A Look at ASX listed Dividend stocks- GOZ, SOL, PFP

  • Feb 18, 2020 AEDT
  • Team Kalkine
A Look at ASX listed Dividend stocks- GOZ, SOL, PFP

The entities paying out frequent dividend encompasses such stocks. A dividend is an investor’s share in the company’s earnings. Dividends can be paid out in cash, as shares of the stock or other property. It is basically a token reward paid out to the shareholders for their investment in the equity of an entity. Dividends can be distributed on monthly or quarterly or even on yearly basis.

Let us now have a look at the three ASX listed dividend stocks and their recent updates.

Growthpoint Properties Australia (ASX: GOZ)

Reaffirmed 2020 funds from operations & distribution guidance:

Growthpoint Properties Australia (ASX: GOZ), listed on the Johannesburg Stock Exchange, along with ASX is a REIT company, that is into the investment of quality property like office, retail, solar and other energy efficient projects and industrial areas in Australia.

For fiscal 2020, the company has reaffirmed the forecasts, projects funds from operations to be ‘at least’ 25.4 cps and expects the distribution to be of 23.8 cps, which reflects a 3.5% increase on FY19. The full year 2020 distribution guidance includes the distribution of 11.8 cps for the first half 2020.  

On the other hand, GOZ had signed a new lease with the New South Wales Police Force (NSWPF) for 25 years starting from 1 January 2020. This new lease will now replace the current lease that was going to expire in May 2024. The NSWPF are GOZ’a largest single tenant and the company gets about 8% of the income from their lease. NSWPF occupy 32,356 square metres of A-grade office space and 444 car spaces at the Curtis Cheng Centre, NSW, which is their headquarters. NSWPF according to the new lease agreement will pay GOZ approximately $21.1 million (excluding GST) as the annual rent and this rental income will continue to increase by 3.5% per annum.

Under the new lease agreement, GOZ has signed an agreement Refurbishment Works Deed with NSWPF, and so will fund $44 million of works for enhancement of the NSWPF headquarters. NSWPF intends to undertake this project in the next few years.

On 18 February 2020, GOZ was trading at $4.380, rising up by 0.69 percent (at AEDT 2:11 PM). Meanwhile GOZ stock has risen 1.40% in three months as on February 17th, 2020 and has an annual dividend yield of 5.38%.  Also, the company will pay 11.80 cent on February 28th, 2020.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Dividend grown a compound annual growth rate of 12.3% since 2000:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), a company that invests into assets of multiple industries across different sectors, properties, loans, cash and term deposits. As a result, the company has investments in coal, oil and gas activities, zinc, copper and gold mining activities, telecommunications and Internet services, financial services, building products Australia & North America etc.

The company in FY 19 has reported 7.1% decline in the net profit after tax (NPAT) of $247.9 million & 7.2% decline in the regular profit after tax to $307.3 million. The company has generated 18.1% increase in the net regular cash from operations to $169.6 million in FY 19.

Moreover, there has been 22.9% increase in the regular profit contribution by Brickworks to $54.7 million on the back of strong performance from property activities, 63.3% increase from income from investments (loans and equity portfolios), driven by stronger dividend and interest income, 157.7% increase from the Property Portfolio to $11 million after the completion and sale of projects and 28.2% increase from the Financial Services Portfolio to $23.5 million driven by increase in dividend income.

However, the company’s regular profit in FY 19 was affected by 12.8% decline from TPG Telecom on the back of contraction in margin from the NBN rollout and a rise in regular after-tax loss from Round Oak Minerals to $54.1 million. The company had paid the 2019 final dividend of 34 cents on December 9, 2019, which reflects an increase on 3% from FY 18. The company in FY 19 has paid the total dividend of 58 cents per share, which reflects an increase of 3.6% on FY 18.

The company raises both its interim and final dividend every year since the year 2000. Only two companies in the ASX All Ordinaries Index have been able to achieve this. The company had paid the final dividend in 2000 of 6 cents, which has grown a compound annual growth rate of 12.3% to 34 cents. Further, SOL from 15 years has given the Total Shareholder Return of 11.6% per annum, which is more than the return given by All Ordinaries Accumulation Index of only 9.0%.

 

FY 19 Financial Performance (Source: Company’s Report)

 

On 18 February 2020, SOL was trading at $22.68, falling by 0.264 percent (at AEDT 2:17 PM). Therefore, SOL stock has risen 2.52% in three months as on February 17th, 2020 and has an annual dividend yield of 2.55%.

 Propel Funeral Partners Ltd (ASX: PFP)

 Strong Financial Performance in First Quarter 2020:

 Propel Funeral Partners Ltd (ASX: PFP), Australia’s second largest company that offer death care services, is managed by Propel Investments Pty Limited.

The company has expanded their senior debt facilities with Westpac Banking Corporation by $50 million to $150 million, has extended the maturity profile of the debt and changed a key covenant limit. The company has senior debt balance of approximately $66 million.

The Company has already signed an agreement to acquire the Dils Group, for which the company requires about $20 million of cash on completion of the acquisition, which has been projected to happen in the third quarter of FY20. After the expansion of the senior debt facilities to $150 million, Propel will able to go ahead with the acquisition and will have available funding capacity of approximately $70 million.

Moreover, for the first quarter 2020, the company has reported 19% growth in the revenue to $28.9 million & 38.3% increase in the operating EBITDA to $8.9 million. The company in 1Q 2020 has posted growth in Average Revenue Per Funeral on FY19 & was within the target range of 2% to 4%. The company has paid total dividends for the year 2019 of 11.5 cents per share, which is fully franked and represents the payout ratio of 78%.

 

1Q FY 20 Financial Performance (Source: Company’s Report)

 

On 18 February 2020, SOL was trading at $22.715, falling by 0.11 percent (at AEDT 2:28 PM). Meanwhile PFP stock has risen 2.52% in three months as on February 17th, 2020 and had paid 5.8 cents on October 4, 2019.


Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice. 

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  Top Dividend Stocks to Consider in 2020

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