Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Law Debenture ( LWDB)

Closed-end funds and OEICs
monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Law Debenture ( LWDB)

#390170

Postby monabri » February 26th, 2021, 9:27 am

https://www.londonstockexchange.com/new ... t/14879629


Share price total return for 2020 of 12.9%, outperforming the FTSE Actuaries All-Share Index by 22.7%

· Continued strong performance from the Independent Professional Services business (IPS) supports dividend growth

· Continued low ongoing charges (0.55%), compared to the industry average of 1.02%[2]


Dividend Highlights:

· 2020 FY dividends increased by 5.8% to 27.5 pence per ordinary share (2019: 26.0p)

· Dividend yield of 3.8%, Q4 dividend of 8.00 pence per ordinary share

· Transitioned to quarterly dividends, creating greater regularity and predictability around dividend payments

Investment Highlights:

· Net Asset Value (NAV) per share (with debt at par) grew 3.6%

88V8
Lemon Half
Posts: 5769
Joined: November 4th, 2016, 11:22 am
Has thanked: 4097 times
Been thanked: 2560 times

Re: Law Debenture ( LWDB)

#390184

Postby 88V8 » February 26th, 2021, 10:19 am

According to the AIC, LawDeb have ten years of dividend growth.
One of the key criteria in my transition towards ITs is avoidance of cuts. So far so good.

The yield is nothing wonderful, about the same as Unilever, they will be mentally competing for a top-up.

V8

dundas666
2 Lemon pips
Posts: 176
Joined: December 27th, 2019, 2:53 pm
Has thanked: 165 times
Been thanked: 99 times

Re: Law Debenture ( LWDB)

#390209

Postby dundas666 » February 26th, 2021, 11:21 am

AIC says yield grew on average by 10.6% pa over the last 5 years which is impressive.

Am happy to have picked some up with a yield of 4% in the last year.

Share price down nearly 3% today though!

Arborbridge
The full Lemon
Posts: 10367
Joined: November 4th, 2016, 9:33 am
Has thanked: 3601 times
Been thanked: 5227 times

Re: Law Debenture ( LWDB)

#390213

Postby Arborbridge » February 26th, 2021, 11:32 am

One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.

kempiejon
Lemon Quarter
Posts: 3488
Joined: November 5th, 2016, 10:30 am
Has thanked: 1 time
Been thanked: 1145 times

Re: Law Debenture ( LWDB)

#390219

Postby kempiejon » February 26th, 2021, 11:40 am

Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.


https://www.dividenddata.co.uk/dividend ... ?epic=LWDB give 3.8% current.

Arborbridge
The full Lemon
Posts: 10367
Joined: November 4th, 2016, 9:33 am
Has thanked: 3601 times
Been thanked: 5227 times

Re: Law Debenture ( LWDB)

#390225

Postby Arborbridge » February 26th, 2021, 11:52 am

kempiejon wrote:
Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.


https://www.dividenddata.co.uk/dividend ... ?epic=LWDB give 3.8% current.


Gosh, did the yield really get that high? That explains why I topped up on the 6th July last year. Must have achieved around 5%, or just shy. It's difficult to justify a topup of LWDB when everything else zooms up too!

DavidM13
Lemon Slice
Posts: 423
Joined: October 12th, 2018, 5:01 pm
Has thanked: 46 times
Been thanked: 405 times

Re: Law Debenture ( LWDB)

#390228

Postby DavidM13 » February 26th, 2021, 11:59 am

88V8 wrote:According to the AIC, LawDeb have ten years of dividend growth.
One of the key criteria in my transition towards ITs is avoidance of cuts. So far so good.

The yield is nothing wonderful, about the same as Unilever, they will be mentally competing for a top-up.

V8


11 now! https://www.theaic.co.uk/income-finder/dividend-heroes

give me a chance! :lol:

dundas666
2 Lemon pips
Posts: 176
Joined: December 27th, 2019, 2:53 pm
Has thanked: 165 times
Been thanked: 99 times

Re: Law Debenture ( LWDB)

#390230

Postby dundas666 » February 26th, 2021, 12:01 pm

kempiejon wrote:
Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.


https://www.dividenddata.co.uk/dividend ... ?epic=LWDB give 3.8% current.


Looks like that 3.8% doesn't take into account this quarterly dividend increase from 6.5p to 8p, which makes the last 4 dividend total increase from 26p to 27.5p pa. If you factor that in then the yield increases to 4%.
https://www.dividendmax.com/united-king ... /dividends

Perhaps more importantly, if you assume all the remaining quarterly dividends this year will also be 8p then the forward yield is 4.6%

Arborbridge
The full Lemon
Posts: 10367
Joined: November 4th, 2016, 9:33 am
Has thanked: 3601 times
Been thanked: 5227 times

Re: Law Debenture ( LWDB)

#390234

Postby Arborbridge » February 26th, 2021, 12:07 pm

dundas666 wrote:
kempiejon wrote:
Arborbridge wrote:One of the first ITs I ever bought (in the 90's): I still have it and have added once or twice. Yield too low mostly, but I'm happy to give is space in my basket as it just keeps growing - both capital and dividend.

