Оглавление
Rodney Hobson. The Dividend Investor
Publishing details
Disclaimer
About the Author
Preface. Who this book is for
What this book covers
How this book is structured
Supporting website
Acknowledgements
Why dividends?
Chapter 1. Companies and Dividends. The purpose of companies – to pay dividends
Cash is king
Dividends can grow even in hard times
Spreading investments without increasing risk
Table 1.1 – Company size profile of UK dividend payers
How is the size of dividend decided?
Table 1.2 – Sample shareholder votes at company AGMs
Case study: Wynnstay
Table 1.3 – Historic dividend payments by Wynnstay
Different types of dividends
Scrip dividends
Dividend reinvestment plans
Special dividends
Dividends declared in foreign currencies
Key points
Chapter 2. The Dividend Timetable. Payment frequency
Once-a-year dividend payments
Twice-a-year dividend payments
Table 2.1– Sample dividend payments for UK companies
Four-times-a-year dividend payments
Table 2.2 – Sample dividend payments for UK companies
How dividends are weighted between interim and final
When you get paid
Table 2.3 – A sample of key dividend dates
1. Results announced
2. Ex-dividend
Table 2.4 – Sample of share price moves when companies go ex-dividend
3. Date on register
4. Dividend paid
How time flies
5. The AGM
Timing your income
Figure 2.1 – Distribution of dividend payment dates for FTSE All-Share companies
Key points
Chapter 3. Where to Find Information. Company news
Company websites
Full, fast and long-lasting information
London Stock Exchange
Financial websites
Stockbrokers
Newspapers
Magazines
Summary
Key points
Chapter 4. Results Announcements and Annual Reports
Results for the Half Year Ended July 2011
Chief Executive’s Review
Statement of changes in total equity
Group five year financial summary
Key points
Chapter 5. Tax
1. Stamp duty
2. Income tax
Personal allowances
Table 5.1 – UK tax allowances 2011-12
Income tax rates
Table 5.2 – UK income tax rates 2011-12
Tax on dividends
Table 5.3 – UK income tax rates on dividends 2011-12
3. Capital gains tax
ISAs
Putting core holdings into your ISA
Key points
Chapter 6. A Year in the Life of a Dividend Paying Company
2010. 31 March
SUMMARY
Early April
12 May
1 June
8 July
22 September
29 September
3 November
PERFORMANCE IN LINE WITH EXPECTATIONS WITH STRONG CASH PERFORMANCE IN THE PERIOD
13 December
2011. 13 January
FIRSTGROUP PLC: INTERIM MANAGEMENT STATEMENT
11 March
SUMMARY
Key points
Chapter 7. Profits, Dividends and Cash Flow
1. Profits
Table 7.1– Profit history for four sample retail companies
2. Dividends
Table 7.2 – Dividend history for four sample retail companies
3. Cash flow
Table 7.3 – Cash flow history for four sample retail companies
Key points
Chapter 8. Progressive Dividends
Checking the history of dividends
Table 8.1 – Dividend histories for a selection of FTSE 100 companies
Case study: Greggs
Table 8.2 – Four-year financial history for Greggs [1]
Chart 8.1 – Share price of Greggs (GRG) (2009-11)
Key points
Endnote
Chapter 9. Dividend Yield. A problem of comparing dividends
Calculating the dividend yield
Table 9.1 – Dividend yields for a selection of FTSE 350 companies (26 Aug 2011)
The dividend yield is always changing
Table 9.2 – Comparison of calculated dividend yields for two different dates
Two types of dividend yield
1. Historic
2. Prospective
Where to find prospective yields
Making your own calculations
Comparing historic and prospective yields
Table 9.3 – Historic v prospective dividend yields for a selection of FTSE 350 companies (26 Aug 2011)
Rising yields
Key points
Chapter 10. Other Key Ratios
Consolidated accounts
1. Earnings per share
Table 10.1 – Earnings per share for a selection of FTSE 350 companies (FY2010)
Complications with the EPS
Complication no. 1: profits
Complication no. 2: number of shares. Weighted number of shares
Diluted and undiluted
2. Price/earnings ratio
Table 10.2 – P/Es for a selection of FTSE 100 companies (24 Aug 2011)
Changes to P/E
3. Dividend cover
Table 10.3 – Dividend cover for a selection of FTSE 100 companies (24 Aug 2011)
Dividend payout ratio
4. Gearing (also referred to as leverage)
The effect of gearing
5. Interest cover
Table 10.4 – Interest cover for a selection of FTSE 350 companies (24 Aug 2011)
6. Cash flow
Table 10.5 – Historic cash flow for a selection of FTSE 100 companies (2011)
Free cash flow
Discounted cash flow
7. Total return
Key points
Endnote
Chapter 11. Picking Sectors
Cyclicals v Defensives. Cyclicals
Defensives
Dividend data by sector. Table 11.1 – Sector dividends (28 Aug 2011)
Visibility of earnings
