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INVESTORS IN FTSE 100 AND FTSE 250 COMPANIES MISSING OUT ON DIVIDEND RECOVERY

INVESTORS IN FTSE 100 AND FTSE 250 COMPANIES MISSING OUT ON DIVIDEND RECOVERY

Posted:
Topic: Technology
Publication Type: ETP and Industry

INVESTORS IN FTSE 100 AND FTSE 250 COMPANIES MISSING OUT ON DIVIDEND RECOVERY

Analysis of industry data by ETF provider GraniteShares reveals that 72 FTSE 100 and FTSE 250 companies have annual dividend yields of 0% based on the current share price and the total dividends declared in the previous 12 months.

Dividend payments have rebounded strongly this year after slumping to their lowest level since 2011 last year as companies cut back in response to the COVID-19 pandemic. However, analysts expect dividend payments this year will still be lower than in 2019 and will remain broadly flat with a gradual recovery through to 2023.

GraniteShares’ analysis shows 11 FTSE-100 companies have annual dividend yields of 0% while a further eight have annual dividend yields of less than 1%. In the FTSE 250 there are 61 companies with annual dividend yields of 0% and another 22 with less than 1%.

Only one FTSE-100 company has cut its dividend this year while six FTSE-250 companies have announced cuts. In the FTSE Small-Cap Index there have been four cuts and one suspension while there have been five cuts and two cancellations in the FTSE Fledgling, one suspension and one cut in the main market and two cancellations, one suspension and one cut on AIM.

GraniteShares’ analysis reveals that in 2020 there were nine FTSE 100 dividend cuts, 13 suspensions, and 29 cancellations. The corresponding figures for the FTSE 250 are 16, 33 and 52, and for the FTSE Small-Cap Index they are 28, 38, and 29.

GraniteShares says the pressure on dividends is fuelling growth in sophisticated UK retail investors using leverage and short trading strategies. The value of trading in its 3x long and 3x short single stock ETPs listed on the London Stock Exchange was $1.5 billion in the first 11 months of this year, compared to $201 million for the same period in 2020.

Its most traded 3x leveraged single stock ETP this year was 3x Long Tesla (3LTS) with $506m, followed by 3x Long Rolls-Royce (3LRR) with $244m and 3x Long NIO (3LNI) with $123m. In terms of the most traded 3x short GraniteShares ETPs, 3x Short Tesla (3STS) with $200m was followed by 3x Short NIO (3SNI) with $35m and 3x Short Rolls-Royce (3SRR) with $21m.

Will Rhind, Founder and CEO at GraniteShares said: “The recovery in dividends this year is very welcome, but the expectation is that investors will have to wait for a full recovery with pay-outs still lower than they were in 2019.

“As investors look to replace these lost returns, many sophisticated ones have turned to using leverage and short investment strategies, which has fuelled strong growth in our single stock 3x long and 3x short ETPs.”

GraniteShares currently offers 54 exchange traded products (ETPs) listed on the London Stock Exchange and 62 on Euronext. They consist of a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK, US, and French markets.

ETPs offer a pure way to gain exposure to top tech companies in the U.S. market. Indices are equally weighted and rebalanced quarterly.

 

GraniteShares suite of ETPs on FAANG stocks

Product Name Ticker

GraniteShares FAANG ETP

FANG

GraniteShares GAFAM ETP

GFAM

GraniteShares FATANG ETP

FTNG

 

Leveraged ETPs on FAANG indices

Underlying Index +3x Long -3x Short  -1x Short

FAANG

3FNG

3SFG

SFNG

GAFAM

3GFM

3SGF

SGFM

FATANG

3FTG

3SFT

SFTG

 

