Market's view on Liontrust Asset Management
Published on April 2024
- Stock Watchers have noted that despite slowing, there are still negative outflows from assets under management, although other funds have seen net inflows.
- A Stock Watcher has expressed interest in dividend-yielding stocks, mentioning Liontrust for its approximately 11% yield which is considered high.
- There are expectations that earnings per share could reach 76p and the dividend may be maintained at 72p.
- Some believe it’s possible to maintain dividends, assuming no significant sell-off occurs and profitability doesn’t decline.
- A significant increase in share price is anticipated if the outflows stop.
- Discussions include whether dividends should be a fixed amount or a percentage of earnings, with some suggesting it’s management cowardice to pay uncovered dividends just to avoid cutting them.
- There are concerns that dividends are close to being uncovered, which might necessitate a cut unless they’re funded from reserves.
- The company has shown a pattern of progressive dividends thus far.
- Speculations abound about the company’s dividend strategy, with implications that maintaining or only slightly cutting the dividend could significantly boost share prices.
- Positive market responses have been observed following trading statements.
- Comparisons of quarterly outflows have shown this quarter’s outflows to be the lowest in the last five quarters, suggesting a potential positive trend.