Not to mention the icing on the cake, a dividend reinvestment programme with the issue price at a 2.5% discount to sales ex dividend.
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I know a lot of Kiwi's in Australia that feel they're facing considerable dicrimmination at a personal and at a Government level but perhaps we need to leave the politics out of this. Fact is the franking credit fisaco has been an issue that is potentially capable of resolution for as long as I can remember, (I've been an accountant for 32 years), so I'd argue in this respect either CER simply doesn't work or one of the Governments is activly blocking a resolution of this matter...I'm sorry I cannot give you a prize for guessing which Government.
Like many of my clients I have a strong bias against Australian investment because I don't want to pay tax twice !!
Point taken about the higher credit rating of Australian banks but I think taking into account the moderate extra risk and imputation credit availability investment in HNZ makes a compelling case for itself especially with the new higher credit rating. I recently dipped my toe into the water before the credit rating upgrade, hoping it would come through and added more yesterday and will continue to add on any dips.
For anyone tempted to buy Australian stocks and simply not declare the dividends as a way of rebelling against this commercial injustice, don't go there...the ATO and N.Z. IRD are swapping information like best buddies and its so easy these days with dividend information so easily available from the share registries, CER works when it comes to collecting tax revenue..
Westpac does make an effort and gives NZ resident shareholders imputation credits to the extent that it's NZ tax payments so allow: http://www.westpac.com.au/about-west...tation_credits
NAB does too on the odd occassion but its minimal and infrequent.
^^ What you've raised is a good idea.
Not me.!!!
I was a buyer earlier in the day at 89cents.Last sale today was 148 shares at 87cents.
If fact I may be classified as a "belgarion" ie a pyramid builder,as I have never sold any Heartland shares,just keep adding to our holdings.
I am still overjoyed at the S&P Credit rating upgrade.!!
Feel we have moved from "well positioned" to "poised."!! lol.
Personally I would like to see a 4.5c - 5.0c dividend maintained for the next 2-3 years and use the cash for further acquisitions as the opportunities arise. That would reduce the need for SPPs like the recent one to fund the purchase of SMI, which was very unfair on us existing shareholders. Using the cash generated by the business to acquire further growth, is much prefered by yours truly :)
Not sure how I feel about high dividend,and SPPs. A friend who went to the last Heartland presentation, told me Jeff Greenslade was told that shareholders thought the recent SPP was a waste of time.Whether Greenslade, and the board have taken that onboard or not , may dictate future dividend policy.
I would hope all this SPP BS will be rid of under the new Financial Markets Conduct Act 2013. If the directors do a capital raising, but not include existing shareholders on a proportionate manner, there is good reason to be pissed off.
See the article from Gaynor.
http://www.nzherald.co.nz/business/n...ectid=11236813
"Retail investors will welcome the move to less complicated offer documents because under the old regime individual investors were often excluded from attractive capital raisings.The most obvious examples of this were share placements by listed companies.
Before April 1 companies could issue new shares to sophisticated or wholesale investors without publishing an offer document but a prospectus was required if the offer was extended to retail investors.
This usually meant that retail investors were excluded from these capital raisings because companies didn't want to incur the expense of preparing and issuing offer documents. Under this scenario individual investors could only participate in Share Purchase Plans (SPP) which are capped at a maximum of $15,000 per investor.
This clearly disadvantaged individual investors as the Shareholders' Association has consistently noted."
Posted 18-04-2012.
I brought good amounts of shares at 49cents on 10-04-2012 and at 50 cents on 22-05-2012.[I kept adding since that time].
My gain has been over 77% in two years.I have also enjoyed great dividends.
The business has certainly achieved a great deal in those two years.The directors have kept in touch with shareholders,setting out the company's goals.They just keep doing what they say they will do.Jeff Greenslade certainly knows how to bring on board experienced banking people.The acquisitions have been at very modest multiples.Getting the banking licence was a great achievement,and now the credit rating upgrade is "the icing on the cake."
The future? With solid foundations the future looks very exciting.As shareholders we can look forward to "real earnings" growth,great dividends,and as "the market" rerates Heartland the share price will increase.
So we can still look forward to seeing Heartland trading at 2 or 3 times NTA some time in the future.
Choo Choo...the train is about to leave the station ALL ABOARD for the great ride :D
Heartland seem to make a big thing about being local and being part of the community. Niche seems to be the strategy going forward.
A while ago I floated the idea with Heartland of them getting involved in microfinance, small safe loans to the not so well off. Seemed to fit with their community thinking as well as strategy. They didn't seem that interested. Kiwibank are now involved in such an initiative in Auckland.
With a lot of initiatives under way about P2P lending maybe Heartland should get involved someway. Again community and niche angles to it. Westpac are already into it in Australia and looking at NZ. Maybe they see the threat that this could be to traditional banking and see getting involved as a good thing.
Will float that idea with Percy's mate Jeff - might have to go through Alison as I rarely get a response. Mind you a year or so ago when I knew a reverse mortgage outfit was on the block I emailed him to see if this was potentially a niche area for Heartland - maybe a bit close to home that request.
Anyway how Heartland getting involved with someone in doing something about P2P stuff
Growth will be hard to achieve in most of Heartland's sectors, motor vehicles and rural lending. I think Sentinel will really surprise us all on the upside.Further growth may be driven by more acquisitions.Heartland have proved they can do acquisitions well.
So I see modest growth,which as you point out;"the rerating should be significant."