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%.

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The Income available from dividends remains attractive for many investors.

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