Monday, 12 February 2024

SHOULD I TAKE UP THE NATWEST SHARE OFFER?

13 February 2024

https://www.msn.com/en-gb/money/other/buying-into-the-new-natwest-share-offer-i-ve-suffered-enough-says-alex-brummer/ar-BB1i5QHD

NWG offers a yield of 7.6%. This time last year it was 6.1%. Is that good?

Not when you consider the share lost almost a third of its value in that time.

Well perhaps the worst is behind us?

Revenue grew by 18% to 14bGBP and earnings per share have doubled in the last yr, from 25 to 53 GBp.

Maybe, but according to analysts, earnings are forecast to decline by an average of 6.4% per year for the next 3 years and NW's dividend track record - why we'd buy the stock - has been "unstable".

Interesting account of the sub-prime crisis and sad to read how as shareholder and customer the author suffered a double whammy and so on the basis that "never two without three" he won't be taking up this "rights" offer!!!

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