Dividend Kings

The Dividend Kings theme explores the equity research and video content we have for stable dividend paying companies

UK stocks that meet the following criteria:

Latest and forecast Dividend Yield greater than 3%  |  5-year net Dividend Growth Rate CAGR greater than 5%  |  Latest and forecast Dividend Coverage greater than 1.8x  |  Dividends consistently paid for at least the last 5 years 


 

Dividend Kings


The Dividend Kings theme explores the equity research and video content we have for stable dividend paying companies

UK stocks that meet the following criteria:

Latest and forecast Dividend Yield greater than 3%  |  5-year net Dividend Growth Rate CAGR greater than 5%  |  Latest and forecast Dividend Coverage greater than 1.8x  |  Dividends consistently paid for at least the last 5 years 

Latest Content

Vertu Motors

N+1 Singer - Vertu Motors - On track to meet forecasts with buybacks + M&A to enhance future EPS

Today’s AGM update confirms positive trading performance and profit growth after the 1st 4 months of H1 puts them on track to meet FY expectations. Since March (when purchases were pulled forward to beat April VED changes), Vertu confirms that New vehicle conditions have got more difficult, as have margins in Used, especially in premium brands. These dynamics were already factored into forecasts though, following the revisions in Q4 last year - albeit they arrived slightly later than was widely feared. Aftersales LFLs and profit continue to increase driven by retention and service plan strategies. Overall, therefore today’s update is in line with expectations. Interestingly Vertu also announces it is seeking buyback permission as part of its capital management strategy. However, given they prefer to retain the cash for accretive M&A this appears to be capped at just £3m (<2%). Having raised £35m at 62.5p, this isn’t transformational but buying back at 43p will clearly help reverse some of previous EPS dilution as should completion of future transactions when it comes to deploying this cash. After falling a further 11% over the last 3 months, Vertu’s share price sits slightly below its property asset value (c45p) and trades on a P/E of just 6.8x or 3.6x EV/EBITDA and yields 3.4%. We estimate that the FCF yield reverts to almost 11% next year when the capex cycle starts to revert to normal. Today’s reassuring update should help the shares recover some ground but we feel the conclusion of some acquisitions will be a more meaningful catalyst in the future if done at the right price.

  • 26 Jul 17
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Historically, Private Investors have had access to significantly less professional investment research and information than institutions, funds, and banks. At Research Tree, we're trying level that playing field by aggregating the latest equity research & video content from 367 analysts at 31 city brokerages and research houses in one platform. 

 

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Research Tree aggregates the latest equity research from 367 analysts at 31 city brokerages and research houses in one platform, giving users full access to the latest valuations, target prices, analysis, and financial models on the companies they care about, in real-time.