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Monthly Archives: April 2018
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Glaxo Smithkline April dividend.
On Thur 12th April, the UK’s premier health and pharma company, Glaxo Smithkline paid its half yearly dividend.
12p per share.
the total number of voting rights in the Company is 4,958,962,323
Thus:
23p x 4,958,962,323 = £1,140,561,334.29
That is £1.14 Billion
http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10042
5.5% yield.
The Multi Index 3 Fund from Legal and General
The Multi Index 3 Fund from Legal and General.
It holds:-
Legal & General All Stocks Gilt Index Trust ‘I’ Inc 11.04%
Legal & General Sterling Corporate Bond Index Fund ‘L’ Inc 10.80%
Legal & General Global Inflation Linked Bond Index Fund ‘L’ Inc 10.53%
Legal & General Short Dated Sterling Corporate Bond Index Fund ‘L’ Inc 8.23%
LGIM Global Corporate Bond Fund ‘B’ Acc 8.02%
Legal & General Emerging Markets Government Bond (US$) Index Fund ‘L’ Inc 5.85%
Legal & General UK Property Fund ‘L’ Inc 4.84%
Legal & General US Index Trust ‘I’ Inc 4.68%
Legal & General High Income Trust ‘I’ Inc 4.40%
Legal & General UK Index Trust ‘L’ Inc 3.70%
Middle Eastern Oil Production
The middle east accounts for 34.5% (over one third) of global oil production according to BP’s Energy Statistical review.
That does this mean ?
Iran 5.0%
Iraq 4.8%
Kuwait 3.4%
Oman 1.1%
Qatar 2.1%
Saudi Arabia 13.4%
Syria no figure
United 4.4%
Yemen no figure
Other Middle East 0.2%
Total = 34.5%
This 34.5% is 31,789,000 barrels of oil a day.
the value is that oil is worth about $70 a barrel, thus:-
31,789,000 barrels of oil a day x $70 = $2,225,230,000.00
That is $2.225 Billion a day.
£2,000 Tax Free Dividends = What it means
The rules on dividends from HMRC are clear to UK tax payers.
You are allowed “only” the first £2,000 of dividends to be tax free, and then anything above is taxed. Dividend income in excess of the allowance is taxable at the following rates: 7.5% within the basic rate band; 32.5% within the higher rate band; and 38.1% on dividend income taxable at the additional rate
So what is £2,000 tax free dividends worth if you held some high quality UK stocks.
e.g the world’s leading Telecommunications corporation is BT plc. www.bt.com
https://www.btplc.com/Sharesandperformance/Dividends/Dividends.htm
In the tax year 2017-18 BT paid 2 dividends:
4.85p in 5th Feb 2018
10.55p in 4th Sept 2017
4.85p + 10.55p = 15.4p
So to have £2,000 dividend income in 2017-18 from BT you would need: £2,000 / £0.154 = 12987.01298701299 Shares in BT plc.
at today’s market price of £2.35
http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10025&action=
That would mean an investment of £2.35 * 12987.01298701299 = £30519.48051948052
Thus £30,519 buying BT shares today would give an approximate income of £2,000 if all things being equal (share price steady, dividend payment steady). BT Be There.
If you wanted £2,000 income in an oil company like Royal Dutch Shell plc, what would that be ?
Shell pays out 4 dividends a year
https://www.shell.com/investors/dividend-information/historical-dividend-payments.html
It is has remained steady at US$0.47 a share which is about 33p a share.
Thus 4 dividends:-
33p+33p+33p+33p = £1.32
So to have £2,000 dividend income in 2017-18 from Royal Dutch Shell B shares you would need: £2,000 / £1.32 = 1515.151515151515 Shares in Royal Dutch Shell B plc.
at today’s market price of £23.71
http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133755
That would mean an investment of £23.71 * 1515.151515151515 = £35924.24242424242
Thus £35,924 buying shares in Royal Dutch Shell B would give today would give an approximate income of £2,000 if all things being equal (share price steady, dividend payment steady)
HM Government Borrowings: March 2018
Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.
In March 2018 , the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement.
There were “only” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-
27-Mar-2018 0 1/8% Index-Linked Treasury Gilt 2056 3 months 675.2400 Million
15-Mar-2018 1 5/8% Treasury Gilt 2028 2,864.7310 Million
06-Mar-2018 1½% Treasury Gilt 2047 2,250.0000 Million
01-Mar-2018 0¾% Treasury Gilt 2023 2,815.6600 Million
When you add the cash raised:-
∑(675.2400 Million + 2,864.7310 Million + 2,250.0000 Million + 2,815.6600 Million) = £8605.631 Million
£8605.631 Million = £8.605631 Billion
On another way of looking at it, is in the 31 days in March, HM Government borrowed:-
£277 million each day for the 31 days.