If the yield really is around 3.8%, it's probably worth thinking about. Whether it is less of a risk than ULVR is a moot point since it has one odd ball element in IPS - the reason I nearly sold off few years ago, but held my twitching finger.

Arb.


https://www.dividenddata.co.uk/dividend ... ?epic=LWDB give 3.8% current.


Looks like that 3.8% doesn't take into account this quarterly dividend increase from 6.5p to 8p, which makes the last 4 dividend total increase from 26p to 27.5p pa. If you factor that in then the yield increases to 4%.
https://www.dividendmax.com/united-king ... /dividends

Perhaps more importantly, if you assume all the remaining quarterly dividends this year will also be 8p then the forward yield is 4.6%


For this IT, that is getting really interesting. Why does everything becoming interesting when my cash pile is almost non-existent! :roll:

dundas666
2 Lemon pips
Posts: 176
Joined: December 27th, 2019, 2:53 pm
Has thanked: 165 times
Been thanked: 99 times

Re: Law Debenture ( LWDB)

#390241

Postby dundas666 » February 26th, 2021, 12:31 pm

The last 4 years has seen the dividend increase by 17.28% pa (includes 2021 forecast of 8p/qtr)

The 8 years before that saw the dividend increase by an average of just over 5% pa.

richfool
Lemon Quarter
Posts: 3492
Joined: November 19th, 2016, 2:02 pm
Has thanked: 1194 times
Been thanked: 1280 times

Re: Law Debenture ( LWDB)

#390373

Postby richfool » February 26th, 2021, 7:41 pm

Arborbridge wrote:For this IT, that is getting really interesting. Why does everything becoming interesting when my cash pile is almost non-existent! :roll:

Indeed.

First thing this morning, I used some accumulated dividends to top up SEIT, and then later in the day, they put just about everything on sale. I had previously thought about LWDB, but been put off as its rising SP had pushed the dividend yield down too much.

forrado
2 Lemon pips
Posts: 221
Joined: May 16th, 2017, 7:41 pm
Has thanked: 4 times
Been thanked: 242 times

Re: Law Debenture ( LWDB)

#390393

Postby forrado » February 26th, 2021, 8:43 pm

richfool wrote:I had previously thought about LWDB, but been put off as its rising SP had pushed the dividend yield down too much.

Same here, a rising SP has put a halt on me buying more. Though, it's worth noting that LWDB comes with an above average level of share price volatility when compared to other UK Equity Income ITs in its universe. Very much the result of the fund manager's need to be less focused on dividend paying stocks seeing as some 40% of the trust's annual income is generated by the professional services arm. Also, the balance sheet tends to be more highly geared by use of short-term bank borrowings than say other UK Equity Income ITs. I daresay, further down the road, more reasonably priced opportunities will present themselves - in the meantime I'll just have to sit and wait.

monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Re: Law Debenture ( LWDB)

#415629

Postby monabri » May 27th, 2021, 6:20 pm

Dividend announcement

https://www.investegate.co.uk/law-deben ... 30290932A/


First Interim Dividend Announcement - Builds on 42 year track record of maintaining or increasing dividends

· Declaring a first interim dividend of 6.875 pence per ordinary share payable in July 2021, representing an increase of 5.8% over the prior year's first interim dividend.

· It is the Board's intention for each of the first three interim dividends for 2021 to be equivalent to a quarter of Law Debenture's total 2020 dividend of 27.5 pence per ordinary share.

· The Board's current intention is for the total 2021 dividend to be an increase on the total 2020 dividend of 27.5 pence per ordinary share.


This dividend will be paid on 7 July 2021 to shareholders on the register at close of business on 4 June 2021. The Corporation's shares will go ex-dividend on 3 June 2021.

dundas666
2 Lemon pips
Posts: 176
Joined: December 27th, 2019, 2:53 pm
Has thanked: 165 times
Been thanked: 99 times

Re: Law Debenture ( LWDB)

#415671

Postby dundas666 » May 27th, 2021, 9:35 pm

Which by my calculations would make a dividend increase of just over 10% for the year.

