high dividend yield, page-11

In terms of the likelyhood of any divi for EHL last nights(18/2/09) ABC Business Lateline gave a bit of an insight of what some might possibly expect.

i'm a bit more pessimistic thinking that EHL might go with
a half to 1cent divi in light of the downturn in mining activity, a zero divi would go down like a bag of spuds !

good luck if u hold.


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The big feature has been dividends, without a doubt. Companies have been well and truly prepared to cut dividends either in line with earnings per share growth declines, or even in the case of other companies, such as Perpetual today, have cut even further.

This goes... a positive towards improving balance sheet and probably very prudent moves by management. But it's worth noting that growth in dividends is down 30 per cent this reporting season.

But it does start to set us up for a slightly better outlook going towards the second half of this year. I thought it was also worth noting that sales numbers actually pretty solid.

In fact, we're seeing sales growth. What we aren't seeing is that being translated into profits. Margins are being well and truly under pressure, and that's both a combination of either weaker prices or companies being forced to offer more for the same price.

So margins are well and truly under pressure in this reporting season. It's also worth noting, I suppose, going forward most strategists, in particular our Tanya Branwhite, is forecasting a total shareholder return of about 25 per cent.

But that's really going to come through to news the market at the second half of this year.

ALI MOORE: That's the second half of the year and you're saying the dividend cuts sets us up well, but more broadly what do you think the outlook is for the rest of the year? Is 25 per cent actually looking optimistic?

MARTIN LAKOS: Well, that 25 per cent is made up of dividends of around about four and a half to 5 per cent across the broad market and a capital growth or capital return.

So what it is saying is that although we're taking some very harsh pain now, there is a recovery on the way in analysts perspective anyway, of a recovery in earnings.

And that's because the company's doing the hard work now; on their balance sheets, on their dividends, restructuring, getting costs down.

So the outlook is a little more positive. So, we're heading towards potentially 4,500 index points on the ASX 200 by calendar year end.

ALI MOORE: Well, we'll take positive any day. Martin Lakos thanks for joining us.

MARTIN LAKOS: A pleasure as always.