Saudi Arabia's Wealth Fund Gets Boost From Investment Activities
The Public Investment Fund earned $34.5 billion from investment activities in 2024, up 38% from the previous year, according to financial statements released Monday. Dividend income from investment securities more than doubled.
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39 minutes ago
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£10,000 invested in Vodafone shares 5 years ago is now worth…
Vodafone (LSE: VOD) shares have performed well recently. Year to date, they're up about 25%. Zooming out however, they haven't been a great long-term investment. Here's a look at how much a £10,000 investment in the FTSE 100 telecoms company five years ago would be worth today. Five-year performance analysed Vodafone shares were a more popular investment five years ago than today, because the share price was down and the stock was offering an attractive dividend yield of around 7%. At the time though, the company's fundamentals were quite shaky as capital expenditures and debt were high and dividend coverage (the ratio of earnings to dividends) was low. So, buying the stock was relatively risky. These weak fundamentals, and the high level of risk, are reflected in the performance of the shares. Five years ago, they were trading for around 117p. Today however, they're trading at 86p, so anyone who invested £10,000 in Vodafone five years ago would now be sitting on shares worth about £7,350. What about dividend income though? Would this have offset the share price losses? Well, I calculate that £10,000 invested in the company, they would have picked up about £3,600 worth of dividends. Add that to the £7,350 and the total investment would be worth about £10,950 (assuming dividends weren't reinvested). That's obviously a positive return. However, it only translates to a return of about 1.8% per year over the five-year period. That's quite disappointing. For the five-year period to the end of July, the FTSE 100 index returned 13.2% a year. A high yield can backfire This is a good illustration of why it's not smart to buy a stock just because it has a high yield. Even with an attractive yield, a stock can still generate disappointing returns. Before buying a stock, it's important to think holistically and analyse things like the company's growth potential, financial strength, level of profitability, and dividend coverage (Vodafone cut its dividend again last financial year). By looking at the fundamentals, an investor can potentially improve their chance of success in the stock market. Has the outlook improved? Do Vodafone's fundamentals look any better today? I think they do. Recently, revenue growth has started to pick up a little bit. For example, in a recent trading update for Q1, group revenue increased by 3.9% to €9.4 billion with strong service revenue growth. Meanwhile, analysts expect the company's earnings per share to rise as the company boosts efficiency. Next financial year, earnings growth of about 15% is anticipated. Dividend coverage is also much healthier than it was at 1.6 times. This indicates that payout is most likely sustainable in the near term (the yield is about 5.1% today). It's worth pointing out that while debt has come down lately, it's still a little high (which adds risk). At the end of March, net debt was €22.4 billion. The valuation is also starting to look a little full. Currently, the price-to-earnings (P/E) ratio is about 12. Given the debt and valuation, I won't be rushing out to buy Vodafone shares. They could be worth considering for income however, to my mind, there are better stocks out there today. The post £10,000 invested in Vodafone shares 5 years ago is now worth… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has recommended Vodafone Group Public. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
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an hour ago
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Savills (LON:SVS) Has Announced A Dividend Of £0.074
Savills plc's (LON:SVS) investors are due to receive a payment of £0.074 per share on 29th of September. The payment will take the dividend yield to 3.3%, which is in line with the average for the industry. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Savills' Future Dividend Projections Appear Well Covered By Earnings While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. The last dividend was quite easily covered by Savills' earnings. This means that a large portion of its earnings are being retained to grow the business. Over the next year, EPS is forecast to expand by 135.9%. Assuming the dividend continues along recent trends, we think the payout ratio could be 34% by next year, which is in a pretty sustainable range. Check out our latest analysis for Savills Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was £0.23, compared to the most recent full-year payment of £0.302. This works out to be a compound annual growth rate (CAGR) of approximately 2.8% a year over that time. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. Savills May Find It Hard To Grow The Dividend Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Savills has seen earnings per share falling at 4.8% per year over the last five years. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. In Summary In summary, while it's always good to see the dividend being raised, we don't think Savills' payments are rock solid. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. Overall, we don't think this company has the makings of a good income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 2 warning signs for Savills that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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an hour ago
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Don't Buy Schroders plc (LON:SDR) For Its Next Dividend Without Doing These Checks
Explore Schroders's Fair Values from the Community and select yours Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Schroders plc (LON:SDR) is about to trade ex-dividend in the next three days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. In other words, investors can purchase Schroders' shares before the 21st of August in order to be eligible for the dividend, which will be paid on the 25th of September. The company's next dividend payment will be UK£0.065 per share. Last year, in total, the company distributed UK£0.21 to shareholders. Based on the last year's worth of payments, Schroders stock has a trailing yield of around 5.4% on the current share price of UK£3.958. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Schroders has been able to grow its dividends, or if the dividend might be cut. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Last year Schroders paid out 95% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings. When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut. See our latest analysis for Schroders Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Have Earnings And Dividends Been Growing? When earnings decline, dividend companies become much harder to analyse and own safely. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Schroders's earnings per share have fallen at approximately 5.6% a year over the previous five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, Schroders has lifted its dividend by approximately 5.0% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. Schroders is already paying out a high percentage of its income, so without earnings growth, we're doubtful of whether this dividend will grow much in the future. To Sum It Up Has Schroders got what it takes to maintain its dividend payments? Earnings per share are in decline and Schroders is paying out what we feel is an uncomfortably high percentage of its profit as dividends. It's not that we hate the business, but we feel that these characeristics are not desirable for investors seeking a reliable dividend stock to own for the long term. Schroders doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend. With that in mind though, if the poor dividend characteristics of Schroders don't faze you, it's worth being mindful of the risks involved with this business. To help with this, we've discovered 1 warning sign for Schroders that you should be aware of before investing in their shares. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
