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Hopefully, Hammerson will continue with its wise policy of issuing new shares instead of paying a dividend this year. For those who need an income, the new shares can be sold. It is a simple say of having an annual “rights issue” to bolster the financial position of the company. Paying out a dividend in cash does not, in fact, improve the market value of the company. The market value of the company will be improved by reducing its net debt.
JGFFourie
I agree with all that --- IF we were living in an ideal world,,, Otherwise is far too naive - - like diving for a swim in a beautiful sea forgetting it's infested by sharks,,, HMSO desperately need to restore dividend at attractive levels to get investors in and get out of this long slump
I don’t think that it will work that way. Most of the shares are held by large, institutional, investors, who are concerned about the long term prospects for the company. These can only be improved by reducing the net debt position. A low share price does not bother large institutional investors. They did not buy to sell quickly at a profit, but to achieve a long term capital gain. The shares are, currently, trading at almost half of the net asset value per share, so that the artificially depressed share price affords large institutional investors the opportunity of increasing their holdings in the company on very favourable terms.
I agree with email.
To make this share attractive again, HMSO have to make investing worthwhile by providing a good dividend.
The sale of the Village arm will go a long way at restoring the debt and the SP tbf.
Hopefull the news at the end of the month should also increase the sp
Hammerson has, of course, being paying a very generous dividend in recent years. I am not able to follow why those who do require a cash income from their holding do not simply sell the script dividend when the new shares are issued. What is the difference between receiving a cash dividend of 2p per share and new shares of a value of 2p per share? Those who need a cash income may simply sell the new shares when they are issued. In accounting terms it is quite neutral. On the one hand, the value of the company goes up by the amount of the dividend retained, this being balanced by the number of shares held going down if the new script dividend shares are sold.
I am no sure of which scrip dividend are you talking about? the last scrip dividends where advantageous for PI shareholders compared to cash dividends, whether you kept the scrip shares or sold them. It seems to me the main attraction of REITS is dividend no matter what kind of investors you are
I am no sure of which scrip dividend are you talking about? the last scrip dividends where advantageous for PI shareholders compared to cash dividends, whether you kept the scrip shares or sold them. It seems to me the main attraction of REITS is dividend no matter what kind of investors you are
Yes - based on a share price of, say, 25p, a dividend of 2p per share represents an income of 8%. I cannot see any difference, in principle, between a scrip dividend and a cash dividend. Once the new shares have been issued, they can be sold and turned into cash. So, what is the difference?
The “cash” option is offered only as a matter of form. No shareholder is expected to actually ele to to receive it. For those who require an income from their holding, the procedure is to wait until the scrip dividend has been issued and to then sell the shares. For the shareholders, the payment of the dividend by way of a scrip dividend is entirely neutral. For the company, it is very beneficial, since it amounts, in practical terms, to a rights issue. Essentially, those buying the scrip dividend shares are boosting the company’s cash position.
Still.
As an investor, i want to see a return if both ways, Shareprice and dividend.
It's been long enough now since covid for them to return the divis. When they announced around a year ago that they weren't going to offer one, the SP dropped massively from its gains
Bubble
the share price is directly dependent on the divi. An attractive divi will make the sp soar
Indeed. The annual results might bring small gains.
Only the dividend is holding this SP back now - unless ofc we get an announcement of the Village arm for a good price of around £bil.
You must not forget that in 2023 we were paid a dividend of 0.72p because some of the big institutions wanted the payment of dividends back.
Well, big players have dropped HMS for its divi policy... I have long maintained that the current board is fantastic at running a company in itself, but they are sadly inept at dealing with the market side of it. They should appoint someone to the board with the specific high qualities of dealing with the market side.