Direct Line (DLG)

Couldn’t find a thread for direct line. They’ve popped this morning after reinstating the dividend with a slight increase, and announcing a special dividend to make up for the one they missed

if you’re willing to hold for a LONG time then you’ll get a good total return. share price has fallen in the short term as profits have been reinvested into the business for better systems and restructuring.

Simply Wall Street:
“share price is down 27% over half a decade, the total return to shareholders (which includes dividends) was 11%. That’s better than the market which declined 3.7% over the same time.”

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Yeah, I’ve done OK with dividends, but the share price itself has gone down. They have had quite a high yield so total return has been positive. I reinvest the dividends.

I’m watching closely how timely and effectively they deliver their business and technology transformations. It’s the key to their long term success in my opinion

What’s the consensus here for Direct Line - still a good buy as the country reopens?

Anyone got any views on their fundamentals other than their attractive dividend yield?

It’s got ALOT of spare cash due to Covid19.
Share buy backs throughout the year should strengthen/consolidate the share price. It may also be released into profit in future years if claims costs stay low.

Potential for top line growth is low as the market is so competitive. There is potential for bottom line growth if the company’s investments into new IT systems does reduce operating costs by the expected amount.

There were rumours that there was a potential takeover bid from the states but nothing more on that.

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Very disappointed with this this year. 10% down so far. Feels like I’m wasting my time

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Car insurance is going to be less and less profitable.
Less people driving lowers the premiums.
Repairing vehicles is costing a lot as parts are more expensive
Replacing vehicles is even more expensive. 2nd hand Ford Fiestas are a good 25% more than they were pre-pandemic.

The company is now close to paying all it’s profit out as dividends leading to little opportunity for reinvestment

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Just had my dividend yesterday a nice sun , but what are everyones thoughts on DL ? i really need to sell down as im holding far too much of them…

Thoughts ?

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Just had my dividend today a nice some , but what are everyones thoughts on DL ? i really need to sell down as im holding far too much of them…

Thoughts ?

Hi @Noj

It’s much tidier to keep topics on as few threads as possible.

@Rajan07 can you please delete?

@Noj pop a post on the direct line thread.

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