4 Stocks Going Ex-Dividend On 14th November – RDSA, GSK, BNZL and SBRY

  • Nov 14, 2019 GMT
  • Team Kalkine
4 Stocks Going Ex-Dividend On 14th November – RDSA, GSK, BNZL and SBRY
Royal Dutch Shell PLC

Royal Dutch Shell PLC (RDSA) is a Hague, Netherlands-headquartered global group of energy and petrochemical companies with expertise in the manufacturing and marketing of chemicals and the exploration, production, refining and marketing of oil and natural gas, with an aim to meet the growing need for more and cleaner energy solutions. The operations of the group are differentiated in three operating segments, namely Downstream, Upstream and Integrated Gas and New Energies.

Financial Highlights (H1 FY 2019, in $m)

(Source: Company Filings)

Despite higher realised margins in retail and global commercial and significantly stronger contributions from LNG, due to lower realised oil, LNG and gas prices, as well as weaker realised refining and chemicals margins, CCS earnings attributable to shareholders excluding identified items were $4.8 billion, declining by 15% from $5.6 billion recorded in the previous year. Reflecting lower earnings, higher pension contributions and lower dividends received, cash flow from operating activities excluding working capital movements was $12.1 billion, while free cash flow during the quarter rose from $8 billion to $10.12 billion. Basic CCS earnings per share, excluding identified items declined by 13% to $0.59 from $0.68 in the previous year.

Dividend

The company announced an interim dividend in respect of the third quarter of 2019 of $0.47 per A ordinary share, and total dividends distributed to shareholders in the quarter were $3.8 billion, which would be payable on 18 December 2019 to shareholders on the record date of 15 November 2019.

Share Price Commentary

On 14 November 2019, at the time of writing (before the market closed, GMT 1:33 PM), RDSA shares were trading at GBX 2,318.5, down by 0.14% against the previous day’s closing price. Stock's 52 weeks High and Low are GBX 2,811.38/GBX 2,209.50. The company's stock beta was 0.93, reflecting less volatility as compared to the benchmark index. Total outstanding market capitalisation was around GBP 185.14 billion, with a dividend yield of 6.27%.

GlaxoSmithKline PLC

GlaxoSmithKline PLC (GSK) is a science-led global healthcare company which makes a wide range of prescription medicines, vaccines and consumer healthcare products, and invests in scientific and technical excellence to develop and launch a pipeline of new products. The company offers over the counter (OTC) products for pain, relief, nutrition, skin health, oral health, and gastrointestinal disorders. The operations are differentiated in three operating segments, namely Pharmaceuticals, Vaccines and Consumer Healthcare products.

Financial Highlights (Q3 FY 2019, in £m)

(Source: Company Filings)

Pro-forma turnover growth for the company was reported at 6% CER as growth delivered by all three businesses, primarily driven by the acquired Pfizer consumer healthcare and Vaccines, while group turnover rose by 16% AER, 11% CER to £9,385 million in the quarter. Adjusted operating profit was reported at £2,786 million, which was up by 10% AER, 3% CER on a turnover increase of 11% CER, while adjusted operating profit was £7,120 million in the nine months, which was up by 9% AER, 3% CER on a turnover rise of 7% CER. Total operating profit was reported at £2,147 million compared with £1,910 million in Q3 2018 and total operating profit rose from £3,929 million in 2018 to £5,059 million in the nine months of the current period. Total earnings per share were 31.4p, compared with 28.8p in Q3 2018 and for the nine-month, total earnings per share were 67.7p, compared with 49.0p in 2018.

Dividend

The company announced 19 pence per share of third interim dividend and expects to maintain the dividend for 2019 at the current level of 80 pence per share. Dividends will be payable on 9 January 2020 with a record date of 15 November 2019 and ex-dividend date of 14 November 2019.

Share Price Commentary

On 14 November 2019, at the time of writing (before the market closed, GMT 1:34 PM), GSK shares were trading at GBX 1,712.0, down by 1.57% against the previous day’s closing price. Stock's 52 weeks High and Low are GBX 1,796.40/GBX 1,408.80. The company's stock beta was 0.92, reflecting less volatility as compared to the benchmark index. Total outstanding market capitalisation was around GBP 86.74 billion, with a dividend yield of 4.60%.

Bunzl PLC

Bunzl PLC (BNZL) is a London-headquartered specialist international distribution company, which is engaged in supporting businesses by distributing non-food consumable products to a range of markets in 31 countries and seeks help to increase the efficiency and improve the competitiveness of its customers by offering customised solutions to B2B customers. The operations of the group are differentiated in four geographical segments, namely North America, Rest of the World, Continental Europe, and the UK & Ireland.

