Originally Posted by
Roger
Based on $500m before tax and full 28% tax = $360m = 32 cps earnings this year. At $2.50 that puts the shares on a FY17 PE of just 7.8 which is considerably lower than QAN and other regional competitors. Management seemed confident at the conference call in conjunction with their half year report in February 2017 that yields look better going forward and I would say they have a better idea than any of the analysts or commentators on here including me.
They are coming towards the latter part of their fleet replacement program and out on my walk today I got to thinking there is definitely some scope for special divvies in the medium term, (my thinking is not quite in line with Mod's thinking but there is definitely potential there probably in FY20 and FY21) as well as the expected 20 cps fully imputed giving them a gross dividend yield of (20 / 0.72) / 250 = 11.1%.
I got to thinking this is still a very good hold. Technically, the SP looks to continue to be in a good solid recovery from October 2016. Trading well above MA100 and MA 200. Well managed companies on very undemanding multiples with a gross dividend yield like that are not exactly in over abundance on the NZX. Disc: Bought more this morning. Not expecting quick gains, just a good long term hold for really solid dividend yield.