We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature 2023, 2028, 2047 and 2056. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”
Assets of The Alliance Trust PLC
The Alliance Trust is a famous old UK Investment trust.
https://www.alliancetrust.co.uk/
£2.3 Billion London Listed Investment Fund
Top 20 holdings are:-
Alphabet
Microsoft
Amazon
Comcast
Charter
Communications
Baidu – ADR
United Health
Group
Oracle
Western Union
Page Group
Ryanair
Tencent
AIA
Airbus
Anthem
Novo-Nordisk
HDFC Bank
Visa
Liberty
Interactive
HCA Healthcare
Top 20 holdings make up 24.6% of the trust.
Rio Tinto plc April Dividend.
Yesterday, the world’s second largest mininig company, Rio Tinto paid out its dividend.
The dividend was 129.43p a share.
The total number of voting rights in Rio Tinto plc is 1,329,626,900
http://otp.investis.com/clients/uk/rio_tinto1/rns/regulatory-story.aspx?cid=507&newsid=995555
Thus:-
1,329,626,900 x 129.43p a share = £1,720,936,096.67
That is £1.720 Billion paid out by Rio Tinto to its shareholders.
A 5% yield. Delicious.
BP breaking the £100bn valuation.
Yesterday BP plc, one of the oil majors broke the £100bn market value.
BP is a major UK company, in the same premier league as BT, the world’s leading telecommunications corporation, (www.bt.com)
The share price yesterday of BP was £5.011 a share.
The share capital of BP is 19,958,001,728 shares
https://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=995631
Thus:
19,958,001,728 shares x £5.011 a share = £100,009,546,659.01
That is £100bn.
Investment Quote from Michelle Obama
You have to stay in school. You have to. You have to go to college. You have to get your degree. Because that’s the one thing people can’t take away from you is your education. And it is worth the investment.
HSBC April 2018 Dividend.
Yesterday, HSBC Holdings PLC paid out is quarterly dividend, of $0.21 (14.762p) a share.
The total number of voting rights in HSBC Holdings plc is 20,053,152,822
Thus:-
20,053,152,822 x 14.762p = £2,960,246,419.58
That is £2,960 Million = £2.960 Billion
A 5.4% yield.
Investment: Has to be RELEVANT to the REAL NEEDS
The Dunedin Income Growth Investment Trust plc
The Dunedin Income Growth Investment Trust plc is 145 years old.
A £370m London Listed investment trust.
http://www.dunedinincomegrowth.co.uk/
Twenty largest equity holdings %
Royal Dutch Shell ‘B’ 4.8% of the fund
British American Tobacco 4.6% of the fund
Prudential 4.4% of the fund
Unilever 4.1% of the fund
HSBC 4.0% of the fund
GlaxoSmithKline 3.9% of the fund
AstraZeneca 3.8% of the fund
BHP Billiton 3.3% of the fund
Vodafone 3.1% of the fund
Total 3.0% of the fund
Assura 3.0% of the fund
Chesnara 2.4% of the fund
Compass 2.3% of the fund
Sage 2.3% of the fund
Standard Chartered 2.2% of the fund
Croda 2.2% of the fund
BP 2.0% of the fund
Novo-Nordisk 1.9% of the fund
Unibail-Rodamco 1.9% of the fund
Close Brothers 1.9% of the fund
Total 61.1% are the 20 top equity holdings above.
Ten largest fixed income holdings %
HBOS Cap Funding 6.461% 9.2% of the fund
SSE 3.875% 7.7% of the fund
BHP Billiton Finance 6.5% 22/10/77 6.2% of the fund
Citigroup 5.125% 12/12/18 5.9% of the fund
Rabobank Cap Funding Trust 5.556% 5.7% of the fund
Firstgroup 6.125% 18/01/19 5.6% of the fund
Barclays Bank 8.25% 29/12/49 4.4% of the fund
Daimler Intl Finance 3.5% 06/06/19 4.4% of the fund
Heathrow Funding 6% 20/03/20 4.3% of the fund
ASIF III Jersey 5% 18/12/18 4.0% of the fund
http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10166&record_search=1&search_phrase=dunedin
BP: Quarterly March 2018 Dividend
On Thursday last week (Thur 29th March 2018) BP plc paid out its quarterly dividend.
One of the largest oil companies in the world.
The dividend was 7.1691p per share.
The total number of voting rights in BP p.l.c. is 19,926,859,767
https://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=983623
Thus:
19,926,859,767 x £0.071691 = £1,428,576,503.56
That is £1.428 billion.
That is a 6% yield. Delicious