SSE PLC (SSE) - PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 24

[idpickering]

Delivered investment of £2.5bn in critical national energy infrastructure, including:

o Construction starting on Eastern Green Link 2 subsea transmission cable, the largest in the UK;

o Full power at Seagreen, the world's deepest fixed bottom offshore wind farm;

o Progressing the world's largest wind farm, with Dogger Bank A turbine installations continuing;

o Final commissioning under way on both Viking onshore wind farm and Shetland HVDC link.

And later;

Final Dividend In Line With Growth-Enabling Plan

· Intention to recommend a final dividend of 40.0p for payment on 19 September 2024, making the full year dividend 60p per share in line with growth aligned dividend plan.

https://www.investegate.co.uk/announcem ... 24/8212956

Also posted on Company News here; viewtopic.php?p=665172#p665172

I don't hold these in my HYP, but know some here do, so this may be of interest here.

Ian.

[kempiejon]

making the full year dividend 60p per share in line with growth aligned dividend plan.

expletive! 96p last year, 60p this year.

2019 was 97p and the growth alignment continued for the next years at 80p, 81p, 85p made it to 96p last year before this year's 60p growth.

https://www.dividenddata.co.uk/dividend ... y?epic=SSE

[funduffer]

making the full year dividend 60p per share in line with growth aligned dividend plan.

expletive! 96p last year, 60p this year.

2019 was 97p and the growth alignment continued for the next years at 80p, 81p, 85p made it to 96p last year before this year's 60p growth.

https://www.dividenddata.co.uk/dividend ... y?epic=SSE

Yes, I thought SSE's so-called 'dividend for growth' plan would result in a reduction from about 97p pa to around 80p pa. It now seems it is to be 60p pa!

Disappointing!

FD

[Millie]

The reduction in dividend had been flagged some time ago.

From SSE Q3 Trading Statement 20 January 2023 :

"In line with the Group's five-year dividend plan, announced as part of its NZAP in November 2021, SSE intends to recommend a full-year dividend of 85.7p per share plus RPI for 2022/23 followed by a rebase to 60p in 2023/24 to support the Group's significant investment and growth plans. The dividend is then expected to increase by at least 5% per annum in 2024/25 and 2025/26."

https://www.investegate.co.uk/announcem ... nt/7471510

[Gerry557]

It was flagged a while ago but some would be upset if we said I'm going to kill you next year. You're still dead

This is the second "rebasing" of the dividend recently and I can see why its being referenced to its actual peak value.

I can understand why calling it a dividend growth stock would grate. Especially after a period of higher inflation. I suppose the real question is if the changes make the company better overall.

I've held my shares but not added to them since the cuts.

[funduffer]

The reduction in dividend had been flagged some time ago.

From SSE Q3 Trading Statement 20 January 2023 :

"In line with the Group's five-year dividend plan, announced as part of its NZAP in November 2021, SSE intends to recommend a full-year dividend of 85.7p per share plus RPI for 2022/23 followed by a rebase to 60p in 2023/24 to support the Group's significant investment and growth plans. The dividend is then expected to increase by at least 5% per annum in 2024/25 and 2025/26."

https://www.investegate.co.uk/announcem ... nt/7471510

Thanks for this Millie - I was not paying attention!

FD

[kempiejon]

I used to proselytize about the utilities commitment to inflation matching or beating dividend growth enshrined in the annual reports. This SSE policy is a bit mealy mouthed but 5% annual increase are to be encouraged, in 6 years 60p will be 80p and in about a decade will be at 2019 levels. If we're at 3.5% forecast yield and I was making portfolio changes I could double my income.

[BullDog]

It was flagged a while ago but some would be upset if we said I'm going to kill you next year. You're still dead

This is the second "rebasing" of the dividend recently and I can see why its being referenced to its actual peak value.

I can understand why calling it a dividend growth stock would grate. Especially after a period of higher inflation. I suppose the real question is if the changes make the company better overall.

I've held my shares but not added to them since the cuts.

Happy to have sold out before the dividend cuts arrived. SSE will have to get significantly cheaper before I buy it again.

[Gerry557]

I used to proselytize about the utilities commitment to inflation matching or beating dividend growth enshrined in the annual reports. This SSE policy is a bit mealy mouthed but 5% annual increase are to be encouraged, in 6 years 60p will be 80p and in about a decade will be at 2019 levels. If we're at 3.5% forecast yield and I was making portfolio changes I could double my income.

In six years it might get rebased yet again

You know what they say about jam tomorrow especially when tomorrow is a decade away.

You sort of expect utilities to be fairly boring but I think buying today the yield is less than Unilever when you expect it to be more than double.

[IanTHughes]

I used to proselytize about the utilities commitment to inflation matching or beating dividend growth enshrined in the annual reports. This SSE policy is a bit mealy mouthed but 5% annual increase are to be encouraged, in 6 years 60p will be 80p and in about a decade will be at 2019 levels. If we're at 3.5% forecast yield and I was making portfolio changes I could double my income.

In six years it might get rebased yet again

You know what they say about jam tomorrow especially when tomorrow is a decade away.

You sort of expect utilities to be fairly boring but I think buying today the yield is less than Unilever when you expect it to be more than double.

Interesting, I would expect the opposite.

SSE PLC (SSE) is operating within a regulated industry, whereby the prices that can be charged to consumers are effectively set by the regulator, in this case OFGEM. This means that it is considerably easier for potential investors to assess the future income and therefore returns from such a company, compared with a company in a non-regulated industry. This in turn means less risk to those returns, which will inevitably mean a lower yield being demanded as a reward for investment.

Each to their own.

Enjoy!


Ian

[csearle]

I'm 64, 1m 71cm, and still growing, albeit negatively. Last year I was 1m 71.5cm.

Chris
PS Sir Paul, if you're reading this, the answer was no.

[idpickering]

Happy to have sold out before the dividend cuts arrived. SSE will have to get significantly cheaper before I buy it again.

Likewise, and I couldn't have put it better.

Dividenddata have them yielding 3.34%%. https://www.dividenddata.co.uk/dividend ... y?epic=SSE

Not for me thanks.

Ian.