"I'll go as far as to say that not only am I 100% certain a final FY14 dividend will be declared, but my modelling suggests that it will be in excess of 20cps, with a good chance that it will equal the interim dividend of 26cps."
Well, they declared a dividend somewhat different to 26cps.
(Shows how little I know...)
Having dissected the result, I have to say that it's quality is impeccable, and there are some leading indicators and proxy clues within it that portend well for the current financial year, as well.
From an quality point of view, this result was pristine and the accounts are very conservatively struck, with a number of items taken above the line, meaning the second-half result is - in the opinion of this amateur forensic accountant - understated by at least 20% (and possibly closer to 30%, in reality).
Some years back, I used to wonder how this sort of business could possible create the sort of wealth that this company has for its shareholders. I have long since ceased worrying about it.
Over the past decade, it has paid out over $4.50 in dividends, not even skipping a beat during the GFC (and the fact that it paid a massive $1.00 special after the mining boom collapse, when the mining sector is such a big customer segment, is remarkable (sure, the DRP was underwritten, but still...)
And yet the balance sheet has always remained in a net cash position.
In a stock market with around 2,500 listed companies, there are only around 100 or so that are capable of creating intrinsic value for shareholders over time, in my opinion, and KOV is one of them.
At first glance, KOV is an unlikely candidate for that exclusive club, but like I say, a remarkable track record, with little sign of it being broken.
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