HFEL dividend declaration

[BullDog]

https://www.investegate.co.uk/announcement/rns/henderson-far-east-income-ltd---hfel/dividend-declaration/7820343

4th Interim dividend for the year ended 31 August 2023

The directors have declared the fourth interim dividend of 6.10p per ordinary share in respect of the year ended 31 August 2023. The dividend will be paid on 24 November 2023 to shareholders on the register on 27 October 2023 (the record date). The shares will be quoted ex-dividend on 26 October 2023.

That's 24.2p for the year, following 21.6, 22.4, 23.0, 23.4, 23.8p in previous years. 11.3% yield.

All well and good. It would be good to hear from the directors how they plan to stop just giving shareholders their money back. You're better off stuffing your money under the mattress and spending it as you need. It seems.

[moorfield]

All well and good. It would be good to hear from the directors how they plan to stop just giving shareholders their money back. You're better off stuffing your money under the mattress and spending it as you need. It seems.

As you would be with many other shares, particularly of HYP vintage.

[BullDog]

All well and good. It would be good to hear from the directors how they plan to stop just giving shareholders their money back. You're better off stuffing your money under the mattress and spending it as you need. It seems.

As you would be with many other shares, particularly of HYP vintage.

You're not wrong, HFEL being an outstanding example of the genre though. I had a close shave with it but managed to exit it broadly flat before too much damage was taken on. It seems to remain remarkably popular.

[moorfield]

It seems to remain remarkably popular.

Here's an observation we might agree on, that I think could have been made at any time during the past five years:

- it has a yield greater than the FTSE 100 index
- it might reasonably be expected to sustain, and preferably grow its dividends in the future.
- it would suit someone following a LTBH income strategy in a diversified portfolio (possibly alongside SOI)

Oh, hang on ...

[Arborbridge]

HFEL delivers income, and has done for several years - the clue is in the name of the instrument. Those who wanted or expected "total return" are in the wrong pub, clearly. Perhaps I have been lucky in that I started buying HFEL at £2.50, rather than £3.50?

Yes, as in most investments, timing matters.

As a rule I disregard TR, but each time I open my portfolio it is painfully apparent that this Investment Tyrannosaurus has been chomping my capital and pooing it out as taxable dividends
Once again, huh,

V8

Chomping, but not half as much as the insurance companies people surrender their capital to for a pension!

[BullDog]

Yes, as in most investments, timing matters.

As a rule I disregard TR, but each time I open my portfolio it is painfully apparent that this Investment Tyrannosaurus has been chomping my capital and pooing it out as taxable dividends
Once again, huh,

V8

Chomping, but not half as much as the insurance companies people surrender their capital to for a pension!

Buy the insurance companies, not the annuity?

(Off topic - I think going forward annuities have a bright future once the present recipients of DB pensions are gone. The next generation, fully dependent on DC pension pots will undoubtedly look at a guaranteed annuity income from part of their DC pot as very desirable. And so they should).

[funduffer]

https://www.investegate.co.uk/announcement/rns/henderson-far-east-income-ltd---hfel/dividend-declaration/7820343

4th Interim dividend for the year ended 31 August 2023

The directors have declared the fourth interim dividend of 6.10p per ordinary share in respect of the year ended 31 August 2023. The dividend will be paid on 24 November 2023 to shareholders on the register on 27 October 2023 (the record date). The shares will be quoted ex-dividend on 26 October 2023.

That's 24.2p for the year, following 21.6, 22.4, 23.0, 23.4, 23.8p in previous years. 11.3% yield.

That's a 1.7% increase for each of the last 3 years. Not very encouraging in these inflationary times.

FD

[bluedonkey]

I suppose HFEL is a bit like buying an annuity, our capital is slowly being returned to us via dividends.

[Charlottesquare]

HFEL delivers income, and has done for several years - the clue is in the name of the instrument. Those who wanted or expected "total return" are in the wrong pub, clearly.

I think you are misunderstanding my comment on HFEL. In my view it is unimportant whether you obtain a return as income or as growth. BUT the important part is that overall you get more back than you put in. I.E. I expect the total return (achieved in any manner) to be positive. OK - there may be bad years and better years - but with HFEL on 1, 3 and 5 year periods the return has been negative - which is what I pointed out, without making further comment.
To expand my comment, I could have added that there are other ITs in the same geographical area with "income" in their title which have shown significantly better performance. E.G. SOI (Schroder Oriental Income) and JAGI (JP Morgan Asia Growth and Income).

