Five upcoming dividend stocks of September to watch

 
OZ Minerals Limited


OZL Details

First concentrate will be delivered in the second half of 2019:OZ Minerals Limited (ASX: OZL) is into mining of copper, gold and silver, carrying out exploration activities and development of mining projects. The group reported revenue of $398 million in the first half 2016 while underlying NPAT reached $55 million. In the H1 2016, OZL produced copper of 58,368 tonnes and gold of 57,662 ounces at the all-in sustaining cost of US 120c/lb. The underground ore production has increased by 18 percent (to 1Mt) driven by better operating performance. Meanwhile, the Carrapateena project progress is on track to deliver first concentrate in the second half of 2019.
 

Financial Performance for 1H 2016 (Source: Company Reports)
 
Additionally, OZL’s strategy to partner with junior exploration companies has led in the search for copper, lead/zinc and nickel being broadened from SA to extend to WA and QLD.  OZL has signed the deal with Mithril Resources targeting the Coompana block in the far west of SA, leveraging newly released exploration data under the South Australian PACE program. OZL has signed the deal with Cassini Resources to focus on their Nebo-Babel resource estimate of 203.1Mt (95.5Mt indicated resources and 107.5Mt inferred resources) and the wider highly prospective West Musgrave Province. OZL is paying interim dividend amount of 6 cents per share totaling $18.1 million on September 23, 2016 and is trading ex-dividend on September 08, 2016. The stock has risen 32.95% in the last six months (as of August 18, 2016). We give a “Hold” recommendation on the stock at the current price of $6.96
 

OZL Daily Chart (Source: Thomson Reuters)
 
REA Group Ltd


REA Details

Impact from weaker listings: REA Group Ltd (ASX: REA) reported its FY16 numbers with revenues up 20% year on year (yoy) to $630m and EBITDA up 22% yoy to $347m. REA’s NPAT was $215m with 16% growth. The company’s cost growth has moved up to 34% yoy in 4Q16 against the 22% yoy revenue growth. REA’s listing volumes also got an impact from the recent election outcome with a 11% fall yoy. Australia witnessed a revenue growth falling from 22.4% in 1H16 to 12.5% in 2H16 owing to the weaker listings.
 

Revenue, EBITDA and margin trend (Source: Company Reports)
 
REA is still well positioned for continued growth from price rises across core depth products and even iProperty is seen to boost growth in long term. The company is trading ex-dividend on August 23, 2016 and will pay final dividend on September 15, 2016. We put a “Hold” recommendation on the stock at the current price of $60.58
 

REA Daily Chart (Source: Thomson Reuters)
 
JB Hi-Fi Ltd


JBH Details

Strong FY16 results:JB Hi-Fi Ltd (ASX: JBH) has reported a very strong FY16 result driven by robust sales and gross margin underpinned by sales of $3,954m witnessing a growth of 8.3%, EBITDA of $262.1m up 9.2% and NPAT of $152.2m up 11.5%. The company has indicated for a good start to FY17 with 9.5% Like for like sales growth. JBH also took the advantage of a buoyant consumer environment with market share gains post Dick Smith’s demise. The company reported for 97% cash conversion. The management has guided to FY17 sales of $4.25bn. The company is trading ex-dividend on August 25, 2016 and will pay final dividend (37 cents) on September 09, 2016. We give a “Hold” recommendation on the stock at the current price of $28.95
 

JBH Daily Chart (Source: Thomson Reuters)
 
BHP Billiton Ltd


BHP Details

FY17 Production Guidance largely unchanged: BHP Billiton Ltd (ASX: BHP) reported better than expected FY16 underlying NPAT of US$1.2b and underlying EBITDA of US$12.3b at the back of lower costs. Unit cash costs across the Group down 16% from FY15. BHP also updated about impact from Samarco dam failure with direct costs incurred by BHP Billiton of US$70 million. On the other hand, BHP’s net debt rose slightly to US$26.1b owing to lower working capital release and negative revaluation of debt. The miner reported better than expected results for all divisions than expected with copper and coal doing well on lower costs. The company has reduced its capex guidance for FY17 from US$5.7b to US$5.4b.
 

Unit Operating Costs (Source: Company Reports)
 
FY17 Production guidance for petroleum (200-210 MMBoe), iron ore (265-275 mm tons, WAIO basis) and met coal (40 mm tons) were all unchanged. FY17 copper guidance was lowered to 1.66 mm tons from earlier 1.7 mm tons and thermal coal guidance was lowered to 30 mm tons versus previous guidance of 32 mm tons. The company is trading ex-dividend on September 01, 2016 and will pay final dividend (18.18 cents) on September 20, 2016. We give a “Buy” recommendation on the stock at the current price of $21.29
 

BHP Daily Chart (Source: Thomson Reuters)
 
Villa World Ltd


VLW Details

Robust sales result: Villa World Ltd (ASX: VLW) reported a strong FY16 result with statutory NPBT rising about 62% to $47.2m which is 1.3% ahead of guidance while NPAT rose 32% to $33.7m. The company has reported for revenue rise of 20% to $387m given continued sales momentum. VLW achieved a total of 1,185 sales during FY16 as compared to 843 in the prior corresponding period. Queensland was a big contributor to the results with 74% of sales and 83% of revenue given the number of projects. Underlying gross margins dipped by 50bps to 26.5%, and are expected to be between 24-26% in FY17. VLW provided FY17 NPAT guidance of at least $35.4m.
 

Strategic Portfolio (Source: Company Reports)
 
The company is trading ex-dividend on September 01, 2016 and will pay final dividend (10 cents) on September 30, 2016. The stock is up 13.5% in the last three months (as at August 18, 2016). We give a “Hold” recommendation on the stock at the current price of $2.49
 

VLW Daily Chart (Source: Thomson Reuters)

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