dealtn wrote:I would lose the emotion if I am honest.
Ok. Fair comment. I admit I'm more disappointed in myself for following this stock into a rabbit hole. All part of my learning curve, I guess. My problem, if you want me to be honest, is listening to others more than myself.
Regardless why should you get a special dividend?
I accept that I have no more rights than any others, but interestingly you add...
That would have to be replicated pari passu across all shareholders. Many (most?) wouldn't want that. If nothing else for most, as you say that could be a tax event. Most holders would rather have control over what tax events affect them, and when (and at what rate).
Underlining my earlier and sad observation, that being that most UK stock ownership is by very rich people (or large instis) that are effected by a "tax event". Radically different than the yarn spun in '86 suggesting that share ownership was for all, "if you see Sid tell him!" etc.
...In fact if you look at their 2020 results
https://www.fundslibrary.co.uk/FundsLib ... Je4TNY&r=1this is a "green tick" pass (slide 38) - they don't want, nor deliver, a reduction in debt as part of their strategy. If they have excess cash that has a potential higher return by buying their own shares, it is part of their strategy to delivery it via buybacks (slide 66).
This has been the Multi Year Financial Framework at ULVR since at least 2017. It doesn't include Special Dividends (slide 63 and 64) so it should come as no surprise they aren't returning cash by way of that route, and if that doesn't suit you they have been consistent over a long time on this point, so it shouldn't be a surprise they aren't changing to suit you...
Hmm.. however slide 63, mentions "Growing Dividends". As you say, no special dividends. However it's clear that the "Growing Dividends" promise is something they are gradually back tracking:
https://uk.advfn.com/stock-market/londo ... /dividendsI'd interested in a non-politician answer from a ULVR exec explaining the fall in dividend growth (if this is current trend, it will be outstripped by inflation in fiscal year 2021) alongside the large share buyback campaign.
The other statement from slide 63 is "Delivering long term value creation through earnings growth". In my cynical view they are hoping that reduction in share equity, will enable them to pass off EPS as a proxy for earnings.
It's just a really disappointing admission of failure, IMHO. There are so many opportunities in alternative foods, vegatarianism/veganism is rising quickly. Forgetting about my earlier example of BYND (however their revenues have grown +100% CAGR for past 5 years, and according to my vegan daughter their burger is the best!!), there are so many opportunities which ULVR could be taking, either by in-house initiatives or bought-in, but seemingly doesn't have the guts to.
Matt