Are these four rock-solid dividend stocks?

Lendlease Group


LLC Details

Term note and attractive opportunity: Lendlease Group (ASX: LLC) has established a Euro Medium Term Note Programme as part of its capital market activities and is also planning a U.S. dollar-denominated senior bond offering. LLC also made changes in its Global Leadership team effective from May 01, 2016 to further strengthen its management. The company continues to expand its portfolio and has invested in Tower One at Barangaroo South. International Towers Sydney is on track to become Sydney’s new financial hub wherein one and three towers are forecasted to be finished by FY16 and FY17 respectively while Tower two has opened in the beginning of FY16. The stock has surged 4.23% (as of May 12, 2016) in the last four weeks given the volatile conditions in Australia and globe. But we view this correction placed the stock at attractive valuations.
 

Major earnings triggers (Source: Company Reports)
 
LLC also built a solid pre sold revenue of $5.4 billion across residential apartments and communities, as of first half of 2016, which is up by 49% against the prior corresponding period. The group’s construction backlog revenue rose by 19% to $18.6 billion while funds under management enhanced by 26% to $22.0 billion. We remain bullish on stock and recommend a “HOLD” on the stock at the current price of $13.33
 

LLC Daily Chart (Source: Thomson Reuters)
 
DUET Group


      DUE Details

Boosting Capital position:DUET Group (ASX: DUE) completed its stapled security purchase plan post determining to accept valid applications for about $45.6 million of new stapled securities. DUE raised $200 million via placement offer and intends to use these funds for acquisition of Alcoa of Australia’s (Alcoa) 20% interest in DBP which requires $205 million for Acquisition. The group also launched security purchase plan (SPP Offer) to raise $30 million and got solid support from its institutional investors to boost its businesses and simplify its structure. The company has completed the acquisition of remaining 20% of DBP as on 31 March 2016. Duet also has an outstanding dividend yield. We give a “Hold” on the stock at the current price of $2.31
 

Due Daily Chart (Source: Thomson Reuters)
 
Spark New Zealand Ltd


  SPK Details

Outlook on government regulations: Spark New Zealand Ltd (ASX: SPK) got necessary regulatory approvals from the Commerce Commission and Ministry of Business, Innovation and Employment related to its acquisition of a 70MHz block of 2.3GHz spectrum from Craig Wireless New Zealand Spectrum Operations and its related firm Woosh Wireless Holdings Limited for NZ$9 million. SPK is also positive over Government’s move over a series of high level policy decisions for potential regulation of the telecommunications sector which would be regulated after 2020.
 

Performance in first half of 2016 (Source: Company Reports)
 
Accordingly, the stock surged over 6.25% in the last one month (as of May 13, 2016). Meanwhile, the group is also planning to pay an annual ordinary dividend of 22 cents per share as well as a special dividend of 3 cents per share, and expects special dividends in FY17 irrespective of no business changes. Meanwhile, Spark is positioning itself to the rapidly changing technology environment. Having a good dividend yield, we give a “Hold” recommendation on the stock at the current price of $3.40
 

SPK Daily Chart (Source: Thomson Reuters)
 
G8 Education Ltd


   GEM Details

Maintaining double digit growth: G8 Education Ltd (ASX: GEM) reported for ASIC consent for the resignation of the auditor, HLB Mann Judd while the company proposed for Ernst and Young as the new auditor and will put the resolution for approval by shareholders. GEM also intended to maintain their growth track and expects to continue to generate double digit growth through occupancy growth, EBIT growth and Portfolio growth. GEM intends to acquire between $50 million and $150 million in center acquisitions and estimates a net debt to EBITDA at or under 2x.
 

Group Underlying EPS (Source: Company Reports)
 
GEM intends to refinance SGD$260 million unsecured notes. Consequently, the group’s stock surged over 22.36% in the last three months (as of May 13, 2016). Some softness recently prevailed owing to the delay in the childcare subsidy reform as per the Federal Budget pushing the upside potential associated with higher Group occupancy by a year. Nonetheless, near-term potential factors entail refinancing the SGD notes, securing a secured facility with a domestic bank and M&A activities. The stock is still trading at attractive valuations with a reasonable P/E a strong dividend yield. We remain bullish on the stock and maintain a “Buy” recommendation at the current price of $4.05
 

GEM Daily Chart (Source: Thomson Reuters)

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