CTN has a dividend policy of paying out 6% of their nta as at...

CTN has a dividend policy of paying out 6% of their nta as at the 30th June each year.

This year CTN dividend is 3.2C + 4.0c = 7.2c

The last reported nta was $1.713 per share.

This means that based on 6% of $1.713, next years dividend calculation is 10.278c per share, a rise of 42.75%.

If the nta increases between now & 30th June the dividend will be even higher.

It is little wonder the share price has risen but on the above calculations with the current share price of $1.355 this works out to be a yield of 7.585% fully franked for next year's dividends if the nta remains unchanged between now & 30th June.

Based on the above calculations the stock still appears to be undervalued.