The Lemon Fool

Lancashire Holdings LRE earns its place in the HYP firmament through regular special divis.
Today they posted the result of an institutional share placing, which had been announced yesterday.
The new shares amounted to 19.5% of the previous share capital, meaning that holders have been diluted some 16%.
The market evidently likes the logic, the shares are up 10% as I write.

https://www.lse.co.uk/rns/LRE/results-o ... 8ijck.html

I suspect we will see more of this as companies prop up their balance sheets. New issues in which retail investors ( a nuisance, in administrative terms) will not have the opportunity to participate. They are dilutive, but perhaps better than taking on more debt.

I hold.

V8

With respect V8, I'm not sure they fit the HYP bill at all? According to dividenddata their (Lancashire Holdings) yield is only 1.62%. Hardly a high yield imho.

https://www.dividenddata.co.uk/dividend ... alDiv=true

Ian.

idpickering wrote:With respect V8, I'm not sure they fit the HYP bill at all? According to dividenddata their (Lancashire Holdings) yield is only 1.62%. Hardly a high yield imho.

Not now for sure but I bought Lancashire for my HYP, back then they were throwing of significant specials with a regularity that looked sustainable. The regular divs were 15c but specials of 100c.

kempiejon wrote:

idpickering wrote:With respect V8, I'm not sure they fit the HYP bill at all? According to dividenddata their (Lancashire Holdings) yield is only 1.62%. Hardly a high yield imho.

Not now for sure but I bought Lancashire for my HYP, back then they were throwing of significant specials with a regularity that looked sustainable. The regular divs were 15c but specials of 100c.

Thanks for that kempiejon. I wasn't aware of that. My apologise to V8.

Ian.

idpickering wrote:Thanks for that kempiejon. I wasn't aware of that. My apologise to the author of the op.

It does illustrate that those 2ndary sources of information need checking, dividenddata does include the specials in the long list of distributions for the company https://www.dividenddata.co.uk/dividend ... y?epic=LRE but a glance at the yield graph you quoted Ian shows the lower 1.6% yield https://www.dividenddata.co.uk/dividend ... alDiv=true and flat 15c dividend since 2009. It only had a brief window of a few years being HYPable including the specials. I see that I disposed of mine moving the unsheltered cash to ISA and they never made a rebuy in the ISA as the specials had reduced and yield no longer high. A profitable enough exercise for me and a few years of healthy income.

I'd say it was definitely a HYP share once, because I was actively considering it at one point, and did so for about a year. I can't remember what put me off in the end -- management changes, I vaguely recall -- but the attraction, as has been stated, was those regular specials.

MDW1954

Lancashire Holdings are incorporated in Bermuda https://www.lancashiregroup.com/en/who-we-are/Governance/governance-structure.html.

I think that was a reason for excluding it in the past, although I cannot recall the technicalities/implications of foreign incorporation.

HTH

Adrian

AJC5001 wrote:...I cannot recall the technicalities/implications of foreign incorporation.

One has to fill in a Foreign section on one's tax form. I think that's about it. Other than the currency fluctuation of course.

kempiejon wrote:It does illustrate that those 2ndary sources of information need checking.....

My secondary source should have been my dividend record. Indeed, the specials have ground to a halt. As I recall, one was missed to due to storms or summat.

So, that makes you my tertiary source (or as the spellchecker would have it, tartar sauce) and on reflection, I think LRE may be headed for a tinkerish exit. Thankyou.

I must have got into these back in TMF days via the HYP board. In the same way that I got into Antofagasta, another reliable source of specials until it wasn't.
Admiral... have done well for me, but they too rely on specials and nothing is for ever.

V8