings and dividend, driven by our disciplined approach to investment, extensive sector expertise, and ability to identify new market opportunities. It is these capabilities, underpinned by our strong financial position and secure balance sheet, that make Assura best placed to meet the critical need for new and enhanced healthcare capacity in a community setting.
“Our portfolio continues to deliver high-quality cash flows, against a turbulent economic backdrop, as we further demonstrate our long-term resilience with another year of strong financial performance – increasing rental income by 4% to £143.3 million. Opportunities across broader healthcare markets, each identified as meeting the same underlying demand and offering attractive risk-adjusted investment characteristics, are becoming meaningful contributors to Assura’s £2.7bn portfolio and cash flows. Our five completions reflect the shifting demand in the healthcare sector and include schemes for private operators such as a state-of-the art day case hospital in Kettering as well as our first development in Ireland.
“We have today separately announced a £250m joint venture with USS is an exciting transaction that will further strengthen our balance sheet whilst diversifying the available funding sources to support Assura’s continued growth trajectory. The long-term partnership aligns with cross-party political support for investment into essential NHS community healthcare buildings that are so needed to enable better health outcomes.
“Assura is the partner of choice for the future – best positioned to provide high-quality, sustainable new premises for the delivery of health services in the community – and deliver long-term value for all stakeholders.”
Attractive and resilient assets with another period of EPRA earnings and dividend growth
· Passing rent roll increased 5% to £150.6 million (2023: £143.4 million) with WAULT of 10.8 years
· Net rental income up 4% to £143.3 million (2023: £138.0 million)
· Investment property value £2,708 million (March 2023: £2,738 million)
· Net Initial Yield (“NIY”) widened 30 basis points to 5.17% (March 2023: 4.87%)
· EPRA earnings up 6% to £102.3 million (2023: £96.8 million) and EPRA EPS of 3.4p (2023: 3.3p)
· IFRS loss before tax £28.7 million (2023: £119.2 million) and EPS (1.0)p (2023: (4.0)p), reflecting a 4% like-for-like valuation decline driven by outward yield shift
· 2.4% increase in the quarterly dividend to 0.84 pence per share (3.36 pence on an annual basis) with effect from the July 2024 payment
CEO of Gore Street Capital, the investment manager to the Company, Alex O’Cinneide, commented:
“I’m proud to present a strong set of operational results. The performance highlights ongoing year-on-year growth across the key industry metrics and revenue stability through the clear success of the Company’s strategy. Despite the turbulence seen in the sector, the Company achieved continued growth while demonstrating leadership and resilience.
“Across the sector, it is increasingly apparent that the range of strategies employed by asset owners are yielding increasingly different financial outcomes, with Gore Street producing revenues c.3x of our peers and lowering the volatility of those revenues by 50%. In the GB market, participants largely act as price takers, resulting in similar revenue generation across asset owners. However, it is clear that the impact of capital allocation strategies, whether based on gearing levels, geography concentrations or capital expenditure, is a key component of a company’s long-term viability. Within the sector, we have seen reports of a resurgence in GB revenue based on annualising a very limited data set of revenue over a 15-day period in April. It should be noted that GSF’s estimated average revenue of £15.1 / MW / hr (or £133k / MW / year) for the past 12 months is almost double that of what peers considered as an annualised highlight based on 15 days of trading in GB in April (equating to c.£70k / MW / year). GSF’s consistent outperformance is a testament to our prudent approach to capital allocation and operational excellence. We are the first asset owner to stack revenues in the Irish and German markets, and this control of the optimisation of our portfolio, we believe will continue to produce superior returns.
“The case for energy storage remains strong around the globe, with rising levels of renewable penetration creating an increased system need for flexibility assets. We are also seeing policy drivers emerge to promote the use of assets like those in the Company’s portfolio. The US assets continue to benefit from Investment Tax Credits under the Inflation Reduction Act while new energy storage mandates and potentially even support schemes are expected under new legislation agreed by the European Parliament.
“The combination of positive policy environments, falling technology costs and financial expertise held in-house at the Investment Manager ensures the Company remains well-positioned to deliver sustainable value to our shareholders.”
Dividend Cover:
Due to the Company’s diversified portfolio which has been delivering a consistent average revenue per MW, and the portfolio’s ongoing increase in operational capacity, the Company’s dividend cover has continued to trend upward.
As previously highlighted, the Company reaffirms its dividend target of 7% of NAV for the reported period.
