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SDRC (clarification) - HYP viewpoint

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monabri
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SDRC (clarification) - HYP viewpoint

#511810

Postby monabri » July 5th, 2022, 11:42 am

Not that long ago, all was clear regarding which class of Schroders an income minded investor would buy. The higher yield would be garnered from the "non-voting" share class, SDRC.

It looks as though some of the websites that are used in these environs are currently misleading...or I'm missing significant updates.


Hargreaves Lansdown

The HL site lists the voting option (SDR) with a 4.6% yield
https://www.hl.co.uk/shares/shares-sear ... inary-gbp1

Whilst the non-voting class (SDRC) is reported as offering a 1.6% yield.
https://www.hl.co.uk/shares/shares-sear ... rd-1-share


Dividend data
Indicates a 4.6% yield for SDR, agreeing with Hargreaves.
https://www.dividenddata.co.uk/dividend ... y?epic=SDR

On the basis of this one might elect to buy SDR rather than reviewing "yield on offer" based on dividend paid / shareprice.

I'm flagging this up for discussion/ clarification.

IanTHughes
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Re: SDRC (clarification) - HYP viewpoint

#511823

Postby IanTHughes » July 5th, 2022, 12:13 pm

Dividend details:

Year End  | Quarter | Payment Date     | Dividend (p)
31-Dec-21 | Q4 | 05-May-22 | 85.00
31-Dec-21 | Q2 | 23-Sep-21 | 37.00
| | |
| | Total | 122.00


Yield details:

       | Price (p)  | Dividend (p) | Yield (%)
SDRC.L | 2,220.0000 | 122.00 | 5.50%
SDR.L | 2,632.0000 | 122.00 | 4.64%


However, be aware of a Share Restructure:

https://www.schroders.com/en/media-rela ... chisement/

Under the enfranchisement, each Non-voting Share will be converted into one Ordinary Share and all such re-designated shares will have the same rights as the existing Ordinary Shares, including full voting rights.

Under the proposed terms of the enfranchisement, holders of Ordinary Shares will receive a bonus issue of three additional Ordinary Shares for every 17 Ordinary Shares held on a record date to be determined in order to compensate them for the dilution of their voting rights.


Enjoy!


Ian

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Re: SDRC (clarification) - HYP viewpoint

#511825

Postby kempiejon » July 5th, 2022, 12:15 pm

Google finance offer yields of 5.45% for the voting SDRC and 4.62% for the ords SDR.

Last 2 dividends 37 and 85 pence so 122p total trailing 12 months and prices of 2240p and 2642p seem to tally OK.

Ah I see Ian beat me to it with a neater presentation too.

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Re: SDRC (clarification) - HYP viewpoint

#511834

Postby Dod101 » July 5th, 2022, 1:12 pm

AS ITH has said, the point will soon be irrelevant if it is not already, because the Non Voting shares are soon to be enfranchised and the share prices have been adjusted to take account of that. The two shares are not identically priced at the moment but I think that will be because the voting shareholders are to get a few extra shares to compensate them for the reduction in the price of their shares.

Dod


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