Lumpy earnings
Insurance
Case study: Amlin
Table 11.2 – Dividend history for Amlin
Chart 11.1 – Share price chart for Amlin
Case study: Admiral
Table 11.3 – Dividend history for Admiral
Chart 11.2 – Share price chart for Admiral
Key points
Chapter 12. Dividends by Index
Table 12.1 – Dividend profiles for the various indices (28 Aug 2011)
Indices
Observations. Dividend payers
Average yield
Average dividend cover
Average payment date
Key points
Chapter 13. Share Buybacks
Case study: Domino’s Pizza
Chart 13.1 – Share price chart for Domino’s Pizza
Table 13.1 – Financial history for Domino’s Pizza
Fashions change
Cash is better than debt
Case Study: BAT
Chart 13.2 – Share price chart for BAT
Table 13.2 – Financial history for BAT
Ones to avoid
Key points
Chapter 14. Flotations
Where the cash goes to the company
Case Study: Ocado
Chart 14.1 – Share price chart for Ocado
Key points
Chapter 15. Turning Companies Round
The concerns for dividend investors
Case study: Prudential
Chart 15.1 – Share price chart for Prudential
Table 15.1 – Financial history for Prudential
Restoring dividends. Why restoring a dividend is a Good Thing
Case study: St Modwen
Table 15.2 – Financial history for St Modwen
Chart 15.2 – Share price chart for St Modwen
Points in favour
Points against
Case study: ITV
Table 15.3 – Financial history for ITV
Chart 15.3 – Share price chart for ITV
Key points
Chapter 16. Rights Issues and Placings
Placings
Claw backs
Case study: Stobart
Table 16.1 – Financial history for Stobart
Key points
Chapter 17. Takeovers
You must face reality
Sell in the market immediately after an offer is announced
Accept the offer immediately
Hold on to see what develops
When the bid goes unconditional
Is the bid in cash or shares?
Case study: BSkyB
Table 17.1 – Financial history for BSkyB
Chart 17.1 – Share price chart for BSkyB
Would the bid be referred?
How much was Murdoch likely to pay?
Key points
Chapter 18. Ethical Investing
Why ‘unethical’ shares may be cheap
Green companies
Key points
Endnote
Chapter 19. Company Perks
Wide range of goodies
Advantages of perks
Disadvantages of perks
Table 19.1 – Sample of companies offering perks to shareholders
Nominee accounts
Perks overview. Retail heaven
Bricks and mortar
Spreading your wings with travel
Much ado about little
Key points
Chapter 20. International Investing
1. UK companies
2. Foreign companies listed here
3. Overseas exchanges
Case study: IMI
Table 20.1: financial history for IMI
Chart 20.1 – Share price chart for IMI
Key points
Chapter 21. Spotting Buying Opportunities
Buying rumours
Buying on dips
Tesco
Table 21.1 – Financial history for Tesco
Chart 21.1– Share price chart for Tesco
Case Study: Weir
Table 21.2 – Financial history for Weir
Chart 21.2 – Share price chart for Weir
Key points
Chapter 22. Building a Portfolio Using Stock Filters
Online stock screens
Stock filter at The Share Centre
Stock filter at Interactive Investor
A sample portfolio
Other stock-filtering services
Key points
Chapter 23. Dogs Might Fly
Adapting the O’Higgins system
Finding which shares have the highest yields
Key points
Chapter 24. Income Funds
Two types of fund. Closed funds
Open funds
Advantages and disadvantages of funds
Table 24.1 – Sample of investment trusts with history of rising dividends
Where to get information
Table 24.2 – Sector breakdown for Henderson High Income
Table 24.3: Top ten holdings for Henderson High Income
Income or growth?
Table 24.4: Income or growth
Funds offer variety
Key points
Chapter 25. When to Sell
Gloomy trading statements
Profit warnings
1. Sticking it out
2. Selling immediately
3. Holding on for a better selling opportunity
Case study: HMV
Table 25.1 – Financial history for HMV
Chart 25.1 – Share price chart for HMV
When you really must face reality
Stop losses
Key points
Chapter 26. A Dividend Nightmare – BP
Why private investors were at an advantage
The explosion
Why the dividend had to go
The dangers of buying back in
Chart 26.1 – Share price chart for BP
Why you should fear the worst
How one piece of bad news leads to another
Timeline. 2010
2011
Key points
Chapter 27. Ten Dividend Rules. 1. Spread risk
2. Look for sustainable long-term growth
3. Seek reliability
4. Don’t be distracted by short-term trends
5. Read the report and accounts
6. Bear in mind total returns
7. Reduce your tax burden
8. Avoid fashionable sectors
9. Don’t be greedy
10. Take AIM with care
APPENDIX. Dividend Data for FTSE 350 Companies
Great savings on Rodney Hobson’s other books
How to Build a Share Portfolio
Understanding Company News
Shares Made Simple
Small Companies Big Profits