So the yield on my LWDB purchase at the beginning of this year has increased from 4.0% to 4.4%. :D

LittleDorrit
Lemon Pip
Posts: 94
Joined: November 12th, 2016, 11:35 am
Has thanked: 96 times
Been thanked: 67 times

Re: Law Debenture ( LWDB)

#415740

Postby LittleDorrit » May 28th, 2021, 9:10 am

The intent appears to be to equalise the total dividend accross the 4 interim annual payments. Previously the final payment was a larger 8p.
There is no comitment to maintain the size of this final dividend, only reassurance that the total for the year will exceed last years 27.5p, and for the final to therefore exceed 6.875p.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Law Debenture ( LWDB)

#415754

Postby Dod101 » May 28th, 2021, 10:23 am

dundas666 wrote:Which by my calculations would make a dividend increase of just over 10% for the year.

So the yield on my LWDB purchase at the beginning of this year has increased from 4.0% to 4.4%. :D


I do not know much about the detail for Law Debenture but I would be surprised if you see an increase in the total dividend of 10% for the year. Maybe its own trading arm will provide the required boost but I doubt it.

Dod

monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Re: Law Debenture ( LWDB)

#415761

Postby monabri » May 28th, 2021, 10:40 am

So...the dividend will be

Q1 = 6.875p
Q2 = 6.875p
Q3 = 6.875p
Q4 = minimum of 6.875p but likely a bit more.

As the announcement reports ...."Builds on 42 year track record of maintaining or increasing dividends"

We shall have to wait and see but we have "the Board's current intention is for the total 2021 dividend to be an increase on the total 2020 dividend of 27.5 pence per ordinary share".

dundas666
2 Lemon pips
Posts: 176
Joined: December 27th, 2019, 2:53 pm
Has thanked: 165 times
Been thanked: 99 times

Re: Law Debenture ( LWDB)

#415834

Postby dundas666 » May 28th, 2021, 1:30 pm

Dod101 wrote:
dundas666 wrote:Which by my calculations would make a dividend increase of just over 10% for the year.

So the yield on my LWDB purchase at the beginning of this year has increased from 4.0% to 4.4%. :D


I do not know much about the detail for Law Debenture but I would be surprised if you see an increase in the total dividend of 10% for the year. Maybe its own trading arm will provide the required boost but I doubt it.

Dod


Ah yes, my mistake, that was 2 years growth. So:
2019/20 = 26p (6.6p + 19.4p)
2020/21 = 27.5p (6.5p + 6.5p + 6.5p + 8p) = 5.77% increase
2021/22 = 29p but possibly more (6.875p + 6.875p + 6.875p + 8???p) = 5.45% increase

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Law Debenture ( LWDB)

#415879

Postby Dod101 » May 28th, 2021, 4:06 pm

dundas666 wrote:
Dod101 wrote:
dundas666 wrote:Which by my calculations would make a dividend increase of just over 10% for the year.

So the yield on my LWDB purchase at the beginning of this year has increased from 4.0% to 4.4%. :D


I do not know much about the detail for Law Debenture but I would be surprised if you see an increase in the total dividend of 10% for the year. Maybe its own trading arm will provide the required boost but I doubt it.

Dod


Ah yes, my mistake, that was 2 years growth. So:
2019/20 = 26p (6.6p + 19.4p)
2020/21 = 27.5p (6.5p + 6.5p + 6.5p + 8p) = 5.77% increase
2021/22 = 29p but possibly more (6.875p + 6.875p + 6.875p + 8???p) = 5.45% increase

I should think that that is in the right ballpark. Still a decent increase though, these days.

Dod

richfool
Lemon Quarter
Posts: 3492
Joined: November 19th, 2016, 2:02 pm
Has thanked: 1194 times
Been thanked: 1280 times

Re: Law Debenture ( LWDB)

#431373

Postby richfool » July 30th, 2021, 9:15 am

Law Debenture Half Yearly Report to 30th June 2021:

· 2021 dividend to be increased from 2020 level of 27.5 pence per share

· Dividend yield of 3.7% as quarterly dividend increased by 5.8%

· Investment Portfolio delivered strong positive returns outperforming the benchmark

· Independent Professional Services business (IPS) has entered its fourth consecutive year of both revenue and earnings per share growth.

· ~4 million new ordinary shares issued to existing and new investors, worth c. £29.2 million, exceeding £20 million target to refinance the acquisition of new Company Secretarial business. We continue to issue shares when the opportunity arises to generate value for the Trust

· Increase in the valuation of the IPS business by 10.1% year to date to £149.7m.

The board is committed to targeting both capital appreciation and steadily increasing the income for our shareholders. Subject to market conditions, our current intention is to increase the total 2021 dividend compared to the total 2020 dividend of 27.5 pence per ordinary share. We are confident that, in the long term, the combination of a robust equity portfolio and continued growth in our IPS business will deliver strong NAV total returns and attractive dividend growth."

https://www.investegate.co.uk/law-deben ... 00049870G/

I noted Ceres Power was one of the major detractors to performance.


Return to “Investment Trusts and Unit Trusts”

Who is online

Users browsing this forum: Bubblesofearth, J160948 and 9 guests