Reckitt - as good as it gets?

[monabri]

Old news. I would suggest you avoid reading out of date media articles and refer to the latest news released by the company. In the Q1 trading update released on 24th April the company said:

"We have delivered a good first quarter. Following a period of price-led growth, we are now returning to a more balanced contribution from price, mix and volume. We grew volumes in many of our powerbrands in the quarter, including Lysol, Dettol, Durex and Finish, as well as our non-seasonal OTC portfolio. In addition, we continue to benefit from carryover pricing and consumers trading up to our premium innovations.

AND

Lysol delivered low-double digit LFL net revenue growth, led by strong volume growth. Our innovation platforms, including Lysol Laundry Sanitiser and Lysol Air Sanitiser drove growth in their respective segments. Lysol wipes benefitted from year-on-year distribution gains.

I prefer the extra detail contained within Interim and/or Full Year reports. This from 6 weeks ago:

https://finance.yahoo.com/news/reckitt- ... 49283.html

Reckitt Benckiser Group (LON:RKT) Full Year 2023 Results

Key Financial Results
Revenue: UK£14.6b (up 1.1% from FY 2022).
Net income: UK£1.63b (down 30% from FY 2022).
Profit margin: 11% (down from 16% in FY 2022).
EPS: UK£2.28 (down from UK£3.27 in FY 2022).

Yes, it is good that the company has patted itself on the back with its own positive Trading Update, they certainly needed it!

But, as I admitted, so far all I have done is read a few headlines, give me a chance!

Enjoy!


Ian

That link review was from Simply Wall Street....

Just sayin!

[IanTHughes]

I prefer the extra detail contained within Interim and/or Full Year reports. This from 6 weeks ago:

https://finance.yahoo.com/news/reckitt- ... 49283.html

Yes, it is good that the company has patted itself on the back with its own positive Trading Update, they certainly needed it!

But, as I admitted, so far all I have done is read a few headlines, give me a chance!

That link review was from Simply Wall Street....

Actually, it is from Yahoo, quoting an article from Simply Wall Street, which was commenting on the recent Final Results ..... and your point is what exactly?

Enjoy!


Ian

[Arborbridge]

I won't disagree with you with regard to this one ruling about one baby, but what about the possibility of a class action?

I think that RKT will survive, but at what cost?

Enjoy!


Ian

You’re being too alarmist. What is your experience of these things? How many times has one of your holdings been through litigation like this? I’ve held BHP through the Samarco dam accident, GSK through Zantac etc. plus many more. Make your own decisions and avoid watching/reading media would be my advice.

Avoid watching/reading media, yet make your own decisions? One needs information - and that comes from the media which reports various actions, does it not?

Anyhow, RKT may survive, but it may not - BP did, RBS did, but only just. Once the Americans get their teeth into litigation it's like a runaway train. Especially, with the emotive baby stuff.

Anyhow, like any well constructed HYP, if RKT disappeared tomorrow, it would not shake my portfolio.

Arb.

[simoan]

That link review was from Simply Wall Street....

Actually, it is from Yahoo, quoting an article from Simply Wall Street, which was commenting on the recent Final Results ..... and your point is what exactly?

Enjoy!


Ian

I think the point is, we should always refer to the original company released document on RNS. Firstly, I have no interest in the slant put on the results by a journalist. Secondly, I have no interest in quotes from A.N.Other broker, and thirdly, using the original reduces risks of typos or other misrepresentation of the real figures. I have no idea why any serious investor uses Yahoo articles as a reference.

[IanTHughes]

Actually, it is from Yahoo, quoting an article from Simply Wall Street, which was commenting on the recent Final Results ..... and your point is what exactly?

I think the point is, we should always refer to the original company released document on RNS. Firstly, I have no interest in the slant put on the results by a journalist. Secondly, I have no interest in quotes from A.N.Other broker, and thirdly, using the original reduces risks of typos or other misrepresentation of the real figures. I have no idea why any serious investor uses Yahoo articles as a reference.

I was not investigating a possible purchase, so felt no need to treat it as such.

Why? Are you suggesting that the quote was incorrect? Which figure was wrong?

Enjoy!


Ian

[simoan]

You’re being too alarmist. What is your experience of these things? How many times has one of your holdings been through litigation like this? I’ve held BHP through the Samarco dam accident, GSK through Zantac etc. plus many more. Make your own decisions and avoid watching/reading media would be my advice.

Avoid watching/reading media, yet make your own decisions? One needs information - and that comes from the media which reports various actions, does it not?

No, it comes from the company. At a push from a broker who analyses the company, although that contains obvious bias if it's the company broker. I never found a single good investment idea on the BBC News or reading Yahoo articles. Plenty of scare stories though. Get a good source of data, read result statements and news releases from the company, and possibly, attend the AGM or investor presentations. Analyse the numbers. Does the valuation stack up? Forget everything else, it's just noise.

[IanTHughes]

Avoid watching/reading media, yet make your own decisions? One needs information - and that comes from the media which reports various actions, does it not?

No, it comes from the company. At a push from a broker who analyses the company, although that contains obvious bias if it's the company broker. I never found a single good investment idea on the BBC News or reading Yahoo articles. Plenty of scare stories though. Get a good source of data, read result statements and news releases from the company, and possibly, attend the AGM or investor presentations. Forget everything else, it's just noise.

I have yet to see a Trading Update that says:

"Trading going from bad to worse!"

Although there have been a number of occasions when that would have been more honest than the positive guff that was reported!

Enjoy!


Ian

[monabri]

Actually, it is from Yahoo, quoting an article from Simply Wall Street, which was commenting on the recent Final Results ..... and your point is what exactly?