During the Period, the Company achieved an estimated operational dividend cover of 0.78x and an estimated portfolio-level dividend cover of 0.56x. This dividend cover was achieved from an average operational capacity of 311.5MW, achieving an estimated average per MW/hr revenue of £15.1.
Thursday 23 May abrdn Equity Income Trust PLC ex-dividend payment date AEW UK REIT PLC ex-dividend payment date BlackRock Greater Europe Investment Trust PLC ex-dividend payment date BlackRock Smaller Cos Trust PLC ex-dividend payment date Bluefield Solar Income Fund Ltd ex-dividend payment date HICL Infrastructure PLC ex-dividend payment date JPMorgan UK Smaller Cos Investment Trust PLC ex-dividend payment date NextEnergy Solar Fund Ltd ex-dividend payment date Scottish American Investment Co PLC ex-dividend payment date Town Centre Securities PLC ex-dividend payment date Tritax Big Box REIT PLC ex-dividend payment date Tritax EuroBox PLC GBP ex-dividend payment date Weiss Korea Opportunity Fund Ltd ex-dividend payment date
Morgan Stanley throws in the towel: S&P 500 price target raised by 20%
Author Vahid Karaahmetovic
Morgan Stanley has hiked its base case 12-month target price for the S&P 500 by 20%, going from 4,500 to 5,400. The equity research team at Morgan Stanley was continuously calling for a deeper pullback in U.S. stocks, a stance which is now abandoned.
The move comes as the Wall Street giant’s strategists now predict a 19x price-to-earnings (P/E) multiple on 12-month forward earnings per share (EPS) of $283 by June 2026, which equates to a 5,400 forward 12-month price target.
Moreover, their earnings growth projections for 2024 and 2025 are now set at 8% and 13%, respectively, driven by expectations of healthy mid-single-digit top-line growth and margin expansion.
Positive operating leverage is expected to resume, particularly in 2025, supporting these optimistic growth estimates.
“This earnings path is based on our economists growth forecasts, output from our earnings models, and our view that AI diffusion will boost margins starting in 2025,” strategists said.
They also highlighted that services-oriented sectors stand to benefit significantly from AI-fueled productivity gains.
Those include Software & Services, Consumer Services, Health Care Equipment & Services, Financial Services, and Media & Entertainment. According to the strategists, these industries possess greater opportunities for AI-driven efficiency improvements.
“Just these groups alone represent over 25% of expected 2025 net income for the S&P 500, which speaks to the potential margin opportunity,” they wrote.
Morgan Stanley said a modest valuation compression from ~20x to ~19x can be anticipated as earnings rise, which is typical in mid-to-late-cycle periods.
“Normalization in the market multiple is also a function of a higher risk premium (lower rates are a partial offset), which reflects uncertainty around a wider range of potential outcomes,” strategists added.
In this respect, the firm’s bull and bear case targets of 6,350 and 4,200, respectively, now indicate roughly 20% potential upside or downside from the current S&P 500 level.
“In our view, the uncertain backdrop we face warrants an investment approach that can work as market pricing and sector/factor leadership bounce between potential outcomes,” noted the strategists.
“As a result, we continue to recommend a barbell of quality cyclicals (which we see outperforming in a ‘no landing’ scenario) and quality growth (the relative winner in a ‘soft landing’ scenario, in our view),” they continued.
Moreover, Morgan Stanley upgraded Industrials to overweight due to improving earnings revisions and structural drivers, seeing recent underperformance as an attractive entry point.
It also maintains long exposure to defensive sectors like Consumer Staples and Utilities. Meanwhile, large caps are expected to outperform small caps due to stronger earnings revisions, durable margins, and healthier balance sheets.
Conclusion of the Strategic Review and Formal Sale Process
The Board of abrdn European Logistics Income plc (the “Company”) announces the outcome of the Strategic Review (the “Strategic Review”) and Formal Sale Process that commenced on 27 November 2023.
Strategic Review Background
The Board launched the Strategic Review recognising that the Company faces a number of challenges, at both a macro and company specific level. As previously noted, these challenges include the Company’s materially uncovered annual target dividend of 5.64 cents (€) per share, a market capitalisation of £234 million¹ liable to deter some potential investors due to lower share liquidity, and the Company’s shares trading at a significant and persistent discount to the net asset value per share. Additionally, in line with its constitutional terms as set out on launch in December 2017, the Company has proposed a continuation vote at the forthcoming Annual General Meeting on 24 June 2024.
