Dividends have lesser volatility as compared to earnings. Therefore, long term investors with less risk appetite can punt on these stocks for regular income or reinvest dividend for cumulative growth. Here are insights about four stocks to look for longer time horizon. Below is a comparative chart of ADM, ANTO, BHP, and CRH.
(Source: Thomson Reuters)
About Admiral Group PLC
Admiral Group PLC (ADM) is a Cardiff, United Kingdom-headquartered company that offers motor insurance and household insurance. It offers insurance products for car, multi-car, home, van and travel. It also offers personal loans, short-term insurance policies, car finance and price comparison services. It has operations in the UK, Canada, Mexico, Italy, Spain, Turkey, France, India, and the US. Its price comparison websites are confused.com; compare.com; Rastreator.com. The group has differentiated its operations in four operating segments, namely UK Insurance, International Car Insurance, Comparison and Other.
An interim dividend per share of 41.8 pence was declared recently by the group. Shareholders will be paid the dividend on 04th October 2019. The ex-dividend date is 05th September 2019.
ADM-Financial Highlights (H1 FY 2019, £m)
In H1 FY 2019, Customer numbers were higher by 8% at 6.74 million (30 June 2018: 6.23 million), and turnover was up by 6% to GBP 1.76 billion (H1 2018: GBP 1.66 billion), indicating continued growth. UK insurance customer numbers reached 5.32 million (30 June 2018: 5.07 million) and recorded modest growth in turnover to GBP 1.34 billion (H1 2018: GBP 1.32 billion), while international car insurance customers grew by 21% year over year to 1.36 million customers. Net insurance premium revenue grew to GBP 349.2 million from GBP 323.7 million in H1 2018, helping to post group net revenue of GBP 647.1 million, against GBP 598.1 million in the prior year. Even as total expenses increased to GBP 422.7 million, operating profit rose to GBP 224.4 million from GBP 216.3 million in the corresponding period last year. Statutory profit before tax grew by 4% to GBP 218.2 million (H1 2018: GBP 210.7 million), and group share of pre-tax profits was GBP 220.2 million (H1 2018: GBP 211.7 million), reporting an increase of 4%. Profit after tax was GBP 181.2 million and resulted in earnings per share of 63p, reflecting an increase of 2% from the year-ago period. UK Household result improved in the first half to report a profit of GBP 4.2 million (H1 2018: loss of GBP 1.9 million) and losses in International Insurance businesses amounted to GBP 2.7 million (GBP 0.6 million loss in H1 2018). Driven by growth in European profits and other price comparison sites, Comparison result improved by GBP 3.9 million to GBP 7.4 million. The company declared a special dividend of 21.2 pence per share, addition to a normal dividend of 41.8 pence per share, which totalled to interim dividend of 63.0 pence per share. The interim dividend was higher by 5% over the year and represented a payout ratio of 100% of earnings per share.
ADM-Share price performance
On 05th September 2019, at the time of writing (before the market closed, GMT 10:26 AM), ADM shares were trading at GBX 2,062. Stock's 52- week High and Low prices are GBX 2,300/GBX1,886.38.
The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 4.42 per cent (FY18), while its lowest has been of 2.97 per cent (FY16).
About Antofagasta PLC
Antofagasta PLC (ANTO) is a Chile-based copper mining group with four copper mines in Chile and interests in transport business providing rail and road cargo services in northern Chile mainly to mining customers. The group also has a portfolio of growth opportunities located mainly in Chile and focuses on exploration activity to expand its mineral resource base in Chile and abroad, particularly in the Americas. The operations of the group are differentiated in seven operating segments, namely Los Pelambres, Centinela, Antucoya, Zaldívar, Exploration and evaluation, Corporate and other items, and Transport division.
An interim dividend per share of 10.7 cents was declared recently by the group. Shareholders will be paid the dividend on 04th October 2019. The ex-dividend date is on 05th September 2019.
