Four FTSE 100 Income Stocks For Retirement – IHG, BRBY, RB, RDSB

Four FTSE 100 Income Stocks For Retirement – IHG, BRBY, RB, RDSB

Dividends for the investors are one of the prevalent means of investment income, on the same time for the issuing company its an announcement of their profit and success, as the dividend is paid from the retained earnings of the company.  It indicates that the company is financially stable, making them a good investment case. Here are insights about four regular dividend paying stocks to punt on for a longer time horizon.

A comparative chart of IHG, BRBY, RB, RDSB

(Source: Thomson Reuters)

InterContinental Hotels Group PLC

InterContinental Hotels Group PLC (IHG) is into hotel operations. The company owns, franchise, manage and lease hotel. The company has its operations worldwide. Currently, the company have more than 5,500 hotels and 850,000 plus rooms under its brand name.

Financial Highlights (H1 FY19, $ million)

In H1 FY19, the company’s revenue from reportable segments surged by 12 per cent to $1,012 million against the $900 million in H1 FY18, while on an underlying basis, it increased by 13 per cent during the period. Revenue from fee business (Reported) surged by 2 per cent to $730 million against the same period of 2018. Operating profit from reportable segments stood at $410 million as compared to $413 million in H1 FY18, while underlying operating profit rose by 2 per cent. Fee margin (reportable) reduced by 0.2 per cent to 53.7 per cent as compared with the corresponding period of the last year. Adjusted EPS stood at 143.2 cents in H1 FY19, a decrease of 1 per cent from the previous year same period data.

The company’s total revenue increased by 8 per cent to $2,280 million in H1 FY19 against the $2,113 million in H1 FY18. Operating profit climbed by 14 per cent to $457 million as compared to $401 million in H1 FY18. The total revenue and operating profit increased because of an increase in System Fund from a deficit of $12 million in a year to a surplus of $47 million and decline in exceptional costs. Total gross revenue was up by 2 per cent (5 per cent at CER) to $13.6 billion. Basic EPS was 167.2 cents, an increase of 36.4 per cent from the same period last year (H1 FY18: 122.6 cents). Interim dividend per share increased by 10 per cent to 39.9 cents against the 36.3 cents in H1 FY18. On 30th June 2019, net debt was $2,847 million. In H1 FY19, Comparable RevPAR in the Americas increased 0.1 per cent.

The company had said that the US-China trade dispute and political uncertainty in Hong Kong are hitting demand. While China was the fastest-growing region of the hotel’s business with a record number of openings, progress had slowed there in part due to the deepening trade dispute between China and the US weighing on the Chinese economy.

In the six months of 2019, Revenue per available room (RevPAR) fell 0.3 per cent in Greater China and was a decrease of 1 per cent on the mainland. As for the slowing economy, the dip was due to a normalising after two years of decent growth for the brand in China and in small part to the political protest in Hong Kong.

In the second half of the year 2019, the company expects to accelerate, but there are several factors affecting the hotels’ sector, such as Brexit, conflict in Iran and the stand-off between the US and China.

For future growth, the company will need to improve its brand portfolio, with the launch of the new upper-midscale brand Atwell Suites and five signings for Six Senses Hotels Resorts Spas. The company is well-positioned to capitalise on decent growth in the luxury divisions with the newly acquired Regent and Six Senses brands.

Share Price Performance

On 27th August 2019, at the time of writing (before the market close, GMT 10:40 AM), IHG shares were trading at GBX 5,088 and decreased by 0.41% against the previous day closing price. Stock's 52 weeks High and Low is GBX 5,770.00/GBX 3,861.31. 

The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 3.39 per cent (FY12), while its lowest has been of 1.66 per cent (FY17).

 

Burberry Group PLC

Burberry Group Plc (BRBY) is the UK-based luxury goods company specialising in leather goods and ready-to-wear items. The company designs, sources, manufactures and distributes luxury men’s, women’s and children’s clothing and non-apparel accessories through directly owned stores, wholesale and licence channels. On July-18-2002, its shares got listed on the main market of the London Stock Exchange.

Trading Update – 1Q FY20

Riccardo Tisci's product gained decent consumer response, with double-digit percentage growth against the year-ago period, and it was broadly in line with the management expectations. Retail revenue during the period under consideration was up by 4 per cent to £498 million against £479 million recorded in the year-ago period. Sales in the Asia Pacific region increased by high single-digit percentage driven by Mainland China up mid-teens, EMEIA region sales grew by lower single-digit percentage, primarily supported by tourist spend, which mainly benefited the UK. Sales in Americas was flat as sales in the United States grew by lower single-digit percentage, on the same time Canada delivered a negative growth.

