Hi marktime, it has certainly been an interesting 6-8 weeks with this share.
The recovery in share price has been impressive, particularly against the backdrop of the cut in dividend.
As you know, I was consistently underwater on this share for quite a period of time (2 years or so) and I had been looking to exit my position as soon as I could without losing capital on it.
And now I am back in the black, but with reduced dividend income going forward, and yet I still can’t compel myself to hit the sell button.
As you say, surely time to scalp a little profit (and recover my capital without loss).
However, I think the sale of the Retail arm to Ovo has reduced a lot of uncertainty, and reduced the potential drag going forward. The focus on renewables will provide a positive momentum, the sale proceeds will further reduce debt, and the remaining rump will be a more streamlined operation to manage that has recently been producing circa 95% of the profits.
Finally, the threat of nationalisation, which was very real only 6 weeks ago, has now gone away, at least for the next 4 years or so. The political environment for this utility is suddenly more benign.
So what is left is a significantly more focussed and streamlined company, that with a restated dividend of 80p (with modest annual progressive increases anticipated) against a current share price of circa £15, will deliver me a yield of circa 5.33%.
I know that I may fall out with myself at some stage over this decision, but for now I will continue to hold for income purposes.