Dividends Show Covid Fears Abating


July 30, 2021

Reinstated dividends from companies across multiple sectors this week illustrate an increasingly positive picture.

Generally attributable to "the vaccine effect" we've seen numerous reinstatements, albeit at lower amounts than previously in a number of cases.

UK companies Weir Group, Essentra and Rightmove reinstated interim dividends after having suffered initially through 2020. Elsewhere we've seen firms who took an ultra-conservative line go on to build up big cash positions which they are now more willing to distribute as before.

Airlines are still suffering, hospitality is recovering, and oil is on a tear 15 months on from the first recorded instant of a negative oil price - Royal Dutch Shell declared at $0.24 some way ahead of our forecasted $0.17.

We're looking with interest at Travis Perkins (not paid since October 2019) who will declare Tuesday next week - we're estimating £0.10.

Likewise Hiscox we are predicting will reinstate with $0.08.

 

>> Update on 3rd August 2021:

Travis Perkins today declared at £0.12, and Hiscox declared at $0.115. We successfully anticipated they would resume, though the forecast amounts were not exact.

 

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