From what I read the yield will be 6 or 7% but I can't find any guide as to the franking? Anyone any ideas please?
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From what I read the yield will be 6 or 7% but I can't find any guide as to the franking? Anyone any ideas please?
http://www.tegel.co.nz/downloads/Teg...0Statement.pdf
P4 footnote says they expect dividends to be fully imputed.
Thanks mshierlaw... might be my kind of stock...
My two cents:
Now I'm very poorly read on this company, but that's because I don't see any reason to research further. Having said that please correct me if my facts are wrong. The money being raised is paying out existing shareholders, paying off existing debt (that funded previous growth one would imagine) and working capital. None of that is specifically directed at growth for me and it looks like the previous owners are selling down because they've squeezed out what they can. Be sceptical.
low debt, 7% dividends, consumer staple, NZ + overseas markets, vertically integrated, low end of listing range, and yes PE has had its way with it (ie selling and leasing back facilities) + growth may be only single digit/stagnant - however there is a lot to like.
I think PE has left enough on the table to take a small holding for medium term 1-2 years, with re-assessment based on results.
The comparison between Dick Smith and Tegel over looks the fact that Dick Smith had been a "basket" case for years,under performing in a "tough" retail sector with very low margins.It was then loaded up with debt it could not service.
On the other hand "Tegel" is the trusted brand in the consumer staple sector.Chicken consumption is increasing and Tegel is the largest operator.The float has been used to strengthen Tegel's balance sheet.