Consider this for a moment. AVJ have promised to pay out 40-50%...

Consider this for a moment. AVJ have promised to pay out 40-50% NPAT.

In F15 they paid out dividends of 4c (1c & 3c) based on NPAT of $34.4m (H1 $11.87m & H2 $22M). Each 1c of dividend payment represents $3.844m in value. Therefore they paid out $15.37m / $34.4m of NPAT = approx 45% payout of dividends.

In F16 H1 NPAT was $16.5m. If profit is weighed toward H2 again - and AVJ have indicated this is so, let's assume it is similar to FY15. Therefore we would expect H2 profit of approx $31m. Full FY NPAT of approx $47.5m.

So, 40-50% of $47.5m = $19m-$23.75m.
With each 1c dividend representing value of $3.844m, we would expect full year dividend payment between 4.94c & 6.17c.

We had an interim dividend of 1.5c, therefore the full year (fully franked) dividend should be between 3.44c and 4.67c. Based on last years 45% of NPAT payout, the final dividend would be close to 4c.

4c / share price of 59c = 6.8% return (FF) on final dividend alone! That's almost 10% with the franking credit for a half year.

BUY on all metrics.