richfool wrote:ReallyVeryFoolish wrote:Hmm, the recent and welcome revaluation of RGL seems to have come off it's tracks today. Down nearly 8 per cent. It went ex dividend over a week ago so nothing to do with that. Nothing I can see in the news. Perhaps just a buying opportunity if anyone wants to top up on this stock. Hopefully the revaluation here will resume shortly. Still too cheap. Dividend looks pretty safe.
Yes, it's 6% more down than SLI today (7.75% in total, versus SLI's 1.78% down), so it must be something peculiar to RGL. I couldn't find any company news or announcements today, though Arcadia Group has collapsed, - whether there is any connection there?
The only RNS I can find which might have dampened things a bit, was on 12/11, hence not really recent enough to be the cause, the relevant extract being:
Q3 2020 Dividend Declaration
As previously indicated, the Company is pleased to declare that it will pay a dividend of 1.50 pence per share ("pps") for the period 1 July 2020 to 30 September 2020, (1 July 2019 to 30 September 2019: 1.90pps). The dividend payment will be made on 8 January 2021 to shareholders on the register as at 20 November 2020. The ex-dividend date will be 19 November 2020. The entire dividend will be paid as a REIT property income distribution ("PID").
Further to the announcement made on the 17 September 2020, the Board will pay a dividend of 6.4pps for the full year 2020, which it is expected will be fully covered from EPRA earnings, and equates to an annualised dividend yield of 8.3% at the close of 11 November 2020.
This means that the Q4 financial 2020 payment will also be 1.5p(making it 1.9p and three 1.5p over Fin. 2020), whereas normally it is higher than the other three quarterly payments.
At this new overall level of 6.4p, the board clearly think that the Divi should be sustainable. Hence the SP drop is strange considering what they are invested into.
Disc: I don't hold, but my wife has a smallish holding in her ISA, which she will top up next week. (So far, at portfolio level, on a rolling year basis, in our ISAs, I have not had any divi cut, in fact a small increase(and roughly 80% of that Divi income funds our income needs), and she has only seen a 2.7% reduction, (and that Income is not required for our income needs anyway, and not likely to be).