2 Long Term Dividend Players – MFG, WAM

  • Oct 18, 2018 AEDT
  • Team Kalkine
2 Long Term Dividend Players – MFG, WAM

Dividend investors are definitely aware of the dividend yield as it is a statistical measure for calculating a stock or a bond’s yield. It can be found in the financial information of many websites and can be easily calculated by the investors themselves. Here we will talk about two of the long-term dividend players.

Magellan Financial Group Limited (ASX: MFG) – Compared to $74,612 million in the month ended 31 August 2018, MFG posted total Funds Under Management of $74,545 million at the end of September 2018. The company has a net inflow of $86 million in September 2018, as per the reports. By around -$67 million, FUM decreased on month-on-month (M-o-M) basis, driven by market movements or performance. The company has a price-to-book value ratio of 8.01x, and while comparing with the industry standard at 2.89x looks to be on a higher side and represent overvalued stock. Further, the company has a P/E ratio of 22.300x and EPS of 1.220 AUD. It has reported a return on invested capital (ROIC) of 39.8 percent return on equity (ROE) of 39.7 percent and has current ratio 5.51 in FY18. Because of positive results, the annual dividend yield of the stock is 4.94%, with interim and final total dividends of 119.6 cents per share for the year. The stock had a fall of -0.147% as at October 18, 2018, to trade at a market price of $27.160. Since last one year the stock has seen a performance change of 6.25%. 

Dividend players

MFG and WAM Dividend per share for past 5 years; Source: Thomson Reuters.

WAM CAPITAL LIMITED (ASX: WAM) – The company has recently extended its Offer Period until 21st October 2018 to WDE Shareholders by one more week. Purchased at a discount to the pre-tax NTA, WAM Capital shareholders are expected to benefit from realising all or part of WAM’s 16.27% holding of Wealth Defender shares. WAM stock is trading at a reasonable P/E of 12.690x and the earnings per share (EPS) is of 0.193 AUD. The long-term profile reflects decent portfolio returns and high dividend yield 6.33% with the most recent dividend to be declared of 7.75c which has dividend ex-date of November 16, 2018 and dividend pay date of November 26, 2018. WAM capital’s investment portfolio rose 0.1% in September 2018. The P/E of the stock is at 12.690x and the earnings per share (EPS) is 0.193 AUD reflecting a promising result ahead compared to the peer basket. The stock had a rise of 0.816% as at October 18, 2018, to trade at a market price of $2.470 which is near its 52-week high. Since last one year the stock has seen a performance change of -0.80%.

Dividend Stocks To Buy

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.


Disclaimer

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.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK