WAM Capital Ltd

     WAM Dividend Details
 

WAM Capital Ltd (ASX: WAM) has successfully raised $ 25.14 million through a placement to wholesale investors, which has been significantly oversubscribed. The placement was offered at the Dividend Reinvestment Plan price of $ 1.9186 a premium to the Net Tangible Assets and the premium will benefit the shareholders. The increased capital will reduce the fixed administration costs as a percentage of assets while improving liquidity and its relevance in the market.

 

Dividends since Inception (Source: Company Reports)
 

The key highlights from the annual report for FY 2015 were a portfolio performance of 14.7%, return on shareholders’ equity of 35.3%, a full year fully franked dividend of 14 cents per share which was an increase of 7.7% over the previous year and a fully franked dividend yield of around 7.3%. The company reported an operating profit before tax of $ 71.2 million (against $ 90.5 million of FY14) and an operating profit after tax of $ 54 million ($ 68.3 million of FY14). The change in profit from the previous year is the result of the increased capital base and the change in value of the investment portfolio returning 19.2% in the previous year compared to 14.7% in FY 2015. The investment portfolio on average invested 61.9% in equities and increased 14.7% while outperforming the S&P/ASX All Ordinaries Accumulation Index by 9% for the year. The strong performance from the company is shown by the increase in shareholders equity by 35.3% to $ 806.5 million and in the number of shareholders to 17,358 the majority of which are self managed super fund investors. More than 8800 existing shareholders invested $ 103.3 million through the share purchase plan and the placement to the company’s shareholders was oversubscribed and raised $ 90.1 million which has been invested in accordance with the normal disciplined investment process. Since its inception, the company has used its investment philosophy to achieve an investment portfolio return of 18% per annum which is 10% higher than the S&P/ASX All Ordinaries Accumulation Index and has provided with shareholders with an annual average fully franked dividend of 11.1% over the last 16 years. We consider this to be as strong and extremely credible performance over an extended period of time and recommend a buy for the stock at the current price of $1.97

 

 

Contango Microcap Ltd

           CTN Dividend Details
 
The monthly net tangible asset statement for October 2015 shows NTA of investments before tax at $ 1.08 compared to $ 1.04 as at 30 September. NTA of investments before tax on unrealised gains is $ 1.04. NTA after tax is $ 1.03 in comparison to September’s $ 1.004. The month-end closing share price was $ 0.94 which is slightly up from $ 0.91 of September while the month-end closing convertible note price was $ 101.80 against $ 100 of September month. In the asset composition, the figure for industrials was 104.2% as opposed to 102.7% of September.
 

Net Tangible Assets (Source: Company Reports)
 
The annual report for the year ended 30 June 2015 shows the results summary which reveals an operating loss of $ 0.7 million compared to $ 32.5 million in the previous year, the investment portfolio return was 2.1% with small index return of 0.4%, the investment portfolio performance since 2004 was 15.5% per annum, dividends paid during 2015 amounted to 8.6 cents per share (8.4% up), gearing ratio as on 30 June 2015 was 15.3% and the number of shareholders was 5947 which was up by 20.9%. Total return to shareholders in FY 2015 was 13.3% and the value of investments was $ 184 million up from $ 175 million in the previous year. Asset management profit was $ 871,000 up from $ 7000 in seven months in the previous year. The dividend yield based on the share price as at 30 June 2015 was 7.5%. The year showcased dividends paid to shareholders to be $ 13.6 million bringing the total dividends paid since inception to more than $ 95 million. The company also gave out its guidance to deliver a 6% dividend return on NTA and, at this rate, has sufficient reserves to pay the next three dividends. Although the volatility in the financial markets has had an impact on the broader investment market as well as the share price, CTN’s underlying portfolio continues to outperform the benchmark. Finally the company has welcomed almost 1000 new shareholders during the financial year. We think that the company has established a credible track record which makes it worth investing in and rate the stock as a Buy at the current price of  $0.91
 
 
CTN Daily Chart (Source: Thomson Reuters)
 

Cedar Woods Properties Ltd

        CWP Dividend Details
 
Cedar Woods Properties Ltd (ASX: CWP) at the annual general meeting provided an overview of FY 2015 wherein the total proceeds from property including a successful sale of the Masters Home Improvements store at Williams Landing was in line with the previous year at $ 214.6 million. The dividend yield for the stock is 10.61% while it is currently trading at a reasonable P/E ratio of 7.55x in comparison to its peers.
 
To have a balanced scenario, the company aims to dispose of assets in the Williams Landing Town Centre when it believes that they have reached a mature value. A number of other developments are being planned which will contribute to future earnings. CWP’s revenue generated a record net profit of $ 42.6 million representing a growth of 5.6% over the previous year. EPS was steady at 54.3 cents per share and the board declared a fully franked dividend of 16 cents per share taking the full-year fully franked dividend to a record 28 cents per share. FY 2016 has begun strongly with pre-sales increasing from $ 153 million when the full-year results were released to $ 184 million at the end of the first quarter. This is expected to provide a strong platform for growth for the rest of the year.
 
The dividend for FY 2015 is consistent with the policy of distributing approximately 50% of the net profit for the year and striking a balance between returning funds to shareholders and profit to finance future growth. At the same time, gearing is kept at conservative levels and the balance sheet remains strong as the company moves into FY 2016. Gearing was low at 9.8% as at 30 June 2015 or notionally at 19% after adjusting for the acquisition of the North Baldwin land which happened shortly after the year end. Based on current market conditions, the company expects to deliver a profit for FY 2016 similar to the profit delivered for FY 2015.
 
We consider that the company has a solid and diversified property portfolio and consider that residential property market conditions in Western Australia, Victoria and Queensland should fundamentally support the market. We believe that the company is going to continue to perform well in the future and recommend a buy for the stock at the current price of $4.09
 

 
 
 

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