Trading Update

For the third quarter of 2019, the company’s revenue growth stood at 4% at actual exchange rates. At constant exchange rates, revenue increased by 0.5%. The acquisitions contributed to 1.5% with underlying revenue declining by 1%. This mainly reflects the earlier announced lower sales to a large grocery client in North America, driven by the price deflation and account-specific product specification changes. Growth through acquisitions is a vital part of the continuing strategy of the company with total committed spend on acquisitions so far this year of around £100 million.

Financial Highlights (H1 FY 2019, in £m)

 (Source: Company Filings)

Due to the benefit of acquisitions and underlying organic growth, revenue rose to £4,528.4 million (2018 H1: £4,343.7 million), which was up by 1.2% at constant exchange rates. On an IAS 16 basis, adjusted operating profit was £302.7 million, and operating profit was £239.0 million. Adjusted operating profit rose by 2.4% at actual exchange rates to £291.8 million, an increase of 0.3% at constant exchange rates. Profit before income tax was reported at £200.5 million (2018 H1: £197.3 million), a decline of 0.1% at constant exchange rates (up by 2.0% at actual exchange rates), while due to the growth in adjusted operating profit and the reduction in net finance expense, adjusted profit before income tax rose by 0.8% at constant exchange rates (up by 2.7% at actual exchange rates) on an IAS 17 basis to £264.9 million (2018 H1: £257.9 million).

Dividend

In line with the growth in adjusted earnings per share, the company decided to increase the interim dividend by 2% to 15.5p, ensuring that its 26-year track record of dividend growth continued. The 2019 interim dividend will comprise approximately £52m of cash, and to shareholders on the register at the close of business on 15 November 2019, the dividend will be paid on 2 January 2020.

Share Price Commentary

On 14 November 2019, at the time of writing (before the market closed, GMT 1:34 PM), BNZL shares were trading at GBX 2,039, down by 0.78% against the previous day’s closing price. Stock's 52 weeks High and Low are GBX 2,554.60/GBX 1,891.50. The company's stock beta was 0.80, reflecting less volatility as compared to the benchmark index. Total outstanding market capitalisation was around GBP 6.92 billion, with a dividend yield of 2.46%.

J Sainsbury's PLC

J Sainsbury's PLC (SBRY) is a London-headquartered chain of supermarkets, operating primarily in the United Kingdom, operations also include retail banking with interests in property as well. The group's brands comprise Sainsbury's groceries, Sainsbury's Home, Argos, Sainsbury's Bank, Tu, and Habitat. The company's operations are differentiated into four operating segments: Retail - Food, General Merchandise and Clothing, Financial Services & Property Investment.

Financial Highlights (H1 FY 2020, in £m)

 (Source: Company Filings)

In Grocery market share, the company showed positive momentum. For the first half of 2020, the underlying group sales, including VAT, decreased by 0.2% to £16,856 million as compared with the corresponding period of the last year, while like-for-like sales (including VAT, excluding fuel), reduced by 1%. In H1 FY20, the underlying profit before tax decreased by 15% to £238 million against the £279 million in H1 FY19, driven by the combined effect of the phasing of cost savings, tough weather comparatives, and higher marketing costs. The underlying basic earnings per share declined by 16% to 7.9 pence as compared with the same period of the last year. Retail free cash flow surged by £81 million to £698 million versus the same period in the previous year. The net debt for the first half of 2020 was £6,778 million, a decrease of £568 million from the previous year (H1 FY2019: £7,145 million). Interim dividend per share increased by 6 per cent to 3.3 pence in H1 FY20.

Dividend

To shareholders on the register at the close of business on 15 November 2019, an interim dividend of 3.3 pence per share, which was in line with the policy of paying 30 per cent of prior full-year dividend, will be payable on 20 December 2019.

Share Price Commentary

On 14 November 2019, at the time of writing (before the market closed, GMT 1:35 PM), SBRY shares were trading at GBX 202.5, down by 0.70% against the previous day’s closing price. Stock's 52 weeks High and Low are GBX 320.70/GBX 177.05. The company's stock beta was 1.01, reflecting the same volatility as compared to the benchmark index. Total outstanding market capitalisation was around GBP 4.56 billion, with a dividend yield of 4.80%.

Comparative share price chart of RDSA, GSK, BNZL and SBRY

 (Source: Thomson Reuters)

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