WAM Research Limited

Better returns for shareholders: WAM Research Limited (ASX: WAX) is a listed investment company incorporated in Australia. It aims to provide strong risk-adjusted returns to shareholders derived from a portfolio of undervalued international growth companies using Wilson Asset Management’s proven investment strategy. The group believes in giving decent dividends for investors such as self-funded retirees, older workers and low-income earners. The Board of Directors declared an interim dividend for six months ending 31 December 2017 of 4.75 cents per share which was paid in 27 April 2018, representing an annualised fully franked dividend yield of 6.31%. Since inception, WAM Research has paid 89.9 cents per share in fully franked dividends to shareholders.


Fully Franked Dividends Since Inception (Source: Company Reports)

On other hand, the Group has gained significant return on equity (RoE) on an average of 11.64 per cent over the last five years and entered the second half of 2018 financial year with a conservative balance sheet, a high cash weighting with no debt and with a flexible and a proven investment approach.Besides this, Wilson Asset Management Group became the substantial holder of the Group since May 21, 2018 by holding 9.14 per cent of the voting power.Meanwhile, the stock price was down by 7.86 per cent in past three months as on May 24, 2018 and is trading at low levels. We give a “Speculative Buy” recommendation on the stock at the current market price of $ 1.465, based on strong fundamentals and consistent dividends.
 

Accent Group Limited

Robust 1HFY18 Performance: Accent Group Limited (ASX: AX1) is an investment holding company. It has delivered robust performance in first half of the year wherein the group recorded revenue growth of 17% to $350 Mn in 1HFY18. EBITDA grew by 16.5% and amounted to $50 Mn during the same period. Based on solid topline performance, NPAT grew by 13.2% to $26.3 Mn in first half of the year. As a result, the group declared fully franked interim dividend of 3.0 cents per share and is expecting that it will continue its dividend pay-out ratio to be between 75-80 per cent of the underlying earnings per share for FY18. At large, 2018 is expected to be another year of profit growth at the back of continued progress in omnichannel, strong online growth and improved performance in the Hype DC banner. As of now, the business is well positioned to defend against new market entrants and capitalise on the growth opportunities moving ahead. Meanwhile, the stock (with dividend yield of 3.96%) has risen 127.82 per cent in the past one year and by 5.94 per cent in the past one week as at May 24, 2018. We give a “Hold” recommendation at the current market price of $ 1.520, as it is currently trading near its 52-week high level.


Dividend Highlights (Source: Company Reports)

 
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