Virgin Money (LON:VM) UK PLC (LSE:VMUK) announced today a proposed final dividend of 2 pence per share for the fiscal year ending September 30, a decrease from the previous year's 7.5 pence per share. The financial results released did not include this proposed dividend.
Key dates and details for shareholders and CDI holders regarding the dividend process are as follows:
- The ex-dividend date is set for Thursday, February 22, 2024.
- The record date to determine eligibility for shareholders and CDI holders is Friday, February 23, 2024.
- Share and CDI conversions will be suspended from Wednesday, February 21, through Monday, February 26, 2024.
- The conversion rates for Australian and New Zealand dollars will be fixed on Monday, February 26, 2024.
- Shareholder approval for the dividend will be sought at the Annual General Meeting (AGM) scheduled for March 1, 2024.
- Provided the dividend receives approval at the AGM, the payment date is planned for Wednesday, March 20, 2024.
Computershare has been tasked with overseeing the share and CDI registers. Direct credit payments are the preferred method of dividend distribution. The proposed final dividend is unfranked and recipients may need to seek tax advice. The company's announcement today underscores a significant reduction in shareholder returns compared to last year.
InvestingPro Insights
Virgin Money UK PLC's (LSE:VMUK) latest financial results have signaled a notable shift in shareholder returns with the proposed final dividend. To further understand the implications for investors, let's consider some key metrics and insights from InvestingPro. The company's Market Cap stands at a robust $2.61 billion, and it boasts a very attractive Price to Earnings (P/E) ratio of 5.24, which has adjusted to an even lower 3.66 over the last twelve months as of Q2 2023. This suggests that the stock could be undervalued, especially when paired with a Price / Book ratio of just 0.38 in the same period.
InvestingPro Tips highlight that management's aggressive share buyback strategy and the company's strong earnings could support ongoing dividend payments, despite the recent cut. With a high dividend yield of 6.88%, the company remains a significant income stock. Analysts also predict profitability for this year, which is reinforced by the company being profitable over the last twelve months.
For those looking to delve deeper, InvestingPro offers numerous additional tips for VMUK, providing a comprehensive analysis for investors. Currently, InvestingPro is offering a special Black Friday sale with discounts of up to 55% on subscriptions, which includes access to these valuable insights. With the next earnings date approaching on November 23, 2023, investors may find these additional tips particularly useful in making informed decisions.
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