In the period under review, Men's and women's apparel sales surged by a double-digit percentage, and the group maintained stable guidance for top-line and operating margin at constant exchange rates (CER).

Share Price Performance

On 27th August 2019, at the time of writing (before the market close, GMT 10:44 AM), BRBY shares were trading at GBX 2,143.00 and were up by 0.37% against the previous day closing price. Stock's 52 week High and Low is GBX 2,362.00/GBX 1,618.50. 

The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 2.71 per cent (FY16), while its lowest has been of 2.03 per cent (FY15).

 

Reckitt Benckiser Group Plc

Reckitt Benckiser Group Plc (RB) is a consumer health and hygiene company that manufactures and markets household, toiletry and health care products. These consist of air fresheners, laundry products, dishwashing detergents, disinfectant sprays, water softeners, household cleaners, and personal care products. It also sells over the counter (OTC) drugs, cough and congestion tablets, sinus relief products, gastric liquids, hair removal and pest control products.

Financial Highlights – H1 Financial Year 2019 (£, million)

In the first half of the financial year 2019, the company’s net revenue stood at £6,240 million as against £6,138 million recorded in a year-ago period. The revenue increased by 2 per cent based on AER (actual exchange rate) due to strong growth in Hygiene Home segment from different geographical markets. In H1 FY2019, the company’s gross profit was £3,757 million versus £3,710 million in the H1 FY2018. The reported operating profit surged by 9 per cent (AER) to £1,406 million in H1 FY2019 from £1,291 million in H1 FY2018. The company’s PBT (Profit before tax) stood at £1,262 million in H1 FY2019 versus £1,111 million in H1 FY2018. The Net income (continuing operations) was £991 million in H1 FY2019 as against £879 million in H1 FY2018. The company’s Net income (continuing & discontinued operations) was £124 million in H1 FY2019 as against £872 million in H1 FY2018. The basic earnings per share (continuing operations) was 138.3 pence in H1 FY2019 versus 123 pence in H1 FY2018. The diluted earnings per share (continuing operations) was 137.9 pence in H1 FY2019 as against 122.2 pence in H1 FY2018.

The company’s financial performance for the first half of the financial year 2019 remained decent. The company’s Top-line performance had improved whereas the bottom-line performance had declined due to losses related to discontinued operations which won’t affect the financial performance at later stages.

Company’s RB 2.0 is the right platform for future growth and outperformance and is helping to build solid top-line momentum. The company’s Hygiene Home business is well positioned and is deriving solid performance from multiple geographical locations and multiple brands.

The company’s health division had seen a decline in revenue in Q2 due to a slowdown in the Chinese market. After restoring the supplies, the company had experienced good growth in China. In the US market, the company had many projects under the pipeline.  The group’s strong platform for growth in emerging countries like Brazil and India is complemented by digital and e-commerce excellence.

Share Price Performance

On 27th August 2019, at the time of writing (before the market close, GMT 10:48 AM), RB shares were trading at GBX 6,190.00, surged by 1.37% against the previous day closing price. Stock's 52 weeks High and Low is GBX 7,174.00/GBX 5,559.00. 

The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 3.53 per cent (FY12), while its lowest has been of 2.21 per cent (FY15).

Royal Dutch Shell PLC

Royal Dutch Shell PLC (RDSB) is a Hague, Netherlands-based international group of energy and petrochemical company, which engages in exploring, producing, refining and marketing oil and natural gas. The company explores natural gas and crude oil globally, in conventional fields and from other sources, such as coal formations, tight rock and shale. The group also produces and markets chemicals.

Recent News

The company announced dividend (interim) of US$ 0.47 (for Class A & B shares) in Q2 FY19.

Financial highlights for H1 FY19

The company’s income stood at $9,319 million in H1 FY19. The company’s cash balances stood at $18,470 million in H1 FY19. The company’s long-term debt stood at $76,029 million in H1 FY19.  The company’s revenue surged to $90,544 million in Q2 FY19 as against $83,735 million in Q1 FY19.

Share Price Performance

On 27th August 2019, at the time of writing (before the market close, GMT 10:55 AM), RDSB shares were trading at GBX 2,262.00, up by 0.44% against the previous day closing price. Stock's 52 weeks High and Low is GBX 2,725.51/GBX 2,142.50. 

The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 8.21 per cent (FY15), while its lowest has been of 5.02 per cent (FY12).

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

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