TELSTRA CORPORATION LIMITED (ASX: TLS) – The results are in line with guidance and the company shows strong subscriber growth in both fixed and mobile, despite the challenges in the market in FY18. A fully franked final dividend of 11 cents per share was announced by the company bringing the total dividend for the financial year to 22 cents per share. Total Income grew by 3.0 per cent for the period ending June 30, 2018. On a reported basis, total income increased by three per cent to $29 billion given the 5G strategy being implemented. However, Net Profit after Tax reduced by 8.9 per cent and Earnings Before Interest, Tax, Depreciation and Amortization went down by 5.2 percent. Upside on the stock now leads on cost reductions and benefits from Telstra2022 strategy while FY19 will be another year of competition. With a daily price change of $0.090 and a percentage change of 2.866% as at August 30, 2018, the stock was trading at a market price of $3.230.
BORAL LIMITED (ASX: BLD) – The company reported a 41% increase on FY2017 in terms of net profit after tax of $441 million. It has also announced that the company expects to increase US division EBITDA by more than 20% in FY 2019. The company’s revenue was up by 40% to $2,937 million for the half year ended 31 December 2017 i.e. H1 FY18. Based on solid performance, the board of directors declared a final dividend of 14 cents per share which is 50% franked. This represents 66% of dividend payout ratio which is in-line with the group’s dividend policy of between 50% to 70% of earnings before significant items, subject to the company’s financial position. With a daily price change of $0.280 and a percentage change of 3.96% as at August 30, 2018, the stock was trading at a market price of $7.350.
NEXTDC LIMITED (ASX: NXT) – As at 31 May 2018 the unaudited net cash position is of A$123.8 million. Its fully year revenue guidance increased from $146 million – A$154 million to A$152 million – A$158 million for FY18. Lately, the group completed an upsized debt issuance of Notes IV of about $300 Mn in both fixed and floating rate tranche repayable in June 2022 which matches the existing $300 Mn Notes III series due one year earlier. This exhibits the company’s growth strategy and provides NEXTDC with further flexibility in funding growth opportunity. On the financial front, net margin increased by 520 bps to 10.9% in 1HFY18 compared to the previous six months. Due to which return on equity grew by 90 bps to 1.6% in 1HFY18, against the value of 0.7% in 2HFY17. The stock was trading at a market price of $7.360. In the last 12 months, the stock has undergone a performance change of a 19.57%. It is a mid-cap company with the market capitalization of circa $2.41 Bn as of August 30, 2018.
Table: Market Capitalization
|Serial Number||Company Name||ASX Code||Market Capitalization|
|1.||TELSTRA CORPORATION LIMITED||TLS||$ 37.34 bn|
|2.||BORAL LIMITED||BLD||$ 8.29 bn|
|3.||NEXTDC LIMITED||NXT||$ 2.41 bn|
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.