Kingfisher Finals

[tjh290633]

http://www.investegate.co.uk/kingfisher ... 00061428A/

Dividends and capital returns

The Board has proposed a final dividend of 7.15p which results in a full year dividend of 10.4p, an increase of 3.0% (2015/16: 10.1p). The full year dividend is covered 2.3 times by adjusted earnings (2015/16: 2.2 times). We continue to be comfortable with medium term dividend cover in the range of 2.0 to 2.5 times based on adjusted basic earnings per share, a level the Board believes is consistent with the capital needs of the business.

The final dividend will be paid on 19 June 2017 to shareholders on the register at close of business on 5 May 2017. A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the Company. The shares will go ex-dividend on 4 May 2017. For those shareholders electing to receive the DRIP the last date for receipt of election is 26 May 2017.

On 25 January 2016 Kingfisher announced its intention to return around a further £600 million of surplus capital to shareholders during 2016/17 and the following two years. This is expected to be via share buyback. During 2016/17 £200 million (58 million shares) was returned to shareholders via share buyback.

At the price today of 330p, that puts the current yield just over 3%. Not an HYP pick at the moment, but for people like me who have bought at prices of half that or less, it is still worth holding on to.

I first bought in Sep 2007 at 209p, added in Nov 2007 at 166p and again in Jan 2008 at 1125p. Trimmed back twice in Oct 2008 at 132p and again in March 2009 at 139p, when overweight. The dividend was reduced in 2008, the interim after I bought was 3.85p, and then the final was 3.4p, followed by an interim of 1.925p. Held at that level of 5.325p until 2011 when the final was raised to 5.145p, making a total of 7.07p. Since then there has been a steady progression to the current 10.4p. My current average cost is 225p. Total Return to date is 7.7% XIRR.

TJH