Are you sure it is negative.

I purchased my first tranche I still hold on 23/3/20 at 249.40.
Current NAV is 223.23, so down 26.17p on NAV.

But I have received divs of :
YE 31.8.20 5.7,5.8.5.8, total 17.3
YE 31.8.21 23.4
YE 31.8.22 23.8
YE 31.8.23 (to date) ,6,6,6.1 total 18.1

So that is 82.6p divs with a bit more declared but not paid due in November, so net of NAV drop 56.43p.

If count from March 2020 to say Sept 2023, that is circa 16.12p return per year, a TR on my cost of 6.46%. Now this is not stunning (I aim for 7-8% TR on average), and my later purchases at 279.97,294.6,294.2 and 290.26 since have not been great, but really, on certainly a 3.5 year view, it is not appalling.

[scotia]

I think you are misunderstanding my comment on HFEL. In my view it is unimportant whether you obtain a return as income or as growth. BUT the important part is that overall you get more back than you put in. I.E. I expect the total return (achieved in any manner) to be positive. OK - there may be bad years and better years - but with HFEL on 1, 3 and 5 year periods the return has been negative - which is what I pointed out, without making further comment.
To expand my comment, I could have added that there are other ITs in the same geographical area with "income" in their title which have shown significantly better performance. E.G. SOI (Schroder Oriental Income) and JAGI (JP Morgan Asia Growth and Income).

Are you sure it is negative.

I purchased my first tranche I still hold on 23/3/20 at 249.40.
Current NAV is 223.23, so down 26.17p on NAV.

But I have received divs of :
YE 31.8.20 5.7,5.8.5.8, total 17.3
YE 31.8.21 23.4
YE 31.8.22 23.8
YE 31.8.23 (to date) ,6,6,6.1 total 18.1

So that is 82.6p divs with a bit more declared but not paid due in November, so net of NAV drop 56.43p.

If count from March 2020 to say Sept 2023, that is circa 16.12p return per year, a TR on my cost of 6.46%. Now this is not stunning (I aim for 7-8% TR on average), and my later purchases at 279.97,294.6,294.2 and 290.26 since have not been great, but really, on certainly a 3.5 year view, it is not appalling.

Your good fortune (or expert knowledge) allowed you to purchase your shares at the very significant spike down wards in the share market around February/March 2020- and its swift recovery. The price briefly dropped to 244p, whereas it had been 358 at the beginning of January.

However, for the less lucky/expert investor, lets look again at the total return figures over 1,3 and 5 years as at today (from Hargreaves Lansdown) :



I'm afraid it is still negative and has not improved since June.

PS - if you can accurately predict when the market is going to plunge, then quickly to recover, could you let me know in advance

[Charlottesquare]

Are you sure it is negative.

I purchased my first tranche I still hold on 23/3/20 at 249.40.
Current NAV is 223.23, so down 26.17p on NAV.

But I have received divs of :
YE 31.8.20 5.7,5.8.5.8, total 17.3
YE 31.8.21 23.4
YE 31.8.22 23.8
YE 31.8.23 (to date) ,6,6,6.1 total 18.1

So that is 82.6p divs with a bit more declared but not paid due in November, so net of NAV drop 56.43p.

If count from March 2020 to say Sept 2023, that is circa 16.12p return per year, a TR on my cost of 6.46%. Now this is not stunning (I aim for 7-8% TR on average), and my later purchases at 279.97,294.6,294.2 and 290.26 since have not been great, but really, on certainly a 3.5 year view, it is not appalling.

Your good fortune (or expert knowledge) allowed you to purchase your shares at the very significant spike down wards in the share market around February/March 2020- and its swift recovery. The price briefly dropped to 244p, whereas it had been 358 at the beginning of January.

However, for the less lucky/expert investor, lets look again at the total return figures over 1,3 and 5 years as at today (from Hargreaves Lansdown) :



I'm afraid it is still negative and has not improved since June.

PS - if you can accurately predict when the market is going to plunge, then quickly to recover, could you let me know in advance

I got that one because of Covid, I bailed out on the downslide in March 2020 (but not the bottom) then started buying again after a week or so, but this was luck and fear rather than skill and judgement. The point though is HFEL is not, imho ,just bad, it has been caught re its market sector which has not yet recovered. If you look at its holdings some have not done that well or come back, but that is how life can be. Similarly my personal Scottish Mortgage Trust holding is still pretty sick and underwater but we also hold in a family trust from 2013 which in July was still up 262%, one man's disaster is another's winner all due to timing.