ANTO-Financial Highlights (1H FY 2019, in $m)
Due to an increase in gold revenues and a 25.1% increase in copper sales volumes, revenue was 19.1% higher than the same period of last year to $2,525.6 million. The rise in revenue was despite lower realised molybdenum prices and 6.3% fall in realised copper prices. Despite an increase of $133.6 million in total operating costs from $1,600.3 million in H1 2018 to $1,733.9 million in H1 2019, operating profit from subsidiaries rose in HY 2019 by 52.1% to $791.7 million (H1 2018 - $520.4 million). As revenue rose due to higher production of copper, EBITDA from the mining division increased by $402.3 million or 46.9% to $1,260.8 million, leading to 44.4% increase in group EBITDA to 1,305.9 million, which corresponded to an EBITDA margin of 51.7%.
Profit before tax increased by 63.9% to $763.0 million in the first half of 2019 (H1 2018 - $465.6 million), while profit for the period amounted to $490.4 million, which was up from $315.7 million reported in the corresponding period of last year. Profit attributable to the owners of the parent group rose by $108.1 million to $302.4 million from $194.3 million in the first six months of 2018, while earnings per share from continuing and discontinued operations were 30.7 cents per share (H1 2018 – 19.8 cents per share). Representing a net debt/EBITDA ratio of 0.20X on higher cash flow from operations, net debt stood at $517.4 million during the current period.
ANTO-Share price performance
On 5th September 2019, at the time of writing (before the market closed, GMT 10:36 AM), ANTO shares were trading at GBX 876.20. Stock's 52 weeks High and Low are GBX 1,026.00/GBX 713.20.
The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 6.85 per cent (FY13), while its lowest has been of 0.46 per cent (FY15).
BHP Group Plc
BHP Group Plc (BHP) is one of the world's renowned resource company. The company is engaged in the operations of extraction and processing of minerals, gas and oil. The company is having an employee base of 62,000, including contractors, mainly in the Americas and Australia.
A final dividend per share of 78 cents was declared recently by the group. Shareholders will be paid the dividend on 25th September 2019. The ex-dividend date is on 05th September 2019.
BHP-Financial Highlights for FY19
During the year under consideration, the group's revenue recorded a growth of 2.6% on YoY basis to $44,288 million, the increased in revenue was broadly driven by a surge in revenue generated from the sale of copper. Underlying EBITDA from continuing operations during the period remained flat at $23.2 billion against the year-ago period. However, margin shrank marginally against the previous financial year to 53%. Return on capital employed during the year, expanded by 170 bps to 16.1% from 14.4% recorded in the year-ago period. Underlying basic EPS surged by 5% to 176.1c/share.
BHP-Share price performance
On 5th September 2019, at the time of writing (before the market closed, GMT 11:05 AM), BHP shares were trading at GBX 1,743.80. Stock's 52 weeks High and Low are GBX 2,078.50/GBX 1,391.99.
The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 6.91 per cent (FY15), while its lowest has been of 2.41 per cent (FY16).
CRH is an Ireland-based leading global diversified building materials group, headquartered in Dublin, Ireland. It is the second-largest building materials company worldwide and largest in North America, the largest heavy side player in Europe as well as strategic operations in Asia and South America. The company's operations are now differentiated in three operating segments, from six in the prior year, reflecting more simplified organisational structure: Europe Materials, Americas Materials, and Building Products.
An interim dividend per share of 20 cents was declared recently by the group. Shareholders will be paid the dividend on 25th September 2019. The ex-dividend date is on 05th September 2019.
CRH-Financial Highlights (H1 FY2019, €million)
In half-year ended 30 June 2019, the company’s reported revenue increased by 11 per cent to €13.217 billion as compared to €11.944 billion for half-year ended 30 June 2018, while on a like-for-like (LFL) basis, it increased by 3 per cent. The EBITDA for the half-year ended 30 June 2019 rose by 36 per cent to €1.54 billion, whereas it was €1.13 billion for the corresponding period ended 30 June 2018. EBITDA margin surged to 11.7 per cent as compared with the corresponding period of the last year. The operating profit for the half-year ended 30 June 2019 was €751 million, compared to an operating profit of €592 million for the prior-year period ended 30 June 2018.
CRH-Share price performance
On 5th September 2019, at the time of writing (before the market closed, GMT 10:57 AM), CRH shares were trading at GBX 2,762. Stock's 52 weeks High and Low are GBX 2,798.00/GBX 1,960.56.
The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 4.07 per cent (FY12), while its lowest has been of 1.96 per cent (FY16).
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.