July '26 dividend portfolio update: quality at a reasonable price + takeover action
July brought a second FTSE 100 takeover offer in my portfolio, a major acquisition by one of my financial stocks and a reassuring set of results from an AIM dividend stock I added recently.
The likely erosion of my dividend portfolio by deep-pocketed private equity buyers continued in July, with a recommended cash offer for energy group DCC Energy (LON:DCC) that values the business at up to 6,797.22p per share.
This follows on from a less contentious offer for Intertek (LON:ITRK) last month. Both Intertek and DCC are among my larger holdings, suggesting I could have significant cash to reinvest over the next 6-12 months.
Major shareholders seem happy with Intertek's offer, but not all are happy at DCC. Founder Jim Flavin, who remains a 3%+ shareholder has reportedly described the price as "astounding" and "a charade", questioning the board's judgement in choosing to recommend it. Aviva Investors and Fidelity are also said to have suggested the offer undervalues the group's prospects.
I am also a little disappointed at the prospect of losing DCC, but as a private investor I don't tend to waste too much energy on feeling frustrated by takeovers – there's no choice but to bank the win and move on.
The offer itself is also worth dissecting as it comes in three parts:
- Base consideration of 6,525p per share;
- The final dividend for FY26 of 147.22p;
- Up to 125p per share for the expected sale of the Technology business.
Together these add up to the headline 6,797p figure, but I'd personally exclude the dividend from this (as it was paid on 23 July 2026), giving a figure of up to 6,650p.
Shareholders are expected to vote on the offer in September. I assume the board is confident of securing support for the deal, hence its recommendation. Personally, I won't rush to sell as I'll be happy to continue holding if the offer fails.
Takeovers aside, three companies from my portfolio issued results in July:
- A FTSE 100 heavyweight that's upgraded full-year guidance.
- A newish entrant to the FTSE 100 that's growing fast but is also becoming a quite different business. I'm not sure I like the change.
- An AIM-listed consumer goods stock yield that's a recent addition to my holdings and offers a 5% dividend yield.
Read on for my thoughts on all three sets of results.
Quick reminder: my model dividend portfolio broadly mirrors the shares in my main personal portfolio, although position sizing and prices paid will vary for practical reasons.
Please note that my comments reflect my personal views and are not investment advice or recommendations. Please do your own research and seek professional advice if needed. Full disclaimer here.
Disclosure: Roland owned shares in Intertek and DCC at the time of publication.
For an explanation of my Quality Dividend score, see here.
In this month's report
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