Advertisement

Phoenix hikes dividend and pays off debt

Shares in Phoenix Group, the consolidator of closed life assurance funds, jumped after it announced a big hike in its dividend and suggested there was more on the way.

Shares in Phoenix Group, the consolidator of closed life assurance funds, jumped after it announced a big hike in its dividend and suggested there was more on the way.

The company boosted its final dividend by 27% and said it would amend existing dividend conditions, giving it the flexibility to increase future payments.

Advertisement - Article continues below

The board now expects to declare a 2012 final dividend of 26.7 pence per share, subject to market conditions and trading performance.

"The board believes that this is a sustainable level at which to rebase the dividend as the business executes its stated strategy and is pleased that the amended dividend conditions provide the flexibility to increase future dividend payments as the business performs," the statement said.

Phoenix also announced it had raised £250m through a combination of a placing and an open offer of 50m new shares at 500p per share.

The issue price was a 10.5% discount to the 30 day volume weighted average share price and a 15.4% discount to the closing share price on January 29th.

The new money would allow it to repay £450m of its Impala bank debt facilities early, the firm said, reducing total bank debt from £2.37bn on June 30th 2012 to £1.86bn.

The news pushed the company's shares up 8.3% to 640p by 09:00

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
The end of the bond bull market and the return of inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
How can markets hit new record highs when the economy is in such a mess?
Stockmarkets

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020