Enjoy!


Ian

I think the point is, we should always refer to the original company released document on RNS. Firstly, I have no interest in the slant put on the results by a journalist. Secondly, I have no interest in quotes from A.N.Other broker, and thirdly, using the original reduces risks of typos or other misrepresentation of the real figures. I have no idea why any serious investor uses Yahoo articles as a reference.

My point was the report was from SwS and they have lead me astray in the past to the extent that I am wary and have raised questions with them and received (imho) nonsense answers which essentially stated that their data source quoted the numbers and therefore MUST be true...

[IanTHughes]

I think the point is, we should always refer to the original company released document on RNS. Firstly, I have no interest in the slant put on the results by a journalist. Secondly, I have no interest in quotes from A.N.Other broker, and thirdly, using the original reduces risks of typos or other misrepresentation of the real figures. I have no idea why any serious investor uses Yahoo articles as a reference.

My point was the report was from SwS and they have lead me astray in the past to the extent that I am wary and have raised questions with them and received (imho) nonsense answers which essentially stated that their data source quoted the numbers and therefore MUST be true...

So? What is that to someone who has never had such a problem? If it was really concerning for you, all you had to do was check the figures presented with those from whatever source you do trust.

I am sorry, but I will not change my use of data sources because of problems I have never experienced!

Enjoy!


Ian

[simoan]

No, it comes from the company. At a push from a broker who analyses the company, although that contains obvious bias if it's the company broker. I never found a single good investment idea on the BBC News or reading Yahoo articles. Plenty of scare stories though. Get a good source of data, read result statements and news releases from the company, and possibly, attend the AGM or investor presentations. Forget everything else, it's just noise.

I have yet to see a Trading Update that says:

"Trading going from bad to worse!"

Although there have been a number of occasions when that would have been more honest than the positive guff that was reported!

Enjoy!


Ian

You can’t read many trading updates then. It’s pretty clear when a trading update is a profit warning if you understand the figures and can see through the positive spin of the company PR. Some companies have honest management that cut the spin completely and tbh they’re the kinds of companies I want to hold. All companies go through bad spells of trading and all you can ask for is an honest appraisal from the company’s management.

[micrographia]

Mind you, with a yield of around 4.20% RKT is hardly High Yield Portfolio (HYP) territory. Low Yield investors may see it as "as good as it gets", for a share that does have a solid record of rising dividends, over the long term.

Not yet enough for me!

Enjoy!


Ian

A purist might suggest applying the HYP strategy to the FTSE100 as it stands at the moment. After picking 15 shares from different sectors with acceptable divi records you might be surprised at the yield of your last few choices, even if you include some debatable candidates.

As far as I can see, if it wasn’t for Sainsburys on 4.6% RKT would be the top pick in its sector, would be included in a new HYP and wouldn’t be anywhere near the lowest yield if it was. That’s the SBRY with a couple of years of static divis and a minor cut in payout in 2020 .

EEM

[IanTHughes]

I have yet to see a Trading Update that says:

"Trading going from bad to worse!"

Although there have been a number of occasions when that would have been more honest than the positive guff that was reported!

You can’t read many trading updates then.

I have read plenty. both good and bad.

Enjoy!


Ian

[IanTHughes]

Mind you, with a yield of around 4.20% RKT is hardly High Yield Portfolio (HYP) territory. Low Yield investors may see it as "as good as it gets", for a share that does have a solid record of rising dividends, over the long term.

Not yet enough for me!

A purist might suggest applying the HYP strategy to the FTSE100 as it stands at the moment. After picking 15 shares from different sectors with acceptable divi records you might be surprised at the yield of your last few choices, even if you include some debatable candidates.

As far as I can see, if it wasn’t for Sainsburys on 4.6% RKT would be the top pick in its sector, would be included in a new HYP and wouldn’t be anywhere near the lowest yield if it was. That’s the SBRY with a couple of years of static divis and a minor cut in payout in 2020

I am not a "purist", whatever that is, and I cannot be sure of course, not without going through the whole selection process, but I doubt that my selection process - from the top 150 by Market Value - would get down to RKT's 4.2% being one of only 15 selections. 20 selections, maybe, 25 selections, probably..

Each to their own I guess.

Enjoy!


Ian

[micrographia]

I’d say a purist would be someone who based their HYP on the original concept - the top 15 highest yielding shares from different sectors in the FTSE100 that also met the 5yr divi record criteria. Like most here, I’m not a purist either .

Doesn’t change the fact that with a yield above the FTSE100 average RKT is an acceptable HYP share according to the guidelines of this forum. Albeit basically a bet on whether it’s legal issues will impact on its ability to sustain its divi, but strategic ignorance and all that .

EEM

[IanTHughes]

I’d say a purist would be someone who based their HYP on the original concept - the top 15 highest yielding shares from different sectors in the FTSE100 that also met the 5yr divi record criteria. Like most here, I’m not a purist either

Even so, each individual investor has to make their own decision as to whether the dividend is sustainable and therefore their own decision on selection/rejection. Different investors may well make different decisions. The High Yield Portfolio (HYP) strategy is not so formulaic that every investor would come up with the same selections. There is input required from the individual investor. There are no HYP purists.

Doesn’t change the fact that with a yield above the FTSE100 average RKT is an acceptable HYP share according to the guidelines of this forum. Albeit basically a bet on whether it’s legal issues will impact on its ability to sustain its divi, but strategic ignorance and all that

Having a yield above whatever level you like is irrelevant. RKT will only be selected if enough higher yields are rejected. In my case I very much doubt that would be the case - yield too low to even rate consideration.

As I said, each to their own!

Enjoy!


Ian