Abrdn PLC (ADBN) - Final Results

[idpickering]

Including this;

Dividends

The Board has recommended a final dividend for 2023 of 7.3p (2022: 7.3p) per share. This is subject to shareholder approval and will be paid on 30 April 2024 to shareholders on the register at close of business on 15 March 2024. The dividend payment is expected to be £130m.

External dividends are funded from the cumulative dividend income that abrdn plc receives from its subsidiaries and associates (see below for details of cash and distributable reserves). The need to hold appropriate regulatory capital is the primary restriction on the Group's ability to pay dividends. Further information on the principal risks and uncertainties that may affect the business and therefore dividends is provided in the Risk management section.

https://www.investegate.co.uk/announcem ... -8/8057217

This from part one, the other seven parts are available here ; https://www.investegate.co.uk/ftse100

Also posted on Company News here; viewtopic.php?p=649564#p649564

I don't hold these, but think some here do, so this may be of interest here.

Ian.

[Gerry557]

The thing that got me especially from an investment business.....

Return of capital
On 5 June 2023 we commenced a £150m share buyback which was extended to £300m on 8 August 2023. This completed on 19 December 2023 with a total of 161m shares repurchased at an average price of £1.86 per share.

Now £1.62

[kempiejon]

The dividend hasn't moved for 4 years. This is another anecdotal example of me buying a different share and ending up with one I'd previously excluded and suffering income and capital decline.

[csearle]

Dividend 7.3p
Ex-Dividend Date 14-Mar-24
Payment Date 30-Apr-24

C.

[Arborbridge]

The thing that got me especially from an investment business.....

Return of capital
On 5 June 2023 we commenced a £150m share buyback which was extended to £300m on 8 August 2023. This completed on 19 December 2023 with a total of 161m shares repurchased at an average price of £1.86 per share.

Now £1.62

TBF, that often happens to me too!

[funduffer]

I think we are seeing a lot of FTSE companies opting for buybacks rather than dividend increases, due to the general low valuations in the FTSE.

This means we are not seeing the dividend increases we might have done had valuations been higher.

FD

[GrahamPlatt]

I think we are seeing a lot of FTSE companies opting for buybacks rather than dividend increases, due to the general low valuations in the FTSE.

This means we are not seeing the dividend increases we might have done had valuations been higher.

FD

Yes but. Aren’t buybacks supposed to increase the value of the remaining shares?

Edit, answers own question: the SP would have been even lower were it not for the buybacks.

[kempiejon]

es but. Aren’t buybacks supposed to increase the value of the remaining shares?

Edit, answers own question: the SP would have been even lower were it not for the buybacks.

Indeed with all these shares taken out of circulation we're lucky to have had a held dividend this year, oh, lucky again just think how much lower the sp would have been without this diligent work by our staff the directors. I expect they'll have had to forgo their performance pay linked to sp ratios.

[johnstevens77]

I sold these in August 2022 @£1.7, cost was £4.11! I used the proceeds to top up BATS, at least they are still paying a decent dividend.

I am slowly tidying up my underferforming individual holdings into IT's with some success. I.E TATE into ICP, International Capital Group. Annual dividend increases and capital growth excellent. Tate is and was a dog.

john

[Gerry557]

I think we are seeing a lot of FTSE companies opting for buybacks rather than dividend increases, due to the general low valuations in the FTSE.

This means we are not seeing the dividend increases we might have done had valuations been higher.

FD

EPS was lower than the divi even though they quote x1.12 cover. I think they said that the actual dividend amount was halved because of the buybacks. So it might have been another divi cut and lower share prices.

It looked like there might be scope for another buyback next year depending on the regulators and how the business is doing. I assume if things do turn a corner it might be better reinvested assuming the share price responds in the right way. They never seem to do buyback when the prices are at lows.

[monabri]

I think we are seeing a lot of FTSE companies opting for buybacks rather than dividend increases, due to the general low valuations in the FTSE.

This means we are not seeing the dividend increases we might have done had valuations been higher.

FD

EPS was lower than the divi even though they quote x1.12 cover. I think they said that the actual dividend amount was halved because of the buybacks. So it might have been another divi cut and lower share prices.

It looked like there might be scope for another buyback next year depending on the regulators and how the business is doing. I assume if things do turn a corner it might be better reinvested assuming the share price responds in the right way. They never seem to do buyback when the prices are at lows.

