Best Income Share on the NZX ?
Quote:
Originally Posted by
Waltzing
why would you go big on this stock instead of BRISC with some HLG?
yes the DIV is higher at the present price but the risk is also higher.
who says the market isnt going to become an even bigger drag on profits?
200 cloud based software services being used? sounds almost as bad as a government org.
https://www.marketscreener.com/quote...64/financials/
Removing the inherent caution I have the average view is that they can pay fully imputed annual dividends of 25 cps next year rising to 27 cps in FY24.
Grossing that up for imputation credits that's (25 / 0.72) = 34.72 cps gross for FY23 rising to (27 / 0.72) 37.5 cps gross for FY24.
Buying now at $3.15 cum a 10 cent fully imputed dividend that goes ex very shortly on 5 April gives one a net (look through the immediate dividend due), entry price for future income of just $3.05. ($3.15 less 10 cents back in almost no time at all).
Based on a net purchase price of $3.05 and the average broker forecasted gross dividends above gives a gross forecast FY23 yield of 11.4% (34.72 / 305) rising to a gross forecast FY24 yield of 12.3% (37.5 / 305)
The PE next year is less than 9. Freight in the current half was up 111% on the already very high rates prevailing in the previous corresponding period and at some point that was normalize. On a deep review of the result yesterday it is very impressive how they have weathered this storm and come though with no debt and a very robust cash position so yes I think they are in a very good position going forward.
In addition they seem to be reading the room very well with their new marketing extoling the virtues of their "value" product offering.
Well positioned is an over used phrase on here but it seems that's exactly how they are placed to weather the challenges ahead. Sooner or later we will come through this Covid mess and the shares won't be $3.05 then.
Disc: My rating after a thorough review of the result is is BBB - Beagle busy buying.