While the financial sector was by and large hit by Royal Commission, nevertheless few small-cap stocks have been up and running with resilient performances and are key to watch going forward. 2 examples of such stocks are dealt with in this article.
Kina Securities Limited (ASX:KSL) is under the financial sector with a market capitalization of $154.15 million and dividend yield of 5.48%. The stock of Kina was trading at a market price of $0.940 (as at market open on August 08, 2018) and has seen a daily price change of $0.010 and 1.075% in terms of percentage a day before. The stock has seen a performance change of 20.5% over the past 6 months. The financial company is set to acquire ANZ’s commercial and retail SME banking business in PNG and this acquisition significantly increases Kina Bank’s lending market share to 8.8% from 5.8% and Kina Bank’s deposit market share to 9.9% from 4.8%. Kina anticipates it will be fully funded through existing cash and capital reserves, and total capital expenditure required will be approximately AUD 11.1m over the next 12 months. The stock is trading near its 52-week high. Meanwhile, Director, Greg Pawson has acquired 402, 685 shares in the group recently and has enhanced respective stake. On the other hand, Fu Shan sold 100% of its holding in Kina.
CML Group Limited (ASX:CGR) is another small-cap group with a market cap of $114.59 million under the support services sector with financial services being offered. The stock of CML was trading at a market price of $0.570 (as at market open on August 08, 2018) and has seen a daily price change of -$0.010 and 1.724% in terms of percentage as at August 07, 2018. The stock has seen a performance change of 34.12% over the past 6 months. CML Group aims to advise that as at June 30, 2018, it was compliant with all financial covenants contained within the Memorandums, in accordance with the Corporate Bond Issue Information Memorandums released to the ASX on 18 May 2015. CML had a trade finance loan book funded by Corporate Bonds of over $45.9m at the end of June 2018, of which it had supplied actual funding of $27.9m which represents a loan to value ratio of 60.9%. The purpose of this release is to confirm compliance with Corporate Bond covenants and should not be relied upon as an indicator of business volume or overall performance, which is now a small component of CML’s funding pool. The group now expects to have its FY18 EBITDA to be over $17 million based on growth in cashflow finance division, integration of Thorn Debtor and lucrative result from Equipment finance division.
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.
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.