Page 220 of the AR

source : https://www.abrdn.com/docs?editionId=9e ... 1b26ebc524

"On 5 June 2023, the Company announced that it would initiate a £150m return to shareholders. On 8 August 2023, the Company announced the extension of this programme to £300m. The share buyback commenced on 5 June 2023 and was completed on 19 December 2023. During the year ended 31 December 2023, the Company had bought back and cancelled 161,153,949 shares as part of this programme. The total consideration was £302m which includes transaction costs. "

161153949 x £0.146 dividend = £23.5 million of dividends.

The AR also indicates

At 1st Jan 2023 : 2,001,891,899 ordinaries = c.£292 million

At 31 December : they still had 1,840,740,364 ordinaries. = c.£268million

Approx 8% reduction in the dividend payable.

[Gerry557]

Thanks monabri.

I thought it strange I might have to rewatch the presentation to get the context of what they were saying or correct what I misheard.

It takes a while to go through the full report and I tend to skim read first thing and pick out bits that interest most. I still need to check that dividend cover unless there is an underlying in there somewhere.

[csearle]

I am slowly tidying up my underperforming individual holdings into IT's with some success.

Funny thing is I'm doing something similar in reverse. I'm gradually selling my underperforming ITs to buy more for my HYP, which has enjoyed a meagre IRR of about 1.5% during the period I've held the ITs. The ITs are all underwater to varying degrees¹ (IRR currently about -6%) so it is a bit painful to sell². This is all since mid 2021, clearly short-term, so what can I expect!

Chris.

¹ With hindsight I would have done better by leaving my windfall as cash and weathering the ravishes of inflation.
² I am selling to use up my ISA allowance.

[Arborbridge]

I sold these in August 2022 @£1.7, cost was £4.11! I used the proceeds to top up BATS, at least they are still paying a decent dividend.

I am slowly tidying up my underferforming individual holdings into IT's with some success. I.E TATE into ICP, International Capital Group. Annual dividend increases and capital growth excellent. Tate is and was a dog.

john

The case of TATE is an interesting one. Until around 2022 it's been a fine plodder, not a dog at all. I'm not sure what you expect of an old industrial, but it is one of those shares that I haven't had the slightest doubt or trouble with since I started my HYP. It's banged in a TR of 5-8% most years from 2008 and an increasing dividend. Boring is good for HYPers and this has been a star of boredom.

Then we had the strange fiddling around in May 2022 and not I'm sure what the heck is going on now in relative terms- but I notice the dividend in January was back to where it was plus a bit. I always hate those corporate events as they through doubt into everything and ruin perspective - before that Tate had been free of such nonsense.

So, far from dog, overall it's been an OK share which has given me a reward with minimum worries or effort.

Arb

[chris]

Then we had the strange fiddling around in May 2022 and not I'm sure what the heck is going on now in relative terms- but I notice the dividend in January was back to where it was plus a bit.

Not quite sure where you get your figures but in January 2022, the TATE dividend was 9p per share as an interim and in 2024 the January dividend was 6.2p, 31% down on the situation before the 'strange fiddling around'. Unless you bought more shares with the special dividend which has given you a similar payout, I'm not sure why you think it has gone up a bit.

As soon as the announcement was given that TATE was to become a 'growth share', I immediately sold my holding as I could foresee a big cut in dividend to (perhaps) buy other businesses rather than payout and that made it no longer a HYP share for me.

[tjh290633]

Then we had the strange fiddling around in May 2022 and not I'm sure what the heck is going on now in relative terms- but I notice the dividend in January was back to where it was plus a bit.

Not quite sure where you get your figures but in January 2022, the TATE dividend was 9p per share as an interim and in 2024 the January dividend was 6.2p, 31% down on the situation before the 'strange fiddling around'. Unless you bought more shares with the special dividend which has given you a similar payout, I'm not sure why you think it has gone up a bit.

As soon as the announcement was given that TATE was to become a 'growth share', I immediately sold my holding as I could foresee a big cut in dividend to (perhaps) buy other businesses rather than payout and that made it no longer a HYP share for me.

There was a return of capital and a share consolidation in 2022, which is presumably what you mean by "fiddling around".

TJH