Saga Plunges on Dividend Cut and Profit Warning

A 40% fall in over 50s insurer and holiday firm Saga means shares are now two-thirds below its 2014 IPO price after a second profits warning, dividend cut and shift in strategy

David Brenchley 4 April, 2019 | 12:58PM

Retired couple, over 50s, pensioners, Saga, Saga share price, profits warning, income investing, dividend cut

They say profit warnings come in threes, so investors in FTSE 250 stock Saga (SAGA) will be especially anxious as the firm announced its second in the space of just 16 months on Thursday.

Shares in the insurance and holidays provider for over 50s fell as much as 40% to as low as 65p after it announced a pre-tax loss, dividend cut and shift in strategy.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASI UK Recovery Eq Plfm 1 Acc £ UnH56.27 GBP-1.43
ASI UK Uncons Eq Plfm 1 Acc £ UnH76.13 GBP-1.69
Carnival PLC1,020.50 GBP0.00
easyJet PLC669.60 GBP0.00
L&G UK Special Situations I Acc87.26 GBP-1.64
LF Majedie UK Focus X Acc1.82 GBP-1.66
Liontrust Income C Acc GBP1.51 GBP-1.29
Saga PLC15.88 GBP0.00
St James's Place UK Income Acc90.50 GBP-1.49
TUI AG381.00 GBP0.00
Unicorn UK Ethical Income B Inc85.80 GBP0.70
Unicorn UK Income B Inc215.08 GBP0.91

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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