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Challenger Limited (ASX:CGF)
Challenger Limited (ASX:CGF) is a name known for investment management, with services provided to clients to enable financial security for retirement. The company has $79 billion in assets under the Funds management division. It operates through a fiduciary Funds Management division.
The objective of the Board of Directors is to maintain a dividend pay-out ratio in between 45% and 50% of normalised NPAT and subject it to prevailing market conditions, and capital allocation priorities. The pay-out ratio for the year ended 30 June 2018 was 52.1%. The company tries to frank its dividend to the maximum possible extent. The expectation of the company over the medium-term dividend is to be fully franked.
The DRP participation rate as mentioned by the company stood at 4% for the final dividends in 2017. The rate of participation for the interim dividend in 2018 was however 3%, and 272,955 ordinary shares were issued to satisfy dividend reinvestment plan requirements, on 27 March 2018.
The dividend reinvestment plan will be applicable to the 2018 final dividend as well. The Board of the company will issue new shares, which will fulfil the dividend reinvestment plan requirements in terms of the final dividend by the company. However, Challenger will not issue any new shares at a discount than the prevailing market price.
The dividends per share grew at a CAGR of ~15.47% over the past 5 years starting from 2014. However, the total dividend grew at a CAGR of ~12.80% over the same period. With the past dividend payment track record of the company along with future guidance, we believe CGF to be a good choice in the portfolio for decent dividend income over the long run.
Meanwhile, the share price of the company has risen 2.01% in the past one month (as at March 08, 2019) and is trading dividend yield of 4.37%. CSRâs shares last traded at A$8.120 (as on 8 March 2019) and has a market capitalization of ~A$5.09 billion.
National Storage REIT (ASX:NSR)
National Storage REIT (ASX:NSR) Â is a real estate sector entity, and it operates and manages self-storage centres. The company is managed internally, and it is an integrated owner, and operator of approximately 105 self-storage centres under management or operations. Across Australia and New Zealand, it provides solutions to more than 35,000 customers.
On the dividend front, NSR has paid or declared distributions totalling 9.6 cents per stapled security for the Reporting Period 2018, comprising a final distribution of 4.9 cents per stapled security for the 6 months to 30 June 2018.
On the operating results front, the company reported total revenue increased by 14% to $76.1million for the half-year ended 31 December 2018, compared to $66.5 million 31 December 2017, driven by strong storage revenue growth achieved via an increase in centre occupancy, and acquisition of additional centres.
The stock of National Storage last traded at A$1.770 with a market capitalisation of $1.19 billion. The stock has generated a return of 0.28% in the YTD. It has a 52-week high price of A$1.907 and a 52-week low price of A$1.489. It is trading at a PE multiple of 92.67x.
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