Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a700148
Hargreaves Lansdown founders set for £56m dividend
Hargreaves Lansdown founders Peter Hargreaves and Stephen Lansdown are set for a combined £56 million dividend payout when the discount broker announces its results this week.
Analysts are predicting pre-tax profits of £190 million for the year, representing a jump of 25%, and a final dividend of 23.1p.
That would leave Hargreaves (pictured left) with a £35.2 million payout, while Lansdown (pictured right) would net £20.8 million, according to Sunday Times calculations.
Despite the industry undergoing a huge regulatory change over the last eight months following the introduction of the retail distribution review (RDR), analysts have remained upbeat on Hargreaves Lansdown's outlook.
In August, Barclays recommended investors take an 'overweight' position in the broker's shares because the RDR could represent a huge opportunity.
Moreover, consultancy Deloitte said the RDR - an overhaul of charging and the financial advice industry at large - could create up to 5.5 million 'orphaned customers' who would look for a new home.
This would create the potential for Hargreaves to add significantly to its existing customer base, with the impact feeding through to its shares.
News sponsored by:
Today's top headlines
More about this:
Look up the shares
On the road
by James Phillipps on Dec 09, 2013 at 07:52