[spiderbill]

Are you sure it is negative.

I purchased my first tranche I still hold on 23/3/20 at 249.40.
Current NAV is 223.23, so down 26.17p on NAV.

But I have received divs of :
YE 31.8.20 5.7,5.8.5.8, total 17.3
YE 31.8.21 23.4
YE 31.8.22 23.8
YE 31.8.23 (to date) ,6,6,6.1 total 18.1

So that is 82.6p divs with a bit more declared but not paid due in November, so net of NAV drop 56.43p.

If count from March 2020 to say Sept 2023, that is circa 16.12p return per year, a TR on my cost of 6.46%. Now this is not stunning (I aim for 7-8% TR on average), and my later purchases at 279.97,294.6,294.2 and 290.26 since have not been great, but really, on certainly a 3.5 year view, it is not appalling.

My buying period wasn't that different from your's but I've done rather worse. I bought six tranches between July 19 to Mar 21. Capital loss has been 34% and TR is in the red at -6.1%

I'm hanging on and hoping for a recovery somewhere down the line, but it looks a long way away.

cheers
Spiderbill

[daveh]

https://www.investegate.co.uk/announcem ... on/7990520

1st Interim dividend for the year ending 31 August 2024

The directors have declared the first interim dividend of 6.10p per ordinary share in respect of the year ending 31 August 2024. The dividend will be paid on 23 February 2024 to shareholders on the register on 26 January 2024 (the record date). The shares will be quoted ex-dividend on 25 January 2024.

So no change on last year.

[swill453]

https://www.investegate.co.uk/announcement/rns/henderson-far-east-income-ltd---hfel/dividend-declaration/7990520

1st Interim dividend for the year ending 31 August 2024

The directors have declared the first interim dividend of 6.10p per ordinary share in respect of the year ending 31 August 2024. The dividend will be paid on 23 February 2024 to shareholders on the register on 26 January 2024 (the record date). The shares will be quoted ex-dividend on 25 January 2024.

So no change on last year.

It was 6.00p last year.

Scott.

[daveh]

So it was - I was just looking at the previous dividend in November, my mistake.

[Charlottesquare]

Chomping, but not half as much as the insurance companies people surrender their capital to for a pension!

Buy the insurance companies, not the annuity?

(Off topic - I think going forward annuities have a bright future once the present recipients of DB pensions are gone. The next generation, fully dependent on DC pension pots will undoubtedly look at a guaranteed annuity income from part of their DC pot as very desirable. And so they should).

Not how I am thinking with my DC pots, I will never touch an annuity.

I will run my SIPPs fully equity invested, if markets okay will gradually loot and reinvest annual tax free sums, at a minimum, into ISAs, if not so hot will do very little selling of the shares and just grab the dividends each year. It helps we will have two full state pensions and my other half already receives her DB pension, so large chunk guaranteed, but annuities are in my eyes discredited currency. (Like With Profits Funds, they have had their day)

[clissold345]

Revenue reserves £21.570M (Aug 2023). £26.696M (Aug 2022). The dividends paid exceed revenue at present, which eats away at capital.

[Dod101]

Revenue reserves £21.570M (Aug 2023). £26.696M (Aug 2022). The dividends paid exceed revenue at present, which eats away at capital.

Nothing new in that but I thought that following a review of their investment philosophy they might have at least held if not cut their dividend.

Dod

[daveh]

Revenue reserves £21.570M (Aug 2023). £26.696M (Aug 2022). The dividends paid exceed revenue at present, which eats away at capital.

Nothing new in that but I thought that following a review of their investment philosophy they might have at least held if not cut their dividend.

Dod

Its held in the sense it is the same as the last two qtrs dividend at 6.1p. Payment history is 6.0; 6.0; 6.0; 6.1 and 6.1p Nov22 to Nov 23 the last 5 qtrly dividends.

[Arborbridge]

Revenue reserves £21.570M (Aug 2023). £26.696M (Aug 2022). The dividends paid exceed revenue at present, which eats away at capital.

Nothing new in that but I thought that following a review of their investment philosophy they might have at least held if not cut their dividend.

Dod

It's been held the same as previous quarter - maybe when this year is completed, they will do something different. In theory (!) if companies can increase prices around inflation, then the cash available to pay out will gradually catch up with the static dividends, or very slowly increasing dividends.

Whether I should be bothered? Not sure. If they are paying me back some of my reserves with each dollop of "real earnings" , provided this lasts into my dotage it doesn't make much difference.

Arb.