Thanks for your post golly! You know, there are even a few idiots who apparently thought the 4 billion special dividend was in dollars, not pounds! Why must those idiots post here?!
The 4 billion pounds in your second paragraph is the special dividend that people are referring to...don't know if that is the right term that should be used, though. GSK did pay out (in 2012) what they called a supplemental dividend that was based on the sale of some non-core assets.
If you drill down on the GSK website (to INVESTORS and then GSK/NOVARTIS TRANSACTION to the last link on the page (presentation slides, from April 22, 2014) they refer to a B SCHEME (on page 3) as how they will return the capital to shareholders. I have also seen more recent references to this. Of course, they could change their minds, but this is the last I have seen from the company as to how they will return the cap.
I believe (don't know for sure) that the buyback of 4 billion pounds is a separate (additional) 4 billion pounds.
Also, if you drill down on the GSK webpage, to INVESTORS and then QUARTERLY RESULTS, and open the "Download Q4 2014 Results Announcement (PDF)". This document was dated Feb 4, 2015. The last bullet point is:
£4 billion of net proceeds from Novartis transaction expected to be returned to shareholders in 2015**
There are a number of places that it has been mentioned. The quote below is from the Chairman's Report, in the 2014 Annual report (Page 2). You can find the Annual Report, if you go to the "Investors" section of the GSK global website.
I can find other references, if you'd like...
Returns to shareholders remain a key
priority for the Board and management
team and despite the challenging trading
environment, a focus on cost and financial
efficiencies have allowed the Board to
set a dividend of 80p per share for 2014,
an increase of 3%. This year we expect to
maintain the dividend at 80p per share and
also return £4 billion of net proceeds from
the proposed Novartis transaction, once
appropriate approvals have been gained.
Let me preface my comments by saying I am not a "finance guy", and the calculations below are my own...
GSK has said that they will return 4b pounds to investors.
Based on what I see on yahoo now...GSK (ADR) market cap of 112.8b and a share price of just under $47 a share, there are (approx) 2.4b shares.
If you convert the 4b pounds to $ (approx 1.5 $ per pound), they should pay out approx $6b.
$6b divided by 2.4b shares is $2.50 per share.
Philip Hampton, the new COB, will step into that role after the Annual Meeting on May 7. We'll see what happens once he is "on board".
I don't think the "dividend paid date" is a big date for making announcements. They are scheduled to announce the "July dividend" on May 6. I am hoping for an announcement as soon as possible, but I see May 6 as a target for the announcement. JMHO
I'm not sure I understand. If you thought the company could fetch a deal in the 50s in 2017, why in the world would you accept a deal in the 20s this year???
I think the company has acknowledged that a fast casual concept is in the works. The first stores are expected to be open by the end of the next fiscal year (ie - July 2016).
Yes. I guess I should have qualified by statements. They were in reference to regular dividends only.
I haven't seen any updates to the comments from last April that they intend to return 4 billion pounds to shareholders after completion of the Novartis deals. I wish I understood better how the B share scheme works. I assume we will hear more from the company soon.
If you look at it Q to Q, the April dividend does look like an increase. The right way to look at GSK's dividend is Y to Y, based on how they pay it.
The last 2 quarterly dividends of 2014 (those paid in Jan, 2015 and April, 2015) both reflect no increase from the previous year.
When GSK announced their 3rd quarter results in October, they stated that their aim was to maintain the 3rd and 4th quarter dividends (ie - no increase), as well as to maintain the 2015 dividend at the 2014 level. This suggests that the next 4 quarterly dividends (to be paid in July, Oct, Jan16 and April16) will be 19p, 19p, 19p and 23p per share. Due to currency fluctuations, the dividends in $ will vary a bit. While there is never a guarantee, I would bet that this level of dividend payout is safe. Even without increases, this reflects a hefty dividend, compared to the market.
OK, Biglari owns 20%, and gets a dividend that reflects that number of shares. Can you explain to me why I should care? Would it make a difference if Vanguard, or Blackrock, or Neuberger Berman owned 20% instead?