Washington H. Soul Pattinson & Company Limited (ASX: SOL)- NPAT Squeezed But Dividend Climbed Up

  • Sep 20, 2018 AEST
  • Team Kalkine
Washington H. Soul Pattinson & Company Limited (ASX: SOL)- NPAT Squeezed But Dividend Climbed Up

Washington H. Soul Pattinson drifter lower on ASX after the company’s net profit after tax (NPAT) dwindled to $266.8 million for the fiscal year 2018. It represents a decline of 20% on prior year, driven by the headwinds from non-regular losses of $64.3 million which had mainly come from New Hope’s impairment of an undeveloped exploration project in Queensland.

At the year end, the Sydney-based investment house may have little profit left for its shareholders, but it has definitely shown a record breaking improvement in its continuing operations with highest ever regular profit of $331.143 million, reflecting an improvement of 17.4% over the $282.0 million for 2017. The net increase in the regular profit is primarily attributable to considerate increase in investments portfolio including notable contribution from New Hope Corporation Limited up 75%, APEX Healthcare Berhad up 34%, Financial Services Portfolio up 19% and Brickworks Limited up 8%.

The diversified portfolio of investment house includes highest investment of $1,350 million in TPG Telecom followed by $1,326 million in New Hope Corporation, $1,023 million in Brickworks, and under $500 million in Financial services portfolio, API, 100% owned Round Oak Minerals, Apex, and TPI Enterprises.

During the fiscal year 2018, TPG Telecom has contributed $100.0 million to WHSP profit while New Hope corporation Limited and Brickworks Limited contributed $81.5 million and $40.5 million, respectively.  WHSP’s pre tax net asset value has gone up by $972 million or 21.8% to $5,439 million as at 31 July 2018.

The Board of Directors have declared final dividend of 33 cents per share, fully franked, which takes full year FY18 dividend to 56 cents per share. This reflects an increase of 3.7% on the previous year. The company also notified that final dividend will be payable on 10 December 2018 to shareholders on register on 19 November 2018.  

In one-month movement from July to August, the investment company WHSP has witnessed 19.8% improvement in its Net Asset Value (pre-tax) compared to $5,439 million at 31 July 2018. The highest increase has been seen of $675 million in TPG Telecom.

Ahead of lower profit attributable to members, SOL share price plunged 5.38% to $24.280 on 20 September 2018 (2:35 PM AEST). The stock has seen a performance change of +50.94% over the past one year while currently it has been trading at PE of 18.570 x with market capitalization of $6.14 billion.

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