Following the commencement of the Strategic Review, the Company’s Financial Adviser, Investec Bank plc (“Investec”) has engaged with a significant number of interested parties with a view to facilitating an indicative proposal which would fulfil the Strategic Review’s objective of maximising returns for Shareholders. Following a period of due diligence, eleven interested parties submitted an initial indicative proposal in the first quarter of 2024. Submissions included proposals regarding all-share mergers, changes to the investment management arrangements, recapitalisation schemes and cash offers for the portfolio or Company. Reflecting continued Shareholder feedback, the Board and Investec focused efforts on those submissions proposing a cash offer for the portfolio or the Company. Access to additional confidential non-public Company information was provided and following a further period of due diligence, remaining interested parties were invited to submit revised offers, as a result of which a limited number of indicative offers were forthcoming.
As part of the Strategic Review, the Company’s investment manager, abrdn Fund Managers Limited (the “Investment Manager”), provided the Board with analysis of, and a proposal involving, a managed disposal of the portfolio in a timely manner. The analysis comprised a range of detailed disposal scenarios over an illustrative period of 12-24 months for the entire portfolio, with capital being returned to Shareholders from Q4 2024 and expected quarterly thereafter; and it considered the impact of likely disposal costs, local applicable capital gains taxes, the ongoing running costs of the Company and the optimal approach to repaying or maximising the value of the Company’s fixed cost debt.
Outcome of the Strategic Review
Following a detailed review of the options available to the Company and after consultation with its advisers, as well as taking into account feedback received from a number of larger Shareholders, the Board has concluded that it would be in the best interests of Shareholders as a whole to put forward a proposal for a managed wind-down of the Company (the “Managed Wind-Down”). In arriving at this decision, the Board placed particular importance on the following factors:
· Shareholder Value Maximisation: the indicative potential value from the Managed Wind-Down is materially in excess of the net value achievable from the indicative cash offers received, all of which were subject to a number of preconditions and all of which represented material discounts to the Company’s current net asset value. With an EPRA vacancy rate of 6.5%, the Managed Wind-Down provides the potential opportunity to capture the value associated with letting this vacant space ahead of a disposal.
· Feedback from Potential Offerors: a significant majority of interested parties communicated a strong preference to acquire assets within certain geographies or individual assets as an alternative to acquiring the entire portfolio, providing comfort as to the likely level of offeror interest in the Managed Wind-Down process. With a diversified portfolio of 25 urban and mid-box logistics assets with an aggregate value of approximately €616 million, the pool of potential offerors is expected to be large, with many of these parties now conversant with the Company’s assets.
· Indicative Timeline: while further details will be provided in due course, under the Managed Wind-Down it is expected that the majority of the assets will have been disposed of by the end of the second quarter of 2025. The Company’s advisers have completed a substantial amount of preparatory work including commissioning fully updated technical and environmental due diligence reports for the entire portfolio, ensuring that the Managed Wind-Down process can commence promptly after Shareholder approval of the required amendments to the Company’s investment objective and investment policy.
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FTSE 100 tobacco and nicotine products manufacturer Imperial Brands (LSE: IMB) is one of those shares regularly overlooked by investors.
Companies in this sector, like those in oil, are ethically unpopular nowadays, but this misses a key point, I think.
Another is that because they are overlooked, they tend to offer excellent value. And the final reason in the case of tobacco and nicotine product firms is that they pay high dividend
As a former heavy smoker myself, I think this is the least they owe me.
Regular high dividend payer
In the past four years, working back from 2022, Imperial Brands paid 7.6%, 8.9%, 10.1%, and 11.3% in dividend yields.
Last year, the total dividend was 146.82p. This gives a yield of 7.5% based on the current share price of £19.67.
At this price, just under £11,000 would buy me 559 shares in the firm.
Big passive income generation
So, 559 shares in the company would make me around £825 in dividends in the first year. After 10 years averaging the same yield, I would have another £8,250 on top of the £11,000 or so investment.
This is known as ‘dividend compounding’ and is the same process as compound interest in a bank account. But rather than interest being reinvested, dividend payments are.
If this was done, then the dividend payments after 10 years would total £12,233 instead of £8,250!
This would mean £23,233 in total, paying £1,674 a year in dividends, or £140 a month.
Over 30 years on an average 7.5% yield, the investment pot would total £103,637, paying £7,466 a year, or £622 a month!
Inflation would reduce the buying power of the income, of course. And yields can fall as well as rise, depending on dividend payments and share prices.
However, it highlights that a significant passive income can be generated from relatively small investments in the right stocks if the dividends are reinvested.
££££££££££££
If u are reluctant to invest your hard earned in a dying industry, literally, substitute with your favoured IT u have discovered using your own research.