UK Leveraged Single Stock ETPs

Underlying stock +3x Long -3x Short

AstraZeneca

3LAZ

3SAZ

BAE Systems

3LBA

3SBA

Barclays

3LBC

3SBC

BP

3LBP

3SBP

Diageo

3LDO

3SDO

Glencore

3LGL

3SGL

Lloyds Banking Group

3LLL

3SLL

Rio Tinto

3LRI

3SRI

Royal Dutch Shell

3LRD

3SRD

Rolls-Royce

3LRR

3SRR

Vodafone

3LVO

3SVO

 

US Leveraged Single Stock ETPs

Underlying stock +3x Long -3x Short

Alphabet

3LAL

3SAL

Amazon

3LZN

3SZN

Apple

3LAP

3SAP

Facebook

3LFB

3SFB

Microsoft

3LMS

3SMS

Netflix

3LNF

3SNF

NIO

3LNI

3SNI

NVIDIA

3LNV

3SNV

Tesla

3LTS

3STS

Uber

3LUB

3SUB

 

French Leveraged Single Stock ETPs

Products Ticker

GraniteShares 3x Long Airbus Daily ETP Securities 

3LAR 

GraniteShares 3x Short Airbus Daily ETP Securities 

3SAR 

GraniteShares 3x Long AXA Daily ETP Securities 

3LAX 

GraniteShares 3x Short AXA Daily ETP Securities 

3SAX 

GraniteShares 3x Long BNP Daily ETP Securities 

3LBN 

GraniteShares 3x Short BNP Daily ETP Securities 

3SBN 

GraniteShares 3x Long Danone Daily ETP Securities 

3LDA 

GraniteShares 3x Short Danone Daily ETP Securities 

3SDA 

GraniteShares 3x Long L’Oréal Daily ETP Securities 

3LOR 

GraniteShares 3x Short L’Oréal Daily ETP Securities 

3SOR 

GraniteShares 3x Long LVMH Daily ETP Securities 

3LLV 

GraniteShares 3x Short LVMH Daily ETP Securities 

3SLV 

GraniteShares 3x Long Safran Daily ETP Securities 

3LSA 

GraniteShares 3x Short Safran Daily ETP Securities 

3SSA 

GraniteShares 3x Long Sanofi Daily ETP Securities 

3LSN 

GraniteShares 3x Short Sanofi Daily ETP Securities 

3SSN 

GraniteShares 3x Long Schneider Electric Daily ETP Securities 

3LSE 

GraniteShares 3x Short Schneider Electric Daily ETP Securities 

3SSE 

GraniteShares 3x Long STMicroelectronics Daily ETP Securities 

3LST 

GraniteShares 3x Short STMicroelectronics Daily ETP Securities 

3SST 

GraniteShares 3x Long Total Energies Daily ETP Securities 

3LTO 

GraniteShares 3x Short Total Energies Daily ETP Securities 

3STO 

 

Capital at risk

-Ends-

Notes to editors:

  • * Data correct on December 15th, 2021

For further information please call Phil Anderson at Perception A on 07767 491 519

GraniteShares: A brief history

GraniteShares is an entrepreneurial ETP provider focused on providing professional investors with innovative, cutting-edge investment solutions. We believe the future of investing lies at the nexus of alternative thinking, low fees, and disruptive product structures—the core of our high conviction philosophy. Backed by Bain Capital Ventures, we launched our first product in 2017 and are now among the fastest growing ETP issuers with over $1.7 Billion in assets under management* spanning a full array of investment strategies.

This press release is issued by Graniteshares Limited. GraniteShares Limited (FRN 798443) is an appointed representative of Messels Limited which is authorised and regulated by the Financial Conduct Authority.

ETPs are issued by Graniteshares Financial PLC, a company incorporated in Ireland.

Investing in GraniteShares ETPs on U.S. listed stocks

Those trading GraniteShares new US leverage and inverse ETPs will not need to complete a W-8BEN form (US Department of the Treasury, Internal Revenue Service, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting).

The ETPs can be held in self-select ISAs and SIPPs.

There is no margin requirement and losses cannot exceed the amount invested.

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