KAM Dividend Details
 
Outstanding dividend yield: K2 Asset Management Holdings Ltd (ASX: KAM) delivered weak financial results for the half-year ended December 31, 2015 with revenues falling 52.61% from about $16.39 million during the corresponding period last year to about $7.77 million. Even the funds under the management of the company mostly had a negative performance wherein K2 Australian Absolute Return Fund fell by 4.26% while K2 Select International Absolute Return Fund declined 3.10%. K2 Asian Absolute Return Fund performance fell even more by 13.42%.
 

K2 Asset Management Holdings February 2016 performance (Source: Company Reports)
 
However, the group’s Global High Alpha Fund increased by 2.82% while Australian Small Cap Fund performance surged by 10.89% during the month, despite tough market conditions. Moreover, heavy correction in KAM stock which fell by 33.82% in the last three months (as of March 14, 2016) placed the stock at very cheaper price to earnings ratio (P/E). KAM also has an outstanding dividend yield of 12.2% and we place a “Speculative Buy” on the stock at the current price of  $0.45
 
 
KAM Daily Chart (Source: Thomson Reuters)
 

SKI Dividend Details
 
Strong Victoria Power Networks performance: Spark Infrastructure Group (ASX: SKI) delivered mixed results for fiscal year of 2015 with underlying profit before loan note interest and tax decreasing by about 3.4% to $262.8 million compared to previous year. The lower profits can be mainly attributed to the lower share of profits from SA Power Networks (SAPN) since it was operating as per the revenue allowance in its preliminary determination as opposed to the significantly higher final determination. But, this would help the company recover the deficit over the coming years. Moreover, the Victoria Power Networks (VPN) delivered a strong year-on-year growth in earnings before interest, taxes, depreciation and amortization (EBITDA) of 11.4%.
 

Spark performance for FY15 (Source: Company Reports)
 
The company also announced a final distribution of 6 cents per share (CPS), in line with the previous guidance of 12 cps for 2015. Spark Infrastructure reconfirmed distribution guidance of at least 12.5 cps for 2016, 13 cps for 2017, and at least 13.5 cps for 2018. Given the above and a strong annual dividend yield, we recommend investors to “Hold” the stock at the current price level of  $2.01
 
 
SKI Daily Chart (Source: Thomson Reuters)
 

IOF Dividend Details
 
Increase in the Fund’s investment properties value: Investa Office Fund (ASX: IOF) got judicial advice from Supreme Court of New South Wales that ordered to consider and vote on the proposal from DEXUS Property Group (DEXUS). Dexus earlier made a proposal to acquire all of the units in IOF. Meanwhile, for half year ended December 31, 2015, IOF reported a statutory net profit rise of 182% to $280.8 million as compared to $99.5 million. This was largely due to increases in the fair value of the Fund’s investment properties. But, the funds from operations (FFO) increased by only about 3% to $90 million, or 14.7 cents per unit. The company’s income is mainly a result of income returns with fixed rental increases and a focus on leasing. Due to higher than expected leasing revenues, especially in Brisbane, the FFO guidance has been upgraded from 28.1 cents to 28.4 cents per unit.
 

Proposed Merger portfolio metrics highlights (Source: Company Reports)
 
IOF surged by 5.34% (as of March 14, 2016) in the last four weeks placing them at higher levels and hence we give an “Expensive” recommendation to the stock at the current price of  $4.17
 
 
IOF Daily Chart (Source: Thomson Reuters)
 

SKC Dividend Details
 
Delivered results on track with expectations: Skycity Entertainment Group Ltd (ASX: SKC) reported that its normalized revenue increased by 10.2% from $510 million to $562 million for the six month period ended 31 December 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 15.4% to $178.2 million while the net profit after tax (NPAT) was up a significant 28.2% to $85.4 million. All these were at the upper end of the guidance given by the company lately. SKC witnessed strong growth in Auckland due to flourishing tourism and travel business, improved performance in Adelaide, sustained revenue and EBITDA growth in Hamilton and turnover of $7.2 billion in International Business. The company also declared interim dividends of 10.5 cents per share, up by 5%, a pay-out of 73% of normalized NPAT, which is slightly less than the 80% policy target. However, SKC is currently trading at expensive valuations with a higher price to earnings ratio (P/E), and hence we give an “Expensive” recommendation at the current price of  $4.18
 
 
SKC Daily Chart (Source: Thomson Reuters)
 

BRG Dividend Details
 
Solid North American segment performance: Breville Group Ltd (ASX: BRG) stock surged by 33.05% (as of March 14, 2016) in the last four weeks as the company generated revenue growth at the rate of 12.7% from $293.9 million to $331.2 million for the half year ended December 31, 2015.
 

Segment performance (Source: Company Reports)
 
The earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 7.4% to $50.7 million. The company’s North American segment performed well, delivering 10.9% growth. Except UK business, the rest of the world distribution business revenues were severely impacted by the effects of strengthening USD. Considering the strong and competitive product portfolio of the company and the growth prospects, we recommend a “Hold” on this stock at the current price of $7.59
 
 
BRG Daily Chart (Source: Thomson Reuters)
 

BSL Dividend Details
 
Improved bottom line to offset the falling commodity prices pressure: BlueScope Steel Ltd.’s (ASX: BSL) revenue increased only 2% to $4.438 billion for first half of 2016 but the underlying earnings before interest, taxes, depreciation and amortization (EBITDA) surged by 25% yoy to $417.8 million, due to ongoing efforts by the group to control its operating costs while enhance productivity.
 

First half of 2016 performance (Source: Company reports)
 
Consequently, the underlying net profit after tax (NPAT) was at $119 million, a 47% increase mainly due to lower costs and favourable impact of a weaker AUD versus USD. BSL expects the second half 2016 EBIT to be 60% higher than last year corresponding period despite challenging macroeconomic conditions due to cost reductions and process improvements. BSL surged over 16.60% in the last four weeks (as at March 14, 2016) and we give a “Hold” at the current price of  $5.91
 
 
BSL Daily Chart (Source: Thomson Reuters)
 

AST (SPN) Dividend Details
 
Higher valuations: AusNet Services Ltd (ASX: AST) issued USD 375 million hybrid offer to raise about Australian $500 million for refinancing existing debt and to fund capital expenditure. The company has entered into a binding asset sale agreement with Origin Energy to acquire its Mortlake Terminal Station for A$110 million. AST delivered a revenue of $1068.9 million, an increase of 10% during half year ended on September 2015 while Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) reached $650.4 million, a growth of 22.9%. However, investors need to note that the group’s bottom line profit was partly because of a one-off tax benefit of $159.6 million. Moreover, while the revenues for electricity distribution business and gas distribution business grew at 18.5% and 11.4%, respectively, the electricity transmission business which contributed to revenue of $335.1 million, grew by just 1.3%. The stock surged over 11.07% (as of March 14, 2016) in the last six months placing AST at higher levels. We believe that the stock is “Expensive” at the current price of $1.445
 
 
AST Daily Chart (Source: Thomson Reuters)

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