The main negative is that it looks like FY2018 will, most likely, be flat in terms of EPS and DPS and we will have to wait until FY2019 before seeing a return to growth.
The other negative is that, once again, "one off" items are appearing in the results. It is becoming the norm for AHG to have material one off items in its results. In their most recent research report CS has pointed out that over the last few years AHG has racked up about $70 million in "one off" P+L items.
On a more positive note, there appears to be a clear intention to maintain dividends at the current level and there has been clear progress in the logistics businesses.
With a trailing dividend yield of around 5.7% fully imputed I am happy to hold this for income. I topped up when the share price was closer to $3 and am already overweight but would consider adding further to my shareholding at some point.
As an aside, in addition to the yield, one of the things I like about AHG is that it provides some diversification from the usual finance/property/resources heavy portfolios.
AHG Price at posting:
$3.31 Sentiment: Buy Disclosure: Held
