Ann: Preliminary Profit Advice - Half Year Ended 31 December 2016, page-28

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MarsC

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21/01/17

12:46

Post #: 22048082
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Originally posted by travelightor ↑

I always love the first week of February. Why? Because this is when ASW pays its HY dividend. As the first company in my portfolio to pay its dividend, I hope that it will give a good precedent to the rests by paying a higher dividend.

ASW is a peculiar little business. It usually releases a statement on its preliminary profit before tax figure just before the financial period closes, i.e. December for HY and June for FY.

It then declares the dividend before the financial report is even released. Not only that, it actually pays the dividend approximately one week after the announcment and before the report is even released.

Based on this tradition, I expect ASW to declare its HY dividend in this coming week, between 23/01/2017 - 30/01/2017 and for the dividend to be paid on 06/02/2017 - 10/02/2017.

As for the amount of the dividend, assuming that ASW will continue to pay 100% of NPAT as dividend, then HY2017 dividend should be at least the same as last year, $0.02 and there is a small possibility of increasing by 10% to $0.02 or $0.025 (same as last year's FY dividend).

The share price usually rise in this period before the ex date. I guess the main reason for this is there are a few investors who like to chase its yield. By buying now, we can receive 3 dividend payments in the space of approximately one year. I will admit now that I had done this several times in the past, but this time I won't buy again.

Assuming no increase in dividends, then if we buy now at the latest record price of $0.83, our 12 month yield (ignoring price increase/decrease) is 0.065 / 0.83 = 7.83% fully franked or 11.19% grossed up.

0.065 is derived by summing 0.02 + 0.025 + 0.02.

Inevitably, after the ex date, ASW usually goes back to its slumber and drifts lower and lower.

This year, with the new interests in ASW shown by a few posters, might be different. It might not go back to its slumber, instead it might stay active around this level. This is more likely to happen if the recent hiring spree is indeed followed with increased sales activity and ASW is able to report higher sales figures in the coming periods.

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Here's hoping for maximum earnings dussapointment (though this will be more probable after guidance to the full year results is released).

ASW Price at posting: 83.0¢ Sentiment: Hold Disclosure: Not Held
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Ann: Preliminary Profit Advice - Half Year Ended 31 December 2016, page-28

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Nanocap Si6 Metals to kick off drilling at Monument gold project WA